Filling out an application for a commercial insurance policy is a drag, and the temptation is to rush through the process. After all, you have more important things to do, right? But the Appellate Decision recently reinforced the serious consequences of material misrepresentations or omissions in insurance applications. The case, Schibell Mennie & Kentos, LLC
Rescission
Policy rescission because of misrepresentations on an insurance application
By Gene Killian on
There’s an old joke about lawyers and clients.
A man is flying in a hot-air balloon and realizes he’s lost. He spots a guy down below. He lowers the balloon and shouts, “Excuse me, can you help me? I promised my friend I would meet him half an hour ago, but I don’t know where…
Misrepresentations in policy application
By Gene Killian on
Posted in Professional Liability, Rescission
In Continental Casualty Co. v. Law Offices of Melbourne Mills, Jr., PLLC, the Sixth Circuit has just ruled that a lawyer’s failure to disclose an ongoing state bar association investigation against him constituted a material representation justifying the rescission of his malpractice insurance.
The defendant was one of three attorneys who represented a class of Kentucky…