Contract Breaches that Allow Multiple Different Grounds to Make a Policy Void
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Posted on February 24, 2026 by Barry Zalma
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If an insured breaches one or more material warranties and increases the risk covered by the policy, the contract may be voided by the insurer, depending on the jurisdiction. It is, therefore, essential that every claims investigation include efforts to establish compliance with every warranty.
In Cummings v. Fire Insurance Exchange, 292 Cal. App. 3d 1407, 249 Cal. Rptr. 568 (1988), the Court of Appeal found a policy to be void when the insured filed a false property insurance claim. Ms. Cummings claimed that her home had been vandalized by unknown persons in her absence. In fact, the home had been damaged by Ms. Cummings’ son in her presence during an argument. Ms. Cummings lied because she was afraid of her son and the damage he might do to her in addition to the damage he had already done to her house. Although the court empathized with Ms. Cummings’ family problems the empathy did not overcome the need to truthfully report claims. When Ms. Cummings confessed to her lie, her claim was defeated and the policy made false. The Cummings court made it clear that lying to an insurer causes a policy to be void.
Defrauding an insurer is a civil wrong that allows an insurer to declare a policy void. It is also a crime in most states. If the crime is established the claim must be void because the state proved the fraud beyond a reasonable doubt, a much more stringent requirement than the insurer’s need to prove the fraud beyond a preponderance of the evidence.
Adapted from my book, Zalma on Insurance Claims, Part 104 Available as a paperback and Available as a Kindle Book
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The author: Barry Zalma, Esq., CFE, Consultant, Barry Zalma, Inc., 4441 Sepulveda Boulevard, CULVER CITY CA 90230-4847. 310-390-4455, [email protected], http://www.zalma.com, http://zalma.com/blog
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