In Pacific National Ins. Co. v. Webster (1985) 174 Cal.App.3d 779, an insured appealed a declaratory judgment that Pacific National Insurance Company had obtained in its favor declaring that its policy had been retroactively cancelled and did not provide coverage for a third party personal injury claim. (Webster, supra, 174 Cal.App.3d at p. 780.) Pacific National had issued a liability insurance policy covering property owned by the policy holders, who sold the property on December 17, 1981. That same day, an insured asked the insurance agent who had procured their policy what to do with it; the agent recommended they cancel it and the policy holder agreed. (Id., at p. 781.) The policy contained an endorsement stating it could be cancelled by the insured by surrender of the policy to the company or its authorized agents, or "by mailing to the Company written notice stating when thereafter the cancellation shall be effective . . . ." (Id. at pp. 781.) On December 19, 1981, two days after the insured's oral request for cancellation to the agent, an accident occurred on the property resulting in allegations of liability against the policy holders. The insured's agent was advised of the accident on December 22, 1981. (Id. at p. 781.) On December 29, 1981, the agent sent written note of cancellation to Pacific National, asking that the policy be cancelled effective December 17, 1981. (Id. at pp. 781-782.) The Court of Appeal reversed the judgment granting Pacific National declaratory relief. (Webster, supra, 174 Cal.App.3d at p. 783.) It held under the strict terms of the contractual provisions -- in which written notice was required to state when thereafter the cancellation shall be effective -- the proposed retroactive cancellation on December 17, 1981, based on the agent's December 29, 1981 note, was of no effect. (Ibid.) Thus, under the policy's terms and conditions, Pacific National covered the insureds as to the December 19, 1981 accident. (Ibid.)