Senate Bill S1700B

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1700

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 5, 2009
                               ___________

Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to prohibiting surcharges
  for certain automobile accidents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 2335 of the insurance law, subsection (c) as added
by chapter 747 of the laws of 1990 and as relettered by chapter  152  of
the laws of 1998, is amended to read as follows:
  S  2335.  Motor  vehicle  liability  insurance  rates;  prohibition of
surcharges for certain ACCIDENTS AND  traffic  infractions.  No  insurer
authorized  to  transact  or  transacting  business  in  this  state, or
controlling or controlled by or under  common  control  by  or  with  an
insurer  authorized  to  transact or transacting business in this state,
which sells a policy providing motor vehicle liability insurance  cover-
age  in  this state shall increase the policy premium in connection with
the insurance permitted or required by this chapter solely  because  the
insured  or  any  other  person  who  customarily operates an automobile
covered by the policy:
  (a) HAS HAD AN ACCIDENT THAT DOES NOT RESULT IN  AGGREGATE  DAMAGE  TO
PROPERTY  IN  EXCESS  OF  TWO  TIMES  THE  DOLLAR AMOUNT OF THE ACCIDENT
REPORTING THRESHOLD OF THE DEPARTMENT OF MOTOR VEHICLES AS PROVIDED  FOR
IN  PARAGRAPH  ONE OF SUBDIVISION (A) OF SECTION SIX HUNDRED FIVE OF THE
VEHICLE AND TRAFFIC LAW.
  (B) has been found guilty of a traffic infraction  under  any  of  the
provisions  of  the vehicle and traffic law provided, however, that this
provision shall not apply to a conviction for a violation which occurred
during the thirty-six month period ending on the last day of the  fourth
month  preceding  the  month of the effective date of the policy if such
conviction consisted of:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04195-01-9

              

S. 1700                             2

  (1) operating a motor vehicle at a speed of more  than  fifteen  miles
per hour in excess of the legal limit;
  (2)  operating  a  motor vehicle in excess of the speed limit, or in a
reckless manner, where injury or death results therefrom;
  (3) operating a motor vehicle in excess of the speed limit,  or  reck-
less driving, or any combination thereof, on three or more occasions;
  (4)  operating  a  motor  vehicle while intoxicated or impaired by the
consumption of alcohol;
  (5) operating a motor vehicle while impaired by the  use  of  a  drug,
within the meaning of section one thousand one hundred ninety-two of the
vehicle and traffic law;
  (6) homicide or assault arising out of the use or operation of a motor
vehicle, or criminal negligence in the use or operation of a motor vehi-
cle resulting in the injury or death of another person, or use or opera-
tion  of  a  motor vehicle directly or indirectly in the commission of a
felony;
  (7) operating a motor vehicle while seeking to avoid  apprehension  or
arrest by a law enforcement officer;
  (8)  filing  or  attempting  to  file a false or fraudulent automobile
insurance claim, or knowingly  aiding  or  abetting  in  the  filing  or
attempted filing of any such claim;
  (9) leaving the scene of an incident without reporting;
  (10) filing a false document with the department of motor vehicles, or
using a license or registration obtained by filing a false document with
the department of motor vehicles;
  (11) operating a motor vehicle in a race or speed test;
  (12) knowingly permitting or authorizing an unlicensed driver to oper-
ate a motor vehicle insured under the policy;
  (13)  operating  a  motor  vehicle  insured under the policy without a
valid  license  or  registration  in  effect,  except  when  the  person
convicted  had  possessed  a  valid  license  or  registration which had
expired and was subsequently renewed, or during a period  of  revocation
or  suspension thereof, or in violation of the limitations applicable to
a license issued pursuant to article twenty-one or article  twenty-one-a
of the vehicle and traffic law; or
  (14) two or more moving violations of any other provision of the vehi-
cle and traffic law;
  [(b)] (C) has had a temporary suspension of a driver's license pending
a hearing, prosecution or investigation or an indefinite suspension of a
driver's  license  which  is issued because of the failure of the person
suspended to perform an act, which suspension will be terminated by  the
performance of the act by the person suspended, or has had more than one
such temporary or indefinite suspension arising out of the same incident
issued  against  him  or  her, provided that the foregoing provisions of
this section shall not apply if such suspension or  suspensions  has  or
have  not been terminated on or before the effective date of the policy;
or
  [(c)] (D) with respect to a non-commercial private  passenger  automo-
bile  insurance policy, has had an accident while operating a commercial
vehicle in the course of employment and in the discharge of the  employ-
ee's  duties  at the time of the accident, unless the accident is deter-
mined to have been caused by the intentional action or gross  negligence
of the insured.
  S  2.  This act shall take effect immediately provided that the amend-
ments to section 2335 of the insurance law made by section one  of  this
act shall expire on the same date as such section expires.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1700--A
    Cal. No. 746

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 5, 2009
                               ___________

Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance  --  recommitted
  to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
  -- reported favorably from said committee, ordered to first and second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

AN ACT to amend the insurance law, in relation to prohibiting surcharges
  for certain automobile accidents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 2335 of the insurance law, subsection (c) as added
by chapter 747 of the laws of 1990 and as relettered by chapter  152  of
the laws of 1998, is amended to read as follows:
  S  2335.  Motor  vehicle  liability  insurance  rates;  prohibition of
surcharges for certain ACCIDENTS AND  traffic  infractions.  No  insurer
authorized  to  transact  or  transacting  business  in  this  state, or
controlling or controlled by or under  common  control  by  or  with  an
insurer  authorized  to  transact or transacting business in this state,
which sells a policy providing motor vehicle liability insurance  cover-
age  in  this state shall increase the policy premium in connection with
the insurance permitted or required by this chapter solely  because  the
insured  or  any  other  person  who  customarily operates an automobile
covered by the policy:
  (a) HAS HAD AN ACCIDENT THAT DOES NOT RESULT IN  AGGREGATE  DAMAGE  TO
PROPERTY IN EXCