20 Jul Insurance Fraud
Whether you are negotiating a business contract, purchasing an insurance policy, buying a product or negotiating an employment contract, you have the right to expect the other entity with whom you are dealing to tell you the truth. If they do not tell you the truth about the situation you are facing, or if they fail to tell you something that they had a duty to tell, or if they deceive you in some other fashion, then they have committed fraud. Under civil law, you are entitled to be compensated if you have been deceived, and acted in reliance on that deceit. If you would like to contact us about a possible fraud case, please click here.
Remember that each case is tried on its own merits, and that a successful result in one case does not guarantee a successful result in your case.
Key v. Prudential
Verdict of $25,000,000 (Marshall County Circuit Court, 1996). This was the first vanishing premium against Prudential to reach trial. John Key bought a Prudential policy based on the vanishing premium concept, then became uninsurable. After he became uninsurable because of his health, he found out that his premiums would not be paid off in the requisite amount of time. At trial, the jury found in favor of Mr. Key. In early 1996, the case was settled for a confidential amount.
Skilstaf v American Medical Security, Inc.
Verdict of $6,902,576 (Jury verdict in U.S. District Court for the Middle District of Alabama, 2001). Verdict awarded at the end of a week-long trial against an insurance third party administrator which had mishandled health claims for a number of plaintiff’s employees. The jury awarded $1,902,576 in compensatory damages and $5,000,000 in punitive damages. This case was featured in the National Law Journal. Defendant appealed to the Eleventh Circuit, which held oral argument before affirming the verdict. Defendant then filed an appeal to the United States Supreme Court, which denied certiorari. With interest, Defendant was compelled to pay $7,665.876.
Evelyn Crocker v. Union Security and First Alabama Bank
Jury verdict of $5,000,000 (Choctaw County, 1994). Evelyn Crocker and her husband were misled at the point of sale in the purchase of credit life insurance while taking out a loan. Mrs. Crocker applied for death benefits after her husband died and those benefits were denied. One of the issues was post-claims underwriting, under the insurance company’s practice of evaluating an insured’s eligibility after a claim was filed.