(June 2016)

A. CONCEALMENT, MISREPRESENTATION, OR FRAUD

Coverage is void if the named insured fraudulently or intentionally conceals or misrepresents any kind of material fact with respect to any of the following:

• The coverage part
• Covered property
• The named insured's interest in the insured property
• A claim under the coverage form

This section of the form deserves careful attention. Each state has its own philosophy with respect to the actions it considers concealment, misrepresentation, or fraud. Similarly, each state has laws or precedents that establish when an insurance company may or may not void, cancel, or suspend a coverage form or policy. As a result, a coverage review is not complete without analyzing the state specific endorsements attached to the policy.

HO 00 03 –ISO HOMEOWNERS 3 - SPECIAL FORM COVERAGE ANALYSIS

(July, 2014)

CONDITIONS—SECTION I

R. Concealment or Fraud

This provision voids coverage to all persons otherwise eligible for protection if the insurer discovers any incidents of significant information being kept from it (either due to concealment or misrepresentation). Loss of coverage also results if any otherwise, covered persons are guilty of fraudulent behavior or lying (false statement) regarding any aspect of the applicable insurance coverage.

The provision attempts to be comprehensive, barring coverage to all parties, including innocent insureds. However, the provision wording may likely caused confusion over how it applies and appears to be vulnerable to court scrutiny in the event of claims.

SECTION II—CONDITIONS

J. Concealment or Fraud

This provision voids coverage to all persons otherwise eligible for protection if the insurer discovers any incidents of significant information being kept from it (either due to concealment or misrepresentation). Loss of coverage also results if any otherwise, covered persons are guilty of fraudulent behavior or lying (false statement) regarding any aspect of the applicable insurance coverage.

The provision attempts to be comprehensive, barring coverage to all parties, including innocent insureds. However, the provision wording may likely caused confusion over how it applies and appears to be vulnerable to court scrutiny in the event of claims.