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Article 52 of the New York Insurance Law aka "The Motor Vehicle Accident Indemnification Act"

Section 5201 - Title and purpose.

5202 - Definitions.

5203 - Motor Vehicle Accident Indemnification Corporation.

5204 - Board of directors.

5205 - Liability of directors and members.

5206 - Powers of corporation.

5207 - Assessments against members.

5208 - Notice of claim.

5209 - Investigation and defense of claims.

5210 - Application for payment of judgment.

5211 - Hearing on application for payment of judgment.

5212 - Order for payment of judgment.

5213 - Settlement of claims or actions.

5214 - Default and consent judgments.

5215 - Collusive judgments.

5216 - Assignments of judgments to corporation.

5217 - "Hit and run" causes of action.

5218 - Procedure for "hit and run" cases.

5219 - Disclaimer or denial of coverage cases.

5220 - Notice of judgment to commissioner.

5221 - "No-Fault" benefits to qualified persons.

5222 - Examination of corporation.

5224 - Penalty for false statements.

5225 - Exemption from taxation.

 

5201. Title and purpose.

(a) This article may be cited as the "motor vehicle accident indemnification corporation act".

(b) The legislature finds and declares that the motor vehicle financial security act in the vehicle and traffic law, which requires the owner of a motor vehicle to furnish proof of financial security as a condition to registration, fails to accomplish its full purpose of securing to innocent victims of motor vehicle accidents recompense for the injury and financial loss inflicted upon them, in that the act makes no provision for the payment of loss on account of injury to or death of persons who, through no fault of their own, were involved in motor vehicle accidents caused by:

(1) uninsured motor vehicles registered in a state other than New York,

(2) unidentified motor vehicles which leave the scene of the accident,

(3) motor vehicles registered in this state as to which at the time of the accident there was not in effect a policy of liability insurance,

(4) stolen motor vehicles,

(5) motor vehicles operated without the permission of the owner,

(6) insured motor vehicles where the insurer disclaims liability or denies coverage, and

(7) unregistered motor vehicles.

In addition, this article is intended to provide no-fault benefits for qualified persons for basic economic loss arising out of the use and operation in this state of an uninsured motor vehicle, as provided herein and in the comprehensive motor vehicle insurance reparations act. The legislature determines that it is a matter of grave concern that those persons are not recompensed for their injury and financial loss inflicted upon them and that the public interest can best be served by closing such gaps in the motor vehicle financial security act and the comprehensive motor vehicle insurance reparations act through the continued operation of the motor vehicle accident indemnification corporation.

5202. Definitions.  In this article:

(a) "Motor vehicle" means a motor vehicle as defined in section one hundred twenty-five of the vehicle and traffic law and also includes trailers, semi-trailers, motorcycles, tractors and snowmobiles as defined in subdivision three of section 21.05 of the parks, recreation and historic preservation law and shall exclude fire and police vehicles, self-propelled combines, self-propelled corn and hay harvesting machines and tractors used exclusively for agricultural purposes.

(b) "Qualified person" means (i) a resident of this state, other than an insured or the owner of an uninsured motor vehicle and his spouse when a passenger in such vehicle, or his legal representative, or (ii) a resident of another state, territory or federal district of the United States or province of the Dominion of Canada, or foreign country, in which recourse is afforded, to residents of this state, of substantially similar character to that provided for by this article, or his legal representative. It does not include any operator of or passenger on a snowmobile. In this subsection, "operator" means every person who operates or is in actual physical control of a snowmobile, whether or not it is under way.

(c) "Insured motor vehicle" means a motor vehicle as to which there is maintained proof of financial security as defined in subdivision three of section three hundred eleven of the vehicle and traffic law or section 25.13 of the parks, recreation and historic preservation law.

(d) "Uninsured motor vehicle" means a motor vehicle other than a motor vehicle described in subsection (c) hereof.

(e) "Insurer" means any company authorized by the superintendent to do any form of motor vehicle liability insurance business in this state.

(f) "Corporation" means the "motor vehicle accident indemnification corporation".

