Key Takeaway
New York court confirms that insurance companies can defeat no-fault claims by proving no policy existed at the time of accident through proper affidavit evidence.
Understanding the Foundation of No-Fault Insurance Claims
No-fault insurance cases in New York hinge on a fundamental principle: there must be valid insurance coverage in effect at the time of the accident. Without an active policy, even the most compelling claim for personal injury protection benefits will fail. This basic requirement often becomes the battleground in litigation when insurance companies assert that no coverage existed.
The recent TAM Med. Supply Corp. v Hereford Ins. Co. decision illustrates how courts evaluate insurance companies’ defenses based on the absence of coverage. When an insurer claims no policy was in effect, they must provide sufficient proof to establish this defense prima facie. The quality and detail of this evidence can make or break the case, as courts require more than mere assertions—they demand concrete documentation and proper foundation.
This evidentiary standard protects both parties: it prevents frivolous denials while ensuring that insurance coverage disputes are resolved based on factual records rather than speculation. Understanding how courts evaluate these coverage defenses is crucial for anyone involved in New York’s no-fault insurance system.
Jason Tenenbaum’s Analysis:
TAM Med. Supply Corp. v Hereford Ins. Co., 2018 NY Slip Op 51779(U)(App. Term 2d Dept. 2018)
“In support of its cross motion, defendant submitted affidavits by three employees who described the details of record searches they had performed and stated that their searches had revealed that there was no relevant Hereford Insurance Company policy in effect on the date of the accident in question. We find that defendant’s affidavits were sufficient to demonstrate, prima facie, that plaintiff’s claim did not arise out of a covered incident”
Key Takeaway
This decision demonstrates that insurance companies can successfully defend no-fault claims by providing detailed affidavits from employees who conducted thorough record searches. The court found that three employee affidavits describing their search methodology and negative results were sufficient to establish prima facie that no coverage existed. This approach mirrors successful insurance defenses we’ve seen in cases like Chubb defense substantiated and unrebutted, where proper documentation proved decisive.
