What is an insurance rescission in an insurance litigation case?

Insurance rescission in an insurance litigation case is when an insurance company attempts to cancel a policy in order to avoid any future financial responsibility. This occurs when a policyholder has made a misrepresentation or omission of material information on their insurance application. In other words, insurance rescission is when the insurance company tries to take back their offer to insure the policyholder due to a claim of fraud or misrepresentation. In Florida, when an insurer rescinds a policy, the policyholder is still entitled to receive any benefits they have already paid for. Additionally, the insurance company is required to return the full amount of premiums paid by the policyholder, along with any expenses or costs associated with securing the policy. A policyholder who has had their policy rescinded can sue the insurer in court to recoup their losses. Insurance litigation cases can be complex and lengthy, and the burden of proof to prove the insurer’s case for rescission is on them, so it is likely that an experienced insurance litigation attorney will be required to represent the policyholder’s interests. The attorney will look at the facts and circumstances of the policyholder’s individual case to determine whether the insurance company is justified in rescinding the policy and whether damages should be pursued.

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What is an insurance rescission in an insurance litigation case?

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