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Insurance Claims professional presents articles and videos on insurance, insurance Claims and insurance law for insurance Claims adjusters, insurance professionals and insurance lawyers who wish to improve their skills and knowledge. Presented by an internationally recognized expert and author.
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May 21, 2026
Proactive Insurer Makes a Fraudster Pay

Defaulting Fraud Perpetrator Lets Insurer Defeat Fraud
Post number 5355

Posted on May 21, 2026 by Barry Zalma

In Transamerica Life Insurance Company v. John Joseph Egan, et al., No. 25-cv-06167-JD, United States District Court, N.D. California (May 12, 2026) Transamerica Life Insurance Company issued John Egan a life insurance policy with a long-term care rider that covered in-home skilled nursing or other professional care if he qualified as chronically ill.

FACTUAL BACKGROUND

In 2023, Egan submitted a claim alleging severe pain, major loss of daily functioning, and limited mobility following an auto accident. Transamerica approved coverage and paid benefits based on those representations and repeated proofs of loss describing in-home care services. After later surveillance in 2024 and 2025 showed Egan working, driving, shopping, and otherwise functioning without visible impairment — and showed no evidence of in-home care — Transamerica concluded that the claim was fraudulent and filed suit.

Transamerica surveilled Egan during each period of surveillance, there was no evidence that an in-home care provider actually treated Egan. Based on the surveillance evidence, an independent medical examiner retracted an initial opinion that Egan suffered from function loss and determined that Egan had no loss.

Transamerica concluded that Egan had engaged in fraud and filed this lawsuit in July 2025. The complaint alleges claims against Egan for insurance fraud, negligence, civil theft, breach of contract, and the like, along with a request for declaration that Egan’s policy coverage is lapsed and void. Transamerica alleges that it paid Egan a total of $148,497.47 in benefits, among other damages incurred in relation to Egan’s conduct.

LAW:

The court evaluated the motion under Federal Rule of Civil Procedure 55(b)(2), which permits default judgment against a defendant who fails to defend.

The court also confirmed subject matter jurisdiction under 28 U.S.C. § 1332 and personal jurisdiction based on service within the district. For relief, the court relied on California Penal Code section 496(c) for treble damages and attorney’s fees on the civil theft claim, and California Civil Code section 3288 for prejudgment interest.

DISCUSSION:

The opinion addressed three main issues: whether the court had jurisdiction over the case and the defendant, whether default judgment should be entered after Egan failed to appear, and what relief Transamerica was entitled to recover.

The court first confirmed both subject matter and personal jurisdiction, then turned to the default judgment framework, and finally calculated the recoverable damages, fees, costs, and interest.

ANALYSIS:

The court found that Transamerica had plausibly alleged fraud and related wrongdoing because the complaint described false statements about Egan’s condition, repeated submissions seeking benefits, and later surveillance evidence contradicting those claims. Because Egan was properly served but never appeared, the well-pleaded allegations were taken as true for purposes of default judgment, except as to damages.

The court determined that Transamerica would be prejudiced without a remedy, the complaint was sufficient, the requested damages were tied to documented losses, and there was no indication of excusable neglect or a meaningful factual dispute.

CONCLUSION:

The court granted Transamerica’s motion for default judgment against Egan. It held that jurisdiction was proper, the complaint adequately alleged fraud and related claims, and the default judgment factors supported relief.

Transamerica recovered trebled damages based on benefits paid and investigation costs, along with attorney’s fees, costs, and prejudgment interest, while punitive damages, waiv premiums, and declaratory relief were denied.

THE RELIEF

Transamerica has established by declaration that it paid Egan $148,497.47 in benefits, and paid $23,801.16 for the surveillance and independent medical examinations. The combined amount of $172,298.63 for these losses is trebled under California Penal Code Section 496(c) for the civil theft claim.

Transamerica has incurred attorney’s fees in the amount of $35,072.50, and costs in the amount of $1,031.17, all of which were documented by declaration. See id. ¶ 8. Attorney’s fees and costs may be awarded for the civil theft claim under California Penal Code Section 496(c). The Court’s review of the fees and costs indicates they are reasonable.

Prejudgment interest is awarded under California Civil Code Section 3288 at the rate of 7% per annum.

