AIA: N.Y. Legislature Ends Productive Session

Two bills that will combat no-fault auto insurance fraud and abuse were part of a productive session for the New York state legislature this year, according to the American Insurance Association (AIA).

One bill (A.7255-B/S.4854-A), requiring an index number to be purchased before lawsuits are filed, will curtail the bundling of thousands of no-fault auto claims for the purpose of forcing settlements in cases with little or no merit simply by creating too much volume to adequately handle each case. The other bill (A.8376-A/S.5784) provides for the decertification of fraudulent no-fault auto medical providers.

“These bills give insurers new weapons to continue the fight against no-fault auto insurance fraud and abuse that drives up the cost of insurance for honest drivers,” said Gary Henning, AIA assistant vice president, Northeast Region.

AIA also strongly supported legislation (A.7708/S.5248) to protect the solvency of the Workers’ Compensation Security Fund.

AIA will be urging Gov. George Pataki (R) to veto another measure (A.2625-A/S.5801) which passed the legislature. This bill would require insurers to provide premium discounts to policyholders who take an automobile accident prevention course over the Internet, despite the fact that there is reportedly no proof that these courses are effective and lessen the chance of an accident.