(Download) "Matter Midwest Mutual Insurance Company" by Supreme Court of New York # Book PDF Kindle ePub Free
eBook details
- Title: Matter Midwest Mutual Insurance Company
- Author : Supreme Court of New York
- Release Date : January 11, 1983
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 66 KB
Description
In a proceeding by Midwest Mutual Insurance Company to stay arbitration demanded under the terms of the uninsured motorist endorsement of the insurance policy it issued to the claimants decedent, State Farm Mutual Insurance Company appeals from a judgment of the Supreme Court, Suffolk County (Orgera, J.), entered September 24, 1982, which, after a hearing, permanently stayed arbitration, upon a finding that the policy issued by State Farm had not been canceled. Judgment reversed, on the law, with costs, and proceeding dismissed. Petitioner is directed to proceed to arbitration. Former subdivision 1 of section 313 of the Vehicle and Traffic Law provided, in part, that "[every] * * * notice of termination for any * * * cause whatsoever sent to the insured shall include in type of which the face shall not be smaller than twelve point a statement that proof of financial security is required to be maintained continuously throughout the registration period and that failure to maintain such proof of financial security requires revocation of the registration of the motor vehicle, unless the registration certificate and number plates of such vehicle have been surrendered to the commissioner prior to the time at which the termination becomes effective" (L 1980, ch 379, § 1). The placement of this financial responsibility notice on the reverse side, rather than the face of appellant State Farm Mutual Insurance Companys notice of cancellation was in compliance with former subdivision 1 of section 313 of the Vehicle and Traffic Law, since a direction on the front to "see important notice on reverse side" was printed in the same size type, 12 point, as the financial responsibility notice (see Matter of Allstate Ins. Co. v Pigford, 88 A.D.2d 810; Wilkerson v Apollon, 81 A.D.2d 141). Nor does the absence of a statement advising the insured that "the policy will terminate on the effective date of cancellation unless on or before such date the premium is paid to the insurer, or to an agent or broker authorized to receive such payment", in compliance with "Circular Letter No. 2" issued by the Superintendent of Insurance Benjamin R. Schenck on November 7, 1974, render State Farms notice of cancellation invalid. Although section 167-a (subd [1], par [d]) of the Insurance Law provides, in part, that "[payment] to the insurer, or to an agent or broker authorized to receive such payment, shall be timely if made within fifteen days after the mailing to the insured of a notice of cancellation for nonpayment of premium", no statutory provision requires the insurer to notify the insured of this 15-day grace period. Moreover, the attempt by the Superintendent of Insurance to impose such a requirement via circular letter No. 2 is not binding on appellant. We are cognizant that the Superintendent of Insurance has power to prescribe regulations to effectuate the powers given to him by law (Insurance Law, § 21) and to interpret, clarify and implement legislative policy provided that his regulations are not inconsistent with some specific statutory provision (Matter of Nassau Ins. Co. [ Epps -- Public Serv. [96 A.D.2d 530 Page 531]