(g) "Board" means the board of directors of the corporation.

(h) "Member" means any insurer authorized to write motor vehicle liability insurance in this state and any self-insurer subject to section three hundred sixteen or three hundred seventy of the vehicle and traffic law.

(i) "Insured" means a person defined as an insured under the coverage required by subsection (f) of section three thousand four hundred twenty of this chapter.

(j) "Financially irresponsible motorist" means the owner, operator, or other person legally responsible for the operation of an uninsured motor vehicle involved in an accident resulting in personal injury or death who did not have in effect at the time of such accident either:

(1) a valid and collectible policy of bodily injury liability and property damage liability insurance or bond with applicable limits at least equal to those specified in section three hundred eleven of the vehicle and traffic law; or

(2) a certificate of self insurance issued by the department of motor vehicles pursuant to section three hundred sixteen of the vehicle and traffic law; or

(3) who has not otherwise complied with the provisions of section three hundred twelve of the vehicle and traffic law; or

(4) who does not have in effect at the time of such accident a valid and collectible policy of bodily injury liability and property damage liability insurance with applicable limits at least equal to those specified in section 25.13 of the parks, recreation and historic preservation law.

(k) "Commissioner" means the commissioner of motor vehicles.

(l) "Court" means the supreme court, the county court or the civil court of the city of New York, in the county where an action on the cause of action of the qualified person could properly be brought for trial.

5203. Motor vehicle accident indemnification corporation.

(a) The non-profit corporation known as the "motor vehicle accident indemnification corporation" shall be continued.

(b) Every insurer authorized to write motor vehicle liability insurance in this state, as a condition of its authorization, shall be and remain a member of the corporation.

(c) The corporation shall be obligated to provide the protection required by this article to a qualified person on account of a motor vehicle accident caused by owners or operators of motor vehicles occurring within the state.

5204. Board of directors.

(a) The board of directors of the corporation shall be composed of nine persons. Seven of such directors shall be representatives of motor vehicle liability insurers, shall serve without compensation and be elected from among the members of the corporation by the members of the corporation, each of which members shall have one vote. In addition, the superintendent shall appoint two directors as representing broad segments of the public; one such director shall be a duly licensed insurance agent or broker and one shall have no affiliation with insurers or insurance producers.

(b) Each director shall serve for a term of two years. At the expiration of the initial term their successors in office shall serve for terms as fixed in the by-laws of the corporation.

5205. Liability of directors and members.

(a) No director shall be individually liable for anything done or any liability incurred or assumed by virtue of this article and any such liability shall be collectible only from the corporation.

(b) No member shall be subject to any liability except for unpaid assessments.

5206. Powers of corporation.  The corporation shall have the power:

(a) To use a corporate seal, to contract, to sue and be sued, to adopt and amend by-laws and to exercise all powers necessary and convenient to accomplish the purposes of this article.

(b) To prescribe, subject to the approval of the superintendent, the policy or endorsement form to be issued by the members embodying the coverage required by subsection (f) of section three thousand four hundred twenty of this chapter.

(c) To provide for the investigation of any claim asserted by a qualified person against a financially irresponsible motorist.

(d) To settle and pay any claim or judgment asserted by a qualified person against a financially irresponsible motorist.

(e) To appear and defend, through attorneys representing the corporation, on behalf of the financially irresponsible motorist or on behalf of the corporation in any action brought against him or it as provided in subsection (b) of section five thousand two hundred nine of this article.

(f) To levy and collect assessments against its members for any operating deficits of the corporation and for any funds required for its operation and to enforce payment by legal proceedings.

(g) To borrow for its corporate purposes, with or without security, and to pledge any of its assets as security for such loan. Notes or other evidences of indebtedness of the corporation are legal investments for domestic property/casualty insurance companies and may be carried as admitted assets.

(h) To pay expenses reasonably incurred by the corporation in the exercise of any of its powers.

5207. Assessments against members.

(a) If at any time in the opinion of the board, the corporation shall require funds for the operation of its business, the board shall levy an assessment against the members of the corporation.

