Insurance Industry, Insurance Litigation, Rescission

Policy Rescinded Based on Insured’s Material Misrepresentation in Renewal Application

Wiley Rein LLP on 6/14/2024

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

Insurance Update - April 2024

Rivkin Radler LLP on 4/12/2024

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

Lawsuit not a “Related Claim” to Earlier Demand Letter, but Policy Rescinded Based on Material Misrepresentations in Application

Wiley Rein LLP on 10/10/2023

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

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

Wiley Rein LLP on 6/5/2023

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

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

Wiley Rein LLP on 5/8/2023

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

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

Wiley Rein LLP on 4/28/2023

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

Company’s Misrepresentations Warrant Policy Rescission Under Florida Law

Wiley Rein LLP on 2/6/2023

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

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

Wiley Rein LLP on 2/6/2023

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

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

Wiley Rein LLP on 1/26/2023

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

Federal Court Declines to Exercise Jurisdiction Over Rescission Action

Wiley Rein LLP on 9/3/2021

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

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

Wiley Rein LLP on 3/12/2021

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

Insurer Entitled to Rescind Due to Misrepresentations on Application

Wiley Rein LLP on 2/1/2021

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

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

Carlton Fields on 5/22/2017

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

When is Rescission Based Upon Material Misrepresentations The Proper Course of Action?

Cozen O'Connor on 5/13/2016

Carriers rely on application representations regarding the existence of potential claims. Sometimes, the carrier learns after the fact that an applicant may not have reported all known potential claims. What can/should the...more

Third Circuit Evaluates The Definition Of “Materiality” In Rescission Claims

Carlton Fields on 3/4/2015

In a case on which we previously reported, the Third Circuit recently evaluated the legal standard for determining materiality in a claim for rescission of an insurance contract. The case involved a dispute between two...more

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