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“Key Policy Rescission Considerations For Insurers,” Law360


“Key Policy Rescission Considerations For Insurers,” Law360

August 28, 2019
Christian A. Cavallo

Christian A. Cavallo and Nicole M. Crowley discuss what an insurer should consider when wanting to cancel their insurance policy and the challenges and complications that can occur.

In “Key Policy Rescission Considerations For Insurers,” published at Law360, Chris and Nicole explain that to rescind an insurance policy, the insurer must show that a misrepresentation of fact took place. Christian and Nicole also provide case examples and examine each case as to how it relates to rescission of an insurance policy.

“Generally, a misrepresentation is material if it would affect the acceptance of the risk or the hazard resulting in the loss,” they write. “To determine whether the misrepresentation is material, the majority of jurisdictions engage in a ‘but for’ analysis, which evaluates whether, but for the misrepresentation, the insurer would have issued the policy, provided less coverage or lower limits, or charged a higher premium.”

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More about Goldberg Segalla’s Christian A. Cavallo:

Chris Cavallo, a leader of the firm’s Global Insurance Services New Jersey Team and head of the national Transportation Coverage group, focuses his practice on representing and counseling insurers and other commercial clients in complex, high-exposure matters involving both first- and third-party insurance products, including extracontractual claims and claims arising under consumer protection statutes. Chris regularly writes and presents on emergent insurance industry topics, and he is involved in leadership roles for the firm’s GIS Webinar series and the firm’s insurance blog, The Insurance & Reinsurance Report.