NOT FINAL VERSION OF OPINION
Subsequent Changes at 27 Fla. L. Weekly D2212a
27 Fla. L. Weekly D1659a
Insurance — Automobile — Cancellation of policy — Notice of cancellation given by premium finance company was not effective prior to accident, even though company had notified insured that policy would be cancelled on a date earlier than the date on which accident occurred, where insurer did not receive notice of cancellation until after the accident occurred — Insurer’s argument that, because insured had already been notified by premium finance company that policy would be canceled on a specified date, the cancellation became effective on that date even though insurer did not receive notice of cancellation until subsequent date is contrary to section 627.848
SOUTHERN GROUP INDEMNITY, INC., Appellant, v. ROBERT CULLEN, JOANN CULLEN, CHERYL CULLEN, CARL PICERNO, BRENDA PICERNO, GIBRALTAR BUDGET PLAN, INC, and NORTHLAKE AUTO INSURANCE AGENCY, Appellees. 4th District. Case Nos. 4D01-1833, 4D01-2493, 4D01-3841, 4D01-4838, 4D01-4840. Opinion filed July 17, 2002. Consolidated appeals from the Circuit Court for the Fifteenth Judicial Circuit, Palm Beach County; Elizabeth T. Maass, Thomas H. Barkdull, III, Edward H. Fine, Judges; L.T. Case Nos. CL 96-8229 AI and CL 96-6068-AJ. Counsel: Doreen E. Lasch of the Law Offices of Roland Gomez, Miami Lakes, for appellant. John T. Mulhall, III and George M. Bakalar of Rutherford, Mulhall & Wargo, P.A., Boca Raton, for appellees Carl Picerno and Brenda Picerno. Lloyd J. Heilbrunn of the Law Office of Lloyd J. Heilbrunn, Palm Beach Gardens, for appellees Robert Cullen, Joann Cullen and Cheryl Cullen. Keith J. Lambdin of Lambdin & Rosser, P.A., Plantation, for appellee Northlake Auto Insurance Agency.
(KLEIN, J.) This appeal presents the issue of whether a notice of cancellation of automobile insurance which is given by the premium finance company is effective. We conclude that cancellation was not effective prior to an accident and affirm.
The insurer was Southern Group Indemnity, and the premiums were financed by Gibraltar Budget Plan, Inc. About two months before the accident the policy was renewed and the insured agreed to make nine monthly premium payments starting on December 5, 1994. As part of the financing agreement the insured gave Gibraltar a power of attorney to cancel the policy for non-payment.
When the insured failed to make the first payment due December 5, 1994, Gibraltar sent the insured a notice of intent to cancel the policy in ten days. On December 22, no payment having been made, Gibraltar sent a notice of cancellation to the insured stating that the policy would be canceled on January 5, 1995. This notice was not sent to the insurer.
On January 5, 1995, Gibraltar sent the insurer a request for policy cancellation as of January 5. That notice was received by the insurer on January 9, but the accident occurred on January 6.
Cancellation of a policy by a premium finance company is governed by section 627.848, Florida Statutes (1995). The statute provides that the insured must be given ten days notice after which the premium finance company shall mail a request for cancellation to the insurer. The statute further provides that “upon receipt of a copy of the cancellation notice by the insurer or insurers, the insurance contract shall be canceled with the same force and effect as if the notice of cancellation had been submitted by the insured himself.” § 627.848(1)(c). The statute also provides that “the insurer . . . shall determine and calculate the effective date of cancellation from the day it receives the copy of the notice of cancellation from the premium finance company.” § 627.848(1)(d).
The insurer’s argument is that, because the insured had already been notified that the policy would be canceled on January 5, the premium finance company, Gibraltar, could make cancellation of the policy effective on January 5, even though the insurer did not receive notice of cancellation until January 9. That interpretation, however, flies in the face of section 627.848, which provides that the insurer shall “calculate the effective date of cancellation from the day it receives the copy of the notice of cancellation from the premium finance company.” Cancellation in this case, accordingly, could not have become effective prior to January 9, when the insurer received the notice of cancellation. We therefore affirm. (POLEN, C.J., and TAYLOR, J., concur.)
