DOCTRINE OF UBERRIMAE FIDEI ENDS INSURED’S CLAIM FOR BENEFITS UNDER MARITIME POLICY
The Ninth Circuit affirmed summary judgment for defendant insurer United Specialty Insurance Company based on the admiralty doctrine of uberrimae fidei or “utmost good faith,” a doctrine sometimes used in reinsurance arrangements. The court held an insurer can invoke the doctrine to void a marine insurance contract if it can show either: (1) an intentional misrepresentation of fact, regardless of materiality, or (2) non-disclosure of a fact material to the risk, regardless of intent. Plaintiff failed to disclose the true owner of the insured vessel to the defendant, a fact that was material to the defendant’s assessment of the risk, according to the court. SW Traders, LLC v. United Specialty Ins. Co., No. 09-0778 (9th Cir. Nov. 18, 2010).
This post written by Ben Seessel.
