AN INSURANCE underwriter has secured a High Court order that a life assurance policy taken out on a man who died of cancer months later was lawfully voided by the underwriter because it was taken out after the man had been diagnosed with the disease.
London-based Kiln Underwriting Ltd brought an action against Bresco Ltd, Rathcoole, Dublin, seeking an order that the underwriter had lawfully voided a life assurance policy for Italian Stefano Spataro because of misrepresentation. Ms Justice Mary Laffoy granted the order yesterday on consent of the parties.
The policy was taken out with Bresco in October 2008 on Mr Spataro, who had been diagnosed with cancer the previous August. He died in Mexico in July 2009.
Kiln sought a declaration the policy was void because of material non-disclosure and/or misrepresentation. It argued it was entitled to decline to indemnify Bresco in relation to any claim on foot of that policy.
Rossa Fanning, for Kiln, told Ms Justice Laffoy yesterday, following discussions between the parties, Kiln’s view that it had no liability for the policy had prevailed.
Solicitors for Bresco had stated in a letter dated May 1st that the defendant accepted the avoidance of the life assurance policy and had agreed judgment could be entered, on consent, in the terms of the declarations sought by Kiln.
The court also heard both parties had agreed to discharge their own costs.