Key Takeaway
Court ruling highlights insurance companies' burden to prove proper DMV notification when canceling policies, affecting no-fault insurance defenses in New York.
Insurance companies in New York must follow strict procedural requirements when canceling auto insurance policies, particularly regarding notifications to the Department of Motor Vehicles. When these procedures aren’t properly documented, insurers may find themselves unable to defend against claims even when they believe the cancellation was valid. This case from the Appellate Term illustrates how technical compliance requirements can determine the outcome of no-fault insurance disputes.
The GL Acupuncture case demonstrates a common problem in insurance litigation: the difference between actually following proper procedures and being able to prove in court that those procedures were followed. Insurance companies often have standard practices for DMV notifications, but documentation failures can undermine their legal defenses.
Jason Tenenbaum’s Analysis:
GL Acupuncture, P.C. v Geico Ins. Co., 2015 NY Slip Op 51239(U)(App. Term 2d Dept. 2015)
“However, defendant failed to demonstrate, as a matter of law, that it had filed a copy of the notice of cancellation, upon which its defense is based, with the Department of Motor Vehicles within 30 days of the effective date of the cancellation as required by Vehicle and Traffic Law § 313 (2) (a) (see Matter of Progressive Classic Ins. Co. v Kitchen, 46 AD3d 333 ).”
I would guess a certified copy of the DMV transmission record or an affidavit from an underwriter explaining the practice and procedure for sending these transmissions was not proffered.
Key Takeaway
This case underscores that insurance companies must not only comply with DMV notification requirements when canceling policies but also maintain proper documentation to prove compliance in litigation. Without certified records or proper affidavits demonstrating timely filing, even valid cancellations may fail as legal defenses in no-fault insurance cases.
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