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.
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