Renewal Notices Sent Electronically Are Legal, Approved by the State and Effective
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Washington state law allows insurers to deliver insurance notices and documents electronically if the party has affirmatively consented to that method of delivery and has not withdrawn the consent. The Plaintiffs argued that the terms and conditions statement was not “conspicuous” because it was hidden behind a hyperlink included in a single line of small text. The court found that the statement was sufficiently conspicuous as it was bolded and set off from the surrounding text in bright blue text.
In James Hughes et al. v. American Strategic Insurance Corp et al., No. 3:24-cv-05114-DGE, United States District Court (February 14, 2025) the USDC resolved the dispute.
The court’s reasoning focused on two main points:
1 whether the Plaintiffs’ consented to receive electronic notices and
2 whether the notice provided by ASI satisfied Washington law.
Consent to Receive Electronic Notice
The court found that the terms and conditions statement was clear in informing the Plaintiffs that they were consenting to receive insurance policy documents electronically.
Whether the Notice Satisfied Washington Law
Washington law requires insurers to renew any insurance policy unless they have communicated their willingness to renew in writing to the named insured at least twenty days prior to its expiration date and included a statement of the amount of the premium required to be paid by the insured to renew the policy. The USDC found that ASI’s renewal notice, which was emailed to the Plaintiffs on July 15, 2022, complied with these requirements because the notice came 61 days before the renewal deadline and stated the amount required to be paid to maintain the policy.
The USDC noted that although ASI’s system of attaching renewal notices in lengthy packets was not ideal, it did not violate the law. The court also noted that insureds in Washington have an affirmative duty to read their policy and be on notice of its terms and conditions.
The Renewal Premium Notice
A “Renewal Premium Notice” was contained in the packet attached to the email. In relevant part, the Notice stated: “To accept this renewal offer and maintain your coverage, please pay the minimum amount due shown below.” The Notice listed “total amount due” as $1,471.00 and listed September 14, 2020, as the “due date.”
Plaintiffs did not pay the renewal by September 14, 2022, and the policy lapsed.
Plaintiffs’ house was destroyed by a fire on August 11, 2023 almost a year after the due date with no attempt made by Mr. Hughes to pay the premium.
When Mr. Hughes called to report the claim on August 12, 2023, he was informed that the policy had lapsed. Plaintiffs alleged that they incurred $750,000 in damages for the loss.
DISCUSSION
The USDC noted that the Plaintiffs were actually aware that they were receiving renewal notices by email. Indeed, the terms and conditions statement uses the words “insurance policy documents” three times, making it clear that the “types of notices and documents” contemplated are those that pertain to the signor’s insurance policy.
Mr. Hughes confirmed receipt of the July 15, 2022, email containing the renewal packet. The “Renewal Premium Notice” in the packet instructed Plaintiffs to pay the minimum amount due to maintain their coverage and listed “total amount due” as $1,471.00. Since the notice came in 61 days before the renewal deadline and stated the amount required to be paid in order to maintain the policy it complied with Washington law.
Plaintiffs’ policy validly lapsed when they did not make the renewal payment.
ZALMA OPINION
Mr. Hughes agreed to accept all communications from ASI electronically and admitted that he received the communication stating when, and how much, he needed to pay to renew his policy. He did not pay the premium and the policy lapsed. ASI even wrote to Hughes about the lapse and he did nothing to renew the policy or find a new policy. I would feel for the man if he did not receive the notice but he admitted he received it and claimed that the premium requirement was hidden from his view even though it was made bold and in blue, ASI wrote to him to explain the lapse and so did his agent.. He had no one to blame for the loss except himself.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Interpleader Protects All Claimants Against Life Policy and the Insurer
Who’s on First to Get Life Insurance Proceeds
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Interpleader Protects All Claimants Against Life Policy and the Insurer
In Metropolitan Life Insurance Company v. Selena Sanchez, et al, No. 2:24-cv-03278-TLN-CSK, United States District Court, E.D. California (September 3, 2025) the USDC applied interpleader law.
Case Overview
This case involves an interpleader action brought by the Metropolitan Life Insurance Company (Plaintiff-in-Interpleader) against Selena Sanchez and other defendants (Defendants-in-Interpleader).
Key Points
Plaintiff-in-Interpleader’s Application:
The Plaintiff-in-Interpleader...
A Claim by Any Other Name is not a Claim
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It is Imperative that Insured Report Potential Claim to Insurers
Read the full article at https://lnkd.in/gfbwAsxw, See the full video at https://lnkd.in/gea_hgB3 and at https://lnkd.in/ghZ7gjxy, and at https://zalma.com/blog plus more than 5150 posts.
