Under what circumstances can a surplus lines policy be voided by the insurer?

A surplus lines policy can be voided by the insurer if it was procured through misrepresentation or fraud by the insured. This principle is grounded in the fundamental concept of insurance which requires an utmost good faith (uberrima fides) relationship between the insurer and the insured. If the insured knowingly provides false information or omits crucial details during the application process, this can significantly impact the insurer’s decision to provide coverage, evaluate risk, and set premiums. Therefore, if it is discovered that misrepresentation or fraud occurred, the insurer has the right to void the policy because the integrity of the information is crucial for the contract's validity.

Other scenarios outlined in the options may not provide the same basis for voiding a policy. For example, while clerical errors can lead to issues, they are typically seen as correctable rather than grounds for voiding a policy entirely. Similarly, an insured's request to void a policy before its inception doesn't give the insurer grounds to void the contract; rather, it reflects the insured's decision making. Lastly, the ability to void a policy is not dependent on whether a claim has been filed, as fraud or misrepresentation undermines the policy's legitimacy regardless of claims activity.