Coming soon! Strafford will move to BARBRI Professional Education >

Insurance Policy Rescission After a Claim is Filed: Bad Faith and Third-Party Claims

Recurring Issues for Insurers, Policyholders, and Innocent Third Parties

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, October 9, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, September 12, 2025

or call 1-800-926-7926
Add to your calendar

This CLE course will discuss the challenges and complications for insurers from rescinding an insurance policy and how a policyholder can effectively respond if the insurer attempts to rescind its policy after a covered claim is made. The panel will review addressing rescission for statutorily required coverage, bad faith indicators, and how different courts treat claims made by innocent third parties. The program will review what misrepresentations may justify insurance policy rescission, related acts of revival and reinstatement, and bad faith "post-claim" underwriting.

Description

While insurers' counsel view the rescission of an insurance policy as an underutilized tool in handling insurance claims, policyholders contend rescission is often nothing more than opportunistic, post-claims underwriting that leaves the policyholder and sometimes injured third parties defenseless. The representations of the insurer and its agents at the time of purchasing the coverage may also play a role in whether rescission is proper as well as the policy exclusions.

Rescission is an equitable remedy, but its use and scope are matters of state statutory law. The remedy targets material misstatements in the application or claims presentation process, but applications and other paperwork are often confusing. Attempting to rescind a policy after losses often leads to bad faith and litigation claims with costs that could exceed the claim amount. A valid choice of law provision does not necessarily control applicable "bad faith" law.

Because rescission often requires some intentionality, summary judgment is seldom practical for the insurer. Insurers must be careful not to waive the right to rescission and exercise it carefully. Policyholders, however, have significant defenses, including bringing claims or counterclaims for bad faith.

Listen as the panel discusses the increasing use of rescission in all types of policies, including general liability coverage, auto coverage (fleet and business coverage), and individual policies.

READ MORE

Outline

  1. Overview of rescission and state law requirements
  2. Procedures and formalities of rescission or cancellation
  3. Grounds for rescission
  4. Bad faith rescission
  5. Strategies for policyholders
  6. Strategies for insurers

Benefits

The panel will review these and other issues:

  • What is the required procedure for seeking rescission?
  • What types of proof can or must an insurer rely on to seek rescission?
  • Is rescission effective for innocent insureds and third parties?
  • What are the badges of "bad faith" in rescission? Can the insurer waive the right to rescind?
  • What are the insurer's duties upon rescission?

Faculty

Major, Matthew
Matthew R. Major, Esq.
Partner
Lydecker

Mr. Major is a partner in our Philadelphia and New Jersey offices and a seasoned civil litigator with...  |  Read More

Vespole, Mark
Mark R. Vespole
Partner
Wilson Elser

Mr. Vespole is a trial lawyer who also counsels and represents financial institutions, insurers and corporations and...  |  Read More

Attend on October 9

Early Discount (through 09/12/25)

Cannot Attend October 9?

Early Discount (through 09/12/25)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

BARBRI | Strafford

Strafford is Now Part of BARBRI for Professionals!

The same expert-led professional development courses you know and love from Strafford are now part of BARBRI, the trusted global leader in legal education.

Please note that the Strafford website will soon be archived. All programming, account details, and certificates will soon be migrating to our new site at barbri.com/professional-development.

All customers will be notified once this migration has been completed.