Otto Kurcsics v. Merchants Mutual Insurance Company

This appeal raises a question of first impression in this court concerning the construction of the phrase "first party benefits" as used in article 18 of the Insurance Law (§§ 670-678), New Yorks Comprehensive Automobile Insurance Reparations Act, which provides no-fault insurance protection to "covered persons". Specifically, we are asked to decide whether a covered person who has sustained lost earnings in excess of $1,000 per month is entitled to recover as first-party benefits 80% of actual lost earnings with a maximum limitation of $1,000 per month, or, whether, such persons recovery is limited to only $800 per month as first-party benefits, such figure representing 80% of actual earnings "up to one thousand dollars per month."