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Erin is a small business owner who wants to buy business insurance to protect her from property loss as well as liability. She meets with

Erin is a small business owner who wants to buy business insurance to protect her from property loss as well as liability. She meets with an insurance agent who has Erin fill out an application. one question on the application asks Erin if she or her business has ever made any claim for insurance benefits as a result of a loss in the past. Erin answered the question “no” and after paying the premium received an insurance policy. 6 months after purchasing insurance and filling out the application Erin’s office building is destroyed in a fire. Erin’s insurance company discovers that Erin actually had a fire 5 years ago which was covered by another insurance company that suspected but couldn’t prove, that the fire was intentionally set. the current insurance company decides to rescind coverage and informs Erin that it will not cover the fire loss and sues Erin in court. how will the court rule? discuss and decide.


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