In Miller v. Scottsdale Ins. Co ., No. 04-11660, 2006 WL 2069196 (11th Cir. July 27, 2006), in answer to a certified question, the Florida Supreme Court said that a Florida statute “contemplates a single cancellation date for the insurance policy as a whole.”

 

The question was certified to the Florida Supreme Court in Miller v. Scottsdale Ins. Co., 410 F.3d 678 (M.D. Fla. 2005). That case also contained the following facts:

 

The Scottsdale Insurance company insured the Cuban Club under commercial property and general liability policies. The Cuban Club financed the premiums through Premium Financing Specialists. The premium financing agreement gave Premium Financing Specialists authority to cancel the policy if the Cuban Club did not pay.

 

The commercial property policy stated that the insurer was required to give the mortgagee, Northside Bank of Tampa, ten days prior notice of cancellation of the policy.

 

The Cuban Club failed to make a payment, and Premium Financing Specialists mailed a notice of cancellation that Scottsdale received on January 9, 2001. Scottsdale did not give Northside notice until January 22, 2001.

 

Meanwhile, Kathleen Miller was injured at the Cuban Club on January 13, 2001. The Cuban Club assigned its rights under the Scottsdale policy to Miller and her husband, who sued Scottsdale. Scottsdale contended its policy was not in effect at the time of the injury.

 

The Millers argued that the policy was in effect because Scottsdale did not give a cancellation notice to Northside until after the injury occurred. The district court, though, said that “although the policy requires Scottsdale to provide written notice to Northside ten days before the effective date of cancellation, 'this notice requirement exists for the exclusive benefit of Northside apart from any duty owed by Scottsdale to the Cuban Club.'” The court said that Northside's later notice of cancellation did not invalidate Premium Financing Specialists' cancellation of the policy.

 

On appeal, the Eleventh Circuit Court of Appeals was asked to determine if the Florida statute governing “cancellation by premium financing companies, contemplates separate dates of cancellation for different insureds or requires a single cancellation date.”

 

The circuit court certified the question to the Florida Supreme Court, which said that the law “contemplates a single cancellation date for the insurance policy as a whole” and ” all statutory, regulatory, or contractual requirements for cancellation must be satisfied before a policy may be canceled.”

 

The circuit court reversed the district court's decision and remanded for further proceedings.