This story is reprinted with permission from FC&S Legal, the industry's only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

A California appellate court decision suggests that insurers that want to recover their costs of investigating fraudulent claims may need to maintain records and logs demonstrating how much time they spend investigating each individual claim — or be barred from recovering their expenses.

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The Case

Alyce J. Williams pleaded guilty to making a false statement in support of an insurance claim. Pursuant to her plea agreement, the court dismissed the other count of presenting a false motor vehicle claim and ordered her to serve three years of summary probation and to pay victim restitution, including to Farmers Insurance, in an amount to be determined.

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Steven A. Meyerowitz

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].