By Danielle Barondess on Posted in RescissionThe United States District Court for the Southern District of New York, applying New York law, has held that an insurer was entitled to rescind a lawyers professional liability policy because the insured law firm made a material misrepresentation in its application. Travelers Cas. & Surety Co. of Am. v. Gold, Schollar, Moshan, PLLC, 2018… Continue Reading
By Jessica N. Gallinaro on Posted in RescissionThe United States District Court for the Southern District of West Virginia, applying West Virginia law, has held that an insurer which was entitled to rescind a lawyer’s professional liability policy, and thus owed no duty to defend the underlying action, was not entitled to reimbursement of defense costs. ALPS Prop. & Cas. Ins. Co.… Continue Reading
By Matthew W. Beato on Posted in RescissionApplying California law, the United States Court of Appeals for the Ninth Circuit has held that an insurer was entitled to rescind a directors and officers liability insurance policy where the insured failed to disclose a pending investigation in response to an application question. Western World Ins. Co. v. Professional Collection Consultants, 2018 WL 259309… Continue Reading
By Bonnie Thompson on Posted in Prior Knowledge/Warranty Exclusion,RescissionA California federal district court, applying California law, has held that an insurer was entitled to summary judgment that it had no duty to defend a suit against its insured because the insured failed to disclose a related claim in its application, and the claim therefore predated the policy period. Kelly v. Starr Indem. &… Continue Reading
By Laura Lee Miller on Posted in RescissionThe United States District Court for the Southern District of Indiana, applying Indiana law, denied an insurer’s motion for summary judgment based on rescission, holding that there was a question of material fact where the insurer did not provide evidence of the amount of claims paid or premiums received for the policies to be rescinded.… Continue Reading
By Margaret Thomas on Posted in RescissionIn a win for Wiley Rein’s client, a Missouri federal court has denied a motion to stay a coverage action against an insolvent insurer pending the resolution of insolvency proceedings in state court, holding that the insolvent insurer had failed to demonstrate that the case presented one of the exceptional cases where abstention is appropriate.… Continue Reading
By Bonnie Thompson on Posted in Loss,Prior Knowledge/Warranty Exclusion,RescissionAn Illinois intermediate appellate court, applying Illinois law, has held that a renewal insurance policy may only be rescinded based on material misrepresentations made in the renewal application, and not based on misrepresentations made in applications for prior policies. Ill. State Bar Ass’n Mut. Ins. Co. v. Rex Carr Law Firm, 2017 WL 2806126 (Ill.… Continue Reading
By Ashley-Anne L. Criss on Posted in RescissionIn a win for Wiley Rein’s client, the Second Circuit has upheld a judgment declaring an accountants professional liability policy to be void ab initio based on material misrepresentations in the insured’s application for coverage. Continental Cas. Co. v. Boughton, 2017 WL 2416902 (2d Cir. June 5, 2017). The appellate court held that (1) the… Continue Reading
By Emily S. Hart on Posted in RescissionThe United States District Court for the District of New Jersey, applying New Jersey law, has held that an insured attorney’s failure to disclose on an insurance application an appeal filed late and a lawsuit filed outside of the statute of limitations constitutes a material misrepresentation warranting a default judgment voiding the policy. Liberty Ins.… Continue Reading
By Laura Lee Miller on Posted in Rescission,Rescission-Materiality,Rescission-WaiverThe U.S. District Court for the Southern District of Illinois, applying Illinois law, has held that an insurer was entitled to rescission of a policy where the insured made material misrepresentations in its application. Carolina Cas. Ins. Co. v. Robert S. Forbes PC, 2017 WL 86136 (S.D. Ill. Jan. 10, 2017). The court also held that… Continue Reading
By Edward R. Brown on Posted in RescissionThe United States Court of Appeals for the Third Circuit, applying New York law, has held that an insurer was entitled to rescind a policy based on an insured’s omission of prior loss data on an insurance application. H.J. Heinz Co. v. Starr Surplus Lines Ins. Co., 2017 WL 108006 (3d Cir. Jan. 11, 2017).… Continue Reading
By Jennifer A. Williams on Posted in Prior Knowledge/Warranty Exclusion,RescissionThe United States District Court for the Southern District of Ohio, applying California law, has held that an errors and omissions insurer is not entitled to rescission of its policy based on an alleged misrepresentation by the insured on the application for the policy. Maxum Indem. Co. v. Nat’l Condo & Apartment Ins. Grp., 2016… Continue Reading