(b) Each member shall be liable to the corporation for that portion of the assessment which the net direct written premiums written by the member, namely the gross direct written premiums less return premiums on such direct business, for policies insuring against legal liability arising out of the ownership, operation or maintenance of motor vehicles which are principally garaged in this state, shall bear to the total or aggregate of such net direct premiums written by all members in this state in the last complete calendar year as shown by the records of the superintendent.

(c) In this section "member" also includes a former member which has withdrawn from the state or whose license has been revoked or which has been merged into another corporation or has been placed in liquidation, and such member or its successor shall be liable for all assessments under this section based upon premiums written by it in New York prior to the liquidation, withdrawal, revocation of license or merger.

(d) The assessment of self-insurers under sections three hundred sixteen and three hundred seventy of the vehicle and traffic law shall be based upon the amount determined by dividing the amount of the annual assessment on insurers by the number of insured vehicles for the year preceding the determination.

5208. Notice of claim.

(a) The protection provided by the corporation on account of motor vehicle accidents caused by financially irresponsible motorists shall be available to:

(1) Any qualified person having a cause of action because of death or bodily injury, arising out of a motor vehicle accident occurring within this state, who files with the corporation within one hundred eighty days of the accrual of the cause of action, as a condition precedent to the right to apply for payment from the corporation, an affidavit stating that:

(A) the person has a cause of action for damages arising out of the accident and setting forth the facts in support,

(B) the cause of action is against the owner or operator of a designated uninsured motor vehicle, and

(C) the person is making a claim for such damages.

(2)

(A) Any qualified person having a cause of action because of death or bodily injury, arising out of a motor vehicle accident occurring within this state and reported within twenty-four hours after the occurrence to a police, peace or judicial officer in the vicinity or to the commissioner, and who files with the corporation within ninety days of the accrual of the cause of action, as a condition precedent to the right to apply for payment from the corporation, an affidavit stating that:

(i) the person has the cause of action for damages arising out of the accident and setting forth the supporting facts,

(ii) the cause of action is against a person whose identity is unascertainable, and

(iii) the person is making a claim for those damages.

(B) The fact that the accident was not reported within twenty-four hours after the occurrence as required by subparagraph (A) hereof shall not prejudice the rights of the person if it is shown that it was not reasonably possible to make such a report or that it was made as soon as was reasonably possible.

(3)

(A) Any qualified person having a cause of action because of death or bodily injury, arising out of a motor vehicle accident occurring within this state, who files with the corporation an affidavit as a condition precedent to the right to apply for payment from the corporation, stating that:

(i) the person has a cause of action for damages arising out of the accident for damages and setting forth the supporting facts,

(ii) the insurers of the person alleged to be liable for the damages have disclaimed liability or denied coverage because of some act or omission of the person alleged to be liable including the denial of coverage based upon the lack of a policy of insurance in effect at the time the cause of action arose; provided, however, that in the case of a denial of coverage based upon the lack of a policy of insurance in effect at the time the cause of action arose, timely reasonable efforts had been made to ascertain insurance coverage, and

(iii) the person is making a claim for those damages.

(B) The affidavit shall be filed within one hundred eighty days of the affiant's receipt of notice of the disclaimer or denial of coverage.

(b) If a qualified person fails to file the affidavit as provided in paragraphs one and two of subsection (a) hereof within the specified period, or by reason of being an infant or mentally or physically incapacitated or deceased, is prevented from filing the affidavit as provided in paragraph three of such subsection within the specified period, or fails to file within one hundred eighty days, due to receipt of erroneous information from the department of motor vehicles or erroneous information from a police report with respect to identification of a vehicle, then upon a filing within thirty-one days of receipt of written notice of correction of the error by the department of motor vehicles or discovery of the mistake contained in the police report:

(1) The corporation may accept the filing of the affidavit if accompanied by proof satisfactory to it, of the facts which caused the delay and that it was not reasonably possible to file the affidavit within the specified period and that the affidavit was filed as soon as was reasonably possible.

