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New York Federal Court Enforces Exclusion Barring Coverage for Claims Based on Any Misrepresentation, Regardless of Perceived Materiality

March 27, 2025 by Dylan Magruder

When state law provides that an insurance contract can be rescinded for misrepresentations only if they are “material,” can an insurer contract around that rule by adding an exclusion for all claims based on any misrepresentation, regardless of materiality? The Southern District of New York says “yes” in Mt. Hawley Insurance Co. v. Beach Cruiser LLC. The insureds were the owner and property manager of various rental properties, including a house in downtown ... Keep Reading »

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