Lloyd's of London filed a lawsuit against appraiser for misleading the company on his application for E&O coverage

According to the story by Courtenay Edelhart, Californian staff writer, Insurer suing Bakersfield appraiser. 

"Lloyd's of London filed a lawsuit against Newton, owner of San Joaquin Appraisals Inc., on June 16 alleging he misled the company on his application for errors and omissions coverage. The lawsuit seeks permission to rescind the policy, which it said was granted under false pretenses."

"Jerome N. Lerch, attorney for Lloyd's of London, did not return calls Tuesday seeking comment."

"There's more than an insurance policy at stake. If Lloyd's loses, it could be on the hook for millions of dollars because a defunct subprime lender is suing Newton and others over several appraisals done for Crisp, Cole & Associates, a now closed real estate company the FBI is investigating for mortgage fraud."