Insurance rescission

**Insurance rescission**

Insurance rescission refers to the practice where an insurance company retroactively cancels a policy, often due to alleged misrepresentation or non-disclosure of information by the policyholder. This means the insurer treats the policy as if it never existed, potentially leaving the insured without coverage and liable for all previously filed claims. Understanding insurance rescission is crucial for policyholders to know their rights and how to avoid situations that might lead to cancellation after the fact.