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DOUGLASS v. NATIONWIDE MUT. INS. CO.

No. 95-233.

913 S.W.2d 277 (1996)

323 Ark. 105

Lee DOUGLASS, in his Capacity as Commissioner of the Arkansas Insurance Department, and Arkansas Insurance Department, Appellants, v. NATIONWIDE MUTUAL INSURANCE COMPANY and State Farm General Insurance Company, Appellees.

Supreme Court of Arkansas.

January 16, 1996.

Attorney(s) appearing for the Case

J. Denham, Little Rock, for appellants.

Robert M. Eubanks III, Stuart P. Miller, J. Lee Covington, Little Rock, for appellees.

BROWN, Justice.

This appeal by Lee Douglass, Commissioner of the Arkansas Insurance Department, and the Arkansas Insurance Department itself (collectively referred to as Department), focuses on whether an insurance company may unilaterally rescind coverage based on fraud or material misrepresentations by the insured after a loss has occurred, when no third-party claims are involved. According to a Memorandum of Decision and Declaratory Order by the Department, rescission...

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