New York doctors, lawyers file joint suit to stop limit on insurance claim deadlines.

Doctors and lawyers in New York have joined forces to overturn a regulation imposed by the state insurance department that severely cuts back the number of days injured consumers have to file automobile and medical claims under the state's no-fault scheme.

The insurance rule, which took effect in February, reduces an injured person's window for submitting written notice of an accident from 90 to 30 days. The rule also shrinks the time for submitting proof of medical claims from 180 to 45 days.

The rule sets the shortest filing period in the nation for these claims, according to David Golomb, president of the New York State Trial Lawyers Association (NYSTLA). He said the rule "makes a mockery of no-fault," in part because it protects the insurers and "virtually ensures that significant numbers of legitimate injured claimants will not receive the benefits for which they paid."

Doctors from the Medical Society of the State of New York and lawyers from the NYSTLA responded with their lawsuit. (Medical Society of the State of New York v. Levin, No. 102167/00 (N.Y., N.Y. County Sup. Ct. Feb. 4, 2000).)

The suit, which seeks to stay enforcement of the revised deadlines, alleges that State Insurance Commissioner Neil Levin overstepped his authority by imposing rules that should have had legislative approval. The suit also alleges that the state failed to comply with New York's Administrative Procedure Act because it did not submit a report analyzing the rules' impact on the public.

The doctors and lawyers opposed to the abbreviated deadlines argue that injured claimants may be unable to identify the responsible insurer within the required 30 days, let alone file an accident notice with that carrier. They also argue that claimants who fail to meet the deadline for filing medical claims will face a high standard of proof--"clear and reasonable justification"--to overcome an untimely filing.

Bernard Bourdeau, president of the New York Insurance Association, an industry group, said the move was designed to "close the window of opportunity" for fraud committed by "unscrupulous doctors and lawyers who seek to run up thousands of dollars in bills for fraudulent care well before the insurance company is notified of an accident."

By the time the notification deadline approached under the old system, Bourdeau said, the insurer would have little time to conduct its own physical exam to determine whether the treatment was needed. The shortened window is designed to limit the fraud that can occur, he said.