State Farm Mutual Automobile Insurance Company, an Illinois Corporation v. Linda White and John Lansford as Guardian of Linda White

I. FACTS

The facts in this case are not in dispute. On April 4, 1974, the appellee, State Farm Mutual Insurance Company (hereinafter State Farm) issued a six month automobile liability insurance policy to Steven W. Wilcox “effective April 4, 1974 until terminated”. The policy was sold to Wilcox by Tom Larson, a self-described independent contractor who writes insurance policies for State Farm. Wilcox signed an application on April 4, 1974, and made a partial payment of $90.00 toward the total premium for a six months policy of $197.30. The “policy period” was 04-4)4-74 to 10-04-74. The “Declaration” section of the policy provides that the policy period shall be “as shown under ‘policy period’ and for such succeeding periods of six months each thereafter as the required renewal period is paid by the named assured on or before the expiration date of the current policy period.” The notice stated: “This is the only notice you will receive prior to date premium is due.” Wilcox received the notice on October 12, 1974. The delay between the mailing of the notice and its receipt resulted from Wilcox’ absence from his mailing address at his job in a remote area of Montana. Two other…