Key Takeaway
New York court case explores when self-insured vehicles use third-party administrators and applicable statute of limitations for no-fault claims.
Midwood Total Rehab Med., P.C. v Republic W. Ins. Co., 2021 NY Slip Op 51205(U)(App. Term 2d Dept. 2021)
“A review of the record reveals that defendant has established, as a matter of law, that the vehicle in which plaintiff’s assignor was a passenger when the accident occurred was owned by U-Haul, Inc., that the vehicle was self-insured by U-Haul, Inc., that defendant did not insure the subject vehicle, and that defendant was a third-party claims handler which processed claims on behalf of U-Haul, Inc. In addition, the affidavit by plaintiff’s owner demonstrated that the claim at issue was mailed to defendant on December 22, 2010 and the action was not commenced until November 22, 2016. Consequently, defendant’s cross motion papers established, prima facie, that the action had been commenced after the expiration of the three-year statute of limitations applicable to self-insurers “
I do not know the issue to properly comment. However, is U-Haul a self-insured that hides behind another insurance company solely as a TPA, i.e., has filed a bond with the State? Or, does U-Haul pay Repwest for its paper but acts a self insured? I do not know and, therefore, cannot comment as to whether the 3 or 6 year SOL applies.
I see this issue as Contact Chiropractic being a complete cluster for all of us. Another issue the Legislature needs to ponder.
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What is New York's no-fault insurance system?
New York's no-fault insurance system requires all drivers to carry Personal Injury Protection (PIP) coverage. This pays for medical expenses and lost wages regardless of who caused the accident, up to policy limits. However, you can only sue for additional damages if you meet the 'serious injury' threshold.
