Tallent v. Tennessee Farmers Mutual Insurance Co.

OPINION

HARBISON, Justice.

This case presents the issue of whether the tender of a worthless check for an insurance renewal premium constitutes payment so as to keep the policy of insurance in force. Under the circumstances of this case we hold that the dishonored check did not constitute payment and was not effective to renew the coverage.

There is no dispute as to the material facts. Following a bench trial, the chancellor allowed recovery upon the theory that the insured did not have an opportunity to cover the check after it was dishonored. The Court of Appeals rejected this theory but held…