S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    895
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation  to  group  policies  for
   certain  motor  vehicles engaged in the business of carrying or trans-
   porting passengers for hire

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3457 of the insurance law, as added by a chapter of
 the  laws of 2020, amending the insurance law relating to group policies
 for motor vehicles engaged in the business of carrying and  transporting
 passengers  for-hire,  as  proposed in legislative bills numbers S. 8437
 and A. 9761-A, is amended to read as follows:
   § 3457. [Group fleet policy for motor vehicles engaged in the business
 of carrying or transporting passengers for-hire. (a) (i)  Every  author-
 ized  insurer  that issues or issues for delivery in this state a policy
 of commercial risk insurance  insuring  against  losses  or  liabilities
 arising  out  of  the  ownership,  operation, or use of a motor vehicle,
 shall establish and offer a group  fleet  policy  insuring  against  the
 losses  or  liabilities  arising  out of the ownership of motor vehicles
 engaged in the business of carrying or transporting passengers for-hire,
 having a seating capacity of not less than eight passengers. Such  group
 fleet  policy  shall  provide coverage for more than one vehicle through
 one policy. Such group fleet policies shall  be  subject  to  all  laws,
 rules  and  regulations applicable to policies of commercial risk insur-
 ance insuring against losses or liabilities arising out  of  the  owner-
 ship,  operation,  or  use of a motor vehicle engaged in the business of
 carrying or transporting passengers for-hire, having a seating  capacity
 of  not  less  than eight passengers, including but not limited to laws,
 rules and regulations  establishing  financial  responsibility  require-
 ments.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07189-01-1

 S. 895                              2

   (ii)  For  the  purpose  of this section, a "group fleet policy" shall
 mean, a policy issued by an authorized insurer in  this  state  insuring
 against  losses  or  liabilities arising out of ownership, operation, or
 use of a motor vehicle engaged in the business of carrying or transport-
 ing  passengers  for-hire,  having  a  seating capacity of not less than
 eight passengers, and such policy shall cover more than one vehicle.
   (b) The group fleet policy may be issued to:
   (i) Any person, firm, association, corporation or other  entity  which
 shall  be deemed the policyholder, where the policy insures the for-hire
 motor vehicles owned by such person, firm, association,  corporation  or
 other entity; or
   (ii) An association where such association shall be deemed the policy-
 holder;  where all the eligible members of the association have the same
 profession, trade, or occupation, and the association has been organized
 and maintained in good faith for purposes principally other than that of
 obtaining insurance, and has been in active existence for at  least  two
 years, and where the policy insures the members of the association.
   (c)  An  authorized  insurer issuing policies pursuant to this section
 shall provide a multiple vehicle reduction based on the number of  motor
 vehicles that will be covered under such policy. Such reduction shall be
 based   on   actuarially  appropriate  reductions  as  provided  for  in
 subsection (e) of this section. Each insurer required  to  provide  such
 reduction shall submit a report to the superintendent at the end of each
 calendar  year  identifying  the  number  of  policies eligible for such
 discount and the number of policies to  which  such  discount  has  been
 applied.
   (d)  A  member of an association shall not be deemed to be an employee
 of such association solely because such member is covered under a  group
 fleet policy issued to an association pursuant to this section.
   (e)  Authorized  insurers  required  to establish group fleet policies
 pursuant to this section shall make such policies available for purchase
 no later than January first, two thousand twenty-one.
   (f) The superintendent shall provide for  an  actuarially  appropriate
 reduction  in the rates of premiums for commercial risk insurance appli-
 cable to motor vehicles engaged in the business of  carrying  or  trans-
 porting  passengers for-hire, having a seating capacity of not less than
 eight passengers, for policies that provide coverage for multiple  vehi-
 cles.  Nothing  in  this  section  shall  be  construed to authorize any
 increase in premium rates for any other policy issued by such authorized
 insurer as a result of any group fleet policy premium rate.
   (g) The superintendent may promulgate any rules and regulations neces-
 sary to implement the provisions of this section.]
   GROUP INSURANCE POLICIES FOR CERTAIN FOR HIRE MOTOR VEHICLES.  (A) FOR
 PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
   (1) "CERTIFICATE" OR "CERTIFICATE  OF  INSURANCE"  MEANS  ANY  POLICY,
 CONTRACT  OR OTHER EVIDENCE OF INSURANCE, OR ENDORSEMENT THERETO, ISSUED
 TO A GROUP MEMBER UNDER A FOR HIRE MOTOR VEHICLE GROUP POLICY.
   (2) "FOR HIRE MOTOR  VEHICLE"  OR  "VEHICLE"  MEANS  A  MOTOR  VEHICLE
 ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE,
 HAVING  A  SEATING CAPACITY OF NOT LESS THAN EIGHT PASSENGERS, EXCLUDING
 THE DRIVER.
   (3) "FOR HIRE MOTOR VEHICLE GROUP POLICY" OR "GROUP  POLICY"  MEANS  A
 GROUP  POLICY, INCLUDING CERTIFICATES ISSUED TO THE GROUP MEMBERS, WHERE
 THE GROUP POLICY PROVIDES INSURANCE TO THE GROUP  MEMBERS  OR  BOTH  THE
 GROUP  POLICYHOLDER AND THE GROUP MEMBERS OF THE TYPE DESCRIBED IN PARA-

