Insurance Agency Expert Witness On Recission Part 8

In his article Insurers: To Rescind Or Not to Rescind?, insurance agency expert witness Akos Swierkiewicz writes:

Major weaknesses emerged in the insurer’s justifications for its decision to rescind the policy, including:

• The insurer previously issued policies for a previous owner, covering the same premises, and therefore it had prior knowledge of the underwriting information, including square footage, which differed from what the insured had provided.

• Just because the square footage information provided by the insured differed from the prior information in the insurer’s underwriting files, it was not sufficient for the insurer to conclude that the insured’s statement is false, especially since its insurer failed to make any attempt to reconcile the difference.