Listen to Coronavirus Patient Zero
Insurers have a right to require that those applying for insurance will truthfully answer all questions contained in their application, and they then rely on the statements made by an insurance applicant. But what happens when an application for life, health, or disability insurance contains misrepresentations or intentional concealments? This comprehensive publication provides practitioners with a national survey of each of the fifty states, the District of Columbia, and the federal circuits regarding misrepresentations in applications as well as the applicable case law interpreting relevant statutes and developing the common law regarding misrepresentations. It also discusses the important evolving issues related to misrepresentations in the context of the Employee Retirement Income Security Act ("ERISA"). This is a useful tool for any practitioner, whether representing an insured, an insurer, or in-house counsel. Covering the full gamut of issues arising in the application process, including what constitutes a misrepresentation, how a policy is appropriately rescinded, and the defenses that may be raised to contest a decision to rescind a policy, it is logically organized by jurisdiction. Chapters address how state common law and statutes address misrepresentations in the life, health, and disability insurance application context. In addition, there is a chapter for each federal circuit that provides an overview of misrepresentations in the context of an employee welfare benefit plan governed by ERISA.
The book examines how the absence of insurance in the past led to some special maritime liability law principles such as 'general average' (i.e., losses or expenses shared by all the parties to a maritime adventure) and the limitation of shipowners' liability. In the absence of insurance, these principles served the function of insurance mostly for shipowners. As commercial marine insurance is now widely available, these principles have lost their justification and may in fact interfere with the most important goal of liability law i.e., deterrence from negligence. The work thus recommends their abolition. It further argues that when insurance is easily available and affordable to the both parties to a liability claim, the main goal of liability law should be deterrence as opposed to compensation. This is exactly the case with the maritime cargo liability claims where both cargo owners and shipowners are invariably insured. As a result, the sole focus of cargo liability law should be and to a great extent, is deterrence. On the other hand in the vessel-source oil pollution liability setting, pollution victims are not usually insured. Therefore oil pollution liability law has to cater both for compensation and deterrence, the two traditional goals of liability law. The final question the work addresses is whether the deterrent effect of liability law is affected by the availability of liability insurance. Contrary to the popular belief the work attempts to prove that the presence of liability insurance is not necessarily a hindrance but can be a complementary force towards the realization of deterrent goal of liability law.