A Video Explaining the Marine Rule & Rescission of Insurance

In some states, even if the false statements made in the application were not warranties but were merely misrepresentations or concealments (whether innocent or intentional), grounds exist for rescission.  Fraud need not be proved; this is called the Marine Rule.

In Gates v. Madison County Mut. Ins. Co. (5 N.Y. 469, 55 Am.Dec. 360, a "marine rule imposes on the insured, although no inquiry be made, to disclose every fact material to the risk, within his knowledge.” In other words, an applicant for marine insurance must state all material facts which are known to him and unknown to the insurer (Alexander, Ramsey Kerr v. National Union Fire Ins. Co., 104 F.2d 1006, 1008).

The Supreme Court of Rhode Island, applying the Marine Rule in Guardian Life Insurance Company of America v. Alfred E. Tillinghast, 1986 RI 2219 (1986), found there was no need to prove fraud, even if pleaded, where a material misrepresentation is sufficient to rescind the policy.

© 2021 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost

equally for insurers and policyholders. He also serves 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 handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and [email protected].

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 53 years Barry Zalma has dedicated 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 make it possible for insurers and their claims staff to become insurance claims professionals.

Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma;  Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts; and the last two issues of ZIFL at https://zalma.com/zalmas-insurance-fraud-letter-2/