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IT DOESN\\u2019T PAY TO TRY TO CHEAT YOUR INSURANCE COMPANY  

Legitimate Claim Destroyed by Creating Fake Invoices Sigismondi Foreign Car Specialists, Inc. appealed the U. S. District  Court\'s summary judgment in favor of State Auto Property and Casualty  Insurance Company on State Auto\'s declaratory judgment action and  statutory insurance fraud claim.  In State Auto Property And Casualty Insurance Company v. Sigismondi  Foreign Car Specialists, Inc., No. 21-2435, United States Court of  Appeals, Third Circuit (November 18, 2022) the Third Circuit Court of  Appeal dealt with the allegations of the insurer that Sigismondi  attempted insurance fraud.  FACTS  State Auto issued a commercial insurance policy that provided coverage  for Sigismondi\'s car repair shop. 

Sigismondi requested an insurance  payment for water damage, but State Auto denied the claim, citing fraud.  The misrepresentations asserted as a defense by State Auto occurred  during the claims-adjustment process. Sigismondi and State Auto retained  adjusters to value the damaged inventory. The adjusters first created a  joint inventory-a list of all the damaged items for which Sigismondi  sought insurance proceeds. State Auto\'s adjuster, Chad Foster, then  researched prices of the same or similar products to determine either a  "replacement value" (if Sigismondi replaced the item) or an "actual cash  value" (if not). Sigismondi\'s adjusters, or Sigismondi itself, likewise  valued the items. 

 Sigismondi valued certain items higher than Foster estimated or could  verify. Sigismondi presented what appeared to be original invoices from  various vendors trying to convince State Auto to pay more than its  adjuster calculated.  In truth, a Sigismondi employee had scanned at least some of the  invoices into the computer and then used editing software to change the  items and prices listed by the vendors. After Foster alerted State Auto  to this issue, State Auto sent Sigismondi a reservation of rights  letter, requesting further documentation and highlighting a policy  provision stating the policy would be void if any insureds  "intentionally conceal or misrepresent a material fact concerning . . .  [a] claim under this policy."