At the end of the conversation, Geico confirmed that the policy was reinstated and backdated to May 5, 2018.

On May 25, 2018, at 2:43 p.m, approximately seven hours after Mr. Quintero had called Geico to reinstate his insurance policy, Mr. Quintero reported the theft of the vessel and trailer to the Broward County Sheriff's Office. The same day, at approximately 6:30 p.m., Mr. Quintero called Geico to make a claim under the policy for the stolen vessel, with a date of loss of May 25, 2018.

Geico acknowledged Mr. Quintero's claim and began an investigation the same day.

On July 13, 2018, Geico sent Mr. Quintero correspondence advising that the investigation was ongoing and that coverage for the loss would be determined after receipt of the full police investigation report.

On January 17, 2019, the Broward County Sheriff's Office issued a final report. It stated that video surveillance footage from a neighboring home showed a black pickup truck hauling the trailer and the vessel away at 4:58 a.m. on May 25, 2018, approximately three hours before Mr. Quintero had called Geico to reinstate the policy.

On January 30, 2019, Geico sent Mr. Quintero a rescission letter and denial of coverage. Geico explained that it was denying coverage for the vessel and rescinding the policy ab initio because Mr. Quintero had misrepresented the condition of the vessel and had misrepresented that he had possession of it when he called to reinstate his policy on May 25, 2018, which Geico stated was material to its decision to insure the vessel.

The parties moved for summary judgment.

The District Court's Decision

The court granted Geico's motion, concluding that Mr. Quintero's misrepresentations regarding the status of the vessel voided the policy ab initio under uberrimae fidei – which applies to marine insurance and “requires that an insured fully and voluntarily disclose to the insurer all facts material to a calculation of the insurance risk.”

In its decision, the court explained that Mr. Quintero made a claim for the stolen vessel approximately seven hours after he had misrepresented its status and condition – information upon which Geico had relied in calculating the risk of insuring the vessel. The court added that the fact that Mr. Quintero later informed Geico that the vessel had been stolen did “not erase his prior misrepresentations” and did not require Geico to honor a policy that was void ab initio and insure a stolen vessel.

Uberrimae fidei, the court said, imposed a “heavy burden” upon Mr. Quintero to disclose all material facts about the vessel that were within his knowledge or “ought to be within” his knowledge.

Indeed, the court continued, even if Geico had not directly asked Mr. Quintero about the status of his vessel, he had a duty to disclose under uberrimae fidei “those material facts not directly inquired into by the insurer.”

Accordingly, the court said that it agreed that Mr. Quintero's misrepresentations and concealment were material and voided the policy ab initio pursuant to the “well-entrenched” doctrine of uberrimae fidei.

The case is Quintero v. Geico Marine Ins. Co., No. 0:18-cv-62093-UU (S.D. Fla. May 1, 2019). Attorneys involved include: For Alfredo Quintero, Plaintiff: Jose Pete Font, LEAD ATTORNEY, Font & Nelson, LLC, Fort Lauderdale, FL. For Geico Marine Insurance Company, Respondent: Michael Adam Packer, LEAD ATTORNEY, Marshall Dennehey Warner Coleman & Goggin, P.C., Fort Lauderdale, FL; Shaghayegh Nowroozpour, FL.