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

In related action, the legislature gave final approval today to a measure cracking down on health care providers involved with auto injury fraud.

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."

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

According to Gary Henning, AIA assistant vice president, the measure would end cases where "unscrupulous trial lawyers have been able to bundle thousands of cases, many with little or not merit and dump them on insurers.

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

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

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

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

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

It would also affect providers who engaged in misconduct or incompetent practice, exceeded the limits of their professional competence in rendering medical care or knowingly made false statements on material facts in a claim- related medical report.

Also subject to exclusion would be providers who solicited professional treatment, examination or care of an injured person in connection with a no-fault claim; refused to appear before a duly authorized investigating agency or to produce relevant information concerning conduct in connection with a no-fault claim; or engaged in patterns of overcharging, excessive treatment, or other improper activity.

The bill also requires the Departments of Health and Education to maintain an updated database of decertified providers and to make such information available to the public on the Web and via toll free telephone number.

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

Special Reports /

N.Y. Legislature Okays Two Auto Fraud Bills

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