In Jian Shen v. Hyundai Marine & Fire Ins. Co., BMMP’s William J. Mitchell argued that the insured lost her insurable interest in the property once she conveyed that property to an LLC, even though she controlled the LLC. The Supreme Court of the State of New Jersey denied the plaintiff’s petition for certification, upholding the decisions of the Appellate Division of the Superior Court of New Jersey 2022 WL 1150954 as well as the decision of the Law Division, which held that both the policy and N.J.S.A. 17:36-5.19 prohibit such a transfer without the insurer’s consent. As such, the change in ownership was a material misrepresentation, our client was justified in voiding the policy from the beginning, and the complaint was dismissed. The Supreme Court’s Order can be viewed here.
