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Jeff Korek Warns: Proposed Auto Insurance Reforms Could Hurt Accident Victims, Not Help Them

In this interview, Jeff Korek raises concerns about proposed auto insurance reforms in New York State. While acknowledging that insurance fraud should be prosecuted, Korek argues the changes would shift financial responsibility away from large insurance companies and rideshare corporations and onto accident victims and taxpayers. He outlines key proposals, including stricter injury thresholds and a potential $100,000 cap on damages, and urges community members to contact their legislators before the measures move forward through the state budget process.

Discussion:

(0:00) Let’s bring Jeff Korek on because I think he’s of like mind here. (0:04) You know, one of the things that is a major issue in this country is health insurance. (0:08) In another life, I actually worked for one of the top insurance administrators in the country.

(0:13) And if you see how much money these owners of these insurance companies make, (0:17) it would boggle your mind. (0:19) Scary, right? (0:19) No, one of them actually had enough money that he decided that instead of having real (0:23) grass he was going to put astroturf in so he didn’t have to have a landscaper cutting his lawn. (0:27) Doesn’t everybody? (0:29) Isn’t that normal? (0:30) Anyway, let’s bring Jeff Korek on to talk about this.

(0:33) Good morning. (0:35) Good morning. (0:35) Thanks for having me.

(0:36) How can I help on the cookie situation? (0:41) You can send some in. (0:42) I know the retainer’s been signed. (0:44) We’re ready to go.

(0:45) Let me know when we start. (0:47) I’ll give you the different types that we like. (0:49) Yeah, chocolate chip is always safe.

(0:52) That was just that was actually not to be eaten. (0:54) That was kind of the momentum of a wonderful gentleman named Aaron Ebedes who’s running (0:59) for legislator and the Democrats did a really bad thing and took him out. (1:03) And he should have been there.

(1:05) There’s no doubt about it. (1:06) But anyway, let’s talk about a local because this, you know, interesting enough, Jeff, (1:12) two people I know very well who are both self-made billionaires have to work with the (1:17) government for specific reasons. (1:19) And after she took office the first time, I asked them both, what was your impression? (1:23) And what was interesting to me is they had the exact same response.

(1:27) Both of them said not too smart. (1:32) It was really I’m not kidding. (1:34) It was really interesting because they’re not political people because they can’t be.

(1:40) And so I thought that was very interesting the way they put it. (1:43) So, yeah, let’s talk about the insurance reforms. (1:48) Sure, I’m going to pass on how smart Governor Hochul is or not.

(1:52) But I will bring to your attention, I hope, that what she’s doing or what the intention (1:59) is regarding reforming auto insurance is not too smart because everybody’s against fraud. (2:08) Let’s be clear. (2:09) Fraud is a crime.

(2:11) Trial lawyers do not defend fraud. (2:13) I want everyone just like everyone else who is involved in fraud to be prosecuted and (2:18) put in jail. (2:20) And what this is really about is shifting the burden from mega multibillion dollar insurance (2:30) companies or Uber and ride share programmes like Lyft to taxpayers and the rest of us and (2:38) shifting the burden for who pays for these reforms she has in mind.

(2:42) And that’s not too smart. (2:43) And the impact is going to be on us and not on the people that, quite frankly, are in (2:49) large part supporting Governor Hochul’s campaign, which is now made even easier because Delgado (2:54) has stepped out of the race. (2:56) So we’ve got some real issues as not just trial lawyers, but as paying.

(3:01) You know, I look, I pay for cars and insurance and so do so many others. (3:05) And this is going to shift all of this burden to us so that we can, you know, participate (3:11) in this programme to get rid of fraud when it should be on the insurers themselves. (3:15) And that’s a real problem.

(3:16) Yeah, I mean, I was with Elise Stefanik not long ago, and I’m really disappointed because 

(3:21) she’s an extremely bright, driven woman and really had her pulse on everything. (3:28) It’s too bad. (3:29) I mean, I know what stopped her, but it’s just too bad because I don’t know how this, (3:33) you know, older white guy from Long Island is going to beat her.

(3:36) We have so many people here worried about what the right thing is to say and do and 

(3:39) rather than what’s the right thing to do for the communities. (3:43) So, and this is just, yeah, this is just one of them with car insurance, health insurance, (3:47) what’s happening with medical facilities that have become a socialised medicine. (3:52) I mean, what do you do? 

