§ 5221 — "No-fault" benefits to qualified persons

New York § 5221

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 52: Motor Vehicle Accident Indemnification Corporation

Text

§ 5221. "No-fault" benefits to qualified persons. (a) The terms "basic\neconomic loss", "first party benefits", "non-economic loss", "serious\ninjury", "motor vehicle", "insurer", "uninsured motor vehicle" and\n"covered person", as used in this section, shall have the same meaning\ngiven them in section five thousand one hundred two of this chapter.\n (b) (1) Notwithstanding the provisions of this article, the\ncorporation shall also provide for the payment of first party benefits\nto a qualified person for basic economic loss arising out of the use or\noperation in this state of an uninsured motor vehicle.\n (2) A qualified person who has complied with all the applicable\nrequirements of this article shall be deemed to be a covered person and\nshall have only such rights as a covered person may have under article\nfifty-one of this chapter.\n (3) The corporation shall have only those rights and obligations which\nare applicable to an insurer subject to article fifty-one of this\nchapter.\n (4) No payment for non-economic loss shall be made pursuant to this\narticle to a covered person unless such person has incurred a serious\ninjury, as such terms are defined in section five thousand one hundred\ntwo of this chapter.\n (5) The corporation shall not duplicate any element of basic economic\nloss provided for under this section or any section of article fifty-one\nof this chapter. No payments of first party benefits for basic economic\nloss made pursuant to this section shall diminish the obligations of the\ncorporation under this article for the payment of non-economic loss and\neconomic loss in excess of basic economic loss.\n (6) If a controversy arises between the corporation and an insurer\nconcerning the obligation to pay first party benefits, payment of first\nparty benefits by the corporation shall not be stayed pending resolution\nof the controversy. Any such controversy shall be solely resolved by\nsubmission to mandatory arbitration pursuant to procedures promulgated\nor approved by the superintendent. Such procedures shall, to the extent\npracticable, be those applicable to insurers pursuant to section five\nthousand one hundred five of this chapter.\n (c) The corporation shall continue to comply with the plan of\noperation approved by the superintendent, which provides for the\neconomical, prompt and fair payment of first party benefits to qualified\npersons in substantially the same manner as is required of insurers and\nself-insurers by article fifty-one of this chapter and regulations of\nthe superintendent. The plan may provide for the corporation to utilize\nthe service of authorized insurers in the payment of claims for first\nparty benefits. Amendments to the plan of operation may be made on the\ninitiative of the directors, subject to the approval of the\nsuperintendent, or shall be made at the direction of the superintendent.\n