Tudor Insurance Company v. Hellickson Real Estate
Opinion
Opinion
MEMORANDUM
Michael and Tara Hellickson are real estate brokers who own Hellickson Real Estate and several affiliated companies, and who obtained a professional errors and omissions liability policy from Tudor Insurance Company. Tudor later brought suit against the Hellieksons, seeking a declaratory judgment that it was entitled to rescind the policy based on fraudulent misrepresentations made by the Hellieksons in their two policy applications. The district court granted summary judgment to Tudor and dismissed the Hellieksons’ counterclaims.
The district court, applying settled principles, correctly held that Tudor was entitled to rescind its contract with the Hellieksons if they made material misrepresentations in their insurance applications with the intent to deceive. See RCW 48.18.090(1); St. Paul Mercury Ins. Co. v. Salovich, 41 Wash.App. 652 , 705 P.2d 812, 814 (1985) (citing Kay v. Occidental Life Ins. Co., 28 Wash.2d 800 , 188 P.2d 181 (1947)). It also correctly held that there were no genuine issues of material fact regarding whether the misrepresentations in the Hellieksons’ policy applications were material and made with the intent to deceive Tudor.