Understanding Verification Requests in New York No-Fault Insurance Claims

How Insurance Companies Use Verification Requests to Delay Payment

If you’ve been injured in New York and are seeking no-fault insurance benefits, you may receive a request from your insurance company asking you to “verify” your claim with additional documentation. These verification requests are a common tactic used by insurance companies to delay payment of legitimate claims, and understanding your rights regarding these requests is crucial to getting the benefits you deserve.

A recent New York court decision, Lenox Hill Radiology & MIA, P.C. v Global Liberty Ins. Co. of N.Y., 2018 NY Slip Op 51810(U), demonstrates how the law works when insurance companies claim they sent verification requests but providers dispute receiving them. This case shows the importance of proper documentation in the verification process.

The Lenox Hill Radiology Case: Proving Proper Mailing

In the Lenox Hill Radiology case, a medical imaging center sued Global Liberty Insurance for unpaid no-fault benefits. The insurance company claimed it had sent verification requests to the provider but never received the requested information, which would allow them to deny payment of the claim.

The trial court initially ruled in favor of the medical provider, finding that the insurance company couldn’t prove it had properly mailed the verification requests. However, the Appellate Term reversed this decision, holding that the insurance company had sufficiently established timely mailing of both initial and follow-up verification requests.

The Court’s Reasoning

The Appellate Term explained: “Contrary to the determination of the District Court, defendant established the timely mailing of the initial and follow-up verification requests. As defendant also sufficiently established that it had not received the requested verification, and plaintiff did not show that the verification had been provided to defendant prior to the commencement of the action, the 30-day period within which defendant was required to pay or deny the claims did not begin to run.”

This ruling demonstrates that when insurance companies can prove they sent verification requests and didn’t receive responses, they can effectively stop the clock on their obligation to pay or deny claims within 30 days.

What Are Verification Requests in No-Fault Insurance?

Legal Basis for Verification Requests

Under New York’s no-fault insurance regulations, insurance companies have the right to request additional information to verify the legitimacy of claims. However, these requests must be:

• Reasonable and relevant: Related to the specific claim being processed
• Timely: Sent within appropriate time frames after receiving the original claim
• Specific: Clearly identifying what information is needed
• Properly served: Sent to the correct address using proper mailing procedures

Common Types of Verification Requests

Insurance companies commonly request verification for:

• Medical records: Treatment notes, diagnostic reports, therapy records
• Employment verification: Wage statements, work schedules, employment letters
• Prior medical history: Pre-accident medical conditions or treatments
• Independent medical examinations: Scheduling IMEs with company doctors
• Billing documentation: Itemized bills, CPT code justification, fee schedule compliance
• Accident details: Police reports, witness statements, accident scene photos

The 30-Day Payment Rule and Verification Requests

How the Clock Works

New York law requires no-fault insurance companies to pay or deny claims within 30 days of receiving proper notice of claim. However, this 30-day period can be tolled (stopped) when:

1. Verification requests are properly sent: Insurance companies mail appropriate verification requests to the correct address
2. Verification is not provided: The requested information is not received within the time specified
3. The request is reasonable: The verification sought is related to processing the claim

When the Clock Starts Again

The 30-day payment period resumes when:

• The requested verification is properly provided to the insurance company
• The insurance company waives its right to the verification
• A court determines the verification request was improper
• The verification request expires without proper follow-up

Proving Proper Mailing: The Insurance Company’s Burden

What Insurance Companies Must Prove

To successfully use verification requests to toll the 30-day payment period, insurance companies must demonstrate:

1. Proper addressing: The verification request was sent to the correct address
2. Adequate postage: Sufficient postage was applied for delivery
3. Timely mailing: The request was sent within appropriate time limits
4. Office mailing procedures: Regular business practices for mailing were followed
5. Non-receipt of verification: The requested information was never received

Evidence of Proper Mailing

Courts typically accept evidence such as:

• Sworn affidavits from office personnel responsible for mailing
• Office mailing logs and procedures documentation
• Postal receipts or certified mail records
• Computer-generated mailing records showing standard procedures
• Evidence that other mail to the same address was successfully delivered

