S T A T E O F N E W Y O R K
________________________________________________________________________
3653
2009-2010 Regular Sessions
I N A S S E M B L Y
January 27, 2009
___________
Introduced by M. of A. OAKS, ERRIGO, KOLB, MOLINARO, WALKER -- Multi-
Sponsored by -- M. of A. BACALLES, CROUCH, McDONOUGH -- read once and
referred to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to notices of
termination for policies of liability insurance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 313 of the vehicle and traffic
law, as amended by chapter 678 of the laws of 1997 and paragraphs (a),
(b) and (d) as amended by chapter 509 of the laws of 1998, is amended to
read as follows:
2. (a) Upon the termination of an owner's policy of liability insur-
ance, other than an owner's policy of liability insurance for a motorcy-
cle, at the request of the insured or by cancellation by the insurer,
the insurer shall file a notice of termination with reference to such
policy, as opposed to any insured vehicle or vehicles under such policy,
with the commissioner not later than thirty days following the effective
date of such cancellation or other termination, in accordance with the
regulations required by paragraph (c) of this subdivision. An insurer
shall not file a notice of termination with the commissioner except as
required by this subdivision.
(b) Upon the issuance of an owner's policy of liability insurance the
insurer shall file a notice or confirmation of issuance with reference
to such policy not later than fourteen days following the effective date
of such issuance, and not later than seven days following the effective
date for policies issued after January first, two thousand one, in
accordance with the regulations required by paragraph (c) of this subdi-
vision.
(c) The commissioner shall promulgate regulations establishing proce-
dures for issuance of proof of insurance and for reporting by insurers
of notices of termination and policy issuance, either electronically or
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06196-01-9
A. 3653 2
by paper copy, at the option of the department. Such reporting shall be
required for every cancellation or termination which is effective on or
after July first, nineteen hundred eighty-four and for every policy
issuance which is effective on or after January first, two thousand;
provided, however, that should the commissioner find, after testing of
reporting procedures, that it would be feasible to require reporting for
policy cancellations, terminations or issuances effective on an earlier
date, he may by regulation so require reporting on such earlier date,
but in no event shall reporting be required for cancellations or termi-
nations effective prior to February first, nineteen hundred eighty-four
nor for policy issuances effective prior to September first, nineteen
hundred ninety-nine. Insurers shall cooperate fully with the commission-
er in any such testing of reporting procedures.
(d) Upon application by an insurer, the commissioner may extend the
period for filing of notices of termination by such insurer for up to
fifteen days, and for seven days for policies issued by an insurer.
Extensions shall not be granted unless the insurer demonstrates to the
satisfaction of the commissioner that compliance with the notice period
would result in substantial hardship to the insurer. The commissioner
shall maintain a list of extensions granted pursuant to this paragraph.
(E) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THIS
SUBDIVISION SHALL BE APPLICABLE TO ALL VEHICLES, INCLUDING SNOWMOBILES,
WHICH ARE INSURED OR COVERED UNDER AN OWNER'S POLICY OF LIABILITY INSUR-
ANCE.
S 2. Subdivision 2 of section 313 of the vehicle and traffic law, as
amended by chapter 1025 of the laws of 1971, is amended to read as
follows:
2. Upon the termination of insurance by cancellation or failure to
renew, notice of such cancellation or other termination shall be filed
by the insurer with the commissioner not later than thirty days follow-
ing the effective date of such cancellation or other termination.
However, no insurer shall be required to file a notice of cancellation
or other termination under this paragraph where the insurer has been
advised by the commissioner that such insurance has been superseded by
another insurance contract which took effect at or prior to the time at
which the termination became effective, or where the insured has surren-
dered his registration certificate and number plates to the commissioner
and has delivered to the insurer a copy of the notice indicating surren-
der at or prior to the time at which the termination became effective.
NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THIS
SUBDIVISION SHALL BE APPLICABLE TO ALL VEHICLES, INCLUDING SNOWMOBILES,
WHICH ARE INSURED OR COVERED UNDER AN OWNER'S POLICY OF LIABILITY INSUR-
ANCE.
S 3. This act shall take effect immediately; provided, however, that
the amendments to subdivision 2 of section 313 of the vehicle and traf-
fic law made by section one of this act shall be subject to the expira-
tion and reversion of such subdivision pursuant to section 12 of chapter
569 of the laws of 1981, as amended, and section 15 of chapter 781 of
the laws of 1983, as amended, when upon such date the provisions of
section two of this act shall take effect.