Can an insurer who provides truthful information about an insured to the police find itself liable to the insured for the tort of "malicious prosecution"? In a controversial 2012 decision, the North Carolina Court of Appeals said yes, affirming a $90,000 judgment against North Carolina Farm Bureau. Recently, however, the North Carolina Supreme Court took a look at the case and reached a very different conclusion, with positive implications for all North Carolina insurers.
In the current issue of the North Carolina Insurance Law newsletter, you will find a summary of the Supreme Court's decision in North Carolina Farm Bureau v. Cully's Motorcross Park, along with my analysis of what the case means for insurers who write business in North Carolina.
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