Replies to post #93461 on World Surveillance Group Inc (fka WSGI)

[Jetmek_03052]

Pokestake,

On the face of the matter, your conclusion would probably be correct.

But in reality, GTEM LIED in its application for renewal of the policy. It is a pain the butt to cut and paste from the document, somehow the letters get screwed up in the process and it is a hardship to correct it. But if you read the document, at the bottom of page 10 and most of page 11, it talks about how Carolina believes it inconceivable that GTEM officers renewing the policy would not have known about the SEC investigation. The policy then continues to say:

"If any person or persons knew as of the Policy inception date that such declarations and statements contained in the Proposal form were untrue, inaccruate or incomplete then this Policy will be void as to that person or persons."

If Carolina took in premiums based on the supposed truthful statements made by GTEM officers, then found out that those statements were made in bad faith.....It's right there in the policy. They have the right to rescind the whole thing.

Then I would imagine ANOTHER lawsuit would be filed by GTEM, asking for the return of any premiums paid. Unless there is verbage in regards to THAT in the policy. Unfortunately, we do not have the exact policy in front of us....just segments from it which are quoted in the letter from the lawyers.

[SAMdashada]

pokestake -- You asked --

"Otherwise why not just cancel it?"

pokestake, that one is easy. Here is the context:

"Given the the prior letters by thc SEC coupled with the Globetel meeting with the SEC on May 17, 2006, it is difficult to believe that any of Globetel's management was not aware of the SEC investigation prior to the Policy's inception. Consequently, should Globetel or its dirctors and officers seek coverage under the 2006-07 Policy, Carolina expressly reserves its right to rescind the 2006-07 Policy."


pokestake, that speaks specifically on the SEC issue and if GTEM(Wells Notice) attempted to make a claim in relation to the SEC issue then the carrier, Carolina "expressly reserves its right to rescind the 2006-07 Policy."

pokestake, the premiums being paid are providing for coverage OTHER than that concerning the SEC issue. If GTEM(Wells Notice) happens to have other suits then the policy may, depending on the circumstances, cover such suits.

If GTEM(Wells Notice) attempts to file a claim associated with the SEC issue (and any derivitives thereof) the carrier would rescind (cancel) the policy and GTEM(Wells Notice) management would be open to fraud and other "criminal" charges.