NAII Files Brief Against N.Y. No-Fault Rule Modifications

December 12, 2002

The National Association of Independent Insurers (NAII) has filed an amicus brief opposing a recent appeal by the New York Medical Society of the most recent court decision affirming the State Insurance Department’s modifications of Regulation 68, which deals with no-fault insurance law.

The regulation, which reduces auto accident notification time from 90 to 30 days, and the time within which insurers must receive proof of claim for medical treatments from 180 to 45 days, was upheld in October by a New York appeals court. The New York Medical Society and the state trial attorneys are appealing the October ruling.

In its Dec. 5 motion filed with the New York Court of Appeals, NAII and the New York Insurance Association (NYIA) maintain that the medical society has no right of appeal because there is no constitutional issue to consider and that the court should not grant permission to appeal.

NAII maintains that tightening the Reg. 68 standards will reduce the risk that fraud perpetrators will use delay as a tool for driving up insurance premiums for innocent New York consumers.

“Insurers will still be required to pay or deny claims within 30 days and face harsh monetary sanctions if denials are not upheld, but they will at least have a chance to uncover no-fault fraud while evidence is still fresh, and before the perpetrators rack up months of fraudulent claims,” said Gerald L. Zimmerman, senior counsel for the NAII.

The appeals court will review the petitioners’ brief and NAII’s amicus brief and render a decision on whether or not it will accept the case sometime within the next eight to 10 weeks, Zimmerman added.

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