Essex Insurance Co. v. Galilee Medical Center, S.C.

Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking rescission of insurance policy that plaintiff had issued to defendants-insureds/medical group, after Dist. Ct. found that defendants had made material misrepresentations in their insurance policy application regarding their denial of use of drugs for weight reduction procedures for patients. Record showed that defendants were sued for medical malpractice based on mesotherapy treatments involving injections into subcutaneous layers of fat, that said treatments were contrary to defendants’ representations on policy application, and that said misrepresentations were material in sense that they significantly increased plaintiff’s risk. Ct. rejected defendants’ claims that: (1) physician did not “use” drugs for weight loss where doctor only recommended their use on defendants’ premises and performed mesotherapy treatments elsewhere; and (2) mesotherapy treatments were distinguishable from weight reduction procedures at issue in policy application.