In North Carolina, the Insurer Can Waive Its Right to Claim Forfeiture

Originally published by Larry Bache.

Insurance applications are important in the insurance marketplace. Applications are part of the risk analysis insurers make in determining whether they will issue a policy. There is exhaustive case law on issues of misrepresentations, ambiguities, and incomplete applications. The issue I want to discuss is whether an insurer can waive its right to deny a claim based on an application misrepresentation.

The answer in most jurisdictions is yes. An insurer, through its conduct, can waive its right to deny or claim forfeiture based on an application misrepresentation defense.

For example, two policyholders, a husband and wife visit their local insurance agency. They sit down and the agent asks the policyholders a series of questions. One questions is whether the policyholders ever filed bankruptcy. This is a joint application and the application does not ask this question specific to either policyholder. Husband answers the question no. Husband actually filed a business bankruptcy over…

.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today http://ift.tt/1q0RsGT

via Abogado Aly Website