It has long been the law in Ohio that an insurer can only void a policy ab initio for misrepresentations in the application if the application is incorporated into the policy and the policy specifically warns the insured in the policy language. Allstate Ins. Co. v. Boggs, 27 Ohio St.2d 216, ...

4 days ago - An insurer facing a claim from an insured who had deceived the insurer on a material fact would claim that the insurance contract was void ab initio; it was null and void from the beginning and that since there was no legally enforceable contract, the insurer ought not to have to pay.

In doing so, the court first noted that, under Maryland law, insurance policies are void ab initio if (1) a misrepresentation is made in the application process and (2) that misrepresentation is material.

The United States District Court for the Central District of California, applying California law, has held that two policies providing D&O and EPL coverage were void ab initio due to the policyholder's failure to disclose material information about its claims history during the application process. U.S. Specialty Ins. Co. v. Bridge Capital Corp., 2007 U.S. Dist. LEXIS 27946 (C.D. Cal. Mar. 12, 2007). Wiley Rein LLP represented the insurer in this action.

The Golden Rule court referred to Section 154 as "establish[ing] a two-prong test to be used in situations where insurance policies may be voided." Based on the Golden Rule court's use of the words "may be voided," the Coregis court concluded that policies secured via misrepresentations are voidable, but not void ab initio.

Co., 9 A.D.2d 176, 180, 192 N.Y.S.2d 610, 615 (4th Dep't 1959), aff'd, 9 N.Y.2d 655, 212 N.Y.S.2d 71 (1961), for example, the court held that Section 313 provides for prospective cancellation only, and supplants the common law right of insurers to void the policy from its inception. Teeter found that cancellation of the policy ab initio is also prevented even where the policy was procured through material misrepresentation or fraud.

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Unenforceable from inception, as distinguished from a voidable agreement, which may be avoided by a party under certain circumstances.

March 31, 2014 - In that case, National Armoured Ltd. was insured with Lloyd’s under three policies of insurance, which were put in place in September 1991, and renewed in September 1992. Lloyd’s voided the policies ab initio on the basis of misrepresentation and non-disclosure of material facts.

When does a contract become void? This can happen when one of the involved parties is incapable of comprehending the implications that were originally written in the contract. A contract may also be void-ab-initio i.e., invalid from the beginning where the life insurance policy.

Void Ab Initio: Application Fraud as Grounds for Avoiding Directors' and Officers' Liability Insurance Coverage

The district court granted Ohio National summary judgment holding that the policies were Stranger Originated Life Insurance (“STOLI”), void ab initio, that Ohio National could retain the premium paid for the voided policies with one exception, and that Ohio National was entitled to recover ...

Further under section 64VB of Insurance Act if the cheque is dishonored, then the policy is void ab initio, under such circumstances ... encashed, automatically contract ceases and as per the insurance act the policy becomes void ab initio. Apart from that, in the instant case the intimation ...

February 19, 2016 - Eventually, the beneficiaries settled with the insurer, and the U.S. District Court for the District of Minnesota, over New Stream’s objection, entered an order adopting the beneficiaries’ and insurance company’s agreement that rescinded the policy ab initio and that allowed the insurer to retain the premiums. The district court reasoned first that, “[p]ursuant to Minnesota law, a life insurance policy should be declared void when there is a statement made, in procuring the insurance, that is willfully false or intentionally misleading.” Second, the district court determined that “

June 27, 2024 - At common law, automobile insurers can typically rescind (i.e., treat as void ab initio or ‘from the beginning’) an auto insurance policy based on a misrepresentation or material non-disclosure of the insured who is applying for insurance.

November 15, 2023 - A circumstance that may render a contract void ab initio is when a contract is invalid due to common mistake of a material fact or for duress. For example, if a policy holder deceived an insurer about a relevant material fact when purchasing ...

June 27, 2019 - The New Jersey Supreme Court ruled that a life insurance policy procured with the intent to benefit individuals with no insurable interest in the life of the insured is void ab initio. Sun Life Assurance Co. of Canada v. Wells Fargo Bank, N.A., 2019 WL 2345444 (N.J.

sales/transfers) are always contrary to public policy – valid life insurance policies are · assets that can be sold under the guidelines set forth in New Jersey law. Finally, the court rules that STOLI policies were void ab initio (Latin for “from the

In short, the Court of Appeal has confirmed that the statutory scheme mandating auto insurance in Ontario has supplanted an insurer’s common law rights to treat a policy as void ab initio.

April 19, 2024 - Within the context of contract law, this concept is crucial when determining the validity of contracts. If a contract is deemed void “ab initio,” it’s as if it never existed, freeing parties from their obligations under that contract. Here are some beginning examples: Let’s say a customer lied about something important on their insurance contract.