Plaintiff Marine Insurers News

Uberrimae Fidei is Alive and Well

The US Court of Appeals for the Ninth Circuit affirmed the validity of the principle of uberrimae fidei as applied to marine insurance contracts. Defendant fishing vessel owners insured their vessels with plaintiff marine insurers but failed to disclose that their policy with another company had been cancelled for non-payment of premiums and for failure to cooperate in the investigation of various marine casualties and oil spills that were the subject of claims. After the fishing vessel owners submitted various claims, plaintiff insurers commenced an investigation and learned that the owners had failed to disclose certain material facts when they applied for the policy. The insurers then brought this declaratory judgment action, seeking to have the policies declared void ab initio.