City insurer charged in $2.4M fraud case

PORTSMOUTH — A local insurance salesman is alleged to have defrauded a Nevada couple out of $2.4 million though a life insurance scheme, in an attempt to reap large sales commissions.

According to a seven-count lawsuit filed in the U.S. District Court of Nevada, James Archibald of Portsmouth perpetrated the fraud with recently-indicted former financial adviser Karl Hahn. The suit alleges Archibald and Hahn committed fraud and misrepresentation, fraud based on concealment and omission, negligent misrepresentation, breach of fiduciary duty, professional misconduct, unjust enrichment and violated Nevada's consumer protection laws.

Through Boston attorney Louis Ciavarra, Archibald denied the allegations, saying he "has been swept up in the Karl Hahn saga."

Once a wealthy investment adviser who lived in Portsmouth, Hahn was arraigned last week in the U.S. District Court of New Hampshire on federal charges alleging he "devised a scheme to defraud" a Portsmouth man out of $1.9 million.

The Nevada suit alleges Archibald agreed to "associate" with Hahn to sell a wealthy couple "large life insurance policies through premium financing."

Former neighbors, Archibald and Hahn are alleged to have traveled to Nevada in April 2008, when they sold life insurance to the couple by "misrepresenting" the deal, saying it would come at no risk or cost to them, while protecting their assets in life and after death. The couple was assured, according to the suit, that they would never be required to pay for any of the debt or interest charges as a result of loans obtained to pay for the premiums.

"Both Hahn and Archibald stated that life insurance plans were 'complex,' but promoted themselves as experts in the packages upon whom (the couple) could rely," according to the suit.

"Jim (Archibald) and Hahn are not and never were partners or joined in any way," Ciavarra said. "The plaintiffs are two wealthy people with buyer's remorse, and blamed everyone else for their decision. So their allegations against Jim are just that: allegations, and will not stand up to examination."

The couple allege Archibald; his Portsmouth company, Port Capital; and Hahn "secretly" obtained life insurance for them for several million dollars more than what was represented "in order to generate large commissions to themselves," while "using the borrowing power" of the alleged victims.

Law Suit | What Do To When Your Insurance Company Denies Your Claim

A integrity by your insurance firm that you are not covered is not the last word, but usually the commencement of a routine for you to get hold of the insurance coverage that you purchased. Upon serve investigation, information might advance to light that might result in the insurance firm to re-evaluate its location and give coverage.

Also, if suit is necessary, the courts might find that you are covered by your insurance policy when your insurance firm says you are not covered.

The realities of insurance

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Unfortunately, many find that after having consistently paid their premiums, an insurance firm denies their affirm when they call on their insurance firm is to coverage betrothed in the insurance policy. In many cases, the a who determines and advises you that your insurance policy does not give coverage is not an attorney, but a claims adjuster without ability of Louisiana insurance law.

Should your insurance firm repudiate you coverage, you should look for the recommendation of an profession aware with the understand of insurance policy language.

When carrying out so, you are obtaining the viewpoint of a person lerned in insurance law and not in use by the insurance company. If your attorney’s viewpoint is that you are entitled to coverage, the rejection of your affirm is the commencement of your claim’s process, not the end.

Why insurers and the insured always appear to be at probability

As an insurance firm is a business, and a objective of a business is to make a profit, it is distinct that an insurance firm has a disposition towards denying insurance coverage. However, this disposition might not be the usually reason for an insurance firm denying coverage to its insured.

At the time that you hope for and contention your affirm to your insurance company, you might not know all of the information and the insurance adjuster might not know all of the information particular to your situation. In this situation, an profession can examination the insurance provisions, learn the applicable information that trigger coverage and broadcast these information to the insurance adjuster for a re-determination of coverage.

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