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Rescission Insurance Industry

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

Miller Nash LLP

The Northwest Policyholder | When the Application is the Risk: Application-Based Insurance Policy Rescission

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Surprised insurers are unhappy insurers. And unhappy insurers are more likely to resist paying claims. As are insurers who fail to heed their good faith and other obligations to their policyholders. So if you seek coverage...more

Wiley Rein LLP

Eleventh Circuit Holds that Claims Pre-Date Policy, Sidesteps Rescission Issue

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The United States Court of Appeals for the Eleventh Circuit, applying Florida law, has held that an insurer did not need to cover underlying litigation instituted against its insured during the policy period because related...more

Wiley Rein LLP

New York Federal Court Holds Prior Knowledge Exclusion Applies Only to Known Claims, Not Facts and Circumstances That Could Lead...

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Applying New York state law, the United States District Court for the Northern District of New York held that a professional liability insurer had waived its rescission claims by failing to request additional explanations for...more

Wiley Rein LLP

Policy Rescinded Based on Insured’s Material Misrepresentation in Renewal Application

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An Indiana federal court, applying Indiana law, has held that an insurer could rescind a claims-made-and-reported professional errors and omissions policy based on misrepresentations made by the insured in the policy renewal...more

Rivkin Radler LLP

Insurance Update - April 2024

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Dominance was the theme of this year’s NCAA basketball tournament, with the UConn men’s team winning back-to-back championships and the South Carolina women’s team reclaiming the title with a perfect record. But let’s not...more

Zelle  LLP

Non-renewal, Cancellation, Reformation and Rescission of Insurance Policies in Texas

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The Texas Legislature this year adopted House Bill 1900, which amends the notice requirements for non-renewal and policy changes in Texas Insurance Code Section 551.105. The statutory changes, effective Sept. 1, increase the...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

Insurer’s Motion to Dismiss Denied Where Complaint Plausibly Alleged Rescission of Policies Was Untimely Under Wisconsin Statute

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The United States Bankruptcy Court for the Eastern District of Wisconsin, applying Wisconsin law, denied an insurer’s motion to dismiss on the grounds that the insured dentist’s complaint plausibly alleged that the insurer’s...more

Wiley Rein LLP

Insurer Entitled to Rescission Based on Insured’s Failure to Disclose Known Lawsuits

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The United States District Court for the Western District of Missouri, applying Missouri law, has held that, as a matter of law, an insurer is entitled to rescind insurance policies where the insureds failed to disclose two...more

Wiley Rein LLP

Insurer Can Rely on Prior Insurance Applications in Support of Rescission Claim Based on Omission in Current Policy’s Application

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An Illinois federal district court, applying Illinois law, has held that an insurer adequately stated a claim for rescission of a professional services policy where underlying litigation revealed that the insured allegedly...more

Wiley Rein LLP

Insurer Entitled to Rescission for Insured’s Misrepresentations on Renewal Application

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The United States District Court for the Central District of California, applying California law, has held that an insurer was entitled to rescind a professional liability policy issued to a healthcare facility because the...more

Wiley Rein LLP

Company’s Misrepresentations Warrant Policy Rescission Under Florida Law

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A Florida federal district court has held that an insurer is entitled to rescind a directors and officers (D&O) policy it issued to its insured due to the insured’s misrepresentation of material facts on its application for...more

Wiley Rein LLP

“Notice of Cancellation” Meets California Requirements for Notice of Rescission

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A California federal court has held a “Notice of Cancellation” was sufficient to meet the substantive requirements of rescission in California, where the notice informed the insured of misrepresentations on the application...more

Wiley Rein LLP

Insurer Deemed to Waive Right to Rescind but Commingling Exclusion Bars Coverage for Claims Against “Innocent” Insureds

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Applying New Mexico law, the Tenth Circuit has held that an insurer that waits over a year to seek rescission after learning of the insured’s actual fraud has waived its right to do so. Evanston Ins. Co. v. Desert State Life...more

Lowenstein Sandler LLP

Insurance Coverage Wargames: Avoiding the Landmine of Policy Rescission

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Claim disputes with insurers often turn on events occurring long before the loss itself. Insurers frequently deny coverage where they suspect that an insured may have had prior knowledge of events giving rise to a claim....more

Wiley Rein LLP

Federal Court Declines to Exercise Jurisdiction Over Rescission Action

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The United States District Court for the Western District of Wisconsin has declined to decide whether an insurer properly rescinded an errors and omissions policy after learning of potential claims arising from events that...more

Wiley Rein LLP

Insurer Entitled to Rescind Policy Due to Insured’s Failure to Disclose Contract Dispute and Potential Claim on Application

Wiley Rein LLP on

A California federal district court has ruled that an insurer could rescind a professional liability policy because its insured failed to disclose a customer dispute and potential claim in its application for...more

Wiley Rein LLP

Insurer Entitled to Rescind Due to Misrepresentations on Application

Wiley Rein LLP on

The United States District Court for the Central District of California, applying California law, has ruled that an insurer could rescind a policy issued after a homeowners association falsely claimed in its application that...more

Faegre Drinker Biddle & Reath LLP

South Carolina DOI Addresses Statutory Compliance and Timing of Rescissions

The South Carolina Department of Insurance recently issued a bulletin with the stated purpose of reminding life insurers “that they are required to include and comply with the Required Provisions set forth in” S.C. Code §...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

Bradley Arant Boult Cummings LLP

5 Best Practices For Minimizing Rescission Risk

Recent court decisions across a variety of industries highlight the importance of submitting accurate and complete insurance applications and renewals. When submitting an insurance application, the applicant should accurately...more

Carlton Fields

Eleventh Circuit Deems Voluntary Dismissal of a Coverage Action Sufficient to Award Attorneys’ Fees to a Policyholder as the...

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In a recent unpublished opinion, the Eleventh Circuit issued a decision that should serve as a warning to insurers to be sure to resolve all issues before dismissing a coverage action, particularly when involved in the...more

Carlton Fields

Court Compels Arbitration To Determine The Arbitrability Of Reinsurance Dispute With Captive Insurance Company

Carlton Fields on

In a suit by an auto body company against a captive insurance company for rescission of certain workers compensation reinsurance participation agreements, for disgorgement of $70,000 paid thereunder, and for fraud, breach of...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

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