N.Y. Insurance Law 5201 – Title and purpose
§ 5201. Title and purpose. (a) This article may be cited as the "motor vehicle accident indemnification corporation act".
Terms Used In N.Y. Insurance Law 5201
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
(b) The legislature finds and declares that the motor vehicle financial security act in the vehicle and traffic law, which requires the owner of a motor vehicle to furnish proof of financial security as a condition to registration, fails to accomplish its full purpose of securing to innocent victims of motor vehicle accidents recompense for the injury and financial loss inflicted upon them, in that the act makes no provision for the payment of loss on account of injury to or death of persons who, through no fault of their own, were involved in motor vehicle accidents caused by:
(1) uninsured motor vehicles registered in a state other than New York,
(2) unidentified motor vehicles which leave the scene of the accident,
(3) motor vehicles registered in this state as to which at the time of the accident there was not in effect a policy of liability insurance,
(4) stolen motor vehicles,
(5) motor vehicles operated without the permission of the owner,
(6) insured motor vehicles where the insurer disclaims liability or denies coverage, and
(7) unregistered motor vehicles. In addition, this article is intended to provide no-fault benefits for qualified persons for basic economic loss arising out of the use and operation in this state of an uninsured motor vehicle, as provided herein and in the comprehensive motor vehicle insurance reparations act. The legislature determines that it is a matter of grave concern that those persons are not recompensed for their injury and financial loss inflicted upon them and that the public interest can best be served by closing such gaps in the motor vehicle financial security act and the comprehensive motor vehicle insurance reparations act through the continued operation of the motor vehicle accident indemnification corporation.