When Honeymoon Diamonds failed to pay its monthly premiums, its insurer--Lexington Insurance Company--cancelled the policy.
And when Honeymoon later suffered a loss, which would have been covered by the insurance plan, a lawsuit was filed. (Honeymoon asserted it had been told that the policy was still in effect and further argued that the insurer and its broker should have made arrangements to ensure that coverage continued.)
Since the "proximate cause" of Honeymoon's harm was the failure to pay its own premiums, both the New York County Supreme Court and the Appellate Division, First Department, didn't think the company's case wasn't maintainable.
That sure was a gem.
To view a copy of the Appellate Division's decision, please use the following link: Honeymoon Diamonds v. International Jewelers Underwriters Agency Ltd.