In Twin City Acceptance Corp. v. Allstate Ins. Co., 2008 WL 3399407 (La.App. 2 Cir.), Twin City financed a vehicle owned by Virgil Reed. The lien was for less than $10,000. Allstate provided coverage to Reed that was to be effective from November 2006 through May 2007, and Twin City was listed as the lienholder on the policy. Allstate cancelled the policy on January 11, 2007 after Reed's first check for partial payment of the premium was returned because of insufficient funds, and he made no other payments. On January 16, 2007, the vehicle was involved in an accident with a vehicle driven by Brock Hummel.

Twin City filed suit against Allstate claiming that it had not received notice of cancellation, and if it had, it would have placed Single Interest Coverage on the vehicle. Allstate filed an answer to the suit, as well as a third-party demand against Hummel and his liability insurer, Unitrin Auto and Home Insurance Company, alleging that the accident was caused by Hummel.