February, 1996 – This case involved a property casualty insurance scheme concerning “adjacent structure coverage,” on manufactured homes. The company charged all of its policyholders separate adjacent structure coverage, when it was well aware that 90 to 95% of the people who owned these policies did not have adjacent structures to cover. Therefore the coverage was being paid for by the policyholders but was not being provided. The jury found that this conduct was fraudulent and awarded a substantial verdict, including punitive damages in the amount of $15 million.
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