Bogard v. Inter-State Assurance Co.

Bogard brought a class action against Inter-State Assurance Company Inter-State for breach of contract, unjust enrichment and violation of the Georgia Uniform Deceptive Trade Practices Act DPTA.1 Bogard also brought a claim for declaratory relief. The trial court granted Inter-State’s motion for judgment on the pleadings, and Bogard appeals. For reasons that follow, we affirm. On appeal, we review de novo the trial court’s decision on a motion for judgment on the pleadings,2 and we construe the complaint in a light most favorable to the appellant, drawing all reasonable inferences in his favor.3 Viewed in this manner, the record shows that on March 13, 2000, Bogard completed an application for life insurance with Inter-State. The policy set forth several provisions with respect to when the premiums were due and when the policy would be “effective:” a The cover page states “this policy is issued as of its Policy Date.” The cover page also sets forth the insured’s right to cancel within 20 days. b Page 2 is set forth entirely in capital letters and is called the “POLICY SCHEDULE.” This page states in part “A PREMIUM IS PAYABLE ON APRIL 27, 2000 AND EVERY 12 MONTHS THEREAFTER TO RENEW THIS POLICY.” The bottom of this page states “POLICY DATE: APRIL 27, 2000.” c Page 3 lists the schedule of premium payments. The identical amount, $4,740.00, is listed for years one through twenty. d Page 5, under the section titled “PREMIUM,” states:

The premiums as of the Policy Date are shown on the Policy Schedule. The first premium is due on the Policy Date. The policy will not take effect until it has been delivered and the first premium has been paid prior to death or any change in health as shown on the application. On June 20, 2000, Bogard paid his first premium under the policy. Thus, Bogard paid for a year’s worth of insurance coverage beginning on the policy date, April 27, 2000, even though he was not insured until he paid the premium 54 days later —June 20, 2000. During this 54 day period, Inter-State did not assume any risk. In other words, Bogard paid a year’s worth of premiums for little more than 10 months coverage.