|
4582 REVIEW DENIED An insurer that issues a policy in reliance on an insured’s material misrepresentation may rescind, and since the policy is then void ab initio, the insurer has no obligations under it and may be entitled to reimbursement for its expenditures in defending a claim against the insureds; insureds are liable for reimbursement of such defense costs only to the extent of benefits they received, with the burden on the insurer to allocate those benefits in its action for reimbursement.CitationLA SOUND v ST PAUL (Insured’s Misrepresentation) 156 CA4 1259 [See: InsC 330, 331, 332, 359, 650; CivC 1691; EvC 500; Wolitarsky v Blue Cross 53 CA4 338; Buss v Superior Court 16 C4 35, T/AT 8/97]
|
|
