Insurance 101 – Chapter 6 – Volume 5 – The Reversal of an Arizona Divergence

The Reversal of an Arizona Divergence

One Arizona Court of Appeal has currently imposed on insurers faced with fraud a heavier burden of proof than that called for by the US Supreme Court in Coy R. Grogan v. Frank J. Garner (01/15/91) 498 U.S. 279, 111 S. Ct. 654, 112 L. Ed. 2d 755, 59 U.S.L.W. 4072. The Arizona Court of Appeal decision in American Pepper Supply Company v. Federal Insurance Company, No. 1 CA-CV 00-0549 (Ariz.App.Div.1 07/24/2003), attempts to distinguish an earlier decision of the Arizona Supreme court, Godwin v. Farmers Ins. Co. of America, 129 Ariz. 416, 418-19, 631 P.2d 571, 573-74 (1981), that stated the majority rule in the country.

The Arizona Supreme Court recently agreed and reversed the Arizona Court of Appeals’ decision. In American Pepper v. Federal Insurance Company,8 the Arizona Supreme Court, concluded that: The proper burden of proof applicable to a policy defense of concealment or misrepresentation is proof by a preponderance of the evidence.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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