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Key Takeaways
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Educational Objective
I.B.6. Be able to identify when an insurer has the right of rescission (CIC 331, 338, 359, 447)
a. Know that either intentional or unintentional concealment entitles an injured party to rescission of a contract (CIC 331)
Rescission is the revocation of a contract.
An injured party is entitled to rescind the contract if any of the following occurs:
A false material representation (rescission is effective from the time the representation becomes false);
Concealment (regardless of whether the concealment is intentional); or
Violation of a material warranty or any other material provision of a policy.