Disputes over insurance coverage between carriers and insureds are not all that uncommon. Reasonable minds can differ on the meanings of policy terms, exclusions, even limits of coverage. What many folks don’t realize, however, is that it also is common when coverage disputes arise for a carrier to take a close look at why it issued the policy in the first place.
Insurance carriers use the application to gather information as part of the underwriting process. They seek information relevant to the proposed risk and use the information to set premium levels. Carriers are entitled to rely upon the answers given to questions on the application.
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