A medical malpractice carrier has no duty to defend or indemnify a physician whose policy was rescinded for lying on his coverage application, a split New Jersey Supreme Court has ruled.
In a 5-2 ruling in DeMarco v. Stoddard, the court reversed an appeals court’s decision that required Rhode Island Medical Malpractice Joint Underwriting Association (RIMMJUA) to provide the minimum of coverage to defendant Dr. Sean Stoddard even though it had already retroactively canceled his policy upon discovering that he misrepresented a key detail about his practice on his application.
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