(2) A court may upon like proof grant leave to file the affidavit within a reasonable time after the expiration of the specified period. In making its decision the court shall also and in particular consider, whether the corporation acquired actual knowledge of the essential facts constituting the claim within the time specified in paragraph one of subsection (a) hereof or a reasonable time thereafter. The court shall also consider all other relevant facts and circumstances, including whether:

(A) The claimant failed to file a timely affidavit by reason of the claimant's justifiable reliance upon settlement representations made by a person believed to be the insurance representative of the financially irresponsible motorist.

(B) The claimant in filing made an excusable error concerning the identity or existence of the corporation against which the claim should or could be filed.

(C) The delay in filing substantially prejudiced the corporation in maintaining a defense on the merits.

(c) Application to the court for leave to file must be made within one year from the beginning of the period for filing the affidavit, specified in paragraph one, two, or three of subsection (a) hereof upon affidavit showing the evidentiary facts which are relied on in support of the proof required in subsection (b) of this section, accompanied by a copy of the proposed affidavit. Notice of the return time together with a copy of the application must be served at least eight days before the time named for the hearing upon the corporation by delivery to the person designated by law as a person to whom a summons in an action in the supreme court issued against such party may be delivered.

(d) Every qualified person shall promptly furnish the corporation with copies of all papers in any action for the enforcement of every cause of action referred to in paragraph one, two, or three of subsection (a) hereof.

(e) The commissioner shall furnish to the corporation, upon request, information as to whether any operator or owner of a motor vehicle involved in any accident had in effect at the time of the accident any motor vehicle liability insurance or other evidence that the motor vehicle was an insured motor vehicle.

5209. Investigation and defense of claims.

(a) The corporation shall provide for the investigation of accidents and actions governed by this article it deems necessary.

(b) The corporation may through counsel appear and defend in any action on its own behalf and on behalf of a defendant and take any other steps it deems appropriate including any appropriate method of review. All such acts shall be deemed to be the acts of the corporation and the defendant.

(c) Nothing in this article shall deprive a defendant of the right also to employ counsel and defend the action.

(d) In any case in which the corporation has assumed the defense of any action under this article, the defendant shall cooperate with the corporation in the defense of the action. In the event of the defendant's failure to do so, the corporation may apply to the court for an order directing cooperation.

5210. Application for payment of judgment.

(a) When any qualified person who has complied with all the applicable requirements of this article recovers a final judgment in a court against a financially irresponsible motorist, for injury to, or death of, any person arising out of the ownership, maintenance or use of the uninsured motor vehicle in this state, which remains unpaid, and all appeals have been concluded or the time for commencing them has expired, the judgment creditor may file a verified petition in the court in which the judgment was entered and, upon ten days' written notice to the corporation apply to the court for an order directing payment by the corporation of the amount unpaid on the judgment. However, there shall be no right of recovery by a covered person from the corporation for non-economic loss unless such person has incurred a serious injury, as such terms are defined in section five thousand one hundred two of this chapter. Such judgment exclusive of interest and costs shall not exceed:

(1) twenty-five thousand dollars on account of injury to one person in any one accident, and

(2) fifty thousand dollars on account of death to one person in any one accident, and

(3) fifty thousand dollars on account of injury to more than one person in any one accident subject to the limit of twenty-five thousand dollars for any one person, and

(4) one hundred thousand dollars on account of death to more than one person in any one accident subject to the limit of fifty thousand dollars for any one person.

(b) The above applicable limit of liability shall be reduced by the amount of:

(1) any collectible liability insurance and available assets or contribution of the financially irresponsible motorist; and

(2) any payment received by the qualified person from or on behalf of any person jointly or severally liable with the financially irresponsible motorist.

(c) Any such judgment shall be regarded as excess to any other collectible liability insurance afforded to any financially irresponsible motorist.

