February 15, 2008
Eric Turkewitz on his blog http://www.newyorkpersonalinjuryattorneyblog.com/
is reporting that State Farm, is being sued in the Eastern District of New York, under the Racketeering Influenced Corrupt Organization Act (RICO) by influencing outside examiners.
The long and short of it: State Farm is accused of using Independent Medical Exam (IME) companies that are, let’s say, cooperative with State Farm in their write-ups of injured State Farm policyholders. By showing State Farm clients are not badly injured, they have legal grounds to pay less in PIP (Personal Injury Protection) claims.
New York does have some of the highest PIP requirements in the country and the PIP endorsement is considered a loss leader among auto insurance companies doing business in the state.
Interestingly, the lawsuit was filed by a physician claiming deprivation of revenue.
State Farm has not responded to this lawsuit as of this time.
I am certain that an independant informational source such as your blog knows that the only independant medical examination pursuant to New York No Fault law is one that is assigned from the panel of doctors that are on a list that exists by the arbitration tribunal pursuant to New York No Fault Law.
Do you have any commentary with regard to the “float”
Not sure what your talking about with:
“assigned from the panel of doctors that are on a list that exists by the arbitration tribunal pursuant to New York No Fault Law”
Are you saying this will be resolved by a arbitration tribuneral or that all exams are done by IMEs assigned from an arbitration panel?
And no, being from a state smart enough to stay away from no-fault PIP, I’m not familiar with NY IME assignment. Form reading the complaint, it is alleged that State Farm selects it’s own IME and pays them higher than average fees for their services.
I have no idea what you mean by ‘float’.
Thanks for the comment.
Please be cautionend I did not say an arbitration panel as per ny no fault law. I said there is no such exam under ny no fault law.Maybe yoe misiniterpreted as ny workers comp law