INSURANCE FRAUD – NEW JERSEY SUPREME COURT UPDATES CARRIER RESPONSIBILITY
INSURANCE FRAUD – NEW JERSEY SUPREME COURT UPDATES CARRIER RESPONSIBILITY TO INNOCENT THIRD PARTIES WHEN AN APPLICANT FOR A “BASIC” POLICY COMMITS APPLICATION FRAUD
New Jersey’s courts have a history of protecting innocent third parties injured in accidents with drivers who have obtained their automobile insurance through fraud in their application. In the context of New Jersey’s compulsory automobile insurance requirements that history is reflected in New Jersey Manufacturers Insurance Co. v. Varjabedian, 391 N.J.Super. 253 (App.Div.) certif. denied. 192 N.J. 295 (2007). Applying Varjabedian, a policy voided due to the applicant’s fraud was molded to compel the defrauded insurance carrier to make $15,000 per person and $30,000 per accident coverage available to innocent third parties. Today the New Jersey Supreme Court, in a unanimous decision written by Justice Fernandez-Vina ruled that where New Jersey’s “basic policy” is concerned voiding such a policy for application fraud yields no more than the limit chosen for third party bodily injury coverage in the application – in this case the applicant elected the optional $10,000 personal liability coverage – rather than the $15,000 per person $30,000 per accident of the “standard policy”. The “basic policy” permitted by N.J.S.A. 39:6A-3.1 does not mandate personal liability insurance, if the optional personal liability limit is not elected no coverage will be made available to innocent third parties if such policies are voided. The link to the New Jersey Supreme Court’s opinion in Citizens United Reciprocal Exchange v. Sabrina A. Perez, et al; is http://www.judiciary.state.nj.us/opinions/supreme/A6713CUREvSabrina.pdf
Contact CockerillCraigMoore Law
Our attorneys also represent insurance carriers in subrogation claims, helping you seek reimbursement from other insurers for costs you have incurred due to the wrongdoing of their insureds. To learn how we can help you, contact the Haddonfield insurance carrier attorneys online or call us in Haddonfield, New Jersey, at 856-429-1060.
When a Victim of a Car Accident Should Talk to an Attorney
If you have been the victim of a car accident we wish you a swift and uncomplicated recovery. Pursue appropriate treatment from your primary care provider and follow their recommendations for treatment and specialists to see. Along with getting medical treatment for...
Municipal Entity Representation: Why They Need Lawyers Too
If you have been elected to a position on a governing body, congratulations and condolences. This may be your first elected position and you may find that the adage, be careful what you wish for, is all too true. Governing a municipality is a challenging undertaking;...
RED FLAG LAWS: WHAT ARE THEY AND DO WE HAVE ONE IN NEW JERSEY?
The national debate about gun control includes the prospect of Congress taking up consideration of expanded background checks and “red flag” laws. You might wonder what a “red flag” law is and how it may apply. New Jersey has a red flag law called the “Extreme Risk...
Contact the Firm of Craig Annin & Baxter for More Info
Boating season is here, and this means good times out on the water. It also brings with it a serious responsibility for your own safety as well as the safety of your family. There are certain precautions that you will need to take in order to stay completely safe out...
WHEN CAN FINANCIAL PENALTIES BE USED TO DETER NON-COMPLIANCE WITH A MARITAL SETTLEMENT AGREEMENT?
20-2-2066 Holtham v. Lucas, N.J. Super. App. Div. (Ostrer, J.) (18 pp.) Plaintiff appealed from the trial court’s order requiring him to pay defendant $150 per day of plaintiff’s non-compliance with a provision of the parties’ marital settlement agreement that...
SPOUSAL SUPPORT IN NEW JERSEY: WHAT ARE THE REQUIREMENTS?
Spousal support, sometime called alimony, may be ordered in New Jersey divorces in certain situations. An order for spousal support is not guaranteed, so you should consider consulting with the Woodbury family lawyers from Craig Annin & Baxter if you believe...
Splitting the Equity in My Home During a Divorce
Are you planning to divorce your spouse? One of the most important things to keep in mind is that you will need to divide up the equity in your home. Equity can be defined as the difference between the value of your home and the amount of money that you still owe on...
How Long Does a Personal Injury Case Usually Take?
Personal injuries lawsuits are unfortunately common. We say unfortunately because we don’t like the fact that there are people out there who are still getting injured through no fault of their own. Our crowded streets make these events more likely to occur. We...
New Jersey Courts Address Parental Liability for Underage Drinking and Going Forward Imposes Liability on Underage Adults Who Host
On June 6, 2019 the New Jersey Superior Court’s Appellate Division, the intermediate appeals court, decided whether homeowners whose children consume alcohol and allow other underage adults to consume alcoholic beverages at their home are liable for resulting...
A New Jersey state court entered a $27.65 million judgment for UFC
A New Jersey state court entered a $27.65 million judgment for UFC middleweight contender Yoel Romero following a damages trial involving a tainted training supplement that led to a suspension and lost professional opportunities, his legal team said today. Entered by...