Key Takeaway
MVAIC's repeated failed attempts to vacate default judgments highlight the futility of raising the same meritless arguments on appeal in no-fault insurance cases.
The Motor Vehicle Accident Indemnification Corporation (MVAIC) serves as New York’s safety net insurer, providing coverage when drivers are uninsured or underinsured. However, MVAIC has developed a pattern of attempting to avoid liability through repetitive legal arguments that courts consistently reject. This case exemplifies MVAIC’s unsuccessful strategy of challenging default judgments in no-fault insurance disputes.
In this particular matter, a medical provider sought to recover assigned first-party no-fault benefits from MVAIC. When MVAIC failed to respond to the lawsuit, the provider obtained a default judgment. MVAIC then attempted to vacate this default under CPLR 5015, arguing that Insurance Law § 5214 somehow protected them from default judgments.
Jason Tenenbaum’s Analysis:
Omega Diagnostic Imaging, P.C. v MVAIC, 2011 NY Slip Op 50867(U)(App. Term 2d Dept. 2011)
“In this action by a provider to recover assigned first-party no-fault benefits, the Civil Court denied a motion by defendant Motor Vehicle Accident Indemnification Corp. (sued herein as MVAIC), pursuant to CPLR 5015, to vacate a default judgment entered against it. MVAIC’s proffered defense lacks merit since Insurance Law § 5214 does not bar the entry of a default judgment against MVAIC in an action in which MVAIC is the named defendant and has defaulted”
If you keeping raising the SAME arguments that fail on appeal, do you really think you will eventually win? Seriously?
This should have been affirmed with $30 in costs.
Key Takeaway
MVAIC cannot escape default judgments by claiming Insurance Law § 5214 provides special protection. When MVAIC is properly named as a defendant and fails to respond, courts will not vacate the resulting default judgment based on this meritless argument. The persistent use of failed legal theories only wastes judicial resources and increases litigation costs.
Legal Update (February 2026): Since this 2011 post, there have been significant amendments to Insurance Law § 5214 regarding MVAIC’s liability parameters and procedural requirements, as well as updates to CPLR 5015 default judgment vacatur standards. Additionally, regulatory changes have modified fee schedules and claim processing procedures that may affect similar disputes. Practitioners should verify current provisions of both statutes and applicable regulations when handling MVAIC matters.