Hambrick v. Fidelity Acceptance Corp.

McMurray, Presiding Judge.

Danny Hambrick purchased an automobile on September 16, 1978, obtaining automobile insurance (collision, fire, theft, comprehensive and combined) from Cotton States Mutual Insurance Company with a loss payee clause in favor of Fidelity Acceptance Corporation (Fidelity) which financed the purchase of the automobile by an assignment from the seller.

Both the loss payee and Hambrick received a notification with mailing date “2-26-80” that the policy “is hereby cancelled as to all interests insured” for non-payment by reason of a bad check (bounced) effective at 12:00…