BILL NUMBER: S5532

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to the collateral estop-
pel effect of issues decided by certain arbitrators

 
PURPOSE:

To eliminate the inequities in present law by giving claimants seeking
reversal of improper denials of No-Fault benefits prompt resolution of
their claims through arbitration.

 
SUMMARY OF PROVISIONS:

Amends section 5106 of the insurance law by adding a new subsection (d)
to provide that, with respect to an action for serious personal injury
permissible under section 5104, an award or decision by an arbitrator
pursuant to a No-Fault proceeding would not constitute a collateral
estoppel of the issues arbitrated, but such an award or decision may be
              

admissible as relevant evidence by a party to an action.

 
JUSTIFICATION:

The bill would give claimants seeking reversal of improper denials the
benefit of prompt resolution of their claims through arbitration.  Under
the present law, when a claimant is denied No-Fault benefits by their
insurance carrier based upon an insurer's medical examination or other
contractual justification, the attorney representing that claimant in a
third-party action for pain and suffering is extremely reluctant to
submit that denial to arbitration pursuant to Section 5106 of the Insur-
ance Law because an adverse decision would probably result in the colla-
teral estoppel of the issues arbitrated. Often, this results in extin-
guishing the third party claim entirely. Because of these consequences,
many claimants are placed in an insoluble dilemma: either delay neces-
sary medical treatment further exacerbating their medical condition, or
risk an adverse determination in arbitration that will nullify their
third party case.

 
LEGISLATIVE HISTORY:

Previously introduced. 2017/18 -A.3533

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.