Summary
In Matter of Travelers Indem. Co. v. Kammer, 72 A.D.2d 817, 818, 421 N.Y.S.2d 898, affd. 51 N.Y.2d 792, 433 N.Y.S.2d 98, 412 N.E.2d 1323, the court held that premium finance agencies must comply strictly with the type face requirements in the notice.
Summary of this case from Foster v. AbramsOpinion
November 26, 1979
In a proceeding to stay arbitration of an uninsured motorist claim, the Travelers Indemnity Company appeals from a judgment of the Supreme Court, Nassau County, entered October 4, 1978, which, after a hearing, inter alia, (1) determined that the respondent Commercial Union Assurance Companies had properly canceled its policy of insurance issued to Bruce Shilstone and (2) directed the Travelers Indemnity Company to proceed to arbitration. Judgment reversed, on the law, with costs, and application for stay granted. Section 576 (subd 1, par [c]) of the Banking Law requires that notices of cancellation include certain statements concerning proof of financial security. Those statements are to be printed "in type or print of which its face shall not be smaller than twelve point". For effective cancellation of an insurance policy strict compliance with this requirement is necessary (Matter of Liberty Mut. Ins. Co. [Stollerman], 70 A.D.2d 643; Cohn v Royal Globe Ins. Co., 67 A.D.2d 993). The notice of cancellation here failed to include a financial security statement printed in the statutorily mandated typeface size. Titone, J.P., O'Connor, Gulotta and Margett, JJ., concur.