Key Takeaway
NY Court ruling on auto insurance cancellation: when another carrier picks up coverage, prior policy automatically terminates under VTL §313(1)(a).
Matter of Motor Veh. Acc. Indem. Corp. v American Country Ins. Co., 2015 NY Slip Op 02714 (1st Dep. 2015)
(1) “Respondent made a prima facie showing that the offending vehicle in this no-fault arbitration was insured by Global Liberty Insurance of New York, by submitting a Department of Motor Vehicle expansion, indicating that Global had insured the vehicle subsequent to respondent’s coverage (see Eagle Ins. Co. v Kapelevich, 307 AD2d 927 ; lv denied 1 NY3d 503 ; Matter of State Farm Mut. Auto. Ins. Co. v Youngblood, 270 AD2d 493 ). By operation of Vehicle and Traffic Law § 313(1)(a), the subsequent coverage terminated respondent’s coverage of the same vehicle as of the effective date and hour of Global’s coverage, irrespective of whether respondent had otherwise complied with the cancellation requirements of the Vehicle and Traffic Law”
(2) “Thus, it was arbitrary and capricious for the arbitrator to find that respondent was the insurer of the vehicle at the time of the accident because it failed to demonstrate that it had properly cancelled its policy. The arbitration award was also in excess of the arbitrator’s authority, where it awarded coverage when none existed”
This one is interesting for a few reasons. First, proof that an insurance carriee
Related Articles
- Understanding collateral estoppel in no-fault insurance coverage disputes
- When appellate courts grant summary judgment for non-insured events
- Business record requirements in proving motor vehicle accidents
- Navigating trial de novo procedures after master arbitrator decisions
- New York No-Fault Insurance Law
