Fail to Appear for, or Sign and Return, EUO Breaches Material Condition

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State Farm filed an unopposed motion for summary judgment against defendants, probably because the defendants knew they had no case and placed their efforts to collect from fraud by going against insurers who would rather pay than fight.

In State Farm  v. Advantage, et. al, Index No. 157328/2019, 2021 NY Slip Op 31344(U), (April 21, 2021) State Farm’s Moved for Summary Judgment claiming fraud by the insured.

ZALMA OPINION

This decision from New York is an example of the need for insurers faced with a potentially fraudulent claim to refuse to pay. It will find that fraud perpetrators are unwilling to fight an honest attempt to defeat a claim that was fraudulent since it is more profitable to assert fraudulent claims against insurers who are unwilling or unable to fight a fraudulent claim. Since the fraud in this case was obvious State Farm was obligated to fight. It did so and avoided a fraudulent claim. The court should have referred the defendants to the local prosecutor for criminal prosecution of attempted insurance fraud.