News & Analysis as of

Insurance Fraud Insurance Industry

McCarter & English, LLP

What Does the GEICO Decision Mean for New Jersey Providers?

The Third Circuit Court of Appeals held in a recent precedential case that the court must compel arbitration between Government Employees Insurance Company (Geico) and several medical practices, which Geico had sued for fraud...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - December 2023

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Jason Brand made a claim for disability benefits under his disability policy with Principal Life Insurance Company on the basis that he was totally disabled by extreme anxiety that began in July 2014 after a warrant was...more

Sheppard Mullin Richter & Hampton LLP

Attorney Challenging First-Party Diminution of Value Claims Sanctioned by Ninth Circuit

For years, plaintiff’s attorney Montie S. Day has sued California auto insurers, arguing that the policy exclusion precluding coverage for first-party diminution of value damages claims is unenforceable. On November 30, 2023,...more

Kaufman & Canoles

Federal Cooperative Disability Investigations Program Establishes New Unit in North Carolina

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The North Carolina Department of Insurance recently announced that a new investigative unit formed as part of the Cooperative Disability Investigations (CDI) Program will be located in Raleigh, North Carolina, with the goal...more

Marshall Dennehey

Insurers’ Rights to Records from the New Jersey Office of the Insurance Fraud Prosecutor Affirmed

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Gov’t Emps. Ins. Co. v. Koppel, No. 2:21-cv-03413-MEF-JRA, 2023 U.S. Dist. LEXIS 151531, (D.N.J. Aug. 28, 2023) - The insurance carrier brought a civil action against various medical providers, asserting an illegal kickback...more

J.S. Held

Detecting Inflation-Driven Fraud in Marine Stock Throughput Insurance Claims

J.S. Held on

Following the easing of Covid pandemic restrictions, we are now facing a fresh “cost of living crisis” created by rising inflation and soaring energy bills. The Guardian newspaper reported that forecourts at petrol...more

Cozen O'Connor

California Court of Appeal: Insurers Not Liable Under the California Insurance Frauds Prevention Act

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In its recent decision, People ex rel. Ellinger v. Magill, et al., —Cal.Rptr.3d—, No. E076378, 2022 WL 1077988 (Cal. Ct. App., Mar. 18, 2022), the California Court of Appeal refused to extend liability under California’s...more

Michigan Auto Law

Changes to Michigan No Fault Insurance Fraud Rules

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A recent Michigan Court of Appeals ruling – which applied a landmark decision by the Michigan Supreme Court from 2020 – has put an end to insurance companies exploiting overly broad anti-fraud provisions in policies to deny...more

Wiley Rein LLP

No Coverage Under E&O Policy for Insured’s Loss of Funds Sent Pursuant to Fraudulent Instructions

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The United States District Court for the District of New Jersey, applying New Jersey law, has held that an insurer does not need to cover more than $480,000 that an insured transferred pursuant to fraudulent instructions. The...more

Steptoe & Johnson PLLC

First Look - Summer 2020: Insurance Newsletter

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According to the FBI, “The total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means Insurance Fraud costs the average U.S.family between $400 and $700 per year in the...more

White and Williams LLP

10th Circuit Allows Insurer to Avoid Bad Faith Claim By Settling with Claimant and Pursuing Recovery from Insured

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The 10th Circuit endorsed a clever way for an insurer to avoid a bad faith claim where there were potential misrepresentations in the policy application. In Evanston Insurance Company v. Aminokit Labs, Inc., the court...more

Haight Brown & Bonesteel LLP

Insurance Frauds Prevention Act Applies Broadly to Claims “Characterized in Any Way by Deceit”

In People ex rel. Allstate v. Suh (No. B280293; filed 6/17/19), a California appeals court upheld a jury’s award of over $6 million in civil penalties for insurance fraud under Insurance Code section 1871.7....more

Zelle  LLP

[Webinar] Managing Insurance Claims in the Wake of Catastrophes - July 22nd-26th, 10:00am CT, 16:00 GMT

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Zelle LLP invites you to join us for a week of webinars featuring insurance topics that are of critical importance to adjusters and insurance professionals. This series will cover managing insurance claims in the wake of...more

Locke Lord LLP

Insurance Industry Primer for InsurTechs

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Insurance Industry for InsurTech Noobs - So you developed the newest insurance innovation that is going to revolutionize the industry – congratulations! But we also have a couple of questions: What sector of the...more

Searcy Denney Scarola Barnhart & Shipley

Are You Being Scammed? — Assignment of Benefits in Property Losses

Assignment of Benefit Scams - According to the Coalition Against Insurance Fraud, about $80 billion is stolen every year by unscrupulous companies supposedly acting in the best interests of U.S consumers during critical...more

Michigan Auto Law

The “Game” of 7 Day Car Insurance Policies continues with 6 Month Policies with Installment Payments

Michigan Auto Law on

“Michigan stops LA Insurance’s sale of 7 day car insurance policies, but will the uninsured driver problem in Detroit improve now that 7 day policies are being replaced with 6 month car insurance with installment payments?” ...more

Robinson+Cole Property Insurance Coverage...

Failure to Cooperate and Misrepresentation: New York Federal Court Grants Summary Judgment Finding Insured Explanations for False...

While issues of fact can preclude summary judgment in some cases involving failure to cooperate and misrepresentation, a New York federal court recently granted summary judgment to an insurer in this context. ...more

Zelle  LLP

Texas attorney going to prison for five years for committing insurance fraud and barratry in hail claims

Zelle LLP on

Those of us in the trenches know that there is an epidemic of insurance fraud and barratry in Texas hail claims. Well, there is now undeniable proof. On Friday, well-known hail attorney Kent Livesay appeared in a Tarrant...more

Carlton Fields

California Federal Court Remands Fraud Claims In Workers’ Compensation Reinsurance Action To State Court

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In a March 15, 2018 order, noting that only state law claims remained in the case, a California federal court remanded to state court a lawsuit against an insurance company and its affiliates, which alleged that they...more

Bradley Arant Boult Cummings LLP

Insurance and blockchain: What policyholders need to know

Distributed Ledger Technology, commonly referred to as “blockchain,” is a secure way for companies and individuals to share information without third-party oversight. Blockchain decentralizes electronic record-keeping so...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Guarding Against Escrow Fraud

Nancy Jackson Spinks, better known as Nancy Carroll, an attorney and former owner of Millennium Closing Services, LLC (“Millennium Title”) in the Dallas area, was sentenced on Wednesday, January 3rd, to 10 years in prison and...more

Michigan Auto Law

Harm caused by temporary car insurance is far from temporary

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Temporary car insurance, such as 7 day policies, hurts uninsured drivers in cities like Detroit & Flint – who will face severe consequences after a car accident...more

Cozen O'Connor

The Ascent Of State Attorneys General As Quasi-Policymakers

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Casual observers understand the important and dynamic role that State Attorneys General (“AGs”) play across the country, whether that role is actively enforcing their state’s laws, challenging the federal government, or...more

Rumberger | Kirk

Show Me the Money - Maximizing Monetary Recovery in the Wake of Insurance Fraud

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Insurance fraud negatively impacts everyone. It drives up the costs of doing business, along with everyone’s premiums. In fact, according to the National Insurance Crime Bureau, insurance companies saw a 102% increase in this...more

Carlton Fields

Summary Judgment for Insurer in Annuity Sales Practices Action

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On March 31, in Chambers v. N. American Co. for Life & Health Ins., an action alleging RICO violations and other claims in the sales of deferred annuities to seniors, the Southern District of Iowa granted the insurer’s motion...more

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