The auto insurer brought an action against the insured, injured driver, and innocent third party seeking a declaration that the policy was void. This case is Citizens United Reciprocal Exchange v. Perez, 121 A.3d 374 (N.J. 2015).

Perez applied for an auto insurance policy with Citizens United. She chose a basic coverage policy with an optional $10,000 coverage limit for third party bodily injury liability. The insurer required the insured to list all household residents of driving age on the application, but Perez failed to do so. Machuca, the father of Perez's two children, was a resident of her household and if Perez had listed him on the application, the insurer would not have issued the policy due to Machuca's poor driving record.

Machuca, driving Perez's car, collided with Green. Green sustained injuries and filed a personal injury lawsuit against the insured. The insurer denied coverage and told Perez that the policy was void from the outset because she had failed to disclose Machuca on her application. The insurer then filed a declaratory judgment action.