SCHEXNAILDRE v. STATE FARM MUTUAL AUTOMOBILE INS. CO., 15-0272 (LA. APP. 1 CIR. 11/09/15), 2015 WL 6884733

In Schexnaildre v. State Farm Mutual Automobile Ins. Co., 15-0272 (La. App. 1 Cir. 11/09/15), 2015 WL 6884733, the plaintiff was involved in a motor vehicle accident caused by the negligence of another driver. The plaintiff sought recovery from his insurer, State Farm, under his uninsured/underinsured motorist coverage policy. A demand making satisfactory proof of loss for UM benefits was received by State Farm on March 14, 2012. Thirty-three days later, on Monday, April 16, 2012, counsel for the plaintiff received a check in the mail from State Farm for the UM policy limit of $25,000.00.

Plaintiff filed suit against State Farm under LSA-R.S.22:1892 alleging that State Farm had failed to make an unconditional tender of benefits under the UM policy within thirty days of receipt of satisfactory proof of loss, and that the failure to make the tender was arbitrary, capricious, and without probable cause.

State Farm filed a motion for summary judgment because the payment was placed in the mail within thirty days of State Farm’s receipt of the UM demand. The Louisiana First Circuit held that the timeliness of payment under LSA-R.S. 22:1892 is determined by the date of mailing of the payment, rather than the date of receipt.