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10 Cards in this Set

  • Front
  • Back
What is the pre-requisite to registration in NY?
New York requires registered owners to purchase both liability insurance with required coverage and no-fault insurance
What is purpose of no-fault insurance?
Scheme to supplant negligence rules in relatively minor car accidents
What does no-fault coverage provide?
Together with liability coverage, Act provides for up to $50,000 first party benefits plus $25,000/$50000/$10000 minimum liability coverage if insured sued by third party in tort action.
What are first party benefits?
No-fault benefits payable to the insured.
Does no-fault cover property damage?
NO. BUT, by statute, auto policies must have at least $5000 minimum liability coverage for property damage
What does the Act cover?
use or operation of a motor vehicle. (question as to whether covers entering, leaving, loading, unloading)
What individuals are entitled to coverage?
All persons injured by insured's vehicle so:
1. operator
2. passengers
3. pedestrians, bikers hit
4. owner
What persons are excluded from coverage?
1. persons occupying another vehicle or a motorcycle.
2. Any person injured by:
a. his own intentional act
b. drunk driver
c. car thieves
d. fleeing felons
e. drag racers
f. while repairing, servicing, or maintaining vehicle and injury occurs on premises
g. while occupying or owning vehicle for which no-fault is not in effect
In geographic terms, where does no-fault coverage extend?
Anywhere in New York AND any other state. If a NY auto is driven in another state, coverage must be minimum required by that state.
When can you get out from under No-Fault bar?
1. In covered person v. covered person actions:
a. suffered greater than basic economic loss (add medical expenses and unreimbursed earnings that exceeds $2000 a month to see if exceeds $50,000 in one year.
b. have suffered a serious injury (death, dismemberment, signficant disfigurement, serious fracture, total loss of bodily organ)
c. property damage claims

2. Covered Person v. Non-Covered Person claims:
may sue non-covered for all damages, including basic economic loss or suffering even if absence of serious injury. Insurer has lien against recover for any first party benefits paid by it to covered person.