New York Court of Appeals Will Hear Oral Argument In Yet Another No-Fault Appeal

Surprisingly, the New York Court of Appeals has heard several appeals in the No-Fault Law context this Term.  Next week, the Court will address another No-Fault appeal — Fair Price Med. Supply Corp. v. Travelers Indem. Co. (Appellate Division, Second Department Decision and Order).  The question presented on the appeal is whether an insurance carrier
is precluded from interposing a defense in an action to recover
assigned first-party no-fault benefits if it fails to pay or deny the
claim within 30 days, where it has reason to believe that the claim
fraudulently seeks reimbursement for medical supplies that were never
delivered to the insured.  The Second Department held that an insurer must do so because  its proposed defense in
this case is not based on a lack of insurance coverage.

For a good discussion of the Second Department Decision and Order, see No-Fault Paradise’s post here.

NYCL will keep you abreast of developments in this case.

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