Cancellation Triggered Audit Which Cost Insured Much Additional Premium

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Ryan and Heather Bollschweiler own Redstang Enterprises (collectively, Redstang), an unincorporated business that builds horse-related corrals and structures. Redstang appealed the superior court’s grant of summary judgment for Travelers a. In Travelers v. Ryan Bollschweiler, et al., No. 1 CA-CV 20-0338, Arizona Court Of Appeals Division One (May 11, 2021) the Court of Appeal was faced with claims of bad faith.

ZALMA OPINON

Travelers clearly complied with the requirements of Arizona law and the terms of the policy. Redstang did the opposite and then, in an attempt to avoid paying the premium it owed, hoping to frighten Travelers away from exercising its rights to damages for breach of contract, wrongfully accused Travelers of fraud. That attempt, appropriately, failed. Redstang was its own biggest problem it financed the premium and did not pay the finance company who cancelled the policy triggering an audit that proved lies on the application allowing a large additional premium.