Boswell v. Liberty Nat. Life Ins. Co
In Boswell v. Liberty Nat. Life Ins. Co. (Ala. 1994) 643 So. 2d 580, the plaintiffs alleged that the defendant insurer fraudulently induced them to exchange their existing "cancer" policies for new, more expensive, policies that the insurer promised would offer additional coverage and benefits. In fact, the new policies offered less coverage than the old policies.
The trial court found that the plaintiffs failed to state a claim because none of the plaintiffs had ever filed a claim for benefits under either the old or the new policies, and therefore the plaintiffs did not suffer any injury. (Boswell, supra, 643 So. 2d at p. 580.)
Reversing the trial court, the Alabama Supreme Court held that the plaintiffs' payment of additional premiums for policies that did not provide the additional coverage as represented constituted a cognizable injury resulting from fraud. (Id. at pp. 581-582.)