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Lawsuit: Insurance Company Manipulated Software After Sandy

A New Jersey couple recently filed suit in against Selective Insurance in federal court, claiming it defrauded them out of the sales tax in the claim they brought for damage from Superstorm Sandy. Charles and Beverly Mooney alleged that Selective “intentionally manipulated” its insurance claim software to short-change the couple, and sought class-action status based on others who may have been affected. The Mooneys are requesting that the claim be redone with the sales tax costs and are seeking other damages as well.

After the Mooneys’ summer home in Toms River was destroyed by the storm, Selective paid only for what it said it owed them, but Charles Mooney claims it was not enough to fix the house and is still paying out of pocket to finish the repairs. The suit alleges that the money paid by Selective did not include the required 7 percent sales tax despite Selective’s representation to the contrary. The suit comes after the recent announcement by Federal Emergency Management Agency officials that Sandy victims who feel their insurance claims were not fairly paid out can appeal to have their claims reviewed.