Maritime insureds must tell all, even for pollution insurance
On February 11, 2008, in Certain Underwriters at Lloyds,London v. Inlet Fisheries Inc., the Ninth Circuit held that the doctrine of uberrimae fidei continues to govern maritime insurance contracts, including vessel pollution insurance. The doctrine requires both parties to an insurance contract to act with the utmost good faith toward each other. This requires each to disclose all material information.
Here, Inlet Fisheries did not make disclosures that were deemed material to its pollution insurance policy, yet had never been requested by Lloyds. However, knowledge of the state of the company’s fleet, and its history of pollution losses, and the reasons its previous insurance had been canceled would have been relevant to Lloyds’s calculation of risk. Since Inlet did not make the disclosures, the insurance was void ab initio.
This uberrimae fidei is an interesting doctrine. Wouldn't it be nice if it applied in politics? Think of the elections that could be void, due to nondisclosure to voters of material facts.
