Eagle Furniture Manufacturers, LLC v. Nautilus Insurance Company. Eagle Furniture obtained an insurance policy from Nautilus through a premium finance company, IPFS. Eagle was to make a premium payment to IPFS on December 11, 2020. However, they did not provide a payment. As a premium finance company, IPFS had to provide notice before cancelation. IPFS sent notice of cancelation on December 14, 2020, giving Eagle until December 29, 2020, to make a payment. Payment was not received by December 29, 2020; therefore, Eagle’s policy would be canceled effective January 2, 2021. Eagle sustained a loss that would have otherwise been covered on January 4, 2021. Eagle then tried to make its past-due payment, which was rejected by IPFS. Eagle then filed suit in Warren County Circuit Court against IPFS and Nautilus, seeking coverage under the Nautilus policy. Summary Judgement was granted in favor of Nautilus and IPFS due to the fact that IPFS property gave notice of cancelation. Eagle then appealed. On behalf of Nautilus, Kelly Alford argued that KRS 304.20-320(2) and/or 304.30-110 did not apply to Nautilus since those provisions only applied to premium finance companies and not insurers. Further, Nautilus, being an insurer, did not cancel Eagle’s policy; instead, it was IPFS, acting as Eagle’s attorney-in-fact, who executed the cancellation. Lastly, IPFS properly gave Eagle notice of the cancellation. Therefore, IPFS, acting as Eagle’s attorney-in-fact, properly canceled the policy issued by Nautilus. The Court of Appeals agreed and Affirmed the summary judgment, additionally finding that there was no evidence that Nautilus breached any contractual obligations, nor did Eagle support claims of bad faith or violations of the KUCSPA or KCPA, all of which were contingent on a breach of contract.
