No fault insurance

Question 1

What’s the trigger for thinking of no fault insurance?

Answer 1

Car accident

Question 2

Does NY law require no liability automobile insurance?

Answer 2

Yes

Question 3

No fault insurance relates to _____; and it does not cover _____.

Answer 3

Covers personal injury; property damage excluded

Question 4

Who is entitled to claim no-fault insurance?

Answer 4

Owner, any authorized driver, any passenger, any PEDESTRIAN hit by the car.

Question 5

If car A with B and C in it and car X with Y and Z in it hit each other, who has claims against which car’s insurers?

Answer 5

B and C against car A.

Y and Z against car X

Question 6

Who can’t get no-fault insurance benefit? 3 groups

Answer 6

1. drunks
2. drag racers
3. car thieves or fleeing felons

Question 7

What does no fault cover? 2 categories

Answer 7

1. medical expenses
2. lost wages capped at $2K per month, capped at 36 months max.
3. $25/day misc. expenses

Question 8

Does no-fault insurance cover pain and suffering?

Answer 8

No

Question 9

Can no fault insurance payout exceed policy limit?

Answer 9

No. Policy limit = hard cap aggregate.

Question 10

Are NY no fault benefits transportable?

Answer 10

Yes, if you’re driving in another state, you’re covered.

Question 11

When, in addition to a claim against insurance carrier, do you ALSO HAVE AN NEGLIGENCE CLAIM AGAINST SOME THIRD PARTY? 2 ways

Answer 11

When INJURIES EXCEED STATUTORY THRESHOLD: 1 of 2 ways to exceed:

1. P has more than “basic econ loss” (= within a year, over $50K lost between: medical cost + 80% of lost wages capped at 2K per month + $25/day)
2. P has “serious injury” = fracture, dismemberment, loss of organ, death, significant disfigurement, loss of fetus, permanent handicap to organ/limb, injury restricting normal activity 90+ days).