Farzan

FACTS

The Insurance Policy In May 2010, Farzan purchased a used Porsche Boxster from a local dealership. Wescom Credit Union financed the purchase with an auto loan. As a condition of the financing, Wescom Credit Union required Farzan to purchase automobile liability insurance, and to open a savings and checking account at Wescom Credit Union from which his monthly auto loan payment would be debited. Wescom Insurance assisted Farzan in obtaining the required auto insurance, arranging for him to purchase an auto liability policy from Mercury. On June 17, 2010, Farzan submitted an application for auto insurance to Mercury, along with a check in the amount of $273.90 for the first month’s premium. Farzan also executed an authorization form requesting Mercury to debit his Wescom Credit Union account on a monthly basis for the policy premiums. Mercury promptly issued a six- month auto insurance policy to Farzan for the period from June 19, 2010 to December 19, 2010. Beginning in July 2010, Farzan paid his monthly auto insurance premium to Mercury by debit from his Wescom Credit Union account.

2 In November 2010, Mercury sent documents to Farzan to renew his auto insurance policy for…