Which of the following would strongly support rescission of coverage for D&O liability insurance?

Question

Quizplus · Accepted Answer

A misrepresentation made in the policy application would strongly support rescission of coverage for D&O liability insurance as it would be considered a breach of contract. Insurers rely on the information provided in the application to assess the risk and determine the premium. If any material information is misrepresented, the insurer may rescind the policy and void all coverage. A well-drafted severability clause, lack of a non-cancellation clause or imposition of liabilities imposed on the directors and officers may not necessarily support rescission of coverage.

Which of the Following Would Strongly Support Rescission of Coverage