Applicant for Insurance is Obligated to Advise Insurer in Material Changes After Application Was Signed
Post number 5371
Read the full article at https://www.linkedin.com/pulse/physicians-malpractice-insurance-available-when-zalma-esq-cfe-fmpxc and https://zalma.com/blog.
Doctor Criminally Charged and License Suspended After Application Signed had Policy Rescinded for Failure to Advise Insurer of Change
In Xiang (Sean) Yuan, M.D. v. Positive Physicians Insurance Company, No. 1821 EDA 2025, No. J-A08033-26, Superior Court of Pennsylvania (May 29, 2026) Dr. Xiang (Sean) Yuan, a physician, sought renewal of his professional liability insurance policy with Positive Physicians Insurance Company (PPIC) in June 2020 and again in May 2021.
In the June 2020 renewal application, he answered “no” to questions asking whether he knew of any circumstances that might lead to a professional liability claim.
Two days after signing the 2020 renewal application, Dr. Yuan was charged with 36 criminal offenses, and shortly thereafter his medical license was suspended for about three months. He did not notify PPIC of either development.
LAW
Under Pennsylvania law, an insurer may rescind an insurance policy if the insured obtained or maintained it through fraudulent material misrepresentations.
DISCUSSION / ANALYSIS
The court found that the criminal charges and medical license suspension were plainly material. By remaining silent after those developments, Dr. Yuan concealed material facts from PPIC.
The appellate court concluded that even the most unsophisticated person must know that, in answering the questionnaire and submitting it to the insurer, he is furnishing data on the basis of which the company will decide whether, by issuing a policy, it wishes to insure him.
The Superior Court of Pennsylvania held that Dr. Yuan had a continuing duty to disclose material changes to his insurance applications. As the United States Supreme Court aptly declared in Stipcich v. Metropolitan Life Ins. Co., 277 U.S. 311, 316-17 (1928). His failure to do so amounted to material misrepresentations, allowing PPIC to rescind the malpractice insurance policy and avoid any duty to defend him in the underlying malpractice suit.
ZALMA OPINION
As Lord Mansfield said in Carter v. Boehm in 1766 the covenant of good faith and fair dealing applies equally to the insured and the insurer to do nothing to deprive the other of the benefits of the contract. He did not do so and his insurer properly rescinded the policy.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Arsonist Tried To Represent Himself, Failed, and Sought Habeas Relief
Post number 5357
Read the full article at https://www.linkedin.com/pulse/he-who-acts-his-own-lawyer-has-idiot-client-barry-zalma-esq-cfe-d4bwc, See the full video at and at and at https://zalma.com/blog.
Karacson’s Arson for Profit Attempt Required Skill & Experience to Succeed
In Steve Ellis Karacson v. David Shaver, Warden, No. 25-1089, United States Court of Appeals, Sixth Circuit (May 20, 2026) Steve Karacson was convicted in Michigan state court of arson and insurance fraud after evidence showed he burned his own insured home. Investigators found multiple points of origin, gasoline odor, and evidence tying him to the scene, including cell-phone location data and a receipt showing he had purchased a gas can and gloves shortly before the fire.
FACTS
Karacson initially had appointed counsel, but his relationships with both appointed attorneys ...
Foolish to Repeatedly Disobey Court Orders
All That Remains For Trial Is Plaintiff’s Damages On Each Of These Claims And Establishing Proximate Causation Of Those Damages.
Post number 5348
See the full video at and at and at https://zalma.com/blog plus 5300 posts.
In Linh Wang v. Esurance Insurance Company, No. C24-0447-JCC, United States District Court, W.D. Washington, Seattle (May 1, 2026) John C. Coughenour, United States District Judge, found that throughout this case, culminating with its briefing on Plaintiff’s renewed motion and that Defendant has subjected Plaintiff to unnecessary motion practice for clearly discoverable information and made dubious representations (including to the Court).
FACTUAL BACKGROUND
This case involves an underinsured/uninsured motorist insurance bad faith claim arising from a 2017 motor vehicle collision. The plaintiff, Linh Wang, alleges that Esurance Insurance ...
The Right to Negotiate with Insurer is Not an Assignment of Claims
Post number 5347
Read the full article at https://www.linkedin.com/pulse/ambiguous-contract-repair-assignment-barry-zalma-esq-cfe-2xppc, see the full video at https://rumble.com/v79is1s-ambiguous-contract-to-repair-not-an-assignment.html and at and at https://zalma.com/blog plus more than 5300 posts.
Nebraska Requires an Actual Assignment to Allow Contractor to Sue Insurer
In Millard Gutter Company, a corporation doing business as Millard Roofing and Gutter v. Farmers Mutual Insurance Company of Nebraska, also known as Farmers Mutual Insurance, also known as Farmers Mutual, No. A-24-818, Court of Appeals of Nebraska (May 5, 2026) Millard sued Farmers as an assignee of Jane Anzalone who had hired Millard Gutter to repair the roof of her home and agreed to allow Millard Gutter to coordinate with her insurer, Farmers Mutual, concerning reimbursement for repairs authorized under her insurance policy.
FACTUAL BACKGROUND
In ...
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Posted on June 15, 2026 by Barry Zalma
ZIFL – Volume 30, Issue 12
June 15, 2026
Post number 5372
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
Go to Jail, Do Not Pass Go
Arsonist Who Tried to Defraud Insurer Failed to Avoid Jail
Arson is a Violent and Dangerous Crime Deserving Serious Punishment
The People of the State of New York v. Zef Gjurashaj, 2026 NY Slip Op 03320, No. 2023-03675, Ind. No. 70463/21, Supreme Court of New York, Second Department (May 27, 2026) the defendant owned a restaurant that was destroyed by fire on September 6, 2017. Prosecutors alleged that he and a codefendant conspired to intentionally set the fire in order ...
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Posted on June 15, 2026 by Barry Zalma
ZIFL – Volume 30, Issue 12
June 15, 2026
Post number 5372
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
Go to Jail, Do Not Pass Go
Arsonist Who Tried to Defraud Insurer Failed to Avoid Jail
Arson is a Violent and Dangerous Crime Deserving Serious Punishment
The People of the State of New York v. Zef Gjurashaj, 2026 NY Slip Op 03320, No. 2023-03675, Ind. No. 70463/21, Supreme Court of New York, Second Department (May 27, 2026) the defendant owned a restaurant that was destroyed by fire on September 6, 2017. Prosecutors alleged that he and a codefendant conspired to intentionally set the fire in order ...
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Posted on June 15, 2026 by Barry Zalma
ZIFL – Volume 30, Issue 12
June 15, 2026
Post number 5372
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
Go to Jail, Do Not Pass Go
Arsonist Who Tried to Defraud Insurer Failed to Avoid Jail
Arson is a Violent and Dangerous Crime Deserving Serious Punishment
The People of the State of New York v. Zef Gjurashaj, 2026 NY Slip Op 03320, No. 2023-03675, Ind. No. 70463/21, Supreme Court of New York, Second Department (May 27, 2026) the defendant owned a restaurant that was destroyed by fire on September 6, 2017. Prosecutors alleged that he and a codefendant conspired to intentionally set the fire in order to...