Common Problems with Verification Requests

Overly Broad or Unreasonable Requests

Insurance companies sometimes make verification requests that are:

• Too extensive: Requesting entire medical histories for minor injuries
• Repetitive: Asking for information already provided
• Irrelevant: Seeking information unrelated to the specific claim
• Fishing expeditions: Looking for reasons to deny rather than verify legitimate claims

Improper Mailing Procedures

Common mailing problems include:

• Using outdated or incorrect addresses
• Failing to follow up on returned mail
• Not providing sufficient time for response
• Sending requests to wrong parties (patients instead of providers)
• Using inadequate postage or improper mailing methods

Verification Harassment

Some insurance companies engage in verification harassment by:

• Sending multiple, overlapping verification requests
• Requesting the same information repeatedly
• Making unreasonable demands for immediate response
• Using verification requests as delay tactics rather than legitimate claim investigation

Your Rights When Receiving Verification Requests

Review the Request Carefully

When you receive a verification request, you should:

1. Check the deadline: Ensure you have reasonable time to respond
2. Evaluate relevance: Consider whether the request relates to your specific claim
3. Assess reasonableness: Determine if the request is proportionate to your claim
4. Confirm accuracy: Verify that the request is addressed correctly and contains accurate claim information

Responding to Verification Requests

Best practices for responding include:

• Respond promptly: Don’t let legitimate requests expire
• Use certified mail: Ensure you can prove delivery of your response
• Keep copies: Maintain complete records of everything you send
• Be complete: Provide all requested information to avoid follow-up requests
• Seek help if confused: Contact an attorney if requests seem unreasonable or confusing

When to Challenge Verification Requests

You should consider challenging verification requests that are:

• Clearly unrelated to your specific injuries or treatment
• Repetitive of information already provided
• So broad as to be harassment rather than legitimate investigation
• Sent with unreasonably short response times
• Part of a pattern of delay tactics by the insurance company

Legal Strategies for Verification Disputes

Challenging Improper Verification Requests

Legal challenges to verification requests may include:

1. Motion practice: Seeking court orders limiting or quashing unreasonable requests
2. Discovery disputes: Fighting overly broad information demands
3. Procedural challenges: Arguing that requests weren’t properly served or timely
4. Relevance objections: Demonstrating that requested information isn’t related to the claim

Proving Non-Receipt of Verification Requests

If you never received a verification request, you can establish this through:

• Sworn affidavits regarding your normal mail receipt procedures
• Evidence of other mail received during the same time period
• Documentation of your correct address and any address changes
• Postal service inquiries about delivery attempts
• Evidence that the insurance company used incorrect addressing

Establishing Waiver of Verification Rights

Insurance companies may waive their right to verification by:

• Accepting partial payments without requesting verification
• Failing to follow up on returned verification requests
• Proceeding with claim processing despite missing verification
• Making contradictory statements about verification requirements

Impact of Verification Disputes on No-Fault Benefits

Delayed Medical Treatment

Verification disputes can significantly impact your medical care:

• Treatment delays: Providers may postpone care pending payment resolution
• Provider reluctance: Some doctors avoid no-fault patients due to payment delays
• Out-of-pocket costs: You may need to pay for treatment upfront
• Limited provider networks: Fewer options for specialized care

Lost Wage Consequences

Verification delays also affect lost wage benefits:

• Delayed wage replacement payments
• Increased financial stress during recovery
• Difficulty meeting daily living expenses
• Potential loss of employment due to extended absence

Working with Healthcare Providers During Verification

Provider Obligations

Your healthcare providers generally must:

• Respond to reasonable verification requests from insurance companies
• Provide accurate and complete medical records
• Cooperate with legitimate claim investigation processes
• Maintain proper documentation to support billing and treatment

Patient Rights in Provider Verification

As a patient, you have rights regarding verification:

• Medical privacy: Protection under HIPAA and state privacy laws
• Reasonable limits: Verification requests must be related to your specific treatment
• Timely processing: Providers should respond promptly to avoid treatment delays
• Accurate information: Right to ensure verification responses are complete and accurate

Frequently Asked Questions

Q: How long does my insurance company have to send verification requests?

