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Misrepresentations in Application and Post Loss Can Void Coverage

Summary: An insured’s misrepresentation in obtaining coverage or fraud involving the policy can void coverage. Property and liability policies almost universally contain provisions stating that truthful and correct statements are the basis upon which the insurers decision to issue the contract is made and that fraud or misrepresentation voids the policy. Due to the phrasing of many misrepresentation and fraud clauses, the acts of any insured, and not just the named insured, can have the effect of voiding insurance coverage.

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ICLC Staff Writer

 

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