(CMR) Cayman First Insurance Company is seeking the court's intervention to avoid coverage of a 2000 Honda CRM motor vehicle which it said was used to carry passengers for hire instead of purposes in its contract.
In a writ of summons filed against Barrington Stultz last month, Cayman First “pleads that it is entitled pursuant to s.15(3) of the Vehicle Insurance (Third Party Risks) Act(2012 Revision) to avoid coverage under a contract of motor vehicle insurance issued to the Defendant effective 30 December 2021 to 30 December 2022 and to avoid providing third party liability coverage for a 2000 Honda CRM motor vehicle, by reason of material misrepresentation/material non-disclosure in the proposal submitted by the Defendant.”
Stultz is accused of using the vehicle to carry passengers for hire or reward contrary to the representations in the proposal submitted that the vehicle would be used for social, domestic, and pleasure purposes.
According to the court document, he is in breach of the contract, as under the Policy and the Certificate of Insurance, the use of the vehicle was restricted to social, domestic and pleasure.
Cayman First is seeking a declaration that it is entitled to avoid the Policy ab initio and that the Policy is avoided accordingly. The insurance company also wants a declaration that where the subject vehicle was being used for hire or reward outside the limitations of use under the Policy and Certificate of Insurance, the defendant is not entitled to indemnity under the Policy against third-party liability, nor is Cayman First required to indemnify third parties under s.15(1) of the Act.
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