In a recent Court decision from 2013, the First District Court of Appeals held that an insurance carrier did not have to prove that an insured’s false statement was intentional to be allowed to cancel the policy. The case involved the insured filing a claim with his insurance agency after a fire. The insurance company found out during the course of their investigation that one of the individuals named in the insurance policy lied on their insurance application when asked about prior convictions for a felony in the past 10 years. The person, in fact, had five felony convictions on their record in the last 10 years.
Appellate Court Decision
During her testimony at trial, the insured claimed that the false response to the inquiry on the insurance application was not intentional. While the insured won at the trial court level, the insurance company appealed and won a judgment in their favor from the First District Court of Appeals. The insurance company pointed to a relevant part of the insured’s policy that allowed for the policy to be void if an insured makes false statements. In this case, the insured argues that the insurance company had to show that the false statements were made intentionally with the purpose of deceiving the company in order for the claim to be successful and the policy voided. The District Court did not agree.Read More