Insurer Can Be Sued For Fraud Referral

Monday, July 28th, 2003 Fraud

An insurer that allegedly maliciously reported a claimant for fraud can be sued for malicious prosecution, California‘s 4th District Court of Appeal has ruled. Acts outside the normal claims process are not protected under workers compensation‘s exclusive remedy provisions, and a false accusation of fraud would not be a normal part of that process, the unanimous court held in its July 23 ruling in Freddie Curtis Mosby Jr. vs. Liberty Mutual Insurance Co. In the case, Liberty Mutual stepped out of its insurer role and took on the persona of bad cop, the court ruled. The case stems from a claim filed in 1997 by Mr. Mosby. A falling box containing an air conditioning unit struck him while he moved merchandise for a retail employer.

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http://www.businessinsurance.com/cgi-bin/news.pl?newsId=2661

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