Source One Financial Corp. v. Progressive Direct Insurance

The issue presented in this case is whether the appellant automobile insurance company, Progressive Direct Insurance Company (“Progressive”), which issued a binder, is liable to a secured lender, Source One Financial Corporation (“Source One”), for property damage to the collateral that occurred after the insurance company had claimed that the policy was rescinded due to the insured’s failure to pay any premium.

The trial court allowed Source One’s motion for summary judgment against Progressive on Source One’s suit for recovery on a claim under the insurance policy. For the reasons stated…