Key Policy Rescission Considerations For Insurers

By Nicole Crowley and Christian Cavallo (August 23, 2019, 12:28 PM EDT) -- Rescission of an insurance policy can allow an insurer to avoid covering unintended risks. However, rescinding a policy can be fraught with challenges for the insurer, with further complications arising from important differences in state laws regarding rescission. Insurers especially need to be aware of situations in which a policy provides coverage required by statute or regulation, as in these cases an insurer's ability to rescind such compulsory insurance may be greatly diminished, at least with respect to certain kinds of policies....

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