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2023 NY Att'y Gen. Rep. & Op. 1 (2023)

handle is hein.nyattgen/nysag0142 and id is 1 raw text is: Insurance Law §§ 3420(f)(2), 5106(b); N.Y.C.R.R §§ 11, 60-2.3(c), 11, 6-2.3(f)(11), 11, 60-2.4(b)(1), 11, 60-2.4(b)(2), 11, 60-2.4(b)(3), 11, 65-4.5(d)(1), 11, 65-4.5(d)(2), 11, 65- 4.5(d)(3), 11, 65-4.5(d)(4); Public Officers Law §§ 17, 17(1)(a), 17(2)(a), 17(3)(a) Members of the No-Fault Arbitrator Screening Committee and the Supplementary Uninsured/Underinsured Motorists Arbitrator Screening Committee are persons holding a position by appointment and are in the service of the state and thus are employees for purposes of section 17 and are eligible for defense and indemnification pursuant to Public Officers Law § 17. February 10, 2023 Adrienne A. Harris Formal Opinion Superintendent No. 2023-Fl Department of Financial Services One State Street, 20th Floor New York, NY 10004 Dear Superintendent Harris: Department attorneys of the Office of General Counsel for Insurance have requested an opinion regarding whether the members of two arbitrator screening committees are eligible for defense and indemnification pursuant to section 17 of the Public Officers Law. For reasons that follow, we answer that question in the affirmative. I. Legal Framework of Arbitrator Screening Committees A. The No-Fault Arbitrator Screening Committee The Comprehensive Motor Vehicle Insurance Reparations Act, the no-fault law, was enacted to establish a system of compensation for basic economic losses up to $50,000 suffered by injured parties arising out of the use and operation of motor vehicles without regard to fault or negligence. The statute provides that every motor vehicle insurer must provide a claimant with the option of submitting any dispute involving the settlement of first party benefits to arbitration in accordance with simplified procedures established and approved by the Superintendent of Financial Services. Insurance Law § 5106(b). The procedure for arbitrating such a dispute is governed by regulation. Under that procedure, the Superintendent appoints a six- member advisory committee, which reviews the qualifications of applicants to serve as no-fault arbitrator and the performance of the appointed arbitrators. 11 N.Y.C.R.R. § 65-4.5(d)(1). The No-Fault Arbitrator Screening Committee consists of one representative of the New York State Bar Association, one representative of the New York State Trial Lawyers Association, two representatives of the insurance

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