N.Y. Federal Judge Confirms Arbitration Award Declaring Policy Void for Material Misrepresentation

NEW YORK — A New York federal judge has confirmed an arbitration award in which a panel rescinded a credit insurance policy for material misrepresentations made on the application, ruling that the insurers were not required to present additional evidence to prove materiality.

Senior Judge Loretta Preska of the U.S. District Court for the Southern District of New York said the arbitration panel did not manifestly disregard the law by relying on an underwriter’s testimony that the misrepresentations were material.

HSBC Brasil contacted Steadfast Insurance Co. and Ironshore Specialty Insurance Co., seeking to purchase a Comprehensive Credit Insurance Policy for …