A commercial insured brought an action against its general liability insurer for a Judgment declaring that it was entitled to coverage with respect to an accident in which a man was injured. The insurer had denied liability on the grounds that the policy had been canceled prior to the accident.

It was established that the insured did not receive the notice, having moved to a new location prior to its mailing by the insurer. The insurer appealed a trial court judgment for the insured which held that the policy had not been validly canceled.

The appeal court disagreed, concluding that the policy had been effectively canceled by the notice that was mailed prior to the accident. The cancellation provisions in the policy required, "in clear and unambiguous terms," that notice be sent to the insured at the mailing address shown in the policy. The insurer complied with the provisions. The court said that the insured corporation did not receive the notice because it failed to inform the insurer of its change of address.

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

(SALVANT, Respondent v. LANDMARK INSURANCE COMPANY, Defendant; PURITAN INSURANCE COMPANY, Appellant. New York Supreme Court, Appellate Division, Second Judicial Department. No. 90-01381. December 9, 1991. CCH 1991-92 Fire and Casualty Cases, Paragraph 3509.)