A: Insurance companies generally must send verification requests within a reasonable time after receiving your claim, typically within the initial 30-day review period. However, specific timing requirements may vary depending on the circumstances of your claim and the type of verification sought.

Q: What happens if I don’t respond to a verification request?

A: If you don’t respond to a legitimate verification request, your insurance company may deny your claim based on failure to cooperate. However, if the verification request was improper or you never received it, you may still be entitled to benefits. It’s important to respond promptly to legitimate requests and challenge unreasonable ones.

Q: Can my insurance company keep sending verification requests indefinitely?

A: No. Insurance companies cannot use verification requests as endless delay tactics. Each request must be reasonable, relevant, and related to processing your specific claim. If you’re receiving repetitive or harassing verification requests, you should contact a no-fault insurance attorney to protect your rights.

Q: Do I have to provide medical records from before my accident?

A: Insurance companies may request prior medical records if they’re relevant to your current injuries. However, requests for extensive medical histories unrelated to your accident injuries may be unreasonable. The scope of prior medical records that must be provided depends on your specific injuries and their relationship to pre-existing conditions.

Q: What should I do if my insurance company claims they sent verification requests that I never received?

A: Document your normal mail receipt procedures, check with others who might have received mail at your address, and contact an attorney. The insurance company must prove they properly mailed verification requests, and there are ways to challenge their claims of proper mailing, especially if you have evidence suggesting the requests were never sent or sent to wrong addresses.

Prevention and Best Practices

For Patients

• Maintain current address: Always notify your insurance company of address changes
• Document everything: Keep records of all communications with your insurance company
• Respond promptly: Don’t ignore legitimate verification requests
• Seek help early: Contact an attorney when facing unreasonable verification demands
• Know your rights: Understand what information you’re required to provide

For Healthcare Providers

• Establish clear procedures for handling verification requests
• Maintain accurate patient contact information
• Respond to reasonable verification requests promptly
• Challenge unreasonable or repetitive requests when appropriate
• Document all verification-related communications

The Future of Verification in No-Fault Insurance

The Lenox Hill Radiology decision reflects ongoing tensions in no-fault insurance between legitimate claim investigation and improper delay tactics. Recent trends include:

• Electronic verification: Increasing use of electronic communication for verification requests
• Regulatory oversight: Enhanced state monitoring of insurance company verification practices
• Standardized procedures: Development of uniform verification request protocols
• Technology solutions: Digital platforms for managing verification processes

These changes aim to balance the legitimate need for claim verification with the rights of injured individuals to receive timely benefits.

Contact Us for Help with Verification Disputes

If you’re facing unreasonable verification requests, disputes over verification mailing, or delays in your no-fault benefits due to verification issues, you need experienced legal representation. The verification process can be complex, and insurance companies often use these procedures to improperly delay legitimate claims.

At the Law Offices of Jason Tenenbaum, we have extensive experience handling verification disputes in no-fault insurance cases. We understand how insurance companies manipulate the verification process and know how to protect your rights throughout the claims process.

Our verification dispute services include:

• Reviewing verification requests for reasonableness and legal compliance
• Challenging overly broad or improper verification demands
• Assisting with proper response to legitimate verification requests
• Investigating claims of improper mailing or non-receipt of verification requests
• Expediting claim processing when verification disputes cause delays
• Representing clients in court when verification issues require judicial resolution

Don’t let insurance companies use verification requests to deny you the no-fault benefits you’re entitled to receive. Understanding your rights and having proper legal representation can make the difference between a successful claim and months of unnecessary delays.

Call 516-750-0595 for a free consultation to discuss your verification issues and learn how we can help you get your no-fault benefits back on track. We’re here to ensure that legitimate verification processes don’t become tools for claim denial.

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Legal Update (February 2026): Since this post’s publication in December 2018, New York’s no-fault insurance regulations and fee schedules have undergone several revisions that may affect verification request procedures and reimbursement rates. Additionally, regulatory amendments may have modified documentation requirements and timelines for verification requests. Practitioners should verify current provisions in 11 NYCRR Part 65 and consult recent Department of Financial Services bulletins for the most up-to-date verification procedures and fee schedule amounts.