Mundy v. Lumbermanís Mut. Cas. Co.

United States Court of Appeals, First Circuit, 1986.

783 F.2d 21.

Dawson, pp. 514-515


Facts: The plaintiff had an insurance policy covering burglary.They were sent a notice that the policy was changing such that the insurance companyís liability for stolen silver would be limited to $1,000 in the future.They didnít really look at the notice.Later, there was a burglary and lots of silver was stolen from them.The insurance company refused to pay out more than $1,000.The Mundys sued, claiming that they werenít given adequate notice of the change in their policy.


Issue: Is the policy change binding on the Mundys?


Rule: An insured person is bound by the terms of a renewal policy as long as the person actually receives the policy.


Analysis: The court finds that the notice given in the policy itself was quite clear.Holding the Mundys to its contents goes along with the common law ďduty to readĒ.


Conclusion: The judgment of the lower court is affirmed.


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