Carr v. NJ CURE Ins. Co., 2011 U.S. Dist. LEXIS 9867 (N.J. Dist. Ct. Jan. 31, 2011)

As a matter of first impression, a cause of action under the New Jersey Insurance Fraud Prevention Act accrues based on the law provided under common law fraud.

This dispute arises from a motor vehicle accident involving the plaintiff, who was driving a vehicle insured by an automobile insurance policy issued by the defendant, NJ CURE. CURE denied coverage for the plaintiff's PIP claim, citing the plaintiff's material misrepresentations and/or omissions concerning the garage location of the vehicle as grounds for retroactively voiding her policy. The plaintiff filed suit, alleging breach of contract and seeking a declaratory judgment. The defendant filed a Motion for Summary, arguing that the plaintiff's material misrepresentations rendered the policy void under the New Jersey Insurance Fraud Prevention Act (NJIFPA). The court granted the defendant's motion, finding the plaintiff's claims to be barred by the statute of limitations. Absent clear statutory guidance or precedential case law, the court applied New Jersey's accrual rule for common law fraud cases to find that the statute of limitations bars the defendant's NJIFPA counterclaim.

Case Law Alert - 2nd Qtr 2011