In DeMarco v. Stoddard, a majority of the New Jersey Supreme Court reversed a published Appellate Division opinion and held that in response to misrepresentations in an application for coverage, a medical malpractice insurer could retroactively rescind a physician’s insurance policy, thus denying an innocent patient the benefit of compulsory coverage in effect at the time the malpractice occurred.

As persuasively explained in a dissent by Justice Barry Albin and joined by Chief Justice Stuart Rabner, the majority’s conclusion cannot be reconciled with either principles of equity or the public policy, expressed in our compulsory medical malpractice insurance law, to provide financial protection to every patient in New Jersey.

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