At Garvin Agee Carlton, P.C., we take pride in standing up for our clients when insurers fail to uphold their contractual obligations. We are excited to share a significant win at the Oklahoma Supreme Court in Jai Hospitality LLC v. Western World Insurance Co., a case that reaffirms the rights of policyholders and ensures insurers are held accountable for their obligations under the law.

Case Background

Our client, Jai Hospitality, LLC, owned and operated a motel insured by Western World Insurance Company. When a devastating fire damaged the property in June 2020, Jai Hospitality filed a claim under its commercial insurance policy. However, Western World denied coverage, asserting that the policy had expired weeks before the fire.

Western World argued that it had sent a renewal offer to Jai Hospitality’s insurance agent, and because Jai Hospitality had not explicitly accepted it, the policy had lapsed. However, the renewal offer included a substantial premium increase, and under Oklahoma law and the insurance contract, the insurer was required to send direct written notice of that increase to Jai Hospitality itself—something it never did.

Why This Case Matters

The Supreme Court’s ruling is a crucial victory for policyholders across Oklahoma, reinforcing the following key principles:

• Insurers Must Follow Policy and Legal Notice Requirements: The Court ruled that Western World’s failure to provide direct written notice of (1) non-renewal/policy expiration and/or (2) increased premiums in a renewal offer extended coverage under the original policy terms and state law.
• Insurance Agents Are Not a Substitute for Direct Notice: The Court rejected the argument that notice of non-renewal/policy expiration to a broker or agent equates to notice to the insured.
  
  
• Policyholders Have the Right to Fair Notice of Premium Increases: If a commercial policy insurer raises premiums, it must notify the named insured directly.

The Supreme Court’s Decision

In a clear rebuke of Western World’s position, the Supreme Court vacated the Court of Civil Appeals' decision, reversed the trial court’s summary judgment in favor of Western World, and remanded the case for further proceedings. This means Jai Hospitality’s claims—both for insurance coverage and bad faith—will proceed.

Holding Insurers Accountable

This case underscores the importance of policyholders knowing their rights and insurers being held accountable when they fail to follow the law. At Garvin Agee Carlton, P.C., we are dedicated to fighting for businesses and individuals who face unfair insurance denials, ensuring they receive the coverage they paid for and deserve.

If you have questions about an insurance dispute or believe your claim has been wrongfully denied, contact us today. Our experienced attorneys are ready to help you protect your rights.

📞 405-238-1000 📍 Pauls Valley * Norman