A Federal Court of Appeals recently ruled in favor of an insurer that sought to rescind its policy for a homeowner’s association. The court held that the association’s failure to disclose material information in completing a policy application entitled the insurer to rescind the policy without further duty to defend or indemnify the association.Atain Specialty Insurance Co. v. Lake Lindero HOA, No. 21-55319 (9th Cir. 2022). A policy application is often confusing and contains many hidden traps, adversely affecting an association’s interest. It is pertinent that Board members complete their policy application mindfully and, if possible, under the advisement of a counsel, given the complexities of policy language. |