{"id":7069075,"date":"2026-09-28T12:17:09","date_gmt":"2026-09-28T12:17:09","guid":{"rendered":"https:\/\/som2nypost.com\/business\/insurance\/progressive-loss-payee-cancellation-notice-ruled-defective\/"},"modified":"2026-09-28T12:17:09","modified_gmt":"2026-09-28T12:17:09","slug":"progressive-loss-payee-cancellation-notice-ruled-defective","status":"publish","type":"post","link":"https:\/\/som2nypost.com\/?p=7069075","title":{"rendered":"Progressive Loss Payee Cancellation Notice Ruled Defective"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div itemprop=\"text\" wp_automatic_readability=\"159.27437482439\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1275\" height=\"715\" data-attachment-id=\"83476\" src=\"https:\/\/agencychecklists.com\/2026\/09\/22\/progressive-loss-payee-cancellation-notice-83463\/progressive-loss-payee-cancellation-notice-2\/\" data-orig-file=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice.jpg\" data-orig-size=\"1275,715\" data-comments-opened=\"0\" data-image-title=\"Progressive Loss Payee Cancellation Notice\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice-600x336.jpg\" alt=\"Auto insurance loss payee cancellation notice marked incomplete because the amount due and payment instructions are missing.\" class=\"wp-image-83476\" style=\"aspect-ratio:1.7752299939901068;width:1131px;height:auto\" srcset=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice.jpg 1275w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice-535x300.jpg 535w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice-600x336.jpg 600w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice-200x112.jpg 200w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2026\/09\/progressive-loss-payee-cancellation-notice-750x420.jpg 750w\" sizes=\"auto, (max-width: 1275px) 100vw, 1275px\"\/><\/figure>\n<p class=\"has-drop-cap wp-block-paragraph\">LOWELL, Mass. \u2014 A Lowell District Court judge has ruled that a Progressive loss payee <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a> notice sent electronically was defective because it was not mailed as required by the policy and omitted required <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Premium&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Amount paid to the insurer for insurance protection.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/premium\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">premium<\/a> information.<\/p>\n<p class=\"wp-block-paragraph\">In a memorandum of decision dated July 31 and entered on the <a href=\"https:\/\/www.mass.gov\/locations\/lowell-district-court\" target=\"_blank\" rel=\"noopener\">court docket<\/a> Sept. 15, Associate Justice Mark G. Fabiano granted summary judgment to Source One Financial Corp. on its breach-of-contract and third-party-<a class=\"glossaryLink cmtt_life\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Beneficiary&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Party designated to receive policy proceeds (e.g., life insurance).&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/beneficiary\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">beneficiary<\/a> claims in <em>Source One Financial Corp. v. Progressive Direct Insurance Co.<\/em><\/p>\n<p class=\"wp-block-paragraph\">The decision produced a mixed result. The court granted Source One\u2019s motion on Counts I and II and otherwise denied it. Progressive obtained summary judgment on Count III, alleging breach of the implied covenant of good faith and fair dealing, and Count V, alleging violations of <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;G.L. c. 93A&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Chapter 93A of the Massachusetts General Laws makes unlawful any &quot;unfair or deceptive acts or practices in the conduct of any trade or commerce.&quot; Under this statute, individuals and businesses can sue for actual damages as well as double or treble damages along with attorney fees.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/g-l-c-93a\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">G.L. c. 93A<\/a> and <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;c. 176D&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;A Massachusetts statute prohibiting &quot;Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance.&quot; The statute grants the commissioner of insurance broad authority in issuing cease and desist orders and fines to persons engaged in the business of insurance in the commonwealth. The statute also has a list of nine unfair insurance claim practices the violation of which are violations of G.L. c. 93A, by definition. Chapter 93A gives consumers the right to sue for punitive damages and attorney fees for violations of the unfair claim practice provision of G.L. c. 176D.&lt;\/div&gt;&lt;\/div&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;&lt;\/div&gt;&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/c-176d\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">c. 176D<\/a>. The court otherwise denied Progressive\u2019s motion and ordered that Count IV, alleging negligence, proceed to trial.<\/p>\n<h3 class=\"wp-block-heading\">Policy Renewed Despite Outstanding Premium<\/h3>\n<p class=\"wp-block-paragraph\">Source One financed $15,599 of Thamyres Rodrigues Paizante\u2019s vehicle purchase in May 2021 and perfected its security interest in the Chevrolet Cruze. Progressive insured the vehicle and identified Source One as the policy\u2019s loss payee and secured lender.