Feb. 21, 2003

Only Material Misrepresentation Justifies Rescission

Focus Column - Insurance Law - By Kirk A. Pasich - In the face of reports of widespread accounting irregularities, "off balance sheet financing" and other misstatements and omissions on corporate balance sheets, insurance carriers are challenging coverage by contending that the alleged wrongs that gave rise to suits against their insureds also give the carriers a right to rescind their policies.