American Pepper Supply Co. v. Federal Insurance

OPINION

BERCH, Justice.

¶ 1 We granted review to determine the appropriate burden for proving an insurer’s policy defense of concealment or misrepresentation. We have jurisdiction pursuant to Article 6, Section 5(3) of the Arizona Constitution, and Arizona Revised Statutes (“A.R.S.”) section 12-120.24 (2003).

BACKGROUND

¶ 2 On Tuesday, August 27, 1996, American Pepper Supply Company reported to its insurer, Federal Insurance Company, a theft of equipment left outside its building during the preceding weekend. Within three weeks of American Pepper’s initial report of the loss, Federal’s…