Filling out an application for insurance seems like a straightforward step, but it can cause problems if you are not careful. Mistakes can happen. Unfortunately, a recent court decision makes clear that such a mistake can be very costly and result in denial of coverage even if it was an innocent error.
An insurance application typically requires applicants to answer several questions which allow the insurance company to assess whether it will provide insurance and, if so, how much it will charge. Applicants must be careful about how they respond because if they lie or make a “material misrepresentation” they risk losing coverage. It is well-settled law … Read more