Montgomery Mutual Insurance v. Riddle

In this appeal, we consider whether Code § 38.2-309 requires proof of actual reliance by an insurance company on material misrepresentations made in an application for insurance before a policy of insurance can be declared void.

I. Facts and Proceedings

Jeffrey S. Riddle (“Riddle”) was a subcontractor with Pennington Construction. Pennington Construction required him to obtain general liability insurance and workers’ compensation insurance. Riddle contacted Chesapeake Bay Insurance Agency, Inc. (“Chesapeake”) to obtain insurance. Chesapeake sought the assistance of Southern Maryland Insurance,…