Sawyer v. State Farm Fire & Casualty Co.

We hold in this case that the acknowledgment of the receipt of the premium in a policy of automobile liability insurance which has been delivered is conclusive evidence of its payment and precludes the insurer from cancel-ling the policy for nonpayment of the premium. As we explain infra, the above rule obtains even where the policy has become operative and gone into effect and notwithstanding the fact that the insurer, pursuant to pertinent provisions as to *803written notice, seeks to cancel the policy on such grounds prior to the occurrence of any loss. We conclude therefore that the trial…