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Insurance Industry Material Misrepresentation

Zelle  LLP

Rescission: Timing Matters Under Texas Law

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As discussed in an article Zelle drafted in November 2023, "Viewpoint: Non-renewal, Cancellation, Reformation and Rescission of Insurance Policies in Texas", an insurer that wishes to rescind an insurance policy on the basis...more

Wiley Rein LLP

New Jersey Appellate Court Affirms Rescission of Policies Based on Law Firm’s Misrepresentation in Applications

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In a win for Wiley’s client, a New Jersey appellate court, applying New Jersey law, affirmed a trial court’s decision rescinding four lawyer’s professional liability policies because of material misrepresentations made in the...more

Segal McCambridge

Segal McCambridge Secures Favorable Ruling on Rescission and Bodily Injury Benefits in the Michigan Court of Appeals

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The dispute arose when USA Underwriters rescinded an auto insurance policy due to material misrepresentation, rendering the policy void ab initio (from inception). Another insurance company, acting as the uninsured motorist...more

Rivkin Radler LLP

Insurance Update - June 2024

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Most pandemic-related businesses interruption insurance claims failed because policyholders could not show a direct physical loss. But some California courts issued conflicting decisions. The California Supreme Court has now...more

Wiley Rein LLP

Lawsuit not a “Related Claim” to Earlier Demand Letter, but Policy Rescinded Based on Material Misrepresentations in Application

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The United States District Court for the Middle District of Florida has held that an insurer was entitled to rescind a professional liability insurance company where the insured architecture firm made multiple material...more

Wiley Rein LLP

Material Misrepresentations on Application and Prior Knowledge Preclude Professional Liability Coverage for Behavioral Health...

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The United States District Court for the Central District of California, applying California law, has held that an insured behavioral health center’s material misrepresentations on an application and its prior knowledge...more

Wiley Rein LLP

Insurer Entitled to Rescind Policy for Insured’s Concealment of Lawsuit Filed Prior to Policy Period

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The United States District Court for the Central District of California, applying California law, has held that an insurer may rescind a policy issued to a law firm where the firm failed to disclose, when applying for...more

Carlton Fields

When Hidden Truths Become Material Misrepresentations

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A 2021 survey by Finder.com reveals that roughly 15% of Americans admit to lying on a life insurance application. While significantly lower than the incidence of lying when procuring other types of insurance (auto, 29% and...more

Faegre Drinker Biddle & Reath LLP

To Rescind or Not to Rescind, That’s Only Half the Question

An insured applies for a life insurance policy, answering “no” to all medical and health-related questions. She dies within two years of her application, and the insurer discovers she was in fact diagnosed with cancer two...more

Carlton Fields

New York Federal Court Confirms Arbitration Award In Credit Insurance Dispute Over Material Misrepresentations Based, In Part, On...

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The Southern District of New York federal confirmed an arbitral award related to a credit insurance policy claim over claims of manifest disregard of the law related to the materiality of misrepresentations in the insurance...more

Carlton Fields

Federal Court In Puerto Rico Voids Marine Insurance Policy Based Upon Misrepresentation In Insurance Application

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QBE Seguros brought a successful action declaring a marine insurance policy was void ab initio under the doctrine of uberrimae fidei and the breach of the warranty of truthfulness in the application for insurance....more

Saul Ewing LLP

Judge in Western District of Pennsylvania Agrees that Insured’s Material Misrepresentations Warrant Dismissal of his Bad Faith...

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American Nat'l Prop. & Cas. Co. v. Felix, No. 3:16-CV-147, 2018 WL 1747697 (W.D. Pa. Apr. 11, 2018) - When a fire destroyed defendant Daniel Felix’s home, he sought coverage under his American National homeowner’s...more

K&L Gates LLP

OnRisk: The Misrepresentation Defense

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In this episode of OnRisk, K&L Gates attorneys Carolyn Branthoover and Max Louik discuss the misrepresentation defense, also known as the rescission defense, a defense that insurers have been aggressively pursuing in recent...more

Carlton Fields

See Something, Say Something – Especially on Your Application for Insurance Coverage

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When is a misrepresentation material on an application for insurance coverage? The Ninth Circuit affirmed a decision from the Central District of California, finding that an answer on an application for D&O insurance was a...more

Butler Weihmuller Katz Craig LLP

Contingency Fee Multipliers: Florida Supreme Court Rejects Rare and Exceptional Circumstances Requirement

Contingency fee multipliers increase attorney fee awards substantially. The general custom in American law is that each party is responsible for his or her own attorney’s fees, regardless of the outcome of the action. See...more

Saul Ewing LLP

Eastern District of California: No Policy, No Bad Faith (in California)

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John Cordell Young, Jr. put Progressive on notice of a claim for the theft of his missing motor home, which was later found submerged in a canal with a pole wedged against the accelerator. Progressive’s investigation turned...more

Robinson+Cole Property Insurance Coverage...

Innocent or Unintentional Mistake in Application is Irrelevant: NY’s Second Department Finds Rescission Appropriate and Affirms...

When an insurer finds that the insured misrepresented a material fact in an application for insurance, the insurer may rescind the policy of insurance, and take the position that no coverage exists for a claimed loss. In a...more

Cozen O'Connor

Rescission: An Underutilized Tool

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The rescission of an insurance policy is one of the most underutilized tools in handling insurance claims. If used properly, it unwinds the insurance transaction and the parties are restored to their position prior to the...more

Carlton Fields

STOLI Policies Cancelled, Insurers Retain Premium

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Two federal appellate courts have affirmed, on different grounds, the cancellation of large life insurance policies that were alleged to be stranger originated life insurance (STOLI), permitting the issuing insurers to retain...more

Womble Bond Dickinson

Steps to effectively cancel an insurance policy

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The North Carolina Court of Appeals recently released an unpublished opinion further illuminating how insurers can effectively cancel worker's compensation policies. However, nothing in the case limits its application solely...more

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