Question: Cancellation of Insurance Policy. James Mitchell bought a building in Los Angeles, California, in February 2000 and applied to United National Insurance Co. for a fire insurance policy. The application stated, among other things, that the building measured 3,420 square feet, it was to be used as a video production studio, the business would generate $300,000 in revenue, and the building had no uncorrected fire code violations. In fact, the building measured less than 2,000 square feet; it was used to film only one music video over a two-day period; the business generated only $6,500 in revenue; and the city had cited the building for combustible debris, excessive weeds, broken windows, missing doors, damaged walls, and other problems. In November, Mitchell met Carl Robinson, who represented himself as a business consultant. Mitchell gave Robinson the keys to the property to show it to a prospective buyer. On November 22, Robinson set fire to the building and was killed in the blaze. Mitchell filed a claim for the loss. United denied the claim and rescinded the policy. Mitchell filed a suit in a California state court against United. Can an insurer cancel a policy? If so, on what ground might United have justifiably canceled Mitchell's policy? What might Mitchell argue to oppose a cancellation? What should the court rule? Explain.