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Allstate Insurance v. Satchell
Citations: 225 A.D.2d 374; 639 N.Y.2d 339; 639 N.Y.S.2d 339; 1996 N.Y. App. Div. LEXIS 2291
Court: Appellate Division of the Supreme Court of the State of New York; March 13, 1996; New York; State Appellate Court
Vehicle and Traffic Law § 313 mandates specific format and content for cancellation notices of automobile insurance liability policies. Noncompliance with these provisions renders such notices invalid, as established in Barile v Kavanaugh and other cases. Furthermore, 15 NYCRR 34.6(b) stipulates that cancellation notices must inform policyholders that a civil penalty of $6 per day can prevent the suspension of automobile registration if insurance coverage lapses. The Aetna cancellation notice failed to comply by incorrectly stating the penalty as $4 per day, reflecting outdated information. The requirements of 15 NYCRR 34.6 are deemed as critical as those outlined in the Vehicle and Traffic Law. Therefore, the cancellation notice was deemed ineffective, leading to the granting of the petition to stay arbitration. The decision was concurred by Murphy, P.J., Ross, Tom, and Mazzarelli, JJ.