Current through Register Vol. 46, No. 39, September 25, 2024
(a) Every
arbitration involving SUM coverage under the endorsement prescribed in section
60-2.3 of this Subpart shall be
administered by an organization designated by the superintendent and conducted
in accordance with procedures established by the designated organization and
approved by the superintendent. Every request for arbitration of SUM disputes
shall be filed directly with the designated organization.
(b) Qualifications of SUM arbitrators for
hearings to be held in New York State.
(1)
SUM Arbitrator Screening Committee. The superintendent will appoint an advisory
committee of six members who will review the qualifications of applicants for
the position of SUM arbitrator for hearings to be held in this State and review
the performance of the appointed arbitrators. This committee shall make
recommendations to the superintendent pertaining to the appointment and
dismissal of SUM arbitrators. The committee shall consist of one representative
of the New York State Bar Association, one representative of the New York State
Trial Lawyers Association, two representatives of motor vehicle insurers, a
non-voting representative of the designated organization and a non-voting
representative of the superintendent. Tie votes shall be recorded as such to
the superintendent.]
(2) A SUM
arbitrator shall be an attorney, licensed to practice law in this State, with
at least ten years of experience that the superintendent and SUM Arbitrator
Screening Committee have determined qualifies the attorney to review and
resolve the issues involved in SUM disputes. The SUM Arbitrator Screening
Committee, subject to the approval of the superintendent, shall establish any
additional qualifications for the position of SUM arbitrator. An applicant for
the SUM arbitrator position shall submit documentation of experience along with
an application to the superintendent and the SUM Arbitrator Screening
Committee. An arbitrator candidate shall disclose to the
superintendent any circumstance that is likely to create an appearance of bias
of that might disqualify the person as an arbitrator and the superintendent
will determine whether the candidate should be disqualified.
(3) Every SUM arbitrator shall be appointed
by, and serve at the pleasure of, the superintendent. Subsequent to reviewing
the recommendations of the SUM Arbitrator Screening Committee, the
superintendent will forward the names of all appointed or renewed arbitrators
and promptly inform the designated organization of all additions to, or
deletions from, the panel.
(4) No
person shall, during the period of appointment as an arbitrator, have any
practice or professional connection with any firm or insurer involved in any
degree with motor vehicle insurance or negligence law.
(5) No person shall, during the period of
appointment as an arbitrator, have any practice or professional connection with
any firm or insurer involved in any degree with motor vehicle insurance or
negligence law.
(c)
Arbitrator's compensation. Arbitrators shall contract on an annual basis with
the designated organization. The rate of compensation shall be determined by
the designated organization, after consultation with the Arbitrator Screening
Committee. Arbitrators shall be independent contractors and shall not be
employees of the designated organization.
(d) SUM Optional Arbitration Advisory
Committee. The insurer members of the No-Fault Optional Arbitration Advisory
Committee, constituted pursuant to section 65.17(b)(3)(iv) of this Title, shall
constitute an advisory committee that reviews the operations and the actual
cost of administering the SUM arbitration forum.
(e) Financing.
(1) The cost of administering the SUM
arbitration forum shall be paid quarterly by insurers to the designated
organization upon receipt of a statement therefrom. This cost shall be
distributed among insurers in an equitable manner as determined by the
Superintendent of Financial Services. This distribution shall, to the extent
practicable, be a function of the degree to which an insurer is named as a
respondent in SUM arbitration proceedings.
(2) On an annual basis, no later than April
30 of each year, the designated organization shall prepare:
(i) an estimate of the annual expenses
expected to be incurred for the operation and administration of the SUM forum,
including an estimated assessment per closed case, that shall be subject to the
approval of the superintendent.
(a) The
designated organization shall send to each applicable insurer, on a quarterly
basis or otherwise pursuant to paragraph four of this subdivision, a bill for
the amount due.
(b) Any payment due
shall be made to the designated organization within 30 days after the billing
date.
(ii) a detailed
analysis of the actual expenses incurred for the operation and administration
of the SUM forum during the preceding calendar year.
(a) This analysis shall be forwarded to the
SUM Optional Arbitration Advisory Committee and the superintendent.
(b) The SUM Optional Arbitration Advisory
Committee shall notify the designated organization and the superintendent
whether it accepts or rejects the designated organization's cost analysis in
whole or in part.
(c) In the event
that the designated organization and the SUM Optional Arbitration Advisory
Committee cannot resolve any differences that may exist, such differences will
be referred to the superintendent for resolution. The superintendent's decision
shall be binding on the designated organization and insurers.
(3) Once the designated
organization submits a final cost analysis that has either been approved by the
SUM Optional Arbitration Advisory Committee or resolved by the superintendent,
the designated organization shall send to each applicable insurer an accounting
of the actual assessment. Any adjustment due to the difference between the
estimate of expenses and the actual expenses incurred for the operation and
administration of the SUM forum shall be made to the bill for the next
quarterly estimated assessment.
(4)
The designated organization and the SUM Optional Arbitration Advisory Committee
may, by agreement subject to the approval of the superintendent, augment or
modify the manner and timing of assessment billings through written
guidelines.
(5) The designated
organization shall impose an interest charge, at prime rate plus one percent,
for all assessment charges that are unpaid for more than 90 days after the
billing date. Interest collected will be used to reduce the overall current
year SUM forum operating expenses.
