Key Takeaway
Court ruling highlights insufficient affidavits in no-fault cases where mailing procedures for cancellation notices weren't properly documented by insurers.
Insurance companies frequently rely on affidavits to prove proper mailing of various notices in no-fault litigation. However, a recent Appellate Term decision demonstrates that generic affidavits describing general mailing procedures may not be sufficient when dealing with specific types of correspondence like cancellation notices.
The case involved a premium finance company’s notice of intent to cancel coverage, where the insurer’s standard affidavit only addressed claims processing procedures. This creates potential issues for insurers who use broad, one-size-fits-all affidavits without considering the specific requirements for different types of notices. Understanding proper mailing procedures is crucial for both insurers and healthcare providers navigating no-fault disputes.
Jason Tenenbaum’s Analysis:
Island Life Chiropractic, P.C. v Country Wide Ins. Co., 2016 NY Slip Op 51378(U)(App. Term 2d Dept. 2016)
“While the affidavit of defendant’s no-fault litigation supervisor described defendant’s mailing practices and procedures with respect to claims processing, it did not describe the process involved where other correspondence, such as a notice of cancellation, is mailed. As a result, defendant failed to establish, prima facie, that the notice of cancellation had been mailed to the insured in order to effectuate the cancellation (see generally Vehicle and Traffic Law § 313; Banking Law § 576).”
The affidavit needed to extend the process to notices of cancellation (in addition to form NF-10)
Key Takeaway
This decision underscores the importance of comprehensive affidavits that specifically address the mailing procedures for all types of correspondence, not just standard claims forms. Insurers must ensure their certified mail and regular mail documentation covers cancellation notices to avoid similar procedural failures in court.
