Insurance — fraud

The Appellate Division affirms the judgment finding that the defendants violated the Insurance Fraud Prevention Act and awarded the plaintiff-insurer $175,302.88 in damages, finding that because of the close connection between the facts alleged as grounds for a rescission of insurance coverage and a determination of insurance fraud, it was appropriate to join all of the claims into a single count in the complaint; the presentation of only the liability issue to the jury, without a separate damages component, did no violence to the IFPA and was not unduly prejudicial to defendants; the trial judge's findings were supported by competent, reasonably credible evidence; and the judge considered the relevant legal principles in light of the facts available to him.

Case Law Alert - 2nd Qtr 2010