APPELLATE COURT UPHOLDS DISMISSAL OF AN INSURED’S INSURANCE CLAIMS BASED ON A POLICY ENDORSEMENT EVEN THOUGH IT WAS NOT PROVIDED TO THE INSURED IN THE INSURANCE BINDER

On August 4, 2011, the First District Court of Appeals upheld the trial court’s grant of final summary judgment in favor of the Defendant/Appellee Certain Underwriters at Lloyd's, London after finding that the policy at issue contained an endorsement precluding coverage for a fire loss where the insured failed to  install  and  maintain  a  central  fire  alarm  at  the  insured  property.   QB  Investments  v.  Certain Underwriters at Lloyd's, London, 2011 WL 3359683 (Tex.App.—Houston [1st.Dist] 2011). Plaintiff/Appellant, QB Investments, LLC argued that the endorsement was not included in the insurance binder provided to it before the fire occurred and before it received the actual insurance policy.  Citing to Texas case law holding that coverage provided under an insurance binder is based on reference to terms and conditions contained in the standard form policy issued by the insurer at the time the binder is issued, the Court of Appeals found that the protective safeguards fire endorsement was part of the policy when the fire occurred and that Lloyd’s was not liable under the policy unless QB Investments demonstrated that it had complied with the terms of the endorsement.