Merchants Indemnity Corp. v. Wallack

The complaint alleges that the policy was issued to defendant Smith for a period of one year commencing April 5, 1956, in reliance upon false representations made by her to plaintiff. Section 149 of the Insurance Law provides: (1) that no misrepresentation shall avoid any contract of insurance or defeat recovery unless such misrepresentation was material; and (2) that in determining the question of materiality, evidence of the practice of the insurer which made such contract with respect to similar risks shall be admissible. Applications for similar policies and the action of plaintiff…