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Wednesday, March 06, 2013

Ind. Decisions - "Lie on insurance application voids coverage"

Yesterday's Supreme Court decision in Michael Dodd and Katherine Dodd v. American Family Mutual Insurance Company (ILB summary here) is the subject of this story today in the Indianapolis Star, written by Tim Evans. The story begins:

The Indiana Supreme Court sent a warning today: Lying on your homeowner’s insurance application can void the coverage.

That message came in a ruling issued in a Clinton County case that pitted a Frankfort couple against American Family Mutual Insurance Company. The legal fight centered on coverage for a 2003 fire that destroyed the couple’s garage.

The Supreme Court decision upheld the initial ruling issued in Clinton Superior Court which allowed the insurance company to deny payment on the claim made by Michael and Katherine Dodd.

The basis of that denial was an answer Michael Dodd gave on his application for the the insurance policy in December 1998. The question: Had he or any other member of the household had any past or current property losses?

Court records indicate Dodd “answered in the negative,” despite having been paid a settlement earlier that year from Farm Bureau in connection with another fire that destroyed his home.

Posted by Marcia Oddi on March 6, 2013 08:40 AM
Posted to Ind. Sup.Ct. Decisions