American National Fire Insurance v. Smith Grading & Paving, Inc.

Moore, Justice:

This is a declaratory judgment action to determine coverage under an insurance policy issued by respondent (Insurer). The trial judge found the policy was effectively cancelled before the claim arose and concluded coverage was properly denied. We affirm.

FACTS

On August 1, 1985, Insurer issued to Smith Grading & Paving, Inc. (Smith) a general liability insurance policy for a one-year term. The policy provided that Insurer could cancel the policy without cause upon ten days notice. Pursuant to this provision, Insurer sent Smith a Notice of cancellation ef fective June 9, 1986,…