Metropolitan issued its fire policy for one year from May 14, 1993, to May 14, 1994, on a four-flat building in Cicero, owned by Guillermo Garcia and Martha Garcia. A fire occurred on August 23, 1993, causing substantial damage. On February 17, 1994, the company notified the insureds that it was rescinding the policy because the insureds had misrepresented the number of units as four rather than six. They were notified that the policy would be treated as void from inception.

The insureds contended that the company's application did not ask for the number of units in the building; that the existence of the additional units in the basement was not material in view of their minimal value; and that any statement regarding the existence of the basement was not made with actual intent to deceive.

The policy required the insureds to file suit within one year after the date of the loss which occurred August 23, 1993.

Since the insureds did not file this action until November 18, 1994, they could not recover under the policy. The higher court noted that they had six months within which to file suit after the company notified them that the policy was being rescinded.

The judgment entered in the lower court dismissing the insureds' complaint was affirmed.

Guillermo Garcia and Martha Garcia, Appellants v. Metropolitan Property and Casualty Insurance Company--No. 1-95-1336--Appellate Court of Illinois, First District, Sixth Division--May 31, 1996--666 North Eastern Reporter 2d 802.