The Car and Truck Fleet and Leasing Management Magazine

NY Insurers Can Settle Claims With Preloaded Credit Cards

January 13, 2010

ALBANY, NY --- Attorneys with the New York Insurance Department have released a written opinion confirming that insurance companies in the state have the right to pay claims by issuing debit or preloaded credit cards to claimants instead of conventional settlement checks. 

The New York Insurance Department issued the opinion at the request of an insurance company wishing to institute a program in which claimants could be paid with prepaid Visa cards.

The opinion, prepared by the department's Office of General Counsel, states that insurers can issue such prepaid cards to claimants on a voluntary basis as long as the funds are made accessible to the claimant within the normal timeframe for paying settlements, the insurer fully explains all aspects of its program and makes clear that the claimant's participation in the program is voluntary and that the claimant must opt in, and the insurer makes certain that the claimant has easy and ready access to the funds. 

The department's written opinion also stressed that the claimant, before opting in, must be made aware of all potential fees associated with the prepaid card in such a program. 

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All

 

Sponsored by

Clean Energy Fuels provides natural gas fuel for transportation in North America.

Read more

Up Next

More From The World's Largest Fleet Publisher