Vague Insurance Application Questions Can Hurt Insurers

By Tino Do (September 7, 2017, 2:22 PM EDT) -- One of the most challenging and controversial issues an insurer faces is whether an insurance applicant's apparent misrepresentation in an application entitles the insurer to rescind the policy. In a recent decision, a California court of appeal found that an insurer was not entitled to rescind an insurance policy even though there was evidence that the insured had concealed material facts in his application. What doomed the insurer's ability to rescind the policy was the ambiguity and lack of clarity of the application questions at issue....

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