Hospital for Joint Diseases v. Travelers Prop. Cas. Ins. Co

In Hospital for Joint Diseases v. Travelers Prop. Cas. Ins. Co., 9 NY3d 312 [2007] the plaintiff medical provider submitted a claim form along with an assignment of benefits form that did not contain any signature, but which stated that the patient's signature was "on file." The insurance carrier in that case did not ask for further verification or demand a copy of the original document containing the signature that was purportedly "on file." It eventually denied the claim on the grounds that such assignment was invalid and therefore the plaintiff did not have standing to prosecute the claim. The Court of Appeals held that inasmuch as the carrier was precluded from raising any affirmative defense as to the validity of the assignment of benefits form due to its failure to timely seek verification, it could not now contest the validity of such assignment. Therefore, the plaintiff therein had standing to bring the action and the assignment was deemed to be valid.