Evanston Ins. Co. v. Agape Senior Primary Care, Inc. — Jan. 2016 (Summary)

PROFESSIONAL LIABILITY INSURANCE – CREDENTIALS FRAUD

Evanston Ins. Co. v. Agape Senior Primary Care, Inc.
No. 14-2268 (4th Cir. Jan. 15, 2016)

A physician used a false identity, including the credentials of a physician friend who was out of the country, to gain employment with a group that employs physicians and nurse practitioners to provide services to nursing homes and assisted living facilities. The group and the imposter were insured under the same professional liability policy, but when the insurer learned of the identity theft, it attempted to rescind coverage for the imposter and the physician on the basis that the misrepresentations made by the imposter on the insurance application was sufficient to rescind coverage for everyone covered by the policy, including the entire group. The federal appellate court upheld the lower court’s determination that principles of equity demand that coverage for the group and other co-insureds should remain intact, as they had engaged in no wrongdoing, though coverage for the imposter could be rescinded.