What is reformation in an insurance litigation case?

Reformation in an insurance litigation case is a remedy in which a court will modify an insurance contract to make it clear and correct any mistakes or omissions that may have occurred in the policy language. In New Hampshire, reformation of an insurance contract may be called upon when a court finds that the policy language used in the contract does not correctly reflect the parties’ intentions or when the parties made a mistake in drafting the contract. Reformation also may be called upon when a person believes a clause in an insurance policy was inserted in a way that may be detrimental to their interests or to enforce the public policy of the state. For example, in New Hampshire, a court may grant reformation if an insurer has included a provision that attempts to limit its liability in a way that may conflict with the state’s public policy. Reformation is considered an equitable remedy, meaning that a court has the authority to modify a contract in order to ensure justice. A court is not allowed to modify a contract in order to create new terms or substitute language that was never agreed upon by the parties. Reformation should not be confused with rescission, which is the termination of the contract altogether.

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What is reformation in an insurance litigation case?

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