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.

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.

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

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.

A policyholder who makes false ... initio.10 In other words, the contract would be deemed to have never existed because the basis on which it rests, the initial declaration of risk, was flawed....

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, ...

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.

May 14, 2019 - He found that the respondent insurer was entitled to rescind the insurance contract based on material misrepresentation, making it void ab initio; that it had done so effectively; and that, as a result, section 258(1) was not available to the appellants, as there was no contract with Intact that provided indemnity to the at-fault driver or owner at the time of the accident.

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June 21, 2019 - Rescinding a policy to make it ... date) is a remedy available to insurers at common law where an insurance policy was induced by fraud and/or material misrepresentation in the application or underwriting process....

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.

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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.

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.

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.

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

In the case of Merino v. ING Insurance Company of Canada 2019 ONCA 326 (Merino), the Ontario Court of Appeal concluded on the key issues before it as follows:...

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

January 26, 2025 - He found that the respondent insurer was entitled to rescind the insurance contract based on material misrepresentation, making it void ab initio; that it had done so effectively; and that, as a result, section 258(1) was not available to the appellants, as there was no contract with Intact that provided indemnity to the at-fault driver or owner at the time of the accident.