Insurance Void Misrep

A consumer must take reasonable care not to make a misrepresentation when renewing an insurance policy, and an insurer may void the policy if the consumer fails to provide a reasonable estimate of the sum insured.

A reasonable consumer would not understand that taking a car to Spain for personal use at a property constitutes 'exporting' the vehicle under CIDRA, particularly where the declaration provides no definition or explanation of the term.

Under CIDRA, an insurer who establishes a careless qualifying misrepresentation must void the policy and refund premiums, not cancel it and decline the claim.

Under CIDRA, an insurer cannot void a policy for careless misrepresentation where they would have offered insurance on different terms; the appropriate remedy is to offer the policy on corrected terms rather than avoidance.