By Nicole Audet Richardson on Posted in Prior Knowledge/Warranty Exclusion,RescissionThe United States District Court for the Northern District of Mississippi, applying Mississippi law, has granted summary judgment in favor of an insurer, holding that the insurer is entitled to rescind a lawyers professional liability policy based on the insured attorneys’ material misrepresentations in the insurance application. Imperium Ins. Co. v. Shelton & Assocs. P.A.,… Continue Reading
By Nicole Audet Richardson on Posted in Notice of Potential Claim (Timeliness),RescissionA federal district court in Illinois has granted an insurer’s motion for summary judgment rescinding three consecutive professional liability policies. This comes after the court determined under Illinois law that the insured attorney made material misrepresentations in each of the renewal applications. Minn. Lawyers Mut. Ins. Co. v. Schulman, 2016 WL 4988006 (N.D. Ill. Sept.… Continue Reading
By Karen L. Toto on Posted in RescissionApplying California law, the United States Court of Appeals for the Ninth Circuit has upheld the district court’s rescission of a tower of crime policies based on the insured’s material misrepresentation in the application for the policies. Kurtz v. Liberty Mutual Ins. Co., 2016 WL 4547366 (9th Cir. Sept. 1, 2016).… Continue Reading
By Jason O'Brien on Posted in RescissionApplying Georgia law, a federal district court has held that rescission of an insurance policy based on a material misrepresentation in the application voids all provisions of the policy, including the “innocent insured” provision, such that the insureds who had no knowledge of the fraud cannot rely on that provision to preserve coverage for themselves. ProAssurance… Continue Reading
By Margaret Thomas on Posted in RescissionApplying Arizona law, a federal district court has held that an insurance brokerage firm’s failure to disclose past investigations by the Department of Insurance in response to a specific question on its professional liability insurance application warranted rescission of its policy. Admiral Ins. Co. v. AZ Air Time, LLC, No. CV-15-00245-PHX-SRB (D. Ariz. Aug. 10,… Continue Reading
By Leland H. Jones, IV on Posted in RescissionApplying Louisiana law, the United States District Court for the Western District of Louisiana has held that an insurer cannot rescind a fidelity bond issued to a bank because it could not prove as a matter of law that the bank intended to deceive the insurer. Everest Nat’l Ins. Co. v. Tri-State Bancshares, Inc., No.… Continue Reading
By Leland H. Jones, IV on Posted in RescissionApplying Iowa law, the United States Court of Appeals for the Eighth Circuit has held that an insurer can rescind an E&O policy because the insured failed to disclose the existence of a claim made after the submission of the application but before the insured agreed to purchase coverage. Capson Physicians Ins. Co. v. MMIC… Continue Reading
By Margaret Thomas on Posted in Estoppel,RescissionApplying Connecticut law, a federal district court has held that an insurer properly rescinded multiple crime policies issued to an insured based on the insured’s failure to disclose known losses in its applications for coverage. Known Litigation Holdings, LLC v. Navigators Ins. Co., 2016 WL 3566653 (D. Conn June 24, 2016).… Continue Reading
By Nicole Audet Richardson on Posted in RescissionA Kentucky federal court has held that a claimant has no standing to bring a declaratory judgment action against her alleged tortfeasor’s insurer where the claimant has yet to obtain a judgment in the underlying action. Summers v. Scottsdale Indem. Co., No. 1:15-cv-0092 (W.D. Ky. March 31, 2016). The court also held that, even if… Continue Reading
By Margaret Thomas on Posted in RescissionApplying Illinois law, the United States Court of Appeals for the Seventh Circuit has held that a medical service provider’s material misrepresentations regarding its use of non-traditional and experimental weight loss drugs and procedures warranted rescission of its professional liability coverage. Essex Ins. Co. v. Galilee Med. Cntr.¸ 2016 WL 851688 (7th Cir. Feb. 10,… Continue Reading
By Laura Lee Miller on Posted in RescissionThe United States Court of Appeals for the Fourth Circuit, applying South Carolina law, has affirmed a trial court’s determination that a professional liability insurance policy afforded coverage to innocent co-insureds despite fraudulent misrepresentations in the application submitted by an individual applicant posing as a doctor. Evanston Ins. Co. v. Agape Senior Primary Care, Inc.,… Continue Reading
By Nicole Audet Richardson on Posted in RescissionApplying Connecticut law, a Connecticut federal court held that an insured’s E&O policy must be rescinded and voided ab initio after finding that the insured knowingly made misrepresentations regarding an investigation of one of its officers, which were material to the insurer’s decision to insure the applicant. Zurich Am. Ins. Co. v. Expedient Title, Inc.,… Continue Reading
