11th Circuit Confirms No Coverage for Yacht Disappearance

In Gamez v. Ace American Insurance Company, the US Court of Appeals for the 11th Circuit upheld Ace American’s voiding a policy covering a $32 million yacht after ACE established the insured made material misstatements concerning ownership of the boat in the application for coverage.

The Court held that the insured attempted to confuse two separate sections of a Florida statute covering material misrepresentations, one permitting the voiding of a policy for material misrepresentations in the application, and the other holding that post-coverage misrepresentations would not void coverage unless the misrepresentations were material.

Gamez v. Ace American Insurance Company (U.S. Ct. App., 11th Cir., 2016)

Prevent. Protect. Defend.

Welcome to Badfaithadvisor.com!  Our goal is to serve as an information hub for Insurers and their In-House legal teams to help them navigate current issues in insurance coverage and bad faith.  We will provide case updates, but more importantly practical advice on preventing and avoiding unnecessary exposure in the first instance, and successfully defending against such exposure in the second.

Have a question or request? Send an email to chaddick@dmclaw.com  or give me a call at 717-731-4800, and we will be happy to provide something of interest and value to you.

Best,
CJ Haddick