Van Horn v. Atlantic Mutual Insurance

ELDRIDGE, Judge.

The issue in this case is whether Maryland’s statutory motor vehicle insurance regulatory scheme has changed an insurer’s common law contract right to void ab initio an automobile liability insurance policy when the insured applicant had made a material misrepresentation in the application for the policy.

I

In early October 1985 Raymond J. Van Horn signed and submitted, through an insurance agency, an application to the Atlantic Mutual Insurance Company for an automobile insurance policy on a 1983 Toyota automobile owned by Mr. Van Horn. Mr. Van Horn was listed on the…