5211. Hearing on application for payment of judgment.

(a) The court shall proceed upon the petition in a summary manner and the petitioner must show:

(1) the petitioner is a qualified person;

(2) the petitioner was not at the time of the accident operating an uninsured motor vehicle or operating a motor vehicle in violation of an order of suspension or revocation;

(3) the petitioner has complied with the requirements of section five thousand two hundred eight of this article;

(4) whether the judgment debtor at the time of the accident was insured under a policy of motor vehicle liability insurance or indemnity bond under which the insurer or surety is liable to pay all or part of the judgment;

(5) the petitioner has obtained a judgment as provided in section five thousand two hundred ten of this article, the amount of the judgment and the amount unpaid at the date of the application;

(6) the application is not made by or on behalf of any insurer or surety liable for the payment of all or part of the judgment by reason of any motor vehicle liability insurance policy or any indemnity bond and that no part of the amount to be paid by the corporation is sought in lieu of making a claim, receiving a payment which is payable by, or to indemnify, such an insurer or surety; and

(7) whether he has obtained judgment against any other person liable for damages for bodily injury or death arising out of the accident and the amounts paid.

(b) The corporation may appear and be heard in opposition to the petition.

5212. Order for payment of judgment.

The court shall order the corporation to pay the sum, if any, it finds payable on the claim pursuant to the provisions and limitations of this article if it is satisfied of the truth of all matters required to be shown by the petitioner by section five thousand two hundred eleven of this article, and that the petitioner has fully pursued and exhausted all remedies available for recovering upon the judgments against all persons mentioned in paragraph seven of subsection (a) of section five thousand two hundred eleven of this article.

5213. Settlement of claims or actions.

(a) The corporation may, except in the case of claims or actions by or on behalf of infants or judicially declared incompetents, settle without court approval any claim or action against a financially irresponsible motorist if the board, after due deliberation, is satisfied that the settlement is fair and has approved payment, which shall in no event exceed the applicable amount specified in section five thousand two hundred ten of this article and that:

(1) the claimant has complied with the requirements prescribed in paragraphs one, two and three of subsection (a) of section five thousand two hundred eleven of this article;

(2) the settlement is not made on the behalf of an insurer or surety under circumstances described in paragraph six of subsection (a) of section five thousand two hundred eleven of this article;

(3) the financially irresponsible motorist involved in the accident was not insured under a policy of motor vehicle liability insurance or an indemnity bond under which the insurer or surety is liable for the damages sustained; and

(4) a judgment against the financially irresponsible motorist would not be collectible within a reasonable time.

(b) As a condition to the payment of the amount of the settlement the qualified person, notwithstanding the provisions of title one of article thirteen of the general obligations law, shall assign his claim to the corporation which shall then be subrogated to all of the rights of the qualified person against the financially irresponsible motorist.

5214. Default and consent judgments.

(a) No claim shall be allowed and ordered to be paid by the corporation if the court finds upon the hearing for the allowance of the claim that it is founded upon a judgment which was entered by default or consent of the defendant.

(b) When the corporation receives notice of intention to enter judgment and intention to file a claim against the corporation and the time allowed for filing an answer has expired, the corporation shall be granted a reasonable time after the receipt of notice by it to answer and to defend the action.

(c) If upon a hearing for the allowance of any claim against the corporation the court finds that the judgment was entered by default or with the consent or agreement of the defendant it shall order that the judgment insofar as it affects the corporation be set aside and the corporation permitted to proceed in the action as provided above.

5215. Collusive judgments.

No claim against the corporation shall be allowed if the court finds, upon the hearing for the allowance of the claim, that the judgment upon which the claim is founded was obtained by fraud, or by collusion of the plaintiff and of any defendant in the action, relating to any matter affecting the cause of action upon which the judgment is founded or the amount of damages assessed therein.

5216. Assignments of judgments to corporation.

(a) The corporation shall not pay any sum, in compliance with an order made for that purpose, if the claim is founded upon a judgment, except a judgment obtained against the corporation under this article, until the petitioner assigns the judgment to the corporation.

