Policy Rescission

Insurance agents never want a client’s insurance policy rescinded for obvious reasons: a client will have no coverage and the agent may have to tap his or her insurance agents professionally liability (EO) coverage. Insurers have limited rights to rescind coverage. These rights vary by state and are typically based on material misrepresentation. A summary of the legal aspects of rescission can be found here. Care must be taken when assisting an applicant in completing an application to avoid the…

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