Legal Questions

Did the insurer show the claimed injuries did not arise from a covered accident (staged, intentional, or unrelated)?

Deciding this question means ruling on whether the insurer's evidence shows that the injuries for which no-fault benefits are claimed did not arise from an insured incident: because the collision was staged or intentionally caused, because the claimant or the insured vehicle was not involved in it, or because the condition treated was unrelated to (not caused or aggravated by) the accident. Under Central Gen. Hosp. v Chubb this is a lack-of-coverage defense that survives the 30-day preclusion rule; courts recite that as settled background, and the categories record how the court ruled on the insurer's proof (enough to raise an issue = 'founded belief'; enough for judgment = established as a matter of law or at trial). Courts sitting on summary judgment, default, declaratory-judgment, vacatur and trial postures all count.

Settled statewide by the Court of Appeals. The rule is set by the Court of Appeals: an insurer may, despite an untimely denial, 'assert a lack of coverage defense premised on the fact or founded belief that the alleged injury does not arise out of an insured incident' (Central Gen. Hosp. v Chubb, 1997), reaffirmed in Hospital for Joint Diseases v Travelers (2007) and Fair Price v Travelers (2008, in the database). Both departments that have decided it apply the same framework: causation is presumed and the insurer bears the burden; a deliberate or staged collision is not a covered accident; admissible proof is required. Decisions differ in application (sufficiency of investigator affidavits, EUO transcripts, police reports, peer reviews, low-impact studies). One point of tension to review: what an insurer must show to obtain judgment (see uncertain).

Leading authorities · Authority map · Decisions by court · Plain-text version (Markdown)

