New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter B - Property and Casualty Insurance › Part 65 - Regulations Implementing The Comprehensive Motor Vehicle Insurance Reparations Act › Subpart 65-4 - Arbitration › Section 65-4.11 - Mandatory arbitration for insurers, self-insurers and compensation providers under section 5105 of the insurance law

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Applicability.
(1) This section shall apply
					 to mandatory arbitration of controversies between insurers, pursuant to the
					 provisions of sections 5105 and 5106 (d)  of the Insurance Law, and shall apply
					 to insurers, self-insurers and compensation providers. The term insurer as used
					 in this section (except as specified in paragraphs (c)(2) and (f)(1) of this
					 section) shall include both "insurers" and "self-insurers" as those terms are
					 defined in this Part and article 51 of the Insurance Law; the Motor Vehicle
					 Accident Indemnification Corporation (MVAIC); any company providing insurance
					 pursuant to section 5103 (g)  of the Insurance
					 Law; and compensation providers as defined in section 5102 (l)  of the Insurance
					 Law.
(2) Except as provided in
					 section 65-3.12(b)(3) and
					 (4)  of this Part, all insurers shall submit
					 controversies arising out of accidents, insured events or occurrences within
					 the jurisdiction of section 5105, 5106 (d), or 5221 (b)  of the Insurance Law to
					 mandatory arbitration, as prescribed in this section. Controversies arising
					 from accidents, insured events or occurrences outside the jurisdiction of
					 section 5105, 5106 (d), or 5221 (b)  of the Insurance Law may be submitted with
					 the consent of the controverting insurers.
(3) Any determination as to whether an
					 insurer is legally entitled to recovery from another insurer shall be made by
					 an arbitration panel (see paragraph [c] [2] of this section) appointed pursuant
					 to this section. The decision of a majority of an arbitration panel shall be
					 final and binding upon the insurers to the controversy. There shall be no right
					 of rehearing or appeal. However, this provision does not preclude correction of
					 clerical or typographical errors.
(4) Where arbitrating insurers are signators
					 to any insurer arbitration program under which a claim or companion claims
					 would be otherwise subject to the compulsory jurisdiction of such agreements,
					 the jurisdiction of this section shall be primary. Insurers shall waive their
					 rights to proceed separately under such other arbitration programs and include
					 all claims arising out of the same accident or insured event for disposition by
					 an arbitration panel appointed pursuant to this section.
(5) This section is applicable only to
					 controversies involving insurers.
(6) Other than claims asserted by MVAIC
					 against an insurer, this section shall not apply to any claim for recovery
					 rights to which an insurer in good faith asserts a defense of lack of coverage
					 of an alleged covered person on any grounds, unless specific written consent of
					 mandatory arbitration is obtained from the insurer asserting such defense.
					 Where an insurer asserts a defense of lack of coverage of an alleged covered
					 person on any grounds relating to claims asserted by MVAIC for recovery rights,
					 same shall be subject to mandatory arbitration. However, any controversy
					 between insurers involving the responsibility or the obligation to pay
					 first-party benefits (i.e., priority or payment or sources of payment as
					 provided in section
					 65-3.12  of this Part) is not
					 considered a coverage question and must be submitted to mandatory arbitration
					 under this section.
(7) This
					 section shall not be construed to create any causes of action or liabilities
					 not existing in law or equity, nor shall this section be construed to abolish
					 any causes of action or liabilities existing in law or
					 equity.