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Certain Underwriters at Lloyds London v. Inlet Fisheries, Inc.

ELR Citation: 38 ELR 20048
Nos. No. 06-35383, (9th Cir., 02/11/2008)

The Ninth Circuit held that the ancient legal doctrine of uberrimae fidei, in which both parties are held to the highest standard of good faith in the transaction, applies to vessel pollution insurance policies covering statutory environmental liabilities. Consequently, an insurance company may void a maritime insurance policy it issued to a fish processing business for failing to disclose prior environmental incidents, the poor condition of its vessels, and its pending bankruptcy even though the insurance company never asked for this information.