A Wayne County Circuit Court judge recently granted a motion for summary disposition brought by Liz Rumery on the grounds that the plaintiff made fraudulent statements in connection with his claim to our client, Auto-Owners Insurance Company.
According to the lawsuit, the plaintiff was involved in a motor vehicle accident in November 2014. When he submitted a claim under his mother’s insurance policy, he claimed that he was employed by a company called BMT, Inc., but BMT’s owner later testified that the plaintiff, an independent contractor, had stopped working there well before the accident occurred.
The terms of the insurance policy preclude coverage for any person who makes “fraudulent statements… with respect to procurement of this policy or to any occurrence for which coverage is sought.” Liz argued to the court that, because of his fraudulent misrepresentation regarding his employment status, the plaintiff was not entitled to coverage under his mother’s insurance policy. She also argued that because of the plaintiff’s misrepresentation, the intervening plaintiffs – medical providers who treated the plaintiff – were not entitled to make claims under the policy, and that the plaintiff’s wage loss claims should be dismissed because he had voluntarily stopped working before and not as a result of the accident.
The court agreed with all of Liz’s arguments, granting the motion and dismissing the lawsuit. This case once again illustrates the importance of exposing fraudulent insurance claims, which cost insurance companies, policyholders, and the public tens of billions of dollars every year.