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Main image for Recision Fight Illustrates Need for Full Disclosure
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Recision Fight Illustrates Need for Full Disclosure

Business Insurance

6.5.2016

A doctor operates via the da Vinci Surgical system, made by Intuitive Surgical Inc., which has been used in more than 400,000 procedures.

A medical robotics firm’s ongoing dispute with a Chubb Ltd. unit seeking to rescind its $15 million product liability policy highlights how important it is for policyholders to provide thorough information on their insurance application, experts say.

Judge Tigar said there is a “material dispute” as to whether Illinois Union knew about the tolling agreements before April 29. All three of Chubb’s underwriters initially testified they had learned of the tolling agreements by March or April of 2013, he said in his ruling.

Judge Tigar also said the three subsequently submitted errata stating they had not known of the tolling agreements until at least May 23, 2013, which creates a dispute as to whether Illinois Union waived its right to rescind the policy.

It is common for insurers to assert rescission in coverage litigation, said Sherilyn Pastor, a partner with McCarter & English L.L.P. in Newark, New Jersey. Neither Mr. Weiss nor Ms. Pastor are involved in the case.

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