NAII Will Defend Against Court Challenge to NY’s Reg. 68

March 10, 2003

The decision by the New York Court of Appeals to hear the appeal of the Medical Society of New York (MSSNY) and the state’s trial lawyers, challenging the validity of Regulation 68 (See IJ Website Feb. 28), has prompted the National Association of Independent Insurers to take action in support of the rule changes.

“Regulation 68, which has been in litigation for months, was designed to fine-tune New York’s no-fault insurance law. At issue are amendments that reduce 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. Trial lawyers and other litigants who filed suit against New York Superintendent of Insurance Gregory Serio opposed these provisions,” the NAII bulletin noted. The New York State Insurance Department adopted the rule changes in an effort to reduce no-fault fraud.

“Regulation 68, which is still in effect despite the litigation, has proven helpful in fighting fraud, and the insurance industry will continue to support it by filing an amicus brief in the appeal,” stated Gerald L. Zimmerman, NAII senior counsel.

The bulletin noted that the appeal is “based on appellants’ argument that the regulation violates the New York State Constitution because it was not ‘duly promulgated.'” The NAII indicated that it would file its brief to coincide with the attorney general’s response to the appellants’ briefs.

“We’re sorry to see this case drag on any longer than it has to, but the insurance industry is prepared to do whatever it takes to support Regulation 68 and the state insurance department,” Zimmerman concluded.

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