Jury awards $1M to insurer, against policy holder

This might seem like a “dog bites man” story, but it’s true. In a case called Lincoln Benefit Life Company v. Alexander Dallal and Claire Dallal, in the United States District Court for the Central District of California, Case No. 2:16-cv-09307-MWW, nine California jurors unanimously found that the policy holder, the Dallals, had committed insurance fraud under a long-term care insurance policy for 12 years. The jury returned a nearly $1 million dollar verdict in favor of Lincoln Benefit, which included a $300,000 punitive damage award for fraud. This case is one of the first to go to verdict in the country. It is important to realize that both policy holders and insurers have rights and obligations.