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Court allows insurer to void policy; discounts insured's claim of fault by agent in application

In Sahabi Convenience Store, Inc. v. State National Insurance, the plaintiff sued his commercial liability insurer to cover damages resulting from three incidents that occurred in 2007 and 2008. The insurer argued that there were material misrepresentations in the application for insurance that justified it in voiding the policy and refusing to pay claims.  The insured argued that he provided accurate information to the agent, that his limited English may have contributed to flaws in the application, but that in any event, there was no proof of intentional wrong-doing.

The Court pointed to existing doctrine holding the insured responsible for flaws in an agent's application for coverage, if the insured signed the application.  The Court held that the Plaintiff had not adequately documented his inability to fully comprehend the statements contained in the application, and therefore he must be held accountable for the fact that it contains misrepresentations. Dismissal of his action against the insurer was upheld.
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