Reformed

What Does Reformed Mean?

“Reformed” is an insurance term referring to a policy that has been rewritten to correct a factual error or resolve a dispute between the insurer and the insured. Such revisions are typically ordered by a court of law, often as the result of a lawsuit.

Insuranceopedia Explains Reformed

The principle of utmost good faith is upheld when both the insurer (or the insurer’s representative) and the insured enter into an insurance contract. This principle requires both parties to disclose all necessary information: the insurer needs this information to accurately determine the premium, and the insured requires it to secure the desired coverage. If this principle is violated by either party withholding or failing to disclose crucial information, the contract may be subject to revision by court order.