In Jeffrey B. Scott v. Certain Underwriters At Lloyd’s, London, Subscribing To Policy No. B0901li1837279, RLI Insurance Company, Certain Underwriters At Lloyds, London And The Insurance Company, Subscribing To Policy No. B0180fn2102430, No. 24-12441, United States Court of Appeals, Eleventh Circuit (August 25, 2025) the court explained the need for a claim to obtain coverage.
Case Background:
This appeal arises from a coverage dispute under a Directors & Officers (D&O) insurance policy. Jeffrey B. Scott, the plaintiff-appellant, was terminated from his role as CEO, President, and Secretary of Gemini Financial Holdings, LLC in October 2019. Following his termination, Scott threatened legal action against Gemini, and ...
A Claim by Any Other Name is not a Claim
Post 5182
It is Imperative that Insured Report Potential Claim to Insurers
Read the full article at https://lnkd.in/gfbwAsxw, See the full video at https://lnkd.in/gea_hgB3 and at https://lnkd.in/ghZ7gjxy, and at https://zalma.com/blog plus more than 5150 posts.
In Jeffrey B. Scott v. Certain Underwriters At Lloyd’s, London, Subscribing To Policy No. B0901li1837279, RLI Insurance Company, Certain Underwriters At Lloyds, London And The Insurance Company, Subscribing To Policy No. B0180fn2102430, No. 24-12441, United States Court of Appeals, Eleventh Circuit (August 25, 2025) the court explained the need for a claim to obtain coverage.
Case Background:
This appeal arises from a coverage dispute under a Directors & Officers (D&O) insurance policy. Jeffrey B. Scott, the plaintiff-appellant, was terminated from his role as CEO, President, and Secretary of Gemini Financial Holdings, LLC in October 2019. Following his termination, Scott threatened legal action against Gemini, and ...
Barry Zalma: Insurance Claims Expert Witness
Posted on September 3, 2025 by Barry Zalma
The Need for a Claims Handling Expert to Defend or Prove a Tort of Bad Faith Suit
© 2025 Barry Zalma, Esq., CFE
When I finished my three year enlistment in the US Army as a Special Agent of US Army Intelligence in 1967, I sought employment where I could use the investigative skills I learned in the Army. After some searching I was hired as a claims trainee by the Fireman’s Fund American Insurance Company. For five years, while attending law school at night while working full time as an insurance adjuster I became familiar with every aspect of the commercial insurance industry.
On January 2, 1972 I was admitted to the California Bar. I practiced law, specializing in insurance claims, insurance coverage and defense of claims against people insured and defense of insurance companies sued for breach of contract and breach of the implied covenant of good faith and fair dealing. After 45 years as an active lawyer, I asked that my license to practice law be declared inactive ...
The Need for a Claims Handling Expert to Defend or Prove a Tort of Bad Faith Suit
© 2025 Barry Zalma, Esq., CFE
When I finished my three year enlistment in the US Army as a Special Agent of US Army Intelligence in 1967, I sought employment where I could use the investigative skills I learned in the Army. After some searching I was hired as a claims trainee by the Fireman’s Fund American Insurance Company. For five years, while attending law school at night while working full time as an insurance adjuster I became familiar with every aspect of the commercial insurance industry.
On January 2, 1972 I was admitted to the California Bar. I practiced law, specializing in insurance claims, insurance coverage and defense of claims against people insured and defense of insurance companies sued for breach of contract and breach of the implied covenant of good faith and fair dealing. After 45 years as an active lawyer, I asked that my license to practice law be declared inactive and became a consultant and expert witness for lawyers representing insurers and lawyers ...
APPRAISAL AWARD SETS AMOUNT OF DAMAGES RECOVERED FROM INSURER
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It’s a Waste of Time to Sue Your Insurer if You Don’t Have Evidence
Evidence Required to Prove Breach of Contract
Read the full article at https://www.linkedin.com/pulse/evidence-required-prove-breach-contract-barry-zalma-esq-cfe-rfelc, see the full video at https://rumble.com/v6yd2z0-evidence-required-to-prove-breach-of-contract.html and at https://youtu.be/2ywEjs3hZsw, and at https://zalma.com/blog plus more than 5150 posts.
It’s a Waste of Time to Sue Your Insurer if You Don’t Have Evidence
In Debbie Beaty and Jonathan Hayes v. Homeowners Of America Insurance Company, No. 01-23-00844-CV, Court of Appeals of Texas, First District (August 26, 2025) Debbie Beaty and Jonathan Hayes filed a claim under their homeowner’s insurance policy with Homeowners of ...
