Insurer Must Face Fraud Claim Over Release, 3rd Circ. Says

Law360 (November 15, 2018, 9:38 PM EST) -- An insurer may be held liable under New Jersey’s Consumer Fraud Act in a suit alleging a company agent fraudulently induced a woman into releasing one of its other customers from liability over a car crash, the Third Circuit said Thursday in a precedential opinion reviving her class action CFA claim.

A circuit panel upended a New Jersey federal court ruling last year dismissing Ana Lidia Alpizar-Fallas’ claim against Progressive Garden State Insurance Co. and agent Brian Barbosa, saying the court improperly characterized her claim as asserting a denial of insurance benefits in concluding that it is not covered by the...

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