Insurance 101 – Chapter 16 Volume 23 – Recommendations for Investigation and Handling of Potential Rescission

Recommendations for Investigation and Handling of Potential Rescission

he insured and the insurer should be careful when entering into a contract of insurance. Both must recognize that insurance is a contract of the utmost good faith and both parties should be able, in good faith, to rely on the other to neither misrepresent nor conceal facts material to the contract. Clearly, if there is fraud in the inception, the policy will be declared void. Also, because of the need for the utmost good faith, if an insured conceals or misrepresents a material fact the party harmed by the misrepresentation or concealment may unilaterally rescind the policy, return the consideration, and forever be barred from receiving any of the benefits of the insurance.

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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