After denying a policyholder’s claim and rescinding the policy following a car crash, an insurer must now prove it would have rejected the initial application had they known all the facts, a state appeals court ruled Friday.The 1st District Appellate Court found that Direct Auto Insurance Co., or DAI, failed to prove that defendant Andrew Koziol’s failure to disclose a second car at his address would have been considered an increased risk and thus potentially ineligible for coverage.Koziol on his insurance …