U.S.D.C. for Southern District of Mississippi Allows Insurer to Correct Admission as to Operative Policy
Geico Insurance Co. v. Hall, 2008 U.S. Dist. Lexis 77347 (S.D. Miss. Oct. 1, 2008) presents at least some evidence that in some states insurers are able to make mistakes and still prevail. When Geico filed its complaint, it included a copy of the insurance policy Geico claimed was the operative policy at issue. Under that policy, the limits were arguably as much as $200,000 for defendant’s claim against Geico’s insured. (Defendant also alleged that the insured’s copy of the policy was lost during Hurricane Katrina.) Later in the case, Geico discovered and presented what it claimed was the actual policy, with an endorsement that established available limits at $25,000.
Despite somewhat equivocal testimony provided by Geico as to whether the disputed endorsement was sent with the renewal policy, the court accepted the endorsement as established, relying primarily on Wells Fargo Bus. Credit v. Ben Kozloff, Inc., 695 F.2d 940, 944 (5th Cir. 1982) (“Placing letters in the mail may be proved by circumstantial evidence, including customary mailing practices used in the sender’s business.”). Citing Ben Kozloff, the court found that its decision was justified because no evidence was presented to rebut the legal presumption that “Once properly mailed, the endorsement is presumed to have been received by the insureds.” The court therefore allowed Geico to substitute what the court deemed to be the actual policy at issue for the one Geico had originally presented, and limited Geico’s liability to $25,000.
