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The Marine Rule  

https://zalma.com/blog

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.\\u201d 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.   \\xa9 2021 \\u2013 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 zalma@zalma.com.   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 \\u2013 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/