<\/p>\n<p class=\"wp-block-paragraph\">The initial policy period ran from May 3 through Nov. 3, 2021. Paizante missed several <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Premium&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Amount paid to the insurer for insurance protection.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/premium\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">premium<\/a> payments. On Nov. 3, Paizante paid $380 but left an unpaid balance of $105.42. Progressive nevertheless renewed the policy for another six months, through May 3, 2022.<\/p>\n<p class=\"wp-block-paragraph\">Progressive mailed Paizante a <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a> notice on Nov. 8 stating that the policy would be canceled effective Nov. 29 unless the required payment was received. Paizante made no additional payment.<\/p>\n<p class=\"wp-block-paragraph\">Source One had enrolled in Insurance Notification Clearinghouse Services, or INCS, to receive automated electronic insurance notifications through Electronic Data Interchanges.<\/p>\n<p class=\"wp-block-paragraph\">On Nov. 9, Progressive transmitted an electronic notification through INCS advising Source One that the policy would be canceled effective Nov. 29. The notification did not state the <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Premium&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Amount paid to the insurer for insurance protection.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/premium\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">premium<\/a> arrearage or explain how the overdue amount could be paid.<\/p>\n<p class=\"wp-block-paragraph\">Progressive reported the <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a> to the Massachusetts Registry of Motor Vehicles on Dec. 1 and notified Source One through INCS on Dec. 2 that the policy had been canceled for nonpayment.<\/p>\n<p class=\"wp-block-paragraph\">On Dec. 7, the vehicle was involved in a <a class=\"glossaryLink cmtt_auto\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Collision&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Coverage for damage from collision with another object or upset.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/collision\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">collision<\/a> and declared a total loss. Source One submitted a <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Claim&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Request for payment or defense under the policy.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/claim\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">claim<\/a>, which Progressive denied on the ground that the policy had been canceled effective Nov. 29.<\/p>\n<h3 class=\"wp-block-heading\">Progressive Argued Different Rules Applied to Loss Payees<\/h3>\n<p class=\"wp-block-paragraph\">Progressive did not dispute that the policy required notice to Source One. Instead, it argued that the additional statutory and regulatory requirements governing notices to policyholders did not apply to secured lenders.<\/p>\n<p class=\"wp-block-paragraph\">Progressive pointed out that <a href=\"https:\/\/malegislature.gov\/Laws\/GeneralLaws\/PartI\/TitleXXII\/Chapter175\/Section113a\" target=\"_blank\" rel=\"noopener\">G.L. c. 175, \u00a7 113A<\/a> refers to the \u201cinsured\u201d and \u201cnamed insured,\u201d while 211 CMR 97.04(2), including its <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Premium&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Amount paid to the insurer for insurance protection.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/premium\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">premium<\/a>-deficiency and payment disclosures, expressly applies to notices issued to a \u201cPolicyholder.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Loss payees, Progressive argued, are addressed separately under 211 CMR 97.04(3)(a). Because Source One enrolled in INCS, Progressive maintained that it had agreed to receive electronic notices and that the Nov. 9 notification supplied the required 20 days\u2019 advance notice.<\/p>\n<p class=\"wp-block-paragraph\">Source One countered that the policy required Progressive to send notice to the secured lender \u201cin a similar manner\u201d to notice sent to the policyholder. It also argued that a nonpayment notice was ineffective without stating the amount necessary to cure the default.<\/p>\n<h3 class=\"wp-block-heading\">Court Finds Progressive Loss Payee Cancellation Notice Defective<\/h3>\n<p class=\"wp-block-paragraph\">Judge Fabiano rejected Progressive\u2019s distinction between the notices required for policyholders and loss payees.<\/p>\n<p class=\"wp-block-paragraph\">The court found that Progressive\u2019s electronic notification was not mailed to Source One as required by the policy. It also found that the notice did not state the <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Premium&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Amount paid to the insurer for insurance protection.