It’s not uncommon for policyholders to sue their insurance company. In fact, there are currently more than 1,000 COVID-related legal cases filed against insurers nationwide.
However, taking legal action against an insurance company can be extra overwhelming. After all, dealing with business interruption, personal injury, or the death of a loved one is challenging enough. To make things easier for you, we tackle everything you need to know about serving process and initiating legal action on a New York insurance company.
Service in accordance with New York insurance law
Should you decide to take legal action against an insurance firm registered in New York, papers may be served upon the New York Superintendent of Insurance.
Under Section 1212 of the New York Insurance Law, all domestic, foreign or alien insurers, including fraternal benefit societies, must file with the Superintendent a power of attorney allowing the Superintendent to accept service of process on the insurer’s behalf.
Service may be performed by delivering the papers to the New York State Insurance department. Under the Insurance Law, the Department of Financial Services does not accept service of process for legal actions against the State Insurance Fund, the Motor Vehicle Accident Indemnity Corporation, resident agents and brokers, or health maintenance organizations.
The fees for service of process will depend on the type of insurance company being served. Fees can be settled via checks or money orders made payable to “Superintendent of Financial Services.” Service is not considered valid or completed unless the necessary fees are paid.
- Licensed insurance company or fraternal benefit society – One copy of the legal papers must be provided to the State Insurance department alongside a $40.00 check or money order.
- Unlicensed insurance company – Two copies of the papers must be submitted to the department with the name and listed business address of the insurers. A $40 fee must also be settled.
- Licensed life settlement provider – Two copies of the documents must be supplied to the department and a $40 fee must be paid.
- Registered risk retention group or a registered purchasing group – Two copies of the papers must be presented to the State Insurance department alongside a $20 check or money order.
In addition, a copy of the Summons and a Notice of Service certifying that the Superintendent of Insurance has been served, must be sent by certified mail within 10 days to the insurance company.
Serving multiple insurance companies
If you wish to serve multiple insurance companies, you may provide only one check or money order to The New York State Insurance Department.
However, service is considered incomplete if the papers to any one of the parties being served are found unacceptable. For instance, if the name of one of the insurance companies is misspelled or incomplete, all the papers you attempt to serve will be returned.
Work with reputable process servers
If legal documentation is served incorrectly, the insurance company may contest the service entirely and force your legal team to restart the case. Working with Serve Index LLC’s licensed process servers can help you avoid delays and ensure that the defendant is successfully served.
Request a quote now and guarantee fast and effective process of service.