Why Trust This Analysis
This article is part of our ongoing interest coverage, with 12 published articles analyzing interest issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
No-Fault Interest Continues During Litigation Delays Unless Plaintiff Causes Unreasonable Delay
No-fault insurance cases often involve lengthy litigation periods, raising important questions about when statutory prejudgment interest should accrue. Under New York’s no-fault law, injured parties are entitled to interest on overdue benefits, but there are specific rules governing when this interest can be tolled or suspended during court proceedings.
The calculation of no-fault statutory interest can significantly impact the total amount owed to healthcare providers and injured parties. In cases where litigation extends for years, the interest component may even exceed the underlying principal amount. Understanding when interest continues to run versus when it may be suspended is crucial for both plaintiffs and insurance companies.
Jason Tenenbaum’s Analysis:
Eagle Surgical Supply, Inc. v Country-Wide Ins. Co., 2018 NY Slip Op 50157(U)(App. Term 2d Dept, 2018)
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“The Civil Court denied defendant’s requests, and a judgment was entered on May 21, 2015 awarding plaintiff the principal sum of $1,131.68 and, among other things, no-fault statutory prejudgment interest from January 8, 2007. As limited by its brief, defendant appeals from so much of the judgment as awarded plaintiff no-fault statutory prejudgment interest from January 8, 2007.
No-fault statutory prejudgment interest (see Insurance Law § 5106 ) begins to accrue when the action is commenced (see 11 NYCRR 65-3.9 ), “unless the applicant unreasonably delays the … court proceeding” (11 NYCRR 65-3.9 ). While a significant amount of time elapsed between the commencement of this action and the trial, defendant did not adequately demonstrate to the Civil Court, and there was nothing in the record to indicate, the reason for the protracted delay or that it was plaintiff which had “unreasonably delay” the action”
Key Takeaway
The burden falls on insurance companies to prove that a plaintiff unreasonably delayed litigation proceedings in order to suspend no-fault statutory interest. Even when significant time passes between case commencement and trial, interest continues to accrue unless the defendant can demonstrate the plaintiff caused unreasonable delays. Courts will not toll interest based on speculation or general assertions about lengthy proceedings.
Legal Update (February 2026): Since this 2018 post, New York’s no-fault interest provisions under Insurance Law § 5106 and implementing regulations at 11 NYCRR 65-3 may have been subject to amendments affecting calculation methods, tolling provisions, or procedural requirements. Additionally, subsequent appellate decisions may have further clarified when interest continues during litigation delays versus when plaintiff-caused delays justify suspension. Practitioners should verify current statutory language and recent case law developments when advising on no-fault interest calculations and tolling scenarios.
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Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
About This Topic
Statutory Interest on No-Fault Insurance Claims
Under New York's no-fault regulations, insurers that fail to timely pay or deny a claim are subject to statutory interest penalties — currently two percent per month under 11 NYCRR 65-3.9. The accrual of interest, the calculation methodology, and the circumstances that toll or trigger interest obligations are frequently litigated issues in no-fault practice. These articles examine the regulatory framework governing interest on overdue no-fault claims and the case law that shapes how interest awards are calculated and enforced.
12 published articles in interest
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More interest Analysis
Interest Through Payment: 2% Monthly No-Fault Interest Keeps Running After Judgment
B.Z. Chiropractic v Allstate: Queens Supreme Court holds no-fault interest keeps running at 2% per month after judgment, rejecting the 9% CPLR rate.
Mar 11, 2019
Post judgment interest at 9%?
New York court clarifies post-judgment interest calculation at 9% per year in no-fault insurance cases, distinguishing between statutory rates and payment procedures.
Dec 18, 2018
Windfall Interest Denied: No-Fault Provider's Three-Year Delay Tolls Statutory Interest
V.S. Med. Servs. v Travelers: court tolls no-fault interest where the provider let its case sit for three years, denying a windfall under 11 NYCRR 65-3.9.
Dec 7, 2015
Understanding New York’s 2% Interest Rule on Overdue No-Fault Claims: DOI Clarification
Expert analysis of NY's 2% interest rule on overdue no-fault insurance claims. DOI clarification from experienced Long Island personal injury attorney.
Feb 8, 2011
Tolling of No-Fault Interest for Failure to Prosecute: When the 2% Clock Stops and Restarts
Delta Diagnostic v Country-Wide explains when 2% monthly no-fault interest tolls for failure to prosecute and when the toll begins under 11 NYCRR 65-3.9.
Feb 5, 2018
Is post-judgment interest in a no-fault case 24% per annum or 9% per annum?
Learn whether post-judgment interest in New York no-fault cases is calculated at 24% annually (CPLR 5004) or 9% annually, based on recent appellate decisions.
Sep 8, 2017Was this article helpful?
Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
If you need legal help with a interest matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.