(3:53) How do you change this when you have a majority that’s leading our state that is not listening (3:58) to anybody that’s saying anything unless they’re part of their party and those people are part (4:02) of their party are afraid to say anything against them to not get reelected.

(4:06) Well, this is the time for us as a community to start making calls to Governor Hochul’s 

(4:11) office, start sending the emails and start lobbying our legislators by going to visit (4:17) their district offices to tell them what’s what, because there’s no question here that (4:22) this is going to hurt people who have been victims of accidents. (4:26) I could give you four categories which Governor Hochul’s interested in changing. (4:33) For example, one is the serious injury standard.

(4:36) Right now, New York has one of the toughest thresholds in the country. (4:39) To make a case for pain and suffering after a crash, you must meet one of nine strict (4:44) categories like death, dismemberment, significant disfigurement, loss of a foetus, or being medically (4:53) unable to perform normal activities for 90 out of 180 days. (4:57) If Governor Hochul changes that, that’s going to hit people the hardest like nurses, teachers, (5:02) and others who can’t do their jobs from a desk.

(5:05) If you’re injured and unable to stay on your feet, missing work to heal, that can cost (5:11) you not just your pay cheque, but your right to recover, and that’s what Hochul wants to (5:14) eliminate. (5:15) Second item, she wants to weaken what’s called joint and several liability. 

(5:19) Right now, if someone’s seriously hurt and multiple parties are responsible, the victim 

(5:24) can recover full damages from the most responsible defendant.

(5:27) That’s what we call joint and several liability. (5:30) If that’s weakened, big corporations pay less, smaller wrongdoers disappear, and the (5:36) injured person is left holding the bag, so to speak. (5:41) The third item, it moves towards what’s called modified contributory negligence.

(5:47) So that would reduce compensation even further if a jury finds a victim partially at fault. 

(5:53) In real life, crashes are complicated. (5:55) Under Governor Hochul’s changes, even someone who’s 90 percent victim could see the recovery (6:01) slashed.

(6:02) That doesn’t fight fraud. (6:03) It reduces justice to real victims. (6:06) And the fourth category, she wants to impose a $100,000 cap, and a hard cap means you could (6:12) lose two arms, two legs, and two heads, and no matter how catastrophic the injury is, (6:16) you’re limited to $100,000.

(6:18) No matter how reckless the conduct, that’s an artificial ceiling. (6:21) Who does that protect? (6:22) It protects insurers, not consumers. (6:26) And that’s four examples, only four, of this double E portion of the budget that the Governor (6:32) is trying to put this through.

(6:34) And notice, she’s not doing it through the legislature, typically where both houses voting 

(6:37) on it. (6:38) Instead, she’s doing it through the budget. (6:40) So this is really problematic, and it’s time for an answer to your question for the community (6:44) to speak up, and that’s why I’m on today as well, to let people know what’s going on.

(6:48) This is so important. (6:49) People need to pay attention to this, because number one, HOCAL couldn’t care less about (6:54) your safety, obviously. (6:56) Nobody in their right mind would even consider a bill like that.

(7:00) Never mind try to pass it without going through the regular, you know, courses that they go (7:04) through. (7:05) You know, I don’t know how- (7:06) Yeah, exactly. (7:07) Yeah, I mean, it just is so obvious to me.

(7:09) The problem is you have people that are apathetic out there that are voting, or listening to 

(7:14) social media, the bane of our existence, and then they go out and tell their friends (7:18) who are in the same mental state, and they all are voting against themselves, and they (7:23) have no idea what they’re doing until it happens, and then they don’t blame the person they 

(7:27) elected. (7:28) If they don’t make change, nothing’s going to change. (7:30) I don’t know how else we do this.

(7:32) Even writing to her, I’ll give you an example. (7:35) A couple of years ago, I had a senator and an assemblyman working with me on making sure (7:40) that all pet shops in New York could not sell dogs, cats, or bunnies. (7:44) They wanted to close the puppy mills.

(7:46) It took me two years to get it done, and then she made a decision, even though it passed 

(7:51) both, that she would give the pet shops two years to get a new business together. (7:56) We don’t worry about the animals that are being decimated in these places, just let’s (8:01) give the pet shop people two years. (8:03) Yeah, I understood.

(8:04) This is her mentality, and this is who people vote for because they vote party instead of 

(8:09) person. (8:09) I don’t know how to change this. (8:12) You know, my grandson, he’s four years old, he had a fork on his tongue the other day, (8:16) and I tried to explain to him what it means when people say you speak with forked tongue, (8:21) talking out of both sides of your mouth.

