In our June 9, 2016, No-Fault Insurance Law Wrap-Up column,1 we reported on several appellate decisions concerning an insurer’s obligation to pay claims once the underlying insurance policy is exhausted. The relevant regulation, 11 NYCRR 65-3.15, which provides the order in which claims should be paid when a policy is at or near exhaustion, provides:
When claims aggregate to more than $50,000, payments for basic economic loss shall be made to the applicant and/or an assignee in the order in which each service was rendered or each expense was incurred, provided claims therefor were made to the insurer prior to the exhaustion of the $50,000. If the insurer pays the $50,000 before receiving claims for services rendered prior in time to those which were paid, the insurer will not be liable to pay such late claims. If the insurer receives claims of several providers of services, at the same time, the payments shall be made in the order of rendition of services.
