Source: https://www.propertyinsurancecoveragelaw.com/2019/03/articles/insurance/when-can-you-ask-for-reformation/
Timestamp: 2019-04-21 04:38:12+00:00

Document:
Home Insurance When Can You Ask for Reformation?
When Can You Ask for Reformation?
Everyone in the insurance industry has heard the term reformation, but it is often misunderstood. In California (and elsewhere), the legal right to reformation originated over a century ago when we still had separate courts of “law” and “equity.” Reformation was a creature of the latter, designed to prevent one party from using a mistake in a written agreement against the other.
We have no doubt that reformation may be had notwithstanding the absence of agreement by the parties as to the specific amounts of such coverages, if such amounts under the evidence are reasonably determinable.
Modica allowed reformation despite the fact it would be disallowed under the non-insurance case, Lemoge.
Another argument that carriers often make is that the mistake was made by the agent, not the insurance company. But, in the insurance context at least, courts have held that an agent’s mistake is attributable to the carrier if it is made within their authority.
Reformation is always a highly factual question that requires careful review of the legal authorities. It is always advisable to consult with an attorney experienced in that area before demanding the insurance company reform the policy, to ensure the demand is made as best it can be.
2 Jones v. First Am. Title. Co. (2003), 107 Cal.App.4th 381, 388.
3 Schools Excess Liab. Fund v. Westchester Fire Ins. Co. (2004) 117 Cal.App.4th 1275, 1284.
4 Nat’l Auto. & Cas. Ins. Co. v. Indus. Acc. Comm. (1949) 34 Cal. 2d 20, 24-25 (emphasis added).
5 Marsh & McLennan of Cal., Inc. v. City of Los Angeles (1976) 62 Cal.App.3d 108, 117-118.
6 Id.; Ins. Code § 1704; Loehr v. Great Republic Ins. Co. (1990) 226 Cal.App.3d 727, 732-733.

References: v. 
 v. 
 v. 
 v. 
 § 1704
 v.