(8:23) Governor Hochul is talking about affordability, so here’s an example of talking out of both 

(8:29) sides of your mouth. (8:30) Everybody’s latching onto this affordability. (8:32) Of course, everybody’s concerned about affordability because it hits everybody at home in their (8:36) pocketbook and trying to make rent and all the other things that we need to survive every (8:40) day.

(8:40) But if Governor Hochul really wants to talk about affordability, let’s talk about what’s (8:45) driving the rates in New York, which unquestionably are higher than in so many states. (8:51) One of the major factors is what’s called credit-based pricing and zip code underwriting. (8:57) Insurers are allowed to charge people more, tell me if this sounds familiar from so many (9:01) other things that you’ve heard about with banks and loans, based on their credit score, (9:05) where they live, and proprietary algorithmic models.

(9:09) That means two drivers with identical records can pay very different rates depending on 

(9:14) their credit score and where they live. (9:16) Lower income drivers, guess what? (9:19) Often pay more. (9:20) So if we’re serious about affordability, Governor Hochul, let’s examine credit scoring, algorithmic (9:26) pricing, profit margins, executive compensation, and rate approval practises, not weaken the (9:34) rights of somebody who’s devastated by a car accident.

(9:36) Yeah, I mean, it’s so obvious. (9:38) This is why, you know, when people say she’s not so smart, she’s not making decisions based (9:43) on anything she understands at all. (9:45) Like when she got interviewed when she was running on a New York City station, and the (9:50) woman who was interviewing her said, you know, talked about the dangers of being on subways 

(9:53) now.

(9:54) And I lived in the city most of my adult life, and I had no problem, but that was years ago. 

(9:59) Now it’s a real major issue. (10:01) And her remark was, I just took the subway here this morning, everything was just fine.

(10:04) And the reporter, exactly what the reporter said. (10:13) How many Secret Service agents did you have with you? (10:16) You know, it’s just right. (10:17) She lives in this world of like, I have no idea, but I’m going to do what I’m told.

(10:22) It’s the democratic way now. (10:23) Somebody texted and we have texting in the newsroom. (10:26) Trial lawyers don’t defend fraud.

(10:28) Democrats do. (10:30) Absolutely. (10:32) Don’t defend fraud.

(10:34) Democrats do. (10:36) Yeah, listen, I don’t know how anybody with a straight face can afford, you know, whatever (10:41) you want to call it. (10:42) Defending fraud is is wrong.

(10:44) You know, these cases, they just make my blood boil, as well as any good trial lawyer that (10:50) I know that they do damage to the entire profession. (10:53) We walk into a jury room and we start talking to people. (10:56) We have to start out from behind the eight ball because jurors are already thinking, oh, (11:01) maybe this is one of these fraud cases.

(11:03) But most times jurors do the right thing. (11:05) And if you talk to them about your case, they put that aside and they say, oh, I see this (11:09) is not a fraud case. (11:10) So where there is fraud, we’re the first ones to run to the D.A., the district attorney (11:15) and to prosecutors and to make them aware of it.

(11:18) We don’t want this in our profession any more than you than you want unethical or unsophisticated (11:23) people running radio programmes. (11:25) So, I mean, we’re 100 percent against fraud. (11:30) Fraud is a crime.

(11:31) We want to prosecute it just like everybody else. (11:33) OK, let me remind our listeners we’re talking with Jeff Korek, who’s a past president (11:37) of New York State Trial Lawyers Association and 40 years of experience and lawyer of the (11:43) year in New York City under best lawyers three times for product liability litigation and (11:47) medical malpractice and personal injury. (11:50) Where in the city are you? (11:53) We’re downtown Manhattan by Wall Street and Broad, right next to Trinity Church.

(12:00) Oh, I know the base of Wall Street and Broadway. (12:03) Yeah. (12:03) And how often are the cemetery where Alexander Hamilton was buried? (12:08) Green is agreements.

(12:09) What’s an agreement? (12:10) Cemetery is it? (12:11) I’m trying to remember the name of the cemetery. (12:13) Trinity Church Cemetery. (12:14) Oh, it’s the one with the church.

(12:15) Right. (12:16) And I’m sure you go to Delmonico’s for dinner on occasion. (12:20) Yeah, that goes back.

(12:21) That goes back a long time when decisions were made by all white men sitting at a table 

(12:25) 100 years ago. (12:26) But yeah, Delmonico’s has been here a long time. (12:28) Yeah, amazingly.

(12:31) So what tell people what they can do? (12:33) Because otherwise, they’re all going to be everybody who’s listening right now, your (12:37) family, your friends, everybody, you know, is going to be highly affected by this. (12:41) Because there are car accidents. (12:43) There’s nothing I can say to stop them.

(12:45) There are car accidents. (12:47) And so if you want. (12:48) And there are people who are devastated families that are ruined.

(12:51) And what what your listeners need to do is get on the phones. (12:55) Number one, two emails and three and probably most important, make an appointment to go (13:00) see your local legislator, whether it’s your assembly person, your congressperson, whoever (13:05) it might be, and let them know how you feel about this particular issue. (13:10) And don’t be fooled by the commercials that are being run by the ride share programmes like (13:16) Uber all over TV that are coming soon and are already on the airwaves and the different (13:21) pieces, op ed pieces that are coming out.

(13:23) There are many against it that are telling the truth. (13:26) But Uber has a significant stake in all this. (13:29) And let’s not be fooled either.

(13:32) Uber is no longer, you know, should be thought of as the person picking you up at the airport. (13:37) Instead, Uber is a multibillion dollar international company that has every motive to see if they (13:45) can lessen what gets paid out if one of their drivers gets into an accident. 

(13:49) That’s not protecting the driver or the victim.

(13:51) It’s protecting Uber, the company. (13:53) That’s correct. (13:54) Well, somebody just texted in.

(13:55) God forbid you get hurt and end up with lifelong disability. (13:58) How do you limit the cost of that? (14:00) That expenses alone could bankrupt you. (14:02) No doubt.

(14:03) We’ve seen it with medical insurance also. (14:05) Same thing. (14:07) How would you like to be told that the highest you can get, no matter what happens, is $100,000 (14:11) cap? 

(14:12) That’s what Governor Hochul has in mind.

(14:13) I don’t understand how that helps the little guy. (14:16) All it does is help the insurance companies and help Uber and the ride share programmes. (14:20) Now, how are you getting out information besides doing these interviews? (14:24) Because you really deem to do this en masse, because I was not even aware of this.

(14:28) And I’m pretty aware of everything that’s going on politically. (14:31) So this is… (14:33) Yeah, unfortunately, the trial lawyers, no matter what the image may be, don’t have the (14:37) money to compete with an Uber, because that’s a multibillion dollar company. (14:41) And we are, in part, funded by our members and by good government groups.

(14:50) I know the Centre for Justice and Democracy recently put out studies, and there are other (14:55) studies that are trying to get to the bottom of this. (14:58) And believe it or not, we are making district visits and talking to legislators, particularly (15:04) in the Assembly and the State Senate, who understand the issue and are looking to us (15:09) to provide information. 

(15:11) So you’re out there lobbying? (15:12) Yeah.

(15:12) Good. (15:13) Yeah, but if it gets done through the budget, all the lobbying in the world won’t help, (15:17) because this can be done unilaterally. (15:19) Let me explain this to the listening audience.

(15:21) I know this as inside. (15:23) Republicans have told me that when you go up there and you want to get a bill passed, (15:27) what they do is they stick it in everything they want. 

(15:30) And they tell you, if you want your bill passed, you got to say yes to everything is in that 

(15:35) bill.

(15:35) This is the game playing that goes on up there. (15:37) So folks, you’re not going to see it separately, because they want this passed. (15:42) She obviously has some kind of deal with insurance companies.

(15:46) It’s so blatant. (15:48) There’s no other reason. (15:49) You can’t be that stupid.

(15:51) There’s no other reason that she would even consider something like this unless she has (15:55) some kind of hand in it. (15:57) It’s just mind-boggling to me. (15:59) Could you do me a favour and send a press release to me so I can get it out to all the media (16:03) I deal with? (16:05) We will absolutely do that.

(16:07) And I appreciate you asking me that. (16:09) Yeah, thank you. (16:09) Yeah, my pleasure, because this is for the people, and that’s what we’re here for.

(16:13) We’re the number one community radio station because we believe in all our communities, (16:17) New York and New Jersey. (16:18) And so this is really important for people to hear. (16:21) Don’t listen to the rhetoric and the advertising.

(16:23) These are people paying for things to change your mind. (16:26) We’re going to give you the facts. (16:27) And guess what? (16:28) The trial lawyers, you know, again, notwithstanding the fact that people hear trial lawyers and (16:32) they already have their own images.

