Optimal Well-Being Chiropractic, P.C. v Infinity Ins. Co., 2013 NY Slip Op 52065(U)(App. Term 2d Dept. 2013)
“Defendant issued the automobile insurance policy in Pennsylvania to the insured, who [*2]purportedly resided in Pennsylvania, for a vehicle which was purportedly garaged in Pennsylvania. The only connection between the policy and New York State is that plaintiff’s assignor was injured while riding in the insured’s vehicle in New York. Consequently, we find that Pennsylvania law is controlling under New York’s conflict of law rules”
“Although Pennsylvania law provides for a common law right by the insurer to rescind a policy of insurance, in Erie Ins. Exchange v Lake (543 Pa 363, 375, 671 A2d 681, 687 [1996]), the Pennsylvania Supreme Court held that an automobile insurance policy cannot be retroactively rescinded with respect to third parties who were harmed through no fault of their own. Therefore, any rescission of the insurance policy in question did not affect the rights of the innocent assignor.”
(1) PA law applies because the policy was issued in PA and only connection to NY was the fact the MVA occurred in NY
(2) PA law disallows rescission of policy regarding innocent assignor
