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Lie to Your Insurer and You Will Lose\\n\\nPlaintiffs Richard Converse and Stephanie Converse own the property. \\nDefendant State Farm Fire and Casualty Company (\\u201cState Farm\\u201d) insured \\nthe property at the relevant time. After a fire on December 8, 2019, \\nPlaintiffs sought coverage under the insurance policy. Plaintiffs \\nbrought this action when Defendant denied coverage for much of the \\nclaim. In Richard Converse, and Stephanie Converse v. State Farm Fire \\nAnd Casualty Company, No. 5:21-CV-457 (TJM/ATB), United States District \\nCourt, N.D. New York (July 12, 2023) the USDC was asked to rule on \\ncross-motions for summary judgment.\\n\\nBACKGROUND\\n\\nState Farm insured the Converses against the risk of loss to a rental \\nproperty under a homeowners policy.\\n\\nThe parties agree that Plaintiff Stephanie Converse sent a letter to \\nJoseph Pelton on or about November 8, 2019 that stated: \\u201cJoe, ... Having\\n issues with my house again. Need help this time! I will pay $5,000 cash\\n when I get the insurance. The back door will be unlocked and open to \\nthe basement. That\'s where the access to utilities are. Make look like \\nelectrical. I will come up after it happens so I will meet up with you. \\n... It\'s a mint green house with garage. Love you, See you soon. \\n\\xa0Stephanie.\\u201d\\n\\nWhile Plaintiffs admit that Stephanie Converse mailed the letter, they \\n\\u201cdeny any implication or allegation that Stephanie Converse committed \\ninsurance fraud, paid anyone to commit arson on the property, or was in \\nany way involved in the fire that caused the loss on the property.\\u201d\\n\\nStephanie Converse filed a claim on December 8, 2019 for the loss caused\\n by the fire. State Farm mailed Stephanie Converse a blank Sworn \\nStatement in Proof of Loss and a return envelope.\\n\\nStephanie Converse appeared for an examination under oath (\\u201cEUO\\u201d) in \\nconnection with her insurance claim on March 13, 2020. Stephanie \\nConverse affirmed during the examination that \\u201ceverything as far as you \\ncan recall [was] truthful about what you told Mr. Loarca[.]\\u201d \\n\\nDefendant denied Stephanie Converse\'s claim on October 7, 2020 and \\nPlaintiffs sued.\\n\\nANALYSIS\\n\\nThe materiality requirement is satisfied if the false statement concerns\\n a subject relevant and germane to the insurer\'s investigation as it was\\n then proceeding.\\n\\nThe undisputed evidence before the Court indicated, Stephanie Converse \\ntold an investigator that she had made no such request.\\n\\nDefendant does not argue that Plaintiff dissembled about the cause of \\nthe fire at the home, committed arson herself, or paid Joseph Pelton to \\nset the home on fire. The Court found that as a matter of law Plaintiff \\nmade these misrepresentations willfully. \\n\\nStephanie Converse made material misrepresentations to insurance \\ninvestigators as a matter of law and breached the insurance contract and\\n Defendant is entitled to summary judgment in this respect.\\n\\nFailure to Cooperate\\n\\nTestifying falsely can also breach the condition of cooperation.\\xa0 \\nStephanie Converse admitted to Lee County Sheriff\'s Office investigators\\n that she had written the letter she had denied to State Farm. Converse \\nthus made misrepresentations about facts material to State Farm\'s \\ninvestigation.misrepresentations were not willful.\\n\\n\\xa0Proof of Loss\\n\\nDefendant\'s motion for summary judgment, was granted and Plaintiffs\' \\nmotion for summary judgment was denied.\\n\\nZALMA OPINION\\n\\nAn insured who seeks to hire a person to set fire to her house for a fee\\n paid from insurance proceeds is offering to pay for a felonious act. If\\n the person refuses to set the fire, has an alibi when an arson fire \\nactually occurred, performed by a person unknown, and the insured lies \\nabout her offer to burn her house, the lie is sufficient to deny the \\nclaim in accordance with the terms and conditions of the policy. This \\ncase proved the old saw that "liars never prosper."\\n\\n(c) 2023 Barry Zalma & ClaimSchool, Inc.