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/premium\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">premium<\/a> deficiency, applicable fees or that payment before the effective date would prevent <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">The notice therefore failed to satisfy both the policy\u2019s \u201csimilar manner\u201d requirement and the requirements the court applied under \u00a7 113A and 211 CMR 97.04.<\/p>\n<p class=\"wp-block-paragraph\">Because Progressive did not provide legally sufficient notice, the court concluded that the attempted <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a> was ineffective as to Source One. Coverage remained in force for Source One on Dec. 7, and Progressive\u2019s denial of its <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Claim&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Request for payment or defense under the policy.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/claim\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">claim<\/a> breached the policy.<\/p>\n<h3 class=\"wp-block-heading\">Progressive Prevails on Implied-Covenant and Chapter 93A Counts<\/h3>\n<p class=\"wp-block-paragraph\">The court entered summary judgment for Progressive on Source One\u2019s implied-covenant <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Claim&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Request for payment or defense under the policy.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/claim\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">claim<\/a>. Although every contract includes an implied covenant of good faith and fair dealing, the court found that this count rested on the same conduct and sought the same damages as the breach-of-contract <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Claim&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Request for payment or defense under the policy.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/claim\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">claim<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">The record also did not establish that Progressive acted with a dishonest purpose or interfered with Source One\u2019s contractual rights independently of the breach.<\/p>\n<p class=\"wp-block-paragraph\">Progressive also prevailed on the c. <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;93A&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Chapter 93A of the Massachusetts General Laws makes unlawful any &quot;unfair or deceptive acts or practices in the conduct of any trade or commerce.&quot; Under this statute, individuals and businesses can sue for actual damages as well as double or treble damages along with attorney fees.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/93a\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">93A<\/a> and <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;c. 176D&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;A Massachusetts statute prohibiting &quot;Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance.&quot; The statute grants the commissioner of insurance broad authority in issuing cease and desist orders and fines to persons engaged in the business of insurance in the commonwealth. The statute also has a list of nine unfair insurance claim practices the violation of which are violations of G.L. c. 93A, by definition. Chapter 93A gives consumers the right to sue for punitive damages and attorney fees for violations of the unfair claim practice provision of G.L. c. 176D.&lt;\/div&gt;&lt;\/div&gt;&lt;div class=&quot;ma__rich-text js-ma-rich-text&quot;&gt;&lt;\/div&gt;&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/c-176d\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">c. 176D<\/a> count. The court found no evidence that Progressive acted in bad faith or employed coercive or extortionate settlement tactics.<\/p>\n<h3 class=\"wp-block-heading\">Negligence Count Remains Despite Unaddressed Issues<\/h3>\n<p class=\"wp-block-paragraph\">The court denied both parties summary judgment on Source One\u2019s negligence <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Claim&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Request for payment or defense under the policy.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/claim\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">claim<\/a>. It reasoned that a factfinder could consider Source One\u2019s failure to inquire or otherwise protect its interest after receiving the electronic alert. The court cited Massachusetts\u2019 comparative-negligence statute, <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;G.L. c. 231, \u00a7 85&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;&quot;In all actions to recover damages for injuries ... arising out of an accident or collision in which a motor vehicle was involved, evidence that at the time of such accident or collision it was registered in the name of the defendant as owner shall be prima facie evidence that it was then being operated by and under the control of a person for whose conduct the defendant was legally responsible,&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/g-l-c-231-%c2%a7-85\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">G.L. c. 231, \u00a7 85<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">Progressive had separately argued that the negligence count was barred by the economic-loss doctrine because Source One alleged only financial loss arising from Progressive\u2019s performance of a contractual notice obligation. The decision did not address that argument or identify a duty independent of the policy.