(b) After assignment the corporation shall be entitled to enforce the judgment for the full amount with interest and costs. Money collected on the judgment in excess of all amounts paid by the corporation shall be paid to the judgment creditor.

5217. "Hit and run" causes of action.

The protection provided by this article shall not apply to any cause of action by a qualified person arising out of a motor vehicle accident occurring in this state against a person whose identity is unascertainable, unless the bodily injury to the qualified person arose out of physical contact of the motor vehicle causing the injury with the qualified person or with a motor vehicle which the qualified person was occupying (meaning in or upon or entering into or alighting from) at the time of the accident.

5218. Procedure for "hit and run" cases.

(a) Any qualified person having a cause of action for death or personal injury arising out of the ownership, maintenance or use of a motor vehicle in this state, when the identity of the motor vehicle and of the operator and owner cannot be ascertained or it is established that the motor vehicle was at the time of the accident, in the possession of a person without the owner's consent and that the identity of such person cannot be ascertained may, upon notice to the corporation, apply to a court for an order permitting an action therefor against the corporation in that court.

(b) The court may proceed upon the application in a summary manner and may make an order permitting the action when after a hearing it is satisfied that:

(1) the applicant has complied with the requirements of section five thousand two hundred eight of this article;

(2) the applicant is a qualified person;

(3) the injured or deceased person was not at the time of the accident operating an uninsured motor vehicle or operating a motor vehicle in violation of an order of suspension or revocation;

(4) the applicant has a cause of action against the operator or owner of the motor vehicle;

(5) all reasonable efforts have been made to ascertain the identity of the motor vehicle and of the owner and operator and either the identity of the motor vehicle and the owner and operator cannot be established, or the identity of the operator, who was operating the motor vehicle without the owner's consent, cannot be established; and

(6) the application is not made by or on behalf of an insurer or surety under circumstances described in paragraph six of subsection (a) of section five thousand two hundred eleven of this article.

(c) In any action in which the plaintiff is a qualified person, for the death of, or bodily injury to, any person arising out of the ownership, maintenance or use of a motor vehicle in this state and judgment is rendered for the defendant on the sole ground that the death or personal injury was occasioned by a motor vehicle: (i) the identity of which, and of the owner and operator of which, has not been established, or (ii) which was in the possession of some person other than the owner or his agent without the consent of the owner and the identity of the operator has not been established, that ground shall be stated in the judgment. The plaintiff, upon complying with paragraph one of subsection (a) of section five thousand two hundred eight of this article, may within three months from the date of the entry of the judgment make application to bring an action upon the cause against the corporation in the manner provided in this section.

(d) In any action commenced in respect of the death or injury of any person arising out of the ownership, maintenance or use of a motor vehicle in this state the plaintiff shall be entitled to make the corporation a party defendant if the court has entered the order provided for in subsection (a) of this section.

(e) The corporation may generally deny the allegations of the complaint and shall not be required to set forth the facts upon which it relies. It may assert any defense which would have been available to the operator or owner if the action had been brought against them and process in the action had been duly served within this state upon them.

(f)

(1) The corporation may settle without court approval any claim or action if the board, after due deliberation:

(i) determines that the claim or action is asserted or brought pursuant to this section;

(ii) is satisfied that the settlement is fair; and

(iii) approves payment which in no event shall exceed the applicable amount specified in section five thousand two hundred ten of this article.

(2) Settlement of claims and actions without court order shall not apply to settlement of claims or actions by infants or judicially declared incompetents.

(g)

(1) Any judgment obtained pursuant to this section shall be reduced by any amount recovered by the plaintiff as specified in paragraph seven of subsection (a) of section five thousand two hundred eleven of this article. Upon conclusion of all proceedings, including appeals and reviews, the court shall order the corporation to pay the plaintiff the amount of the judgment or the applicable amount specified in subsection (a) of section five thousand two hundred ten of this article, whichever is less.

