Renewal Premium Check Cashed After Expiry of First Policy Did Not Reinstate Prior Policy, But Formed New One

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Hartland v. Progressive County Mutual Insurance CompanyUT

( Ct. App. Texas, April 23, 2009)

The policyholder sent a renewal premium check after the policy expired.  The insurer accepted the check, and issued a revised renewal declarations page listing the date the check was received as the inception date of the renewed polcy. The policyholder argued that the acceptance of the check formed a contract under the terms of the original renewal policy, and coverage was uninterrupted.  Rejecting that argument, the court held that when the prior policy expired, no policy was in existence, and the premium was for a completely new policy.


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By Bryan D. Richmond and Toni L. Frain