Insurance 101 – Chapter 8 – Volume 28 – Rescission – 4

Rescission – 4

The grounds for a rescission use key terms such as concealment and misrepresentation. The California Insurance Code defines the terms as follows:

Neglect to communicate that which a party knows, and ought to communicate is concealment. California Insurance Code § 330.

A representation is false when the facts fail to correspond with its assertions or stipulation. California Insurance Code § 358.

The effect of a concealment or a false representation on a policy of insurance is that it entitles the other party to rescind. California Insurance Code § 331 and § 359.

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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