(2) Upon payment by the corporation it shall be subrogated to the cause of action of the judgment creditor against the operator and owner of the motor vehicle by which the accident was occasioned. It may bring an action against either or both of such persons for the amount of the damage sustained by the judgment creditor when the identity of either becomes known. It shall be entitled to recover the amount of the damage out of any funds which would be payable in respect to the death or injury under any policy of insurance which was in force at the time of the accident. Money collected in excess of all amounts paid by the corporation shall be paid to the judgment creditor.

5219. Disclaimer or denial of coverage cases.

If a qualified person who has complied with paragraph three of subsection (a) of section five thousand two hundred eight of this article obtains judgment against an owner of a motor vehicle after a trial on the merits and there is a final judgment in favor of the insurer of the owner based on a disclaimer or denial of coverage by the insurer, the qualified person may preserve his right to apply for payment from the corporation by complying with the procedure prescribed in section five thousand two hundred ten of this article.

5220. Notice of judgment to commissioner.

The corporation shall give notice to the commissioner of the entry of any judgment upon which a claim is made against the corporation under this article and of the payment of any such judgment, or the payment or settlement of any claim by the corporation.

5221. "No-fault" benefits to qualified persons.

(a) The terms "basic economic loss", "first party benefits", "non-economic loss", "serious injury", "motor vehicle", "insurer", "uninsured motor vehicle" and "covered person", as used in this section, shall have the same meaning given them in section five thousand one hundred two of this chapter.

(b)

(1) Notwithstanding the provisions of this article, the corporation shall also provide for the payment of first party benefits to a qualified person for basic economic loss arising out of the use or operation in this state of an uninsured motor vehicle.

(2) A qualified person who has complied with all the applicable requirements of this article shall be deemed to be a covered person and shall have only such rights as a covered person may have under article fifty-one of this chapter.

(3) The corporation shall have only those rights and obligations which are applicable to an insurer subject to article fifty-one of this chapter.

(4) No payment for non-economic loss shall be made pursuant to this article to a covered person unless such person has incurred a serious injury, as such terms are defined in section five thousand one hundred two of this chapter.

(5) The corporation shall not duplicate any element of basic economic loss provided for under this section or any section of article fifty-one of this chapter. No payments of first party benefits for basic economic loss made pursuant to this section shall diminish the obligations of the corporation under this article for the payment of non-economic loss and economic loss in excess of basic economic loss.

(6) If a controversy arises between the corporation and an insurer concerning the obligation to pay first party benefits, payment of first party benefits by the corporation shall not be stayed pending resolution of the controversy. Any such controversy shall be solely resolved by submission to mandatory arbitration pursuant to procedures promulgated or approved by the superintendent. Such procedures shall, to the extent practicable, be those applicable to insurers pursuant to section five thousand one hundred five of this chapter.

(c) The corporation shall continue to comply with the plan of operation approved by the superintendent, which provides for the economical, prompt and fair payment of first party benefits to qualified persons in substantially the same manner as is required of insurers and self-insurers by article fifty-one of this chapter and regulations of the superintendent. The plan may provide for the corporation to utilize the service of authorized insurers in the payment of claims for first party benefits. Amendments to the plan of operation may be made on the initiative of the directors, subject to the approval of the superintendent, or shall be made at the direction of the superintendent.

5222. Examination of corporation.

The superintendent shall make an examination into the affairs of the corporation as provided in subsection (a) of section three hundred nine of this chapter.

5224. Penalty for false statements.

Any person and any agent or employee of a person, who knowingly files with the corporation any document required under this article, which is false or contains any material misstatement of fact shall be guilty of a misdemeanor and upon conviction thereof shall be subject to a fine of not less than five hundred dollars, nor more than twenty-five hundred dollars, or imprisonment for not more than thirty days.

5225. Exemption from taxation.

The corporation shall be exempt from all taxes and fees now or hereafter imposed by the state, or by any county, municipality or local authority or subdivision, except that any real property owned by the corporation shall be subject to county, municipal or local taxation to the same extent according to its value as other similar real property is taxed and that the corporation shall be subject to the fees imposed pursuant to section two hundred two of the vehicle and traffic law.

No-Fault Index

Updated 10/19/2004

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