Citizens United Reciprocal Exchange v. Perez

In this appeal we consider whether the issuer of a basic automobile insurance policy, voided due to a fraudulent application, must pay the liability claims of innocent third parties. The insurer takes the position that it should not be required to pay any claims to injured third parties because N.J.S.A 39:6A-3.1 does not mandate a minimum amount of liability coverage under a basic automobile insurance policy. We disagree and hold that, where a policyholder purchases the basic policy’s optional $10,000 coverage for third-party bodily injury in the original contract, the insurer is liable for…