<\/p>\n<p class=\"wp-block-paragraph\">The decision also did not identify damages under the negligence count separate from the policy benefits recoverable under the contract counts. Although alternative liability theories may proceed together, Source One cannot receive duplicate compensation for the same loss.<\/p>\n<p class=\"wp-block-paragraph\">The Sept. 15 docket entries state that Count IV shall proceed to trial.<\/p>\n<h3 class=\"wp-block-heading\">Decision Turns on Policy Language and Notice Content<\/h3>\n<p class=\"wp-block-paragraph\">The decision does not hold that electronic notification is invalid in every circumstance. The ruling rests on Progressive\u2019s policy language, the information omitted from the EDI notification and the court\u2019s application of Massachusetts <a class=\"glossaryLink cmtt_general\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Cancellation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Ending the policy during the policy term per policy\/statute rules.&lt;\/div&gt;\" href=\"https:\/\/agencychecklists.com\/glossary\/cancellation\/\" data-mobile-support=\"0\" data-gt-translate-attributes=\"[{\" attribute\":\"data-cmtooltip\",=\"\" \"format\":\"html\"}]\"=\"\" tabindex=\"0\" role=\"link\">cancellation<\/a> requirements to Source One as the designated loss payee and secured lender.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n<p class=\"wp-block-paragraph\"><em>For those individuals interested in reading more insurance coverage articles by Owen Gallagher, peruse <a href=\"https:\/\/agencychecklists.com\/category\/massachusetts-insurance-law-news\/insurance-coverage-law-alerts\/\" target=\"_blank\" rel=\"noreferrer noopener\">our archives here<\/a>.<\/em><\/p>\n<div class=\"wp-block-genesis-blocks-gb-profile-box square gb-has-avatar gb-font-size-18 gb-block-profile gb-profile-columns\" style=\"background-color:#f2f2f2;color:#32373c\" wp_automatic_readability=\"6\">\n<div class=\"gb-profile-column gb-profile-avatar-wrap\">\n<div class=\"gb-profile-image-wrap\">\n<figure class=\"gb-profile-image-square\"><img loading=\"lazy\" decoding=\"async\" width=\"1707\" height=\"2041\" data-attachment-id=\"42395\" src=\"https:\/\/agencychecklists.com\/2020\/04\/14\/will-massachusetts-require-insurers-to-pay-covid-19-business-interruption-claims-42379\/og-2020\/\" data-orig-file=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474.jpg\" data-orig-size=\"1707,2041\" data-comments-opened=\"1\" data-image-title=\"Attorney Owen Gallagher\" data-image-description=\"&lt;p&gt;Massachusetts insurance coverage lawyer&lt;\/p&gt;&#10;\" data-image-caption=\"\" data-large-file=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474-600x717.jpg\" class=\"gb-profile-avatar wp-image-42395\" alt=\"Best insurance lawyers Massachusetts\" srcset=\"https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474.jpg 1707w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474-251x300.jpg 251w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474-600x717.jpg 600w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474-167x200.jpg 167w, https:\/\/spcdn.shortpixel.ai\/spio\/ret_img+q_cdnize+to_auto+s_webp:avif\/agencychecklists.com\/wp-content\/uploads\/2020\/04\/OG-2020-scaled-e1586843981474-1285x1536.jpg 1285w\" sizes=\"auto, (max-width: 1707px) 100vw, 1707px\"\/><\/figure>\n<\/div>\n<\/div>\n<div class=\"gb-profile-column gb-profile-content-wrap\" wp_automatic_readability=\"36.5\">\n<h2 class=\"gb-profile-name\" style=\"color:#32373c\">Owen Gallagher<\/h2>\n<p class=\"gb-profile-title\" style=\"color:#32373c\">Insurance Coverage Legal Expert\/Co-Founder &amp; Publisher of Agency Checklists<\/p>\n<div class=\"gb-profile-text\" wp_automatic_readability=\"39\">Throughout my legal career, I have argued numerous cases in the Massachusetts Supreme Judicial Court and assisted agents, insurance companies, and lawmakers with the complexities and nuances of insurance law in the Commonwealth.<\/p>\n<p>Interested in connecting with me? Call me directly at 617-598-3801.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>LOWELL, Mass. \u2014 A Lowell District Court judge has ruled that a Progressive loss payee cancellation notice sent electronically was defective because it was not mailed as required by the policy and omitted required premium information. In a memorandum of decision dated July 31 and entered on the court docket Sept. 15, Associate Justice Mark [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[27716,134181,8681,2896,230136,27045,54903],"dealstore":[],"offerexpiration":[],"class_list":["post-7069075","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-cancellation","tag-defective","tag-loss","tag-notice","tag-payee","tag-progressive","tag-ruled"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Progressive Loss Payee Cancellation Notice Ruled Defective - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/som2nypost.com\/?p=7069075\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Progressive Loss Payee Cancellation Notice Ruled Defective - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"LOWELL, Mass. \u2014 A Lowell District Court judge has ruled that a Progressive loss payee cancellation notice sent electronically was defective because it was not mailed as required by the policy and omitted required premium information. 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