Court reviews breach of contract claim between insurance company and customer

JOHN COOK, JR. v. PERMANENT GENERAL ASSURANCE CORP. (Tenn. Ct. App. April 21, 2010)

This appeal involves the alleged breach of an insurance policy. The plaintiff insured had an automobile insurance policy with the defendant insurance company. The insured paid his insurance premium by check. He subsequently was involved in an automobile accident and notified the insurance company of the accident. The check was later returned for insufficient funds. The insurance company notified the insured that if he did not bring the premium current by a date certain, his insurance policy would be cancelled. The insured gave the insurance company a valid check for the premium, which was negotiated. The insurance company later cancelled the policy, retroactive to a date prior to the insured's automobile accident. The insured sued the insurance company for breach of contract. After a bench trial, the trial court held in favor of the plaintiff insured. The insurance company appeals. We affirm.

Opinion may be found at:
http://www.tba2.org/tba_files/TCA/2010/cookj_042110.pdf