Category: Insurance Fraud

Philly Trial Court Recommends Dismissal of Time-Barred Bad Faith Claim

In an opinion  recommending that summary judgment in favor of the insurer be affirmed pursuant to Pa.R.A.P. 1925, , the Philadelphia Court of Common Pleas has ruled that the plaintiff failed to file his bad faith claim within two years of his claims denial, time-barring the claim under the two year statute of limitations.

In Fieldhouse v. Metropolitan Property Ins. Co., 2015 Phila. Ct. Com. Pl. LEXIS 396, the Court found that the Plaintiff’s bad faith claim, premised upon the insurer’s cooperation with law enforcement in their investigation of the auto accident which gave rise to the claim, was filed more than two years after the claim was denied.

Fieldhouse v. Metropolitan Property Ins. Co., 2015 Phila. Ct. Com. Pl. LEXIS 396

Editor’s Note: The statute of limitations defense  aside, it is highly unlikely any Court would find that an insurer’s cooperation with law enforcement in the investigation of an auto accident would constitute bad faith under the Pa. Bad Faith Statute, 42 Pa. C.S. A. §8371.

NJ Gov. Signs Fraudulent COI Bill

New Jersey Governor Chris Christie has signed legislation which makes it expressly illegal to request the issuance of certificates of insurance which contain false or misleading information. Click on link below for full text of bill.

New Jersey Bill S-3270

11th Circuit Confirms No Coverage for Yacht Disappearance

In Gamez v. Ace American Insurance Company, the US Court of Appeals for the 11th Circuit upheld Ace American’s voiding a policy covering a $32 million yacht after ACE established the insured made material misstatements concerning ownership of the boat in the application for coverage.

The Court held that the insured attempted to confuse two separate sections of a Florida statute covering material misrepresentations, one permitting the voiding of a policy for material misrepresentations in the application, and the other holding that post-coverage misrepresentations would not void coverage unless the misrepresentations were material.

Gamez v. Ace American Insurance Company (U.S. Ct. App., 11th Cir., 2016)