To apply the Marine Rule, the adjuster must understand that because facts about prior claims and cancellations are so frequently misrepresented or concealed, when the adjuster first meets the insured, each of the questions commonly asked on an application for insurance should be asked by the adjuster in order to verify the truth of the representations. If the insured stated on the application that he or she had never had a loss and then tells the adjuster about three prior losses, this could be evidence that will be a basis for rescission.
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