Key Takeaway
New York courts lack jurisdiction over out-of-state insurance carriers not licensed or authorized to conduct business in the state, as demonstrated in this appellate case.
Understanding Jurisdictional Limitations in New York Insurance Cases
New York courts operate under strict jurisdictional rules when it comes to out-of-state insurance companies. For a court to have authority over an insurance carrier, that company must typically have sufficient connections to New York State through licensing, business operations, or other legal requirements. This principle becomes particularly important in no-fault insurance disputes where carriers attempt to challenge New York court jurisdiction.
The case below illustrates how insurance companies can successfully argue lack of jurisdiction when they have no meaningful ties to New York. This defense strategy contrasts with situations where carriers inadvertently waive jurisdictional objections through their conduct, such as placing phone calls or making appearances in New York proceedings.
Jason Tenenbaum’s Analysis:
Does anyone know if this is “the general”? I always hear their commercials.
Metro Health Prods., Inc. v Access Gen. Ins. Co., 2014 NY Slip Op 50348(U)(App. Term 2d Dept. 2014)
“In an affidavit in support of the motion, defendant’s litigation specialist asserted that defendant is a Georgia-based corporation, which is not authorized to conduct business in New York State, does not issue or deliver contracts of insurance to New York State residents or to corporations authorized to do business in New York, does not solicit applications for contracts of insurance within New York State, does not have a power of attorney on file with the State of New York, has not filed a consent to service or declaration that its insurance policy be deemed in compliance with New York Vehicle and Traffic Law § 311 and does not control any New York State authorized company.”
No jurisdiction for out-of-state non licensed or credentialed insurance carrier in the state of New York
Key Takeaway
Insurance carriers can successfully defeat New York court jurisdiction by demonstrating they have no business presence, licensing, or regulatory compliance in the state. However, carriers must be careful not to inadvertently waive this defense through their subsequent conduct in the litigation.
Legal Update (February 2026): Since this 2014 post, New York’s jurisdictional requirements for out-of-state insurance carriers may have evolved through legislative amendments, court rule changes, or updated interpretations of personal jurisdiction standards. Practitioners should verify current jurisdictional provisions under Vehicle and Traffic Law § 311 and related statutes, as well as recent appellate decisions that may have clarified or modified the standards for establishing court authority over non-resident insurers.
