|
Courts Decision Sends Strong Message Assembly Majority Cannot Ignore
by Assemblyman Willis H. Stephens, Jr.
By upholding the state regulation that shortens the amount of time allowed to file an insurance claim after an accident, a state Supreme Court judge sent strong waves through the insurance community Tuesday -- waves that my colleagues in the Assembly majority can no longer ignore.
Tuesday’s ruling means that those hurt in an auto accident will still have 30 days after the crash to file a claim. Before the deadlines were shortened a year ago, New Yorkers had three months to file.
During my tenure as ranking minority member of the state Assembly Committee on Insurance, my colleagues in the Assembly majority have failed to address the issue of New York’s escalating auto insurance rates, which have risen to the second highest in the country. Since our state trails only New Jersey in premium rates, it is no coincidence that the state Insurance Department, the New York Insurance Association and the American Insurance Association all agree the judge’s decision is a victory for consumers.
With auto insurance fraud driving auto premiums through the roof, the judge’s decision becomes an even more important step to combating New York’s no-fault system that is costing New York policyholders and insurance companies millions of dollars per day.
To help bring the Empire State’s premium rates in line with other states’ premiums, I’ve introduced legislation (A.’7835) entitled the New York Automobile Insurance Fraud and Premium Reduction Act. This measure would create standards of care for the treatment of accident injuries to prevent the abuse of medical benefits and set deadlines for filing accident claims and for submitting medical bills. The legislation would create a "whistleblower" incentive to encourage people to report fraud. It would also outlaw "runners" (people who stage accidents in order to cheat insurance companies) and increase the penalties for insurance fraud. In addition, the legislation would: provide $3.1 million to district attorneys for fraud prosecution; give policyholders the option of choosing medical treatment in a less costly managed care facility; and require medical coverage disputes to he settled out of the courtroom.
My plan would not only ensure that no-fault auto rates are reduced, but, most importantly, makes sure the customer reaps the benefits. I urge my colleagues in the Assembly majority to join the minority in passing the New York Automobile Insurance Fraud and Premium Reduction Act. New York’s drivers pay far too much for their no-fault auto insurance, but this tough no-nonsense auto insurance reform package would save New Yorkers from higher premiums.
| 
