Does ‘Alleviation’ Alleviate Insurance Carrier Fears?

Carriers, providers, and legal practitioners, alike, hoped the court would provide clarity on a carrier’s obligations once a policy becomes exhausted, but the recent decision did not squarely address that issue. Thus, albeit not articulated, the Second Department makes clear that proof of policy exhaustion, alone, is insufficient to dismiss a personal injury protection (PIP) lawsuit. That is, it is still necessary to scrutinize the timeliness and propriety of a denial. The logical conclusion is that a claim will be awarded if the denial or defense is not sustained regardless of policy exhaustion. Pursuant to New York state no-fault law, an automobile...

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