An automobile insurance policy obtained through fraud does not automatically relieve the carrier of its obligation to compensate innocent, injured third parties, the New Jersey Supreme Court has ruled.

In a unanimous ruling Aug. 13 in Citizens United Reciprocal Exchange v. Perez, the court said the exchange, more commonly known as CURE, must pay $10,000 as compensation to a third party who was injured when his car was struck by a another vehicle whose owner had obtained her policy fraudulently.

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