Recently, a state appellate court issued an opinion in a Georgia car accident case after the trial court granted summary judgment in favor of a car insurance company in a contract dispute. On appeal, the court was tasked with addressing whether a date on an insurance policy was a scrivener’s error. The evidence shows that a man applied for a car insurance policy on February 23, 2017. On his application, he indicated that he requested bodily injury and property damage coverage, but he rejected uninsured motorist coverage, and excluded his wife as a covered party. There were various dates and times noted on the application; however, the most pertinent date was next to his applicant’s statement that was dated May, 23, 2017.
According to the court’s opinion, the policyholder’s wife suffered injuries in a car accident on March 31, 2017, and thereafter requested coverage. The claimant filed a lawsuit after the company denied coverage. The insurance company filed a motion for summary judgment, arguing that the policyholder specifically excluded his wife from coverage. The claimant argued that the discrepancy of the dates in the insurance application creates an ambiguity regarding the effective date of coverage, and should preclude summary judgment.
Under Georgia law, courts should construe ambiguous insurance contracts in favor of the insured and against the insurer. This generally means that when a contract provision can be interpreted in two different ways, it should be construed in favor of the insured. However, this principle is limited to reasonable interpretations.