An insurer must cover a woman who struck and allegedly killed a pedestrian during a period when her policy had been canceled for nonpayment of a premium because the policy was later reinstated without lapse, the Pennsylvania Superior Court ruled.
The court also rejected the insurer’s claim of fraudulent inducement, finding that the argument was waived and that, regardless, Pennsylvania law protects innocent third parties from losing out on benefits as the result of an insured’s fraud.
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