The article begins as follows:
An insurance policy is nothing more than a contract. It is a special type of contract because it – by law – contains an implicit union of good faith and fair trade. What this means is that neither party to the agreement may do anything to prevent the other from receiving the benefits of the contract.
When a prospective insured violates good faith and fair trade by distorting or concealing an essential fact that deceives an insurer, he takes a risk that would not have been taken if the truth had been known, the law allows the insurer – upon presentation of sufficient evidence – to repeal the policy and treat it as if it never came into being.
Developing the evidence is not easy. It requires the efforts of an insurance professional to gather evidence – whether documentary or by oral testimony – to convince a judge or jury that the insurer has acted properly, that the insured deceived the insurer and that the court should order the insurance to be invalid ab initio (from its inception).
What an Insurance Company Must Prove to Cancel an Insurance Policy
In many states, following ancient British precedents that preceded the formation of the United States, an insurance company discovers an actual basis for an insured person to obtain insurance by deceiving. the insurer about the risk that the insured applies for, the insurer can declare the insurance invalid from the start and treat it as if it never existed. In simple language, if the insurer discovers, either before or after a loss, that the insurance was acquired as a result of an incorrect presentation or concealment of an essential fact, it may terminate the policy. In most states, the ancient naval rule is followed (first in 1766 in the British House of Lords in a case called Carrter v. Boehn ) and revocation is available regardless of whether the insured fraudulently or innocently misrepresents or conceals a material fact.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, handling insurance claims, insurance operations and insurance fraud almost equal to insurance policyholders. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and email@example.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 52 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become professionals in insurance claims.
https://zalma.com/zalmas-insurance-fraud-letter-2/ Last read two issues of ZIFL here.
Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921
Read posts from Barry Zalma at https://parler.com/ profile / Zalma / post
Listen to the podcast: Zalma om försäkring https://anchor.fm/dashboard/episodesZalma om försäkring
Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg/
Go to the Insurance Claims Library – https://zalma.com/blog/ Insurance -claims libraries /
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