N.Y. to Require Speedier Processing of Injury Claims After Auto Accidents

August 13, 2001

The New York Insurance Department is taking a major step to help reduce insurance fraud by adopting a regulation requiring speedier processing of injury claims after an auto accident, according to the NAII.

According to Joseph Termini, NAII counsel, the old system was a boon for the submission of fraudulent claims by medical mills, which would wait until near the deadline and then submit a pile of bills for alleged treatment over a six-month period, making it very difficult for insurers to thoroughly examine the claims.

A revision of Regulation 68 announced by Insurance Superintendent Gregory Serio Aug. 7 states that accident victims must report claims to their insurance companies within 30 days after the accident, instead of 90 days in the present regulation. The time period for medical providers to submit their bills to the insurer would be reduced from 180 days to 45. The change in the regulation will take effect Sept. 1.

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