He should have been more demanding!!
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The applicant just wasn’t sure. He told his agent that he'd had a fire loss at his farm and was pretty sure that it happened more than five years before the date of the application he was completing. Based on this, the agent checked “no” in the box requesting information concerning any losses that had occurred in the past five years. The applicant then signed the application and the policy was issued.
When a fire destroyed the insured’s home, the insurance company investigated and discovered that the previous loss had occurred 4 ½ years prior to the date on the application. It paid the mortgage company but denied the insured's claim due to misrepresentation. The insured, in turn, looked to the insurance agent for payment.
The agent maintained that he trusted the insured’s memory. The insured argued that the agent should have been more persistent.
The appeals court agreed with the insured; the agent’s errors and omissions coverage paid for the latest loss.
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