Opinion
June 2, 1988
Appeal from the Supreme Court, New York County (Kenneth L. Shorter, J.).
This proceeding stems from an automobile accident which occurred on November 7, 1984 in Queens and involved Strippoli and Lupola. Upon being advised by Royal Insurance that it had, on April 2, 1986, canceled Lupola's policy, effective January 27, 1984, Strippoli filed a demand for arbitration of an uninsured motorist claim with his carrier, Aetna. Royal's cancellation was based on Lupola's alleged failure to meet the requirements of the New Jersey Automobile Full Insurance Underwriting Association, i.e., a bona fide New Jersey residence. Lupola contends that at the time she purchased the Royal policy she was living in Iselin, New Jersey. In any event, Aetna timely moved to stay arbitration, arguing that Royal could not cancel Lupola's policy ab initio. Although recognizing that the cancellation, ab initio, of an automobile liability policy would offend the public policy of this State (see, Teeter v Allstate Ins. Co., 9 A.D.2d 176, affd 9 N.Y.2d 655), the motion court, inexplicably, denied a stay. This was error. As all parties concede, a hearing is in order, since the effectiveness of Royal's purported cancellation, ab initio, presents a factual issue, irrespective of whether New York or New Jersey law applies. Since the issue of Lupola's coverage is central to the question of Aetna's obligations under the uninsured motorist endorsement, the court should have ordered a hearing on the issue. (Aetna Cas. Sur. Co. v Rodriguez, 102 A.D.2d 744; Matter of Aetna Cas. Sur. Co. [Hines], 102 A.D.2d 725.)
Concur — Kupferman, J.P., Sullivan, Milonas, Rosenberger and Smith, JJ.