 S. 895                              3

 GRAPH TWELVE, THIRTEEN, FOURTEEN,  OR  NINETEEN  OF  SUBSECTION  (A)  OF
 SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER.
   (4) "GROUP MEMBER" MEANS THE OWNER OF A FOR HIRE MOTOR VEHICLE.
   (5) "GROUP POLICYHOLDER" MEANS A SPONSORING ENTITY.
   (6)  "OWNER"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN SECTION ONE
 HUNDRED TWENTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW.
   (7) "SPONSORING ENTITY" MEANS:
   (A) AN ASSOCIATION OR OTHER ORGANIZATION, OR A TRUSTEE OR TRUSTEES  OF
 A  FUND  ESTABLISHED,  CREATED,  OR MAINTAINED FOR THE BENEFIT OF ONE OR
 MORE ASSOCIATIONS OR OTHER ORGANIZATIONS, WHERE ALL THE ELIGIBLE MEMBERS
 OF THE ASSOCIATION OR ASSOCIATIONS OR OTHER  ORGANIZATION  OR  ORGANIZA-
 TIONS  HAVE  THE  SAME PROFESSION, TRADE, OR OCCUPATION, AND THE ASSOCI-
 ATION OR ASSOCIATIONS OR OTHER ORGANIZATION OR ORGANIZATIONS  HAVE  BEEN
 ORGANIZED  AND  MAINTAINED  IN GOOD FAITH FOR PURPOSES PRINCIPALLY OTHER
 THAN THAT OF OBTAINING INSURANCE, AND HAVE BEEN IN ACTIVE EXISTENCE  FOR
 AT LEAST TWO YEARS;
   (B)  AN  ENTITY  THAT  OWNS FOR HIRE MOTOR VEHICLES AND LEASES THEM TO
 DRIVERS; OR
   (C) ANY OTHER ENTITY WHERE THE  SUPERINTENDENT  HAS  DETERMINED  IN  A
 REGULATION  THAT THE MEMBERS ARE ENGAGED IN A COMMON ENTERPRISE, OR HAVE
 AN ECONOMIC OR SOCIAL AFFINITY OR RELATIONSHIP, AND THAT THE ISSUANCE OF
 THE GROUP POLICY WOULD NOT BE CONTRARY TO  THE  BEST  INTERESTS  OF  THE
 PUBLIC.
   (B)  AN  AUTHORIZED  INSURER  MAY  ISSUE OR ISSUE FOR DELIVERY IN THIS
 STATE A GROUP POLICY TO A SPONSORING ENTITY AS A GROUP POLICYHOLDER ONLY
 IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
   (C)(1) A GROUP POLICY SHALL PROVIDE COVERAGE IN  SATISFACTION  OF  THE
 FINANCIAL  RESPONSIBILITY  REQUIREMENTS SET FORTH IN SECTION THREE THOU-
 SAND FOUR HUNDRED TWENTY OF THIS ARTICLE, SECTION THREE HUNDRED  SEVENTY
 OF  THE  VEHICLE AND TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND
 SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR  THE  PURPOSES
 OF  SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO
 THE USE OR OPERATION OF A FOR HIRE MOTOR VEHICLE.
   (2) A GROUP POLICY MAY PROVIDE:
   (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
 ANT TO SECTION THREE HUNDRED SEVENTY OF THE VEHICLE AND TRAFFIC LAW  AND
 PARAGRAPH  TWO  OF SUBSECTION (F) OF SECTION THREE THOUSAND FOUR HUNDRED
 TWENTY OF THIS ARTICLE;
   (B) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE  PURSUANT  TO  SUBSECTION
 (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE; AND
   (C)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
 NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
 OF THIS CHAPTER.
   (3)  A  GROUP  POLICY,  INCLUDING  CERTIFICATES, SHALL BE ISSUED BY AN
 AUTHORIZED INSURER.
   (4) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
   (D) THE PREMIUM FOR THE GROUP POLICY, INCLUDING CERTIFICATES,  MAY  BE
 PAID  BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED WHOLLY BY THE
 GROUP MEMBERS OR  JOINTLY  BY  THE  GROUP  POLICYHOLDER  AND  THE  GROUP
 MEMBERS.
   (E)  EACH  POLICY  WRITTEN  PURSUANT TO THIS SECTION SHALL PROVIDE PER
 OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER  IN  AN  AMOUNT  NOT
 LESS  THAN  THAT  REQUIRED  BY THIS ARTICLE AND MAY PROVIDE COVERAGE FOR
 LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSUANT TO LAW.
   (F)(1) THE INSURER SHALL BE RESPONSIBLE FOR MAILING OR DELIVERY  OF  A
 CERTIFICATE  OF  INSURANCE  TO EACH GROUP MEMBER INSURED UNDER THE GROUP

