Page:Parker v. Southern Farm Bureau Casualty Insurance Co.pdf/16

1088   dissenting. 

 T G, Justice, concurring. I agree that the trial court should be affirmed, but for a different reason than that set out in the majority opinion. The main substantive issue on appeal is whether the trial judge erred in dismissing appellant Rickey Parker's bad-faith claim.

In making his decision, the judge had before him appellee Southern Farm Bureau Casualty Insurance Company's theory that, under the holding in ''Farmers Ins. Company v. Hall'', 263 Ark. 734, 567 S.W.2d 296 (1978), Southern Farm was not required to give an insured the ten-day cancellation notice provided in Ark. Code Ann. § 23-89-304 (Repl. 1992). In the Hall decision, Hall elected to renew his six-month liability policy which was to commence on January 3, 1975. However, he failed to pay his premium until January 25, 1975, shortly before his vehicle was damaged in a collision. Hall had previously received an "Offer to Renew" notice on December 11, 1974, from Farmers Insurance, informing him that the renewal date was January 3, 1975. Although the trial court held in Hall's favor, finding his policy was still in force, this court reversed, holding the policy by its own terms had lapsed. The Hall court stated the following:

"Appellant [Farmers Insurance] was not required to give notice of cancellation of the policy under Ark. Stat. Ann. §§ 66-4007 – 66-4013 (Supp. 1977) [now Ark. Code Ann. §§ 23-89-301 – 308 (Repl. 1992)]. There was no cancellation of the policy. If the offer to renew had not been made, the policy would have expired by its own terms. Notice of cancellation of a policy may be required upon nonpayment of the premium under § 66-4008, but this requirement applies only to a cancellation by unilateral action of the insurer before the end of the policy term and not an automatic termination by expiration of the policy period. (Emphasis added.)"

In the present case, Southern Farm had established a billing system like Farmers Insurance in the Hall case, where a "renewal notice" was sent to the insured prior to the policy's renewal or