Key Takeaway
NY appellate court rules that no-fault providers who delay lawsuits 7+ years lose statutory interest windfall, ending "snooze and lose" practice.
This article is part of our ongoing statutory interest coverage, with 8 published articles analyzing statutory interest issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
Aminov v Country Wide Ins. Co., 2014 NY Slip Op 24066 (App. Term 2d Dept 2014)
“First, contrary to plaintiff’s argument on appeal, defendant did prove the timely mailing of the denial. Where, as here, a provider does not commence the action within 30 days of receipt of the denial, the Insurance Department Regulations provide that statutory prejudgment interest (see Insurance Law § 5106 ) begins to accumulate when the action is commenced (see Insurance Department Regulations § 65-3.9 ), “unless the applicant unreasonably delays the … court proceeding” (Insurance Department Regulations § 65-3.9 ). In this case, plaintiff took no action for seven years. Plaintiff’s argument that defendant should be required to pay interest for that period because defendant could have attempted to move the case forward lacks merit. It is plaintiff who brought this action and plaintiff should not be rewarded for its years of inaction by receiving a windfall of interest (see Arzu v NYC Tr. Auth., 35 Misc 3d 210 ; compare Igor Shtarkman Neurologist, P.C. v Allstate Ins. Co., 191 Misc 2d 76 ). Thus, in our opinion, the Civil Court properly had that the interest in this case should be awarded from August 7, 2008.”
The only saving grace that exists nowadays is that most cases in Queens will not linger 5 years post notice of trial. So, the annuity seekers can still 8 times what is paid at the bank on their money through filing in Civil Queens or Bronx. But, you cannot drop a case off, pick it up 10 years later and expect 10 years of interest anymore. Interestingly, I thought it was going to be an insurance carrier appealing a windfall interest case that would have invoked the first appellate interpretation of the unreasonable delay rule, not a medical provider seeking an additur to the judgment.
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Legal Update (February 2026): Since this 2014 post, Insurance Department Regulations § 65-3.9 governing statutory interest calculations may have been amended, and Insurance Law § 5106 provisions regarding prejudgment interest have been subject to periodic regulatory updates. Additionally, appellate decisions since 2014 may have further clarified the application of the “unreasonable delay” standard in similar circumstances. Practitioners should verify current regulatory provisions and recent case law interpretations when addressing statutory interest calculations in no-fault cases.
Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
Keep Reading
More Statutory interest Analysis
Interest and attorney fee
Court finds excessive interest calculation in no-fault case affects attorney fees under 11 NYCRR 65-4.6, highlighting importance of proper interest calculation periods.
Jan 3, 2015Interest-ing
New York court rules on when statutory interest begins accruing on no-fault insurance claims - from filing or service of summons and complaint under CCA 412.
Aug 26, 2014Shady Grove v. Allstate: How Federal Court Access Transformed NY No-Fault Class Actions
How Shady Grove v. Allstate opened federal courts to NY no-fault class actions. Expert analysis of Erie doctrine impact and forum shopping strategies. Call 516-750-0595.
Apr 2, 2010LMK Attorney Fee Calculation Problems in NY No-Fault Cases
Expert analysis of LMK attorney fee calculation issues in NY no-fault cases. Long Island attorney explains court decision problems. Call 516-750-0595.
Apr 4, 2009NY No-Fault Insurance Interest: East Acupuncture Decision Impact
NY Appellate Division's East Acupuncture decision changes no-fault insurance interest calculations for Long Island healthcare providers and attorneys.
Feb 20, 2009$5.00 rule
Civil Court rules providers can collect no-fault insurance interest under $5 despite regulatory language, ensuring statutory penalty provisions remain effective.
May 14, 2013Common Questions
Frequently Asked Questions
What statutory interest applies to overdue no-fault claims?
Under 11 NYCRR §65-3.9, overdue no-fault claims accrue interest at 2% per month from the date the claim became overdue. A claim is overdue if not paid or denied within 30 days of the insurer receiving proof of claim.
When does interest begin to accrue on a no-fault claim?
Interest begins on the 31st day after the insurer receives all requested verification (or the date verification was due if the insurer failed to request it timely). If the insurer fails to pay or deny within 30 days, 2% monthly interest accrues automatically.
Can the insurer avoid paying interest on late no-fault claims?
Only if the insurer can demonstrate a valid excuse for the delay — such as a pending verification request that was timely issued. If the insurer caused the delay through untimely processing or late denials, interest is mandatory.
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About the Author
Jason Tenenbaum, Esq.
Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.
Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
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