NY No Fault Insurance

Question 1

What are the three essential questions in analyzing no fault questions?

Answer 1

1. When are you entitled to collect?
2. What do you get?
3. When can you litigate anyway?

Question 2

Who can collect no fault insurance from insured’s policy? (4 people)

Answer 2

1. The primary insured (policy holder)
2. Authorized driver of insured’s car
3. Any passenger in insured’s car, regardless of who was driving
4. Any pedestrian hit by insured’s car

[All these people can recover without regard for their own negligence! e.g., jaywalker can still recover if hit]

Question 3

Who cannot collect from a no-fault insurance policy? (4 people)

Answer 3

1. Drunk drivers
2. Drag racers
3. Car thieves
4. Fleeing felons

Question 4

What can you collect from a no-fault insurance?

(3 classes of collection)

Answer 4

1. ALL medical expenses
2. Lost wages up to $2000/month - max 3 years
3. Up to $25/day for miscellaneous expenses

Question 5

What damages can you NOT recover from no-fault insurance?

Answer 5

1. Property damage
2. Emotional harm
3. Pain and Suffering

Question 6

NY QUESTION

When can you litigate despite no-fault insurance law? (2 times)

Answer 6

In NY, you are free to litigate IF:

1. Your damages exceed basic economic loss ($50k) OR
2. You suffered serious injury (see list) (**commonly tested)

Question 7

How is basic economic loss defined?

Answer 7

$50,000

If damages exceed $50k, you can litigate despite no-fault insurance

Question 8

What are “serious” injuries? (7 injuries)

Answer 8

1. Death
2. Dismemberment (i.e., loss of a limb)
3. Serious disfigurement
4. Fracture (**commonly tested)
5. Loss of a fetus
6. Permanent loss of the use of a bodily organ or member
7. Something that prevents you from normal use of your body for 90 of the next 180 days

Question 9

What is taken into account when calculating total losses? (3 things)

Answer 9

1. Medical expenses,
2. Lost wages, AND
3. Miscellaneous expenses for up to one year

Question 10

What is the interaction between no-fault insurance and litigation notwithstanding the insurance?

Answer 10

You may collect no-fault proceeds AND continue to litigate…

BUT insurance company has lien against proceeds in amount already paid.

Question 11

When can you settle a case?

Answer 11

Written consent from the insurer

Approved by the court

Amount of settlement is in excess of $50,000

Question 12

What is the interaction of worker’s comp. and no-fault?

Answer 12

Worker’s comp has no lien on no-fault proceeds

Question 13

What is the point of a no-fault scheme?

Answer 13

To keep relatively small claims from going to court (prevent clogging, get people satisfaction) by passing them to insurance companies

Question 14

What is required for the no-fault system to work?

What is the related rule?

Answer 14

Everyone involved must have insurance.

So… NY mandates that everyone with a car have (1) no-fault AND (2) liability insurance coverage

Question 15

To what type of injury does no-fault insurance apply?

Answer 15

Personal injuries ONLY

(Does not apply to property damage, economic damages, etc.)