ZALMA OPINION

It is not nice to ask an insurer to pay for care to which the insured was not entitled. The insurer, once it determined it had been defrauded, it was proactive, sued the fraudster and served him only to have him give up, default, and a judgment was entered in favor of Transamerica and gave it a judgment it might take ten years or more to collect.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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September 18, 2026
Expert May Only Testify to What Experience Supports

Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.

Posted on September 18, 2026 by Barry Zalma

See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html

In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.

The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.

Law

The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...

00:03:10
September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

150 Months in Prison for Tax Fraud
Post 4846

Posted on September 17, 2026 by Barry Zalma

See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.

FACTS

In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS

Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.

The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...

00:05:23
September 14, 2026
Court Enforces Fifth Amendment & Refuses to Compel Answers

Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution

Post 5489

Posted on September 14, 2026 by Barry Zalma

Fraudster Refuses to Answer Questions About His Alleged Fraud

See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr

In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.

Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.

After Great American ...

00:05:14
6 hours ago
Suit Must be Ripe When Filed

A Suit Filed Before the Claim Exists is Fatal

Post 4870

Posted on October 20, 2026 by Barry Zalma

In Louis Briggs v. Shaun Wimberly; Somerset Services, Inc.; And Wimberly & Associates, PLLC, and Louis Briggs v. Shaun Wimberly And Wimberly & Associates, PLLC Nos. 2024-CA-1471-MR, 2025-CA-1366-MR, Court of Appeals of Kentucky (October 9, 2026) Louis Briggs was arrested in 2014 after an incident with police and charged with several offenses, including third-degree assault.

Probable cause was found and an indictment was returned, but the charges were eventually dismissed. His attorney, Shaun Wimberly, then filed a federal civil rights suit for Briggs in a United States district court, which also asserted state-law claims. The district court dismissed most of the claims and declined to exercise jurisdiction over the remaining state-law claims. Briggs blamed Wimberly for the result, fired him, and appealed to the Sixth Circuit.

While the federal appeal was pending, Briggs filed a legal malpractice action against Wimberly in the Jefferson Circuit Court. The Sixth ...

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October 19, 2026
Plaintiff’s Reading of the Policy is Plaintiff’s Reasonable Allegations Posted on October 19, 2026 by Barry Zalma CLASS ACTION THAT STATES A SIMPLE CLEAR AND PLAUSIBLE CAUSE OF ACTION SURVIVES Post 4868 In Sheila Marino v. Farmers New World Life Insura

Plaintiff’s Reading of the Policy is Plaintiff’s Reasonable Allegations

Posted on October 19, 2026 by Barry Zalma

Post 4868

CLASS ACTION THAT STATES A SIMPLE CLEAR AND PLAUSIBLE CAUSE OF ACTION SURVIVES

In Sheila Marino v. Farmers New World Life Insurance Company, No. 2:25-cv-02200-JNW, United States District Court, W.D. Washington, Seattle (October 13, 2026) defendant Farmers New World Life Insurance Company’s (“FNWL”) moved to dismiss Plaintiff Sheila Marino’s putative class action involving flexible universal life insurance.

Marino filed a putative class action in King County Superior Court alleging: (1) breach of contract, (2) breach of the implied covenant of good faith and fair dealing, and (3) violation of the Washington Consumer Protection Act (CPA).

She pleaded two theories: an “overcharge” theory and an “underpayment of interest” theory asked the Court to take judicial notice of historical Federal Funds Effective Rates.

THE LAW

Pleading Standard.

To survive a Rule 12(b)(6) motion, a ...

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October 16, 2026

Alleged Defamatory Statements Must be Of and Concerning Plaintiffs

Posted on October 16, 2026 by Barry Zalma

To Prove Defamation the Statement Must be Of and Concerning the Plaintiffs

Post 4867

In Michael Moloney and Sergio Cantu v. United Services Automobile Association, No. 04-25-00519-CV, Court of Appeals of Texas, Fourth District, San Antonio (October 14, 2026) Michael Moloney and Sergio Cantu appealed from the trial court’s granting of a traditional motion for summary judgment in favor of United Services Automobile Association (“USAA”) on their defamation claim.
BACKGROUND

Moloney and Cantu sued USAA for defamation, alleging that they are the principals of Informed Roofing & Restoration, LLC (“Informed Roofing”), which is primarily engaged in the residential roofing repair and replacement business, and that an employee or agent of USAA had made false and defamatory statements to the San Antonio Police Department (“SAPD”) concerning them.

Specifically, Moloney and Cantu alleged that an employee of ...

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