As we reported back on March 14, 2000,[1] effective Dec. 1, 1999, the State of New York Insurance Department contracted with the American Arbitration Association (AAA) to handle day-to-day responsibility for the conciliation function of the No-Fault arbitration system. One of the goals of that transfer was to improve of the efficiency of the process and allow improved oversight of the No-Fault reparations system by the Insurance Department to ensure that the overall purpose of the No-Fault Law – the provision of prompt compensation to the victims of motor vehicle accidents for their economic loss without regard to fault was served.

Unfortunately, however, in the two years since the transfer to the AAA, the efficiency of the process has not been improved and the beneficial purpose of the no-fault law has not been served.

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