Matter of Avis Rent-A-Car Sys. v. GE Auto & Home Assur.

In this case, the driver was in an accident while operating an automobile that the non-driver rented from Avis Rent-A-Car Sys., Inc. The non-driver had an insurance policy from GE Auto and Home Assurance. Avis submitted claims for contribution from GE — the non-driver’s insurer — to compulsory arbitration after Avis had paid the no-fault benefits to the driver and non-driver. The claims were denied.

Avis commenced a proceeding to vacate the arbitration awards. The Appellate Division, Second Department affirmed Supreme Court’s denial of Avis’ petition to vacate the arbitration awards. The Court set forth the following rule: “As between a no-fault insurer of a rental vehicle and a no-fault insurer of a nondriver renter, the no-fault insurer of the rental vehicle is the primary source of no-fault benefits.”

Search Terms:
No-Fault Insurance
Renter: No-Fault Insurance