Here is a complicated case regarding policy cancellation. The case is from the Eastern District of Texas, Sherman Division, and is styled, Scottsdale Insurance Company v. All Citizens Transportation, LLC, et al v. Burns & Wilcox of Texas, Inc. et al.
The procedural history is complicated and the opinion needs to be read to have a full understanding of the facts. The lawsuit is over the issue of whether an auto insurance policy had been properly cancelled when the finance company had not been properly notified of the policy cancellation.
This is a summary judgment case that was decided in favor of the insurer. A policy cancellation notice had been sent to the insured but not to the finance company as required by Texas law. The question before the Court, therefore, is whether an insurance company may cancel a policy despite a premium finance company’s failure to meet notice-of-cancellation requirements imposed by Texas law. The answer is yes.