National Automobile & Casualty Insurance v. California Casualty Insurance

This appeal addresses the issue of the effect of an offer to renew a policy of automobile insurance, made after the death of the named insured. We have concluded that the trial court properly determined that insurance coverage existed on the date of the subject accident, and therefore affirm the judgment below.

Appellant, National Automobile and Casualty Insurance Company, issued a policy of automobile liability insurance to Melvin Gray. That policy was effective from January 26, 1979 to July 26, 1979. Melvin Gray was the named insured under the policy; however, additional insureds were identified at paragraph 16 of the policy and included “any person having proper temporary custody of an owned automobile, as an insured, ...” following the death of the named insured.

On May 31, 1979, during the policy period, Melvin Gray died. The fact of his death was unknown to appellant. Following his death, the insured automobile was properly in the possession of Roger Gray, whom appellant admits was an insured under the subject policy.

*339 On July 31, 1979, appellant sent a notice to Melvin Gray, which stated: “Notice of lapsed policy. Policy lapsed on effective date (07-26-79)…