A policy can sometimes be reformed if it can be proved that there was a mutual mistake about its terms. In granting reformation based on mutual mistake, a court does not create a new agreement or increase the scope of coverage, but only enforces the terms of the policy as the parties originally intended.

In Caliber One Indemnity Co. v. Wade Cook Financial Corp., 491 F3d 1079 (9th Cir. 2007), the insured disputed the dollar amount of coverage under a commercial property policy that provided earthquake coverage. The original policy provided a $5 million earthquake coverage limit. The policy renewed in 1999 with the insured, through its insurance agent, requesting the exact same terms as the previous policy.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.