REINSURANCE

Advantage General Insurance Co., Ltd. v KILN/QBE International, ___ So. 2d ___, 34 Fla. L. Weekly D859 (Fla. 4/29/09)
Advantage, a foreign corporation, insured Air Sunshine, a Florida corporation, and then obtained reinsurance from certain Lloyds underwriters. While the policy was in effect, Advantage settled two wrongful death claims against Air Sunshine and then sought indemnification from Lloyds. Lloyds contended that Advantage was barred from bringing suit in Florida because Advantage was an unauthorized insurer. Advantage sued the underwriters in Florida, and the underwriters moved to dismiss because Advantage was not licensed to conduct business in the State of Florida. The trial court granted the underwriters’ motion to dismiss, Advantage appealed, and the Fourth District Court of Appeal reversed. Although Section 626.903, Florida Statutes, precludes unauthorized insurers from initiating and maintaining legal proceedings in the State of Florida, this statutory provision is designed to protect Florida insureds. In this case, Advantage did not sue its Florida insured; rather it sued in its own insurer. Therefore, the unauthorized insurer statute did not bar the action.

APPRAISAL

Federated National Insurance Co. v. Palenzuela, ___ So. 2d ___, 34 Fla. L. Weekly D873 (Fla. 3d DCA 4/29/09)
The trial court entered an order confirming an appraisal award in favor of a homeowner against his insurer. The order required the insurance company to pay the award within twenty days and reserved jurisdiction to enforce the award and resolve the homeowner’s claim for attorney’s fees. The Third District Court dismissed for lack of jurisdiction the insurance company’s appeal from the confirmation order. The district court held that the trial court did not enter a final, appealable order because the order lacked “the usual words that signal finality” and “an adjudication on the merits which effectuates a termination of the cause as between the parties directly affected” had not occurred.

LIFE INSURANCE

Jackson National Life Insurance Co. v. Lovallo, ___ So. ___, 34 Fla. L. Weekly D886 (Fla. 1st DCA 5/4/09)
Jackson issued a ten year renewable term life insurance policy to the husband. During the initial term, the husband’s marriage was dissolved. The dissolution decree arguably imbued the former wife with equitable ownership of the policy, and she notified Jackson of this development. Nevertheless, when the former husband instructed Jackson not to renew the policy, Jackson followed his directive. The former husband died after the policy lapsed, but the former wife claimed entitlement to the death benefit under the theory that, as the end of the original term approached, she was entitled to notice of the right to renew the policy. The trial court entered summary judgment for the former wife, and Jackson appealed. The First District Court of Appeal reversed because notice was not required by statute or the terms of the policy. The court distinguished policy renewals from cancellations for non-payment of premiums and noted that Section 627.4555, Florida Statutes (2008), which requires notice of nonpayment of life insurance premiums, took effect on October 1, 1997, but the policy involved in this case was issued in 1994. The court declined to decide whether the communications between the parties constituted a request for renewal or imposed upon Jackson a duty to seek clarification.