DOCTOR’S CRIMINAL CONDUCT NEGATED COVERAGE
When Lloyds of London went to the New York County Supreme Court to declare certain disability insurance policies invalid because of “material misrepresentations” made on applications by “Dr. D.M.," the insured, the New York County Supreme Court ended up granting that request.
And, on appeal, the Appellate Division, First Department, noted that between June 2015 (prior to signing the applications) and January 2019, D.M. was engaged in Medicare fraud. He was later criminally prosecuted, and ultimately pleaded guilty to the misconduct.
Given that Lloyds adequately supported its contention that it would not have issued coverage to “an individual or business that was actively committing a crime that would impact the insured's license to practice medicine,” the appellate court “unanimously affirmed” the outcome.
I guess there’s no covering thieves.
# # #
DECISION