Insurer Waives Issue of Claimant’s Misrepresentation
Insurer waives the issue of plaintiff’s misrepresentations by failing to raise it.
In Craig, an insurer waived the issue of the plaintiff’s misrepresentations by failing to raise it until more than two years after receiving the claim and more than one year after an arbitration award.
The claimant was insured under an automobile insurance policy issued by United and notified United of an uninsured-motorist claim from an accident on August 4, 2002. An arbitration award was entered in favor of the claimant.
United refused to pay the arbitration award claiming a breach of contract, based on an investigation that showed that the claimant did not own the car in the accident.
United alleged that the claimant made false statements about the ownership of the car on the application for insurance.
A waiver occurs when a party intentionally relinquishes a known right, either expressly or by conduct inconsistent with an intent to enforce that right. United failed to raise the misrepresentation issue for more than two years and therefore waived the right to assert the waiver issue.
Craig v. United Automobile Insurance Company, — N.E.2d —, 2007 WL 3085387 (1 Dist., 2007)
