Scrutinizing a law that requires insurance companies to pay claims in a timely manner, a Brooklyn appellate court has determined the law gives claimants an implied right to file suit against their insurer.
The Prompt Pay Law “does impose specific duties upon insurers and creates rights in patients and health care providers, and thus militates in favor of the recognition of an implied private right of action to enforce such rights,” Justice Leonard Austin (See Profile) of the Appellate Division, Second Department wrote for a unanimous panel in a matter of first impression, Maimonides Medical Center v. First United American Life Insurance Company, 2012-03138.