Leading authorities

  • National Gen. Ins. Online, Inc. v Blasco (2022 NY Slip Op 06252) Appellate Division, Second Department, 2022Second Department: staged collision not covered; insurer judgment on admissible proofAn intentional and staged collision in furtherance of an insurance fraud scheme is not a covered accident; insurers obtained summary judgment declaring no duty to pay providers by showing through admissible evidence that the collisions were intentionally caused or staged, and the providers raised no triable issue.
    the plaintiffs established their prima facie entitlement to judgment as a matter of law by demonstrating, through admissible evidence, that the subject collisions were intentionally caused or staged
  • Nationwide Gen. Ins. Co. v South (2024 NY Slip Op 00028) Appellate Division, First Department, 2024First Department: unrebutted founded belief supports summary judgment for insurerInsurer granted summary judgment declaring no obligation to pay providers where its investigation and the driver's EUO testimony demonstrated a founded belief that the accident was not covered, and the providers submitted no affidavit of a person with knowledge.
    Plaintiffs demonstrated a “founded belief” that the August 9, 2020 accident was not covered by no-fault insurance
  • Kingsbrook Jewish Med. Ctr. v Allstate Ins. Co. (2009 NY Slip Op 00351) Appellate Division, Second Department, 2009Unrelated-injury defense: insurer bears burden, needs medical expert proofCausation is presumed in a provider's no-fault action; to raise the Chubb lack-of-coverage defense that treatment was unrelated to the accident, the insurer must come forward with admissible proof, and judicially noticed diagnosis codes interpreted by counsel, without a medical expert's affidavit, did not raise a triable issue. Summary judgment for the hospital affirmed.
    The burden of proving the lack of a nexus between an accident and medical treatment therefore falls upon the insurer seeking to deny payment
  • V.S. Med. Servs., P.C. v Allstate Ins. Co. (2009 NY Slip Op 29310) Appellate Term, Second Department, 2009At trial: preponderance suffices; insurer need not prove fraudAt trial the insurer may establish lack of coverage (an intentional, non-accidental collision) by a preponderance of the evidence; it need not prove the elements of fraud, including scienter, by clear and convincing evidence. Judgment dismissing the complaint (Civ Ct, Kings County 2006, post 9788) affirmed.
    defendant could properly premise its defense upon a lack of coverage and could establish this defense by a preponderance of the evidence; defendant was not required to establish that the subject collision was the product of fraud
  • A.B. Med. Servs., PLLC v Clarendon Natl. Ins. Co. (2009 NY Slip Op 52383(U)) Appellate Term, Second Department, 2009Founded belief defeats provider's motion but does not win insurer'sThe insurer's proof showed a founded belief that the injuries were sustained, if at all, in a staged accident, enough to defeat the provider's summary judgment motion, but its admissible evidence did not establish as a matter of law that the injuries did not arise from an insured incident, so its cross motion to dismiss should have been denied.
    while defendant demonstrated that it possessed such “founded belief” so as to defeat plaintiff’s motion for summary judgment, it failed to submit sufficient evidence in admissible form, in support of its cross motion, to establish, as a matter of law, that the alleged injuries did not arise from an insured incident
  • Central Gen. Hosp. v Chubb Group of Ins. Cos. 90 NY2d 195Source of the rule: insurer may assert, despite an untimely denial, a lack-of-coverage defense premised on the fact or founded belief that the injury does not arise out of an insured incident; excessive treatment is precluded. Cited in at least 287 decisions in the database.Not in our database.
  • Presbyterian Hosp. in City of N.Y. v Maryland Cas. Co. 90 NY2d 274Background: the general 30-day preclusion rule to which Chubb is the exception.Not in our database.
  • Zappone v Home Ins. Co. 55 NY2d 131Background: failure to disclaim cannot create coverage that never existed.Not in our database.
  • Mount Sinai Hosp. v Triboro Coach 263 AD2d 11Causation presumed; insurer must come forward with admissible proof of the fact or evidentiary foundation for its belief that the treated condition was unrelated to the accident (cited in about 100 decisions).Not in our database.
  • Matter of Metro Med. Diagnostics v Eagle Ins. Co. 293 AD2d 751Defense that the collision was staged in furtherance of insurance fraud survives the preclusion rule (cited in about 90 decisions).Not in our database.
  • State Farm Mut. Auto. Ins. Co. v Laguerre 305 AD2d 490'A deliberate collision caused in furtherance of an insurance fraud scheme is not a covered accident' (as quoted in V.S. Med. Servs.).Not in our database.
  • Matter of Liberty Mut. Ins. Co. v Goddard 29 AD3d 698'An intentional and staged collision caused in the furtherance of an insurance fraud scheme is not a covered accident' (quoted in Bates, McAdam, Blasco).Not in our database.
  • Matter of Eagle Ins. Co. v Davis 22 AD3d 846Insurer may prove a collision was not an accident without proving fraud (relied on in V.S. Med. Servs.).Not in our database.
  • Nationwide Gen. Ins. Co. v Pontoon 123 AD3d 1040No coverage for an intentionally caused collision even as to innocent third parties (quoted in Adirondack 2023).Not in our database.

Authority map

Each circle is a decision on this question, placed by court and date; its colour is the position it took. Lines are citations between them. Select a circle (or find a decision by name) to see its links and summary. The same decisions are listed by court below the map.

Insurer proved the injuries did not arise from a covered accidentFounded belief shown; the question must be triedInsurer's motion denied: proof did not establish the defense prima facie; defense still openInsurer's proof did not raise an issue or failed at trial; provider prevails on itRing: rules on the question, but another ground decided the caseContrasted, distinguished or limitedDeclined to follow, questioned, overruled or reversedCited
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How the rule was applied, by court

Decisions (241)

Every decision in our database that rules on this question: highest court first, then by department, newest first. 202 turn on it; the others rule on it alongside a different main ground (marked "also decides"). The one-sentence summaries describe what each court said on this question.

How this page is made: the decisions are those in our case-law database that cite this question's leading cases or were tagged with its subject. A language model read each one in full and recorded whether it rules on the question, the position it took and a one-sentence summary; a second, independent reading checked every entry. Court, department, date and the citation links come from the database. Read the decision before relying on it.