 S. 895                              4

 POLICY. THE INSURER SHALL ALSO BE RESPONSIBLE FOR THE MAILING OR  DELIV-
 ERY  TO  EACH  GROUP  MEMBER  OF  AN AMENDED CERTIFICATE OF INSURANCE OR
 ENDORSEMENT TO THE CERTIFICATE WHENEVER THERE IS  A  CHANGE  IN  LIMITS,
 CHANGE  IN  TYPE  OF  COVERAGE,  ADDITION,  REDUCTION, OR ELIMINATION OF
 COVERAGE OR ADDITION OF AN EXCLUSION, UNDER THE GROUP POLICY OR  CERTIF-
 ICATE.
   (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
 CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE GROUP POLI-
 CY IS INCORPORATED BY REFERENCE AND A COPY OF THE GROUP POLICY  ACCOMPA-
 NIES THE CERTIFICATE.
   (G)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
 TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
 AS  AN  INSURANCE AGENT OR INSURANCE BROKER, IN ANY ADVERTISEMENT, SIGN,
 PAMPHLET, CIRCULAR, CARD, OR  OTHER  PUBLIC  ANNOUNCEMENT  REFERRING  TO
 COVERAGE UNDER A GROUP POLICY OR CERTIFICATE.
   (H) A GROUP POLICY SHALL NOT BE SUBJECT TO SECTION THREE THOUSAND FOUR
 HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF
 THIS  ARTICLE, PROVIDED THAT THE FOLLOWING REQUIREMENTS SHALL APPLY WITH
 REGARD TO TERMINATION OF COVERAGE:
   (1) AN INSURER MAY CANCEL  A  GROUP  POLICY  OR  CERTIFICATE  ONLY  IF
 CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
 AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
 (C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
 PROVIDED, HOWEVER, THAT:
   (A) AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE  IF  THE  DRIVER'S
 LICENSE  OF THE GROUP MEMBER INSURED UNDER THAT CERTIFICATE IS SUSPENDED
 OR REVOKED DURING THE PERIOD OF COVERAGE, OTHER THAN A SUSPENSION ISSUED
 PURSUANT TO SUBDIVISION ONE OF SECTION FIVE HUNDRED TEN-B OF THE VEHICLE
 AND TRAFFIC LAW OR ONE OR MORE ADMINISTRATIVE SUSPENSIONS  ARISING  FROM
 THE  SAME  INCIDENT THAT HAS OR HAVE BEEN TERMINATED PRIOR TO THE EFFEC-
 TIVE DATE OF THE CANCELLATION; AND
   (B) AN ACT OR OMISSION BY A GROUP MEMBER  THAT  WOULD  CONSTITUTE  THE
 BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT CONSTITUTE
 THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
   (2) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIF-
 ICATES,  SHALL  NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER
 MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO  THE  GROUP  POLICY-
 HOLDER  AT  THE  MAILING  ADDRESS SHOWN IN THE POLICY. THE INSURER SHALL
 ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY,
 INCLUDING ALL CERTIFICATES, TO THE GROUP MEMBER AT  THE  GROUP  MEMBER'S
 MAILING  ADDRESS.    SUCH  CANCELLATION SHALL NOT BECOME EFFECTIVE UNTIL
 THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS THE  WRITTEN  NOTICE  TO
 THE GROUP MEMBER.
   (3)(A)  A  GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
 CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE,  FOR  ANY  REASON  UPON  AT
 LEAST  THIRTY  DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER;
 AND
   (B) THE GROUP POLICYHOLDER SHALL MAIL OR  DELIVER  WRITTEN  NOTICE  TO
 EACH  AFFECTED  GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF
 THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF  CANCELLATION.
 THE  GROUP  POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE
 GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE  EFFEC-
 TIVE DATE OF CANCELLATION.
   (4)(A)  UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
 POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED  FOR  A  ONE-YEAR
 POLICY PERIOD.

