Welcome to Part One of the Jones Jones LLC’s Loss Transfer Series! The purpose of this three part series is to educate and inform our readers on the importance of this application of the law. Understanding and utilizing loss transfer will make a major impact on your mitigation recovery – which will equate to large savings to your clients. You may have already read about Jones Jones LLC’s major success with our Loss Transfer Department—with over a 96% recovery rate on amounts sought via loss transfer. Now, this three part series will take you through the basics of loss transfer under NY Insurance Law Section 5105(a) so that you can find opportunities in your own caseload to begin your journey towards loss transfer success.
WHAT IS LOSS TRANSFER?
Loss transfer is a carrier or self-insured’s right under NY Insurance Law Section 5105(a) to seek reimbursement from another carrier or self-insured for benefits paid on certain claims arising from motor vehicle accidents.
WHO CAN SEEK REIMBURSEMENT VIA LOSS TRANSFER?
No-Fault carriers, as well as Workers’ Compensation carriers and any other carrier who provides benefits that could be considered to be “in lieu of No-Fault”.
WHO DO YOU SEEK LOSS TRANSFER REIMBURSEMENT FROM?
The carrier or self-insured owner responsible for providing No-Fault benefits for the vehicle responsible for the underlying motor vehicle accident.
WHEN DOES LOSS TRANSFER APPLY?
Loss transfer applies when ALL of the following criteria are met:
- The underlying claim arose from a motor vehicle accident that was caused by a “covered person” as defined under NY Insurance Law Section 5104;
- The motor vehicle accident occurred in New York State; and
- At least one of the vehicles involved in the loss meets one of the following criteria:
- Weighs 6,500 lbs unloaded; OR
- Is a Livery vehicle
WHO IS A COVERED PERSON?
A covered person is an operator of a motor vehicle that was either:
- An authorized self-insured company in New York;
- Insured by a companies authorized to issue No-Fault policies in New York (note: almost all major auto insurance companies fall under this category); OR
- Insured by an out-of-state company which has filed with the NY Commissioner of Motor Vehicles authorizing the commissioner to accept service of process on their behalf and stating that their policies will be varied to meet NY insurance requirements.
Stay tuned for Part Two of the Jones Jones LLC’s Loss Transfer Series to learn about what kind of benefits can be recovered under loss transfer! As always, the attorneys of Jones Jones LLC are beside you every step of the way and welcome any questions or thoughts you may have on this most important topic. Contact our team today at email@example.com.
Have an idea for an education series? Would you like to learn more about a certain are of subrogation, New Jersey & New York Workers’ Compensation defense, or No-Fault? Contact us with what you want to hear more about today at firstname.lastname@example.org!