 No-Fault Working Group Continues Work
Members of New York State's no-fault insurance working group met this week for the second time this month. The meeting was conducted again by Senate Insurance Committee Chairman Neil Breslin (D-Albany) and Assembly Insurance Committee Chairman Joseph Morelle (D-Rochester). One more meeting is scheduled June 2. The participants discussed such topics as adding medical consultants to arbitration panels, pre-arbitration discovery, burdens of proof in arbitration, collateral estoppel, no-fault fee schedule and, last but certainly not least, the serious injury threshold.
The state trial lawyers lobby recently secured Senate sponsorship for a bill (S.7824) that would drastically change the definition of serious injury and make determining whether an injured person sustained a serious injury a jury question. The insurance industry, through the NY First coalition of which IIABNY is a member, is gearing up to fight the bill. For starters, the coalition is preparing a study to illustrate the bill’s potential impact on the system if it becomes law. There could be a push by the trial lawyers to move the bill late in the session. While time is running short to enact major no-fault reforms before the close of the legislative session on June 21, the effort to try to put something together continues. Lawmakers to Forgo Conventions to Deal with Budget
Senate Democrats announced, just a few hours after Gov. David Paterson said he may force lawmakers to miss their political conventions next week in order to work on the budget, they would voluntarily stay in Albany all next week to deal with the budget, regardless of whether a special session is called. The governor said it would be irresponsible for lawmakers to think about politics when the budget is seven weeks late. The Democratic convention is scheduled May 25-27 in the City of Rye in Westchester County. Despite meetings earlier in the week, the legislature "clocked out" Tuesday with no reported progress on the budget. Republican Senator Will Not Seek Re-election
Sen. Tom Morahan (R-Nanuet) announced this week that he will not seek re-election this fall. The 78-year old legislator, who represents parts of Orange and Rockland Counties, is fighting leukemia. Despite his illness, he will finish out his term. His retirement is an opportunity for Senate Democrats to add to their 32-30 majority. Insurance Department Proposes Circular Letter on Cancellation Notices
The state Insurance Department has developed a draft circular letter that is meant to clarify what may be included in insurers' notices of cancellation for non-payment of premium applying to both commercial and personal lines policies. According to the circular, some insurers are sending notices of cancellation for non-payment of premium that include installment payments that are not yet late. The notices lead some insureds to believe they must pay premiums not yet overdue in order to avoid a cancellation for non-payment of premium. The Insurance Department advises that while an insurer may notify an insured of an installment payment at the same time that the insurer sends a notice of cancellation, the insurer must make clear that those installment payments are not necessary in order to avoid a cancellation. Comments on the proposal can be submitted until June 2. Legislation of Interest
Some legislation of interest seeing movement this week includes the following: - ID card fraud. S.1897 was reported to the floor from the Senate Codes Committee. It would crack down on those involved in identification card fraud by including insurance card and certificates of insurance for a motor vehicle in the list of documents covered under forgery in the second degree. IIABNY supports this legislation.
- Domestic violence. S.5980 was also reported to the floor from the Senate Codes Committee. It would require health insurers to provide victims of domestic violence with the option of providing alternative contact information.
Recent Legislation
| 
