No Coverage for Failure to Testify at EUO

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In State Farm Mutual Automobile Insurance Company v. Surgicore of Jersey City, LLC, et al., Wellmart RX, Inc., 2021 NY Slip Op 03536, Index No. 161692/18, Appeal No. 13992-13992A, Case No. 2020-02906, Case No. 2020-02907, Appellate Division of the Supreme Court of the State of New York (June 3, 2021) the court was asked to reverse a trial courts refusal to grant default judgement.

ZALMA OPINION

When an insurer establishes that claims presented to it were obviously fraudulent and it gathered – and presented to the trial court – evidence establishing that the accident was staged and the claims were fraudulent, that should be sufficient to defeat coverage. That the defendants failed to answer the complaint, admitted the allegations, the addition of actual evidence required a judgment be entered on behalf of State Farm, who should be honored for refusing to pay fraudsters.