On Thursday, February 21, Henderson County’s 3rd District Court found that an insured’s failure to pay the full amount of the premium installment due entitled Farmers to cancel the Policy. The court disagreed with defendants’ argument that the notice was ineffective because it contained an offer to continue the policy in force if the insured paid the premium due before the date of cancellation. And the court further found that Farmers effectively cancelled the policy when it mailed an automatically-generated notice of cancellation to the address shown on the policy, despite the insured’s claim that he never saw the notice.

Only days after the cancellation date, the insured - driving while intoxicated - killed one passenger and severely injured others in a single-car accident. Facing multiple claims for the proceeds of the cancelled policy, Farmers retained our firm to pursue a declaratory judgment action on the validity of the cancellation. This is reportedly the first successful defense of a cancellation for nonpayment of premium under an automated monthly installment plan and billing system for Farmers. Farmers was represented by David D. Disiere and Jamie P. Cooper of our firm in Cause No. 2006B-803; Farmers Insurance Exchange v. Christopher Demond Black; in the 3rd Judicial District Court of Henderson County, Texas. Congratulations to Farmers for this significant win.