An Appellate Court in New York has blocked the implementation of the automobile insurance reforms contained in Regulation 68, which were due to go into force on September 1.(See IJ Website Sept. 5)
Justice Peter Tom ordered the reinstatement of a temporary restraining order issued August 31st at the request of various groups headed by the New York State Trial Lawyers Association, which is seeking to block the implementation of new reporting deadlines for automobile accidents and the submission of medical treatment costs.
The Independent Insurance Agents Association of New York (IIANY), which strongly supports the legislation reaffirmed its backing for the Insurance Department’s adoption of the new rules contained in regulation 68. The IIANY feels that stricter reporting standards are absolutely required to reduce the instances of fraud which continue to plague New York’s no-fault insurance system.
IIANY President Patrick C. Moore stated that fraud was costing an estimated $1 billion annually and that “Under a revised Regulation 68, the state’s no-fault system would have had the ability to significantly reduce the fraud and unnecessary medical treatments that are costing all New Yorkers in the form of higher premiums.”
Further hearings are scheduled for September 27th.
Was this article valuable?
Here are more articles you may enjoy.