No-Fault Insurance (NY ONLY)

Question 1

How does no-fault insurance work (basic idea)?

Answer 1

Denies P the right to sue in court, but gives P guaranteed $$ from the insurance company in the event of a relatively minor automobile accident.

Question 2

Does no-fault insurance cover property damage?

Answer 2

No, only covers personal injury damages.
Collision insurance (which is not mandatory) will cover damage to the vehicle.

Question 3

A and B get into an accident in NY. A sustains a broken arm and his car is badly dented. What can A recover from no-fault insurance?

Answer 3

Only personal injury damages (his broken arm), nothing for the dented car.

Question 4

Who can claim no-fault insurance benefits?

Answer 4

1. the insured
2. family members and houseguests of the insured who are driving the car with permission
3. passengers in the insured car when an authorized driver is driving
4. pedestrians hit by the insured’s car

Question 5

A, B, and C get into a car accident in NY. The accident is relatively minor, but it appears it was A’s fault. A, B, and C each have their own insurance policies. Who recovers from what plan?

Answer 5

Each recovers from his own plan. Fault is irrelevant in terms of recovery in a no-fault insurance regime.

Question 6

Who will be denied first-party benefits?

Answer 6

1. drunk drivers
2. drag racers
3. car thieves and other fleeing felons

Question 7

For those who can recover first-party benefits, what are they?

Answer 7

1. all medical expenses
2. lost wages ($2,000/month cap) for up to 3 years
   
   • based on 80% of your income
   • unemployed people get nothing
   • anyone who makes $30k+ will recover the cap
3. $25/day for miscellaneous expenses

Question 8

What benefits are excluded from first-party benefits?

Answer 8

1. damages for pain and suffering
2. mor than the limits of your no-fault policy
   (note: medical expenses are usually not capped)

Question 9

A is a NY resident with a NY policy but takes her car on a roadtrip. She gets into an accident driving through Boston. Can she recover under her NY no-fault policy?

Answer 9

Yes. Drivers with NY no-fault policies can recover even if they’re injured while driving through another state.

Question 10

When can an individual collect no-fault insurance AND still sue in court?

Answer 10

1. When injuries exceed basic economic loss

2. When the injury is serious.

Question 11

How is basic economic loss calculated?

Answer 11

Medical Expenses +
1 year’s worth of 80% wages up to $2k/month +
$25/day for 1 year (approx. $9k)

If that is greater than $50,000 it exceeds basic economic loss.

Question 12

What constitutes a serious injury?

Answer 12

-death
-dismemberment
-significant disfigurement
-fracture
-loss of a fetus
-permanent loss of a bodily organ or function
-permanent consequential limitation on use of a
bodily organ or function
-significant limitation on use of a bodily function or
system
-non-permanent injury that prevents injured from
performing daily activities for 90+ days

Question 13

What are the benefits to being able to sue for negligence?

Answer 13

You can recover both pain and suffering as well as no-fault benefits. (no pain and suffering recoverable under no-fault)

Question 14

If able to sue for negligence, can the insured recover from the insurance company and the defendant?

Answer 14

No double recovery. If insurance pays all the medical bills, P will not be able to collect that from D.