Mid Atl. Med., P.C. v. Victoria Select Ins. Co

In Mid Atl. Med., P.C. v. Victoria Select Ins. Co. (20 Misc 3d 143[A], 872 NYS2d 692, 2008 NY Slip Op 51758[U] [App Term, 2d & 11th Jud Dists 2008]), the actual named insured had made material misrepresentations on his application for the subject insurance policy, and, subsequently, a court in Virginia issued a declaratory judgment holding the policy to be void ab initio The declaratory judgment action in Virginia was not commenced until after the eligible injured persons had assigned their rights to the medical provider claimants. Those eligible injured persons were in no conceivable way involved in the fraudulent acts of the named insured when he made his material misrepresentations on his application for insurance. Therefore the assignors were completely unaware of any improper conduct or failure to comply with the requirements of no-fault such as would create grounds for a denial of payment.