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The Insured's Duty Of Disclosure Of Limits On Subrogation

The Insured's Duty Of Disclosure Of Limits On Subrogation

It should certainly be clear from the question that the underwriter does consider

the information material and a failure to provide it would probably allow the insurer to avoid the policy. A breach of the clause forbidding the insured to enter into an agreement limiting or excluding rights of recovery would allow the insurer to claim damages, to the extent of any probable recovery against a third party. Alternatively, if the clause were drafted as a warranty the insurer would be entitled to reject any claims subsequent to the breach of that warranty.

The Insured's Duty Of Disclosure Of Limits On Subrogation

By: Willis J. Watson
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