2nd Cir. Addresses Doctrine of Uberrimae Fidei in Marine Coverage Case

NEW YORK — In order to fulfill its duty of utmost good faith, an insured must disclose to an insurer any material information regarding the covered risk before the policy is issued, the 2nd Circuit U.S. Court of Appeals has held.

In a Jan. 16 ruling, the appellate court explained the insurer must be given the opportunity to investigate before it accepts the risk. If the insured fails to disclose such information, the policy is void ab initio, the court clarified.

St. Paul Fire & Marine Insurance Co. sued its insured, Matrix Posh LLC, seeking to have a marine insurance …