MAY 2009 BAD FAITH CASES INSURER OBTAINS JUDGMENT AGAINST INSURER FOR STATUTORY FRAUD BASED ON FRAUDULENT APPLICATION (Philadelphia Federal)

In State Auto Property & Casualty Insurance Company v. Feger, the Court had previously granted judgment in the carrier’s favor on coverage and rejected the insured’s breach of contract and bad faith claim.  In this opinion, the court addressed the carrier’s motion for summary judgment on its statutory insurance fraud claim against the insured.  Based on prior findings and the record before the court, the court found that there was clear and convincing evidence of insurance fraud in the application process.  It entered summary judgment on the claim under 18 Pa. Cons. Stat. Ann. § 4117(b)(4), and then ordered the carrier to submit it proof of damages from the fraud, under 18 Pa. Cons. Stat. Ann. § 4117(g).

Date of Decision:  January 8, 2009

State Auto Prop. & Cas. Ins. Co. v. Feger, CIVIL ACTION NO. 2:07-cv-01048, , 2009 U.S. Dist. LEXIS 46510 (E.D. Pa. Jan. 8, 2009) (Davis, J.)