 S. 895                              5
 
   (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
 AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
 GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
   (I)  THE  INSURER  MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
 GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL OR CONDITIONAL RENEWAL; AND
   (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST  SIXTY,
 BUT  NOT MORE THAN ONE HUNDRED TWENTY DAYS, PRIOR TO THE EXPIRATION DATE
 SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE  NEXT  ANNIVER-
 SARY DATE OF THE POLICY.
   (5)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
 SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION,  NONRE-
 NEWAL, OR CONDITIONAL RENEWAL AND THE INSURER SHALL ALSO MAIL OR DELIVER
 THE NOTICE TO THE INSURANCE PRODUCER THAT PROCURED THE GROUP POLICY WHEN
 THE  GROUP  POLICY  AND  ANY  CERTIFICATES ARE CANCELLED, NONRENEWED, OR
 CONDITIONALLY RENEWED.
   (6)(A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL, OR
 CONDITIONAL RENEWAL OF THE GROUP POLICY, OR CANCELLATION  OF  A  CERTIF-
 ICATE,  WHETHER  INITIATED  BY THE INSURER, GROUP POLICYHOLDER, OR GROUP
 MEMBER IN REGARD TO THE GROUP MEMBER'S  CERTIFICATE,  COVERAGE  ATTACHES
 PURSUANT  TO  THE  TERMS OF THE GROUP POLICY, THEN THE COVERAGE SHALL BE
 EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED
 IN THE GROUP POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR
 CONDITIONAL NONRENEWAL OF THE GROUP POLICY.
   (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
 TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
 OF  CANCELLATION  IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
 PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
   (I) AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE  IN  A
 POLICY  THAT  PROVIDES  FINANCIAL  RESPONSIBILITY  COVERAGE  UNDER  THIS
 SECTION, EXCEPT AS PERMITTED IN SECTION FIVE THOUSAND ONE  HUNDRED  FIVE
 OF THIS CHAPTER.
   (J)  THE SUPERINTENDENT MAY PROMULGATE REGULATIONS PERTAINING TO A FOR
 HIRE  MOTOR  VEHICLE  GROUP  POLICY,  INCLUDING  REGULATIONS   REGARDING
 PAYMENTS  OF  DIVIDENDS OR RETROSPECTIVE PREMIUM REFUNDS, MINIMUM NUMBER
 OF GROUP MEMBERS, AND OTHER REASONABLE LIMITATIONS.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the laws of 2020, amending the insurance law
 relating to group policies for motor vehicles engaged in the business of
 carrying and transporting passengers for-hire, as proposed  in  legisla-
 tive bills numbers S. 8437 and A. 9761-A, takes effect.