The lawsuit, which seeks damages of $1.3 million against the various defendants, alleges an illegal fee splitting scheme with unlicensed laypersons which resulted in their submitting claims for No-fault related services allegedly provided to individuals who were involved in automobile accidents.
The lawsuit alleges, the No-Fault providers are not entitled to receive No-Fault reimbursement as they are not properly owned, operated and controlled by licensed medical professionals.
This is the 5th insurance fraud lawsuit filed by Farmers Insurance in New York this year. Farmers has claimed damages of over $5.7 million through 12 lawsuits filed in New York since 2011.
“This case is illustrates our commitment to fighting insurance fraud in the State of New York,” stated Sean Zavala, director of special investigations for Farmers Insurance. “We will file civil actions when appropriate to deter anyone who submits fraudulent insurance claims. It is our commitment to our policy holders to protect them from fraud.”