This story is reprinted with permission from FC&S Legal, the industry's only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

A federal district court in Maine has ruled that an insurance company could rescind automobile insurance policies it issued to an insured who represented that he lived in Maine and would garage his vehicles there, when he actually lived in, and garaged his vehicles in, Massachusetts.

The Case

McArthur Sullivan submitted an application to Dairyland Insurance Company for a Maine automobile insurance policy in which he stated that he was a resident of Wales, Maine, and that he principally garaged the vehicles he sought to insure in Wales, Maine. In fact, however, Mr. Sullivan primarily resided and garaged the vehicles he sought to insure in the Commonwealth of Massachusetts, a fact he did not disclose in the application.

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