Berkley Unit Can Rescind Insurance Policy Over Undisclosed Audit

A W. R. Berkley Corp. unit won its bid to rescind an insurance policy issued to a telecommunications equipment supplier that failed to disclose an audit by the city of Chicago in a 2018 renewal application.

Call One Inc.'s failure to disclose the audit was a material misrepresentation, the US District Court for the Northern District of Illinois said in a Tuesday order granting Berkley Insurance Co.'s counterclaim for rescission.

“If a reasonably careful and intelligent person learned that, in 2018, Call One was embroiled in an ongoing audit concerning an alleged failure to remit four types of taxes, that ...