(16:33) But the fact is Uber is not coming to us for help. (16:37) Rideshare programmes, corporations. (16:39) The people we represent are the community, the people who work, nurses, doctors, teachers, (16:44) and others who come to us.

(16:45) Those are the clients. (16:47) And so that’s who we’re trying to at least get the word out for on their behalf. (16:51) Trial lawyers are doing okay.

(16:52) It’s a question of helping the people that we represent. (16:56) You have anything to ask, Neil, or comment? (16:58) No, we’re just pretty well covered. (17:00) Yeah, it’s terrible.

(17:01) It really is. (17:02) Give me back those cookies or they’re terrible. (17:04) That’s my last word.

(17:06) That’s all I can say. (17:06) Listen, he’s living on a prayer right now. (17:10) The only thing I was going to ask about, Jeff, if I take that six-month-old cookie (17:15) and throw it at Taylor and hit her, will you represent me in court? (17:18) No, he just heard you.

(17:19) Not a chance. (17:21) He’s a very smart lawyer. (17:23) I guess I’ll wait on that then.

(17:26) Just keep in mind, Frank, you also have to live with me. (17:28) There you go. (17:30) So that could be a problem.

(17:32) Jeff, thank you so much for fighting the good fight. (17:35) Keep it up. (17:35) We’ll have you on again, and I will make sure that press release gets out to all the media (17:39) I’m involved with.

(17:41) Very important. (17:42) Somebody actually just texted in and said, thank you for all the valuable information (17:48) about the insurance industry. (17:50) I had no idea this was going on.

(17:52) I’m sure I can’t be the only one. (17:54) Well, that’s absolutely true, and we’re going to try to change that. (17:56) That’s great.

(17:56) Yeah, love it. (17:57) That’s great. (17:58) Thanks to both of you, really, for getting the word out and for having guests like me (18:02) on.

(18:02) I think this is really important. (18:03) I agree. (18:04) Protecting, as I said, so many people.

(18:07) So thank you. (18:08) Yeah, listen, we’re a real radio station. (18:11) So we also have 6,000 Billboard charted songs in our rotation.

(18:14) Nobody does that. (18:16) So what we are is radio that wants to actually be part of the community. (18:20) So that means giving you information that actually helps you.

(18:23) Try that. (18:25) So yeah, we’re there. (18:27) Excellent.

(18:27) Yeah. (18:27) So Jeff, definitely we’ll be talking to you again. (18:30) Do you know when this is going to be voted on? (18:33) This is all going down in the next few weeks because this governor’s got a budget, and (18:37) she’s trying to, forgive my language, but sneak it into the budget.

(18:42) But that’s exactly what’s going on without the public or the Assembly or the Senate really (18:46) getting a chance to weigh in on it. (18:50) Our assemblyman is going to be there. 

(18:51) It’s our responsibility to fight it.

(18:53) Yeah. (18:53) We’ll talk to Carl on Friday. (18:55) Our assemblyman comes in every Friday to be on the air with us.

(18:57) We have a lot of… (18:58) That’s great. (18:59) Yeah. (18:59) We have a lot of political elected officials on the air with us every day.

(19:03) So we will be definitely coming after him to make sure that he gets this stuff. (19:07) I don’t know how he can. (19:08) Yeah, because he’s a Republican.

(19:10) Exactly. (19:11) Well, we’ll figure it out. (19:14) They’re not completely without their power to influence the governor.

(19:18) And if she’s listening or cares, she’ll pay attention, hopefully. (19:22) Yeah. (19:22) Somebody said it’s insane.

(19:23) Somebody texted this in just now. (19:25) It’s insane when a pickup truck cost is up to 100 grand. (19:29) So your quality of life has less monetary value than the pickup.

(19:33) Wow. (19:33) Wow. (19:34) Yeah, that’s right.

(19:35) Putting it in perspective. (19:36) That’s a good comment. (19:37) That’s a great comparison.

(19:38) We have very smart listeners, by the way, Jeff. (19:40) We do. (19:40) They’re smarter than us.

(19:41) Yeah, that’s for sure. (19:43) They’re listening to us. (19:45) That’s right.

(19:45) Well, we appreciate you coming on the air. (19:46) Thank you, Jeff. (19:47) Keep up the great fight.

(19:49) Yep. (19:50) Great. (19:50) Thanks so much for having me on.

(19:52) Thank you. (19:52) Good luck to both of you. (19:53) Thank you.

(19:53) You too. (19:54) Bye-bye.

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