MVAIC default vacatur motion denied

MVAIC Residency Requirements: Court Rejects Default Vacatur Motion

The Motor Vehicle Accident Indemnification Corporation (MVAIC) serves as New York’s insurer of last resort for motor vehicle accidents involving uninsured vehicles. However, MVAIC coverage is strictly limited to “qualified persons” under New York No-Fault Insurance Law, which includes specific residency requirements that can become contentious in litigation.

In Delta Diagnostic Radiology, P.C. v MVAIC, the court addressed MVAIC’s attempt to vacate a default judgment by challenging whether the injured party met the statutory residency requirements. This case highlights the evidentiary standards courts apply when MVAIC disputes a claimant’s qualification for coverage, particularly regarding what documentation sufficiently establishes New York residency under Insurance Law § 5202.

The decision also demonstrates the different approaches taken by various appellate departments when evaluating MVAIC’s defensive strategies, as procedural requirements can vary significantly across jurisdictions.

Jason Tenenbaum’s Analysis:

Delta Diagnostic Radiology, P.C. v MVAIC, 2014 NY Slip Op 51261(U)(App. Term 2d Dept. 2014)

“Although MVAIC contends that plaintiff’s assignor was not a qualified person because he had failed to demonstrate that he was a New York resident (_see_Insurance Law § 5202 ), the record establishes that defendant received a notarized notice of intention to make claim form, executed by plaintiff’s assignor, as well as a police report, both of which set forth the New York residence of plaintiff’s assignor (see generally Insurance Law § 5221 ). Consequently, MVAIC’s conclusory assertion that these sworn documents are insufficient to satisfy Insurance Law § 5202 (b) and that further documentary proof is required lacks merit”

MVAIC was unable to raise a defense in the second department under the more relaxed standards for MVAIC. Compare Interboro v. MVAIC with e.g. Yklik, Inc. v MVAIC, 44 Misc.3d 127(A)(App. Term 2d Dept 2014)

Key Takeaway

The Second Department rejected MVIAC’s residency challenge, finding that a notarized notice of intention to make claim and police report containing New York addresses constituted sufficient proof of residency. This decision reinforces that courts will not accept MVAIC’s conclusory assertions when sworn documents clearly establish the statutory requirements for qualified person status.

Legal Update (February 2026): Since this 2014 decision, New York’s no-fault insurance regulations have undergone multiple amendments, including updates to MVAIC qualification procedures and residency documentation requirements under Insurance Law § 5202. Fee schedules referenced in MVAIC litigation have been revised several times, and procedural rules governing default judgment vacatur motions may have been modified. Practitioners should verify current statutory provisions and recent appellate decisions when handling MVAIC residency challenges.