AMERICAN INDEPENDENT INSURANCE SUBJECT TO NY JURISDICTION?

AMERICAN INDEPENDENT INSURANCE SUBJECT TO NY JURISDICTION?

In the Matter of American Independent Insurance Co., v. Nova Acupuncture, P.C., WL 1234587 (N.Y.A.D. 2 Dept.), 2016 N.Y. Slip Op. 02357

How many cases have been discontinued throughout the years against American Independent Insurance Co. for lack of jurisdiction?  Well, no more, looks like they may be subject to jurisdiction in NY:

The Appellate Division, Second Department stated as follows:

Here, it is undisputed that the respondents exercised their option to arbitrate the dispute over the payment of first-party benefits. It is further undisputed that AIIC is not licensed or authorized to transact business in this State. Nonetheless, AIIC’s policies may be deemed to satisfy New York’s financial security requirements and to provide for the payment of first-party benefits, which necessarily includes affording claimants the option to arbitrate disputes involving first-party benefits (see Insurance Law § 5106 [b]), if it is determined that AIIC controls, is controlled by or under common control by, or is with an authorized insurer (see Insurance Law § 5107[a]). Although the respondents allege that AIIC falls within that criteria, there is insufficient evidence in the record to make such a determination. Therefore, the matter must be remitted to the Supreme Court, Kings County, for a hearing on the issue of whether AIIC controls, is controlled by, or is under common *2 control by or with an authorized insurer and, thereafter, for a new determination of the petition.

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