How Not To Cancel your policy
Equity lets their insureds pay their premiums by the month. In its monthly invoices, it helpfully lets its insureds know that if the premium is not received by a certain date, the policy will be cancelled. St Clair paid for a few months and then quit. Equity believed the policy was cancelled, per the invoice. So, when St. Clair wrecked his car 4 months after he stopped paying premiums, Equity thought there was no coverage. The Oklahoma Supreme Court disagreed. You see, you cannot give notice of cancellation for nonpayment until there actually has been non-payment. Thus, the notice in the monthly invoice was ineffective to cancel the policy.
EQUITY INSURANCE COMPANY v. ST. CLAIR
2008 OK 79
