Michael “Mickey” Passman examined the Illinois Appellate Court’s decision of Direct Auto Insurance Co. v. Sinclair in his July 2018 Insurance Law IICLE Flashpoint column.

At issue was whether a misrepresentation in the insurance application that increases premium renders the policy void. According to Illinois law, an insurer can void a policy if the misrepresentation 1) is intended to deceive, or 2) materially affects the acceptance of risk or hazard taken on by the insurer. In an unpublished opinion, the appellate court ruled that a misrepresentation that merely increases premium is not enough cause for an insurer to void the policy. 

The full piece from the Illinois Institute for Continuing Legal Education will be available here for a limited time.