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FAIR PRICE MED. v. TRAVELERS

42 A.D.3d 277 (2007)

837 N.Y.S.2d 350

FAIR PRICE MEDICAL SUPPLY CORP., as Assignee of CESAR NIVELO, Respondent, v. TRAVELERS INDEMNITY COMPANY, Appellant.

Appellate Division of the Supreme Court of the State of New York, Second Department.

June 12, 2007.

Attorney(s) appearing for the Case

Karen C. Dodson, New York City (Carol R. Finocchio of counsel), for appellant.

Alden Banniettis, Brooklyn (Jeff Henle of counsel), for respondent.

Thomas Torto, New York City, amicus curiae, for American Insurance Association and another.

Rivkin Radler, LLP, Uniondale (Evan H. Krinick, Cheryl F. Korman and Stuart M. Bodoff of counsel), amicus curiae, for New York Insurance Association.

MASTRO, SANTUCCI and DILLON, JJ., concur.

OPINION OF THE COURT

PRUDENTI, P.J.

The question presented on this appeal is whether an insurance carrier is precluded from interposing a defense in an action to recover assigned first-party no-fault benefits if it fails to pay or deny the claim within 30 days, where it has reason to believe that the claim fraudulently seeks reimbursement for medical supplies that were never delivered to the insured. Because the carrier's proposed defense in this case is...

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