DELAY LETTERS ARE NOT VERIFICATION REQUESTS

DELAY LETTERS ARE NOT VERIFICATION REQUESTS

PR Medical, P.C., v.Praetorian Insurance Company, Slip Copy, 2016 WL 1092072 (Table), 2016 N.Y. Slip Op. 50338(U).

An insurer’s verification request must actually “verify” and ask for something.  In this case, the insurer issued “delay letters”:

In opposition, defendant failed to raise a triable issue as to whether it had timely denied the claims (see NYU-Hosp. for Joint Diseases v American Intl. Group, Inc., 89 AD3d 702, 703 [2011]). Contrary to Civil Court’s determination, defendant’s letter stating, in essence, that payment was delayed pending independent medical examinations (IMEs) of plaintiff’s assignor did not serve to toll the 30-day statutory period (id.). Nor has defendant otherwise raised a triable issue as to whether the 30-day period was tolled by verification requests that preceded its receipt of the underlying claims (see Sound Shore Med. Ctr. v New York Cent. Mut. Fire Ins. Co., 106 AD3d 157, 164 [2013]).  Inasmuch as the claims at issue were not timely denied, defendant is precluded from *2 asserting its defense of lack of medical necessity (see Country-Wide Ins. Co. v Zablozki, 257 AD2d 506 [1999], lv denied 93 NY2d 809 [1999]).

As a procedural point with respect to motions to re-argue, the Court stated:

While the motion court purported to deny plaintiff’s motion for reargument, the merits of the motion were addressed and the court, in effect, granted reargument, even though it ultimately adhered to its original determination (see Jackson v Leung, 99 AD3d 489, 490 [2012]; Matter of State Farm Mut. Auto Ins. Co. v King, 304 AD2d 390 [2003]). Thus, the March 30, 2015 order is appealable.

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