Ferrell v. Columbia Mutual Casualty Insurance

Robert H. Dudley, Justice.

The basic issue in this case is

whether the statute setting out the method for prospectively cancelling an automobile insurance policy has abrogated an insurance company’s common law right to rescind an automobile insurance policy ab initio. We hold that under some circumstances an insurance company still has the right to rescission ab initio. In so holding, we reverse the trial court.

Kenneth Ferrell’s automobile insurance policy, which had been issued by Southern Farm Bureau Insurance Company, ended at midnight, January 31, 1988. Early the next morning, February 1,…