A fire insurer denied liability for fire damage to a building, asserting that it had canceled its policy by prescribed notice because of increase in hazard due to deterioration of the covered property. Legal proceedings followed when the insureds claimed that the notice was never received. Judgment in their favor was appealed by the insurer.

The policy provided, in pertinent part, that: "We may cancel this policy only for the reasons stated in this condition by notifying you in writing of the date cancellation takes effect. This cancellation notice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing shall be sufficient proof of notice."

These provisions were in accord with Illinois statutory provisions relative to policy cancellation which, additionally, required that the insurer ".... shall maintain proof of mailing of such notice on a recognized U.S. Post Office Form or a Form acceptable to the U.S. Post Office...."

The insurance company produced its copy of U.S. Post Office Form No. 3877, on which the disputed notice of cancellation was listed. It was stamped "Andover, MA, May 13, 1988, USPS," and initialed by the postal employee to whom it had been hand delivered. The specified date allowed more than the 30 days required for effective cancellation.

The appeal court said: "The fact that it (the notice copy) contains the name and address of plaintiffs, and was stamped and initialed by the post office, establishes adequate compliance with the proof-of-notice requirements under .... the Illinois Insurance Code." It said that the insureds' claim of nonreceipt of the notice and the lack of a return receipt had no bearing on the mailing issue.

The judgment of the trial court was reversed in favor of the insurance company and against the insureds.

(BATES ET UX., Plaintiffs, Appellees v. MERRIMACK MUTUAL FIRE INS. CO., Defendant, Appellant. Illinois Appellate Court, Fourth District. Dec.17, 1992. Released January 21, 1993. CCH 1993 Fire and Casualty Cases, Paragraph 4151.)