N.Y. Insurance Law § 5213: Settlement of claims or actions

§ 5213. Settlement of claims or actions. (a) The corporation may,

except in the case of claims or actions by or on behalf of infants or

judicially declared incompetents, settle without court approval any

claim or action against a financially irresponsible motorist if the

board, after due deliberation, is satisfied that the settlement is fair

and has approved payment, which shall in no event exceed the applicable

amount specified in section five thousand two hundred ten of this

article and that:

(1) the claimant has complied with the requirements prescribed in

paragraphs one, two and three of subsection (a) of section five thousand

two hundred eleven of this article;

(2) the settlement is not made on the behalf of an insurer or surety

under circumstances described in paragraph six of subsection (a) of

section five thousand two hundred eleven of this article;

(3) the financially irresponsible motorist involved in the accident

was not insured under a policy of motor vehicle liability insurance or

an indemnity bond under which the insurer or surety is liable for the

damages sustained; and

(4) a judgment against the financially irresponsible motorist would

not be collectible within a reasonable time.

(b) As a condition to the payment of the amount of the settlement the

qualified person, notwithstanding the provisions of title one of article

thirteen of the general obligations law, shall assign his claim to the

corporation which shall then be subrogated to all of the rights of the

qualified person against the financially irresponsible motorist.