Insurance 101 – Chapter 6 – Volume 21 – Grounds for Declaring Void

Grounds for Declaring Void

When a policy is declared “void” by the insurer, the most common ground is that the insured has breached a condition of the policy, which effectively forfeits the policy. “Forfeiture” is defined in Webster’s 3rd International Unabridged Dictionary as “loss of some right, privilege … in consequence of a … breach of condition or other act.” Generally, if the insurer accepts unearned premiums from the insured at the time of forfeiture or voidance with the knowledge of facts indicating a forfeiture, the insurer waives its right to defend on that ground.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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