CBC Financial, Inc. v. Apex Insurance Managers, LLC

MEMORANDUM **

Plaintiff-Appellant CBC Financial, Inc. (“CBC”) appeals the district court’s grant of summary judgment to Defendants-Appellees Apex Insurance Managers, LLC and American Safety Indemnity Co. (“Apex/ASI” or “the Insurer”) on CBC’s claims for breach of contract and bad faith in connection with the Insurer’s rescission of a property damage policy issued to CBC. CBC also appeals the district court’s dismissal of CBC’s claims for breach of fiduciary duty and negligent misrepresentation against Defendant-Appellee Bed-ford Underwriters, Ltd. (“Bedford”), a wholesale insurance broker.

We conclude that the district court properly granted summary judgment to the Insurer based on Nevada Revised Statute § 687B.110. It is undisputed that CBC’s applications for insurance contained misrepresentations regarding the property for which it sought coverage and which were material to the Insurer’s issuance of the policy and/or the premium charged. These misrepresentations included inaccuracies regarding the square footage of the subject property; its occupancy rate; the presence of smoke detectors, sprinklers, and burglar alarms; and the number of buildings and the nature of their…