An insurers trade group said it expects that New York Gov.George Pataki will sign a recently passed bill designed to make achange in the legal process, which the organization believes willmake it easier to investigate auto injury claims.

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In related action, the legislature gave final approval today toa measure cracking down on health care providers involved with autoinjury fraud.

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Michael Moran, speaking for the American Insurance Association(AIA) Albany, N.Y. office, said regarding the "file-and-serve"legal process legislation that "We will be urging him [Gov. Pataki]to sign it and expect him to."

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The measure, which was approved Wednesday, requires filing foran index number and paying a filing fee for each individual casebefore serving it on an insurer.

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According to Gary Henning, AIA assistant vice president, themeasure would end cases where "unscrupulous trial lawyers have beenable to bundle thousands of cases, many with little or not meritand dump them on insurers.

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Mr. Henning explained the tactic was used "to force settlementsof cases with no merit simply because the huge volume of claimsmade them impossible to investigate properly."

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The bill was sponsored in the Assembly by Judiciary CommitteeChairwoman Helene E. Weinstein, D-Brooklyn with the backing ofAssembly Insurance Committee Chairman Alexander (Pete) Grannis,D-Manhattan, and in the Senate by Republican Deputy Leader forIntergovernmental Affairs John A. DiFrancisco, Syracuse.

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Mr. Moran said the AIA is also expecting that New York willenact a law that will require the state superintendent of insuranceto establish a process for decertifying health care providers whoengage in deceptive billing or fraudulent practices for injuryclaims under the state's no-fault auto insurance program.

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Initially passed by the Assembly, the bill was approved today bythe State Senate.

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The process to be developed by the superintendent would makehealth providers who engaged in phony billing and other fraudineligible to submit bills or claims for payment.

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It would also affect providers who engaged in misconduct orincompetent practice, exceeded the limits of their professionalcompetence in rendering medical care or knowingly made falsestatements on material facts in a claim- related medicalreport.

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Also subject to exclusion would be providers who solicitedprofessional treatment, examination or care of an injured person inconnection with a no-fault claim; refused to appear before a dulyauthorized investigating agency or to produce relevant informationconcerning conduct in connection with a no-fault claim; or engagedin patterns of overcharging, excessive treatment, or other improperactivity.

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The bill also requires the Departments of Health and Educationto maintain an updated database of decertified providers and tomake such information available to the public on the Web and viatoll free telephone number.

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Mr. Moran noted that the bill was sponsored by Sen. Ruben Diaz,D-Bronx, whose district has large problem with auto accidentmedical mills.

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