Hannover Seeks Rescission of Commercial Property Facultative Certificate

NEW YORK — Hannover Ruckversicherung AG is seeking rescission of a reinsurance certificate covering a portfolio of commercial properties insured by Allied World Assurance Co., arguing that it relied on inaccurate loss records provided by Allied World in issuing the facultative certificate.

In its Oct. 23 motion for judgment on the pleadings, Hannover argues that rescission is warranted even though Allied World asserts that it had no reason to know that the loss data, which was provided to it by a broker, was inaccurate. Under New York law, the contract is voidable, even if the misrepresentation was innocent, Hannover argues …