Speir Ins. Agency, Inc. v. Lee
Decision Date | 13 May 1981 |
Docket Number | No. 61260,61260 |
Citation | 281 S.E.2d 279,158 Ga.App. 512 |
Parties | SPEIR INSURANCE AGENCY, INC. v. LEE. |
Court | Georgia Court of Appeals |
Sam Johnson, Forest Park, for appellant.
Jane McKenny Jordan, Neal D. McKenny, Macon, for appellee.
Appellee brought this action against Speir Insurance Agency, Inc. for damages arising out of a binder for automobile insurance. Appellee also alleged bad faith and fraud and sought punitive damages and attorney fees. The trial court heard the case without the intervention of a jury and thereafter entered a judgment in favor of appellee.
On July 10, 1978 Speir executed an insurance binder which provided comprehensive, collision and liability coverage on appellee's 1976 Dodge Van Tradesman. The coverage, for which appellee paid $500, was to be effective from July 5, 1978 to July 5, 1979. The binder named American Reserve as the insurer. By letter dated August 11, 1978 American Reserve notified Speir that the binder had expired as of August 1 "pending receipt of additional information requested from your agency." This letter showed a copy to appellee, but he testified he never received notice of the expiration. See Code Ann. § 56-2430. On September 2, 1978 appellee was involved in a collision while operating the van. His claim for damages to the vehicle, medical expenses and lost wages was denied by Speir since American Reserve had come off the coverage.
The evidence showed that the custom in the insurance trade is for independent agencies such as Speir to issue binders which may or may not be accepted by the nominated insurance company; in the latter instance coverage would be placed by the agency with another insurer. Following American Reserve's notice of expiration, Speir did not procure any other coverage for appellee. Nonetheless, Speir never refunded any portion of appellee's $500 payment.
1. Speir contends that appellee failed to carry his "burden of proof" since he failed to introduce into evidence the insurance policy upon which he relied. However, this is an action for breach of a contract or agreement to procure insurance and not an action arising out of an insurance policy. See Beavers Ins. Agency v. Roland, 135 Ga.App. 263, 217 S.E.2d 484 (1975). Speir also contends that any loss incurred by appellee occurred within the life of the binder and that there was no evidence of fraud.
Appellee did introduce into evidence a copy of the insurance binder issued to him by Speir. Contrary to Speir's assertion, Code Ann. § 56-2420 does not require that such a binder be valid for a full 90 days from its effective date. Whether or not the binder had expired prior to the date of appellee's collision and whether or not Speir had acted in bad faith and committed a fraud on appellee by allowing the binder to expire and not seeking replacement coverage were questions of fact which the trial court resolved in favor of appellee. Notwithstanding some evidence which indicated that Speir might not have received the notice of expiration until October 9, 1978, there was ample evidence to support the trial court's findings of fact in favor of appellee. Unicover, Inc. v. East India Trading Co., 154 Ga.App. 161(2), 267 S.E.2d 786 (1980). Accord, Beitner v. Decatur Fed. Sav. etc. Assn., 222 Ga. 516(1), 150 S.E.2d 687 (1966); Beavers Ins. Agency v. Roland, supra; Bankers Health etc. Ins. Co. v. Plumer, 67 Ga.App. 720(1), 21 S.E.2d 515 (1942). Enumerations of error Nos. 1, 3, 4 and 7 are without merit.
2. In its second enumeration Speir contends that since it was a disclosed agent of American Reserve, it was not subject to liability because its principal was not sued. Indeed, the evidence would authorize a finding that Speir was an independent insurance agent.
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