Key Takeaway
Court dismisses no-fault case when healthcare provider sued wrong insurance carrier, highlighting importance of proper defendant identification in insurance claims.
Suing the Wrong Insurance Carrier: A Costly Mistake in No-Fault Cases
Healthcare providers pursuing no-fault insurance benefits must ensure they’re suing the correct insurance carrier. The consequences of naming the wrong defendant can be severe, as demonstrated in a recent Appellate Term decision that granted summary judgment dismissing a provider’s entire case simply because they sued the wrong insurer.
This scenario is more common than one might expect in New York no-fault insurance law. When multiple insurance companies are involved in coverage disputes, or when policies are transferred between carriers, providers can easily target the wrong defendant. The court’s analysis in Flatbush Chiropractic shows how insurance companies can successfully defend these cases by providing clear documentation of their lack of coverage.
Jason Tenenbaum’s Analysis:
Flatbush Chiropractic, P.C. v Omni Indem. Co., 2014 NY Slip Op 51235(U)(App. Term 2d Dept. 2014)
“In support of its motion, defendant submitted affidavits by its litigation manager and by a manager of American Independent Insurance Company (AIIC), which affidavits sufficiently established defendant’s lack of coverage defense (see Great Health Care Chiropractic, P.C. v Omni Indem. Co., 40 Misc 3d 139, 2013 NY Slip Op 51450 ; Astoria Quality Med. Supply v State Farm Mut. Auto. Ins. Co., 31 Misc 3d 138, 2011 NY Slip Op 50743 ). Notably, the AIIC manager attested that her company had issued the policy covering the accident in question. Consequently, as defendant demonstrated that plaintiff had sued the wrong insurance carrier, defendant was entitled to summary judgment dismissing the complaint (see Vincent Med. Servs., P.C. v Omni Indem. Co., 42 Misc 3d 142, 2014 NY Slip Op 50224 ).”
*Why didn’t the Appellate Term file an order to show cause and sanction Rybak and his appellate writer? These appeals bespeak frivolity and contribute to the 2.5 year wait that all of us must endure on the appeals.
Key Takeaway
When insurance companies can prove through affidavits that they lack coverage for a particular claim, courts will grant summary judgment dismissing the case. This decision reinforces the importance of thorough investigation before filing suit, as defending these coverage disputes requires clear documentation from the actual insurer.
Legal Update (February 2026): Since this 2014 post, New York’s no-fault insurance regulations and procedural requirements for carrier identification may have been updated through amendments to 11 NYCRR Part 65 or changes in case law regarding proper defendant identification. Healthcare providers should verify current provisions regarding carrier verification procedures and any new requirements for confirming coverage before initiating litigation against insurance companies.
