New York Insurance Regulator Outlines Anti-Fraud Legislative Concepts

The New York State insurance superintendent said, as part of an effort to address no-fault insurance fraud, that he is supporting the enactment of a measure requiring mandatory arbitration for no-fault claims under $5,000.

Superintendent James Wrynn, said there is not a proposed bill on mandatory arbitration yet, but that talks with legislators have been positive.

Superintendent Wrynn said that requiring mandatory arbitration will decrease the number of overall no-fault cases and send a message regarding the direction the state is going in combating fraud.

Aside from the fraud-fighting aspect of sending such cases to arbitration, Superintendent Wrynn said the plan would also free up court resources.