N.Y. Insurance Law § 5221: "No-fault" benefits to qualified persons

§ 5221. "No-fault" benefits to qualified persons. (a) The terms "basic

economic loss", "first party benefits", "non-economic loss", "serious

injury", "motor vehicle", "insurer", "uninsured motor vehicle" and

"covered person", as used in this section, shall have the same meaning

given them in section five thousand one hundred two of this chapter.

(b) (1) Notwithstanding the provisions of this article, the

corporation shall also provide for the payment of first party benefits

to a qualified person for basic economic loss arising out of the use or

operation in this state of an uninsured motor vehicle.

(2) A qualified person who has complied with all the applicable

requirements of this article shall be deemed to be a covered person and

shall have only such rights as a covered person may have under article

fifty-one of this chapter.

(3) The corporation shall have only those rights and obligations which

are applicable to an insurer subject to article fifty-one of this

chapter.

(4) No payment for non-economic loss shall be made pursuant to this

article to a covered person unless such person has incurred a serious

injury, as such terms are defined in section five thousand one hundred

two of this chapter.

(5) The corporation shall not duplicate any element of basic economic

loss provided for under this section or any section of article fifty-one

of this chapter. No payments of first party benefits for basic economic

loss made pursuant to this section shall diminish the obligations of the

corporation under this article for the payment of non-economic loss and

economic loss in excess of basic economic loss.

(6) If a controversy arises between the corporation and an insurer

concerning the obligation to pay first party benefits, payment of first

party benefits by the corporation shall not be stayed pending resolution

of the controversy. Any such controversy shall be solely resolved by

submission to mandatory arbitration pursuant to procedures promulgated

or approved by the superintendent. Such procedures shall, to the extent

practicable, be those applicable to insurers pursuant to section five

thousand one hundred five of this chapter.

(c) The corporation shall continue to comply with the plan of

operation approved by the superintendent, which provides for the

economical, prompt and fair payment of first party benefits to qualified

persons in substantially the same manner as is required of insurers and

self-insurers by article fifty-one of this chapter and regulations of

the superintendent. The plan may provide for the corporation to utilize

the service of authorized insurers in the payment of claims for first

party benefits. Amendments to the plan of operation may be made on the

initiative of the directors, subject to the approval of the

superintendent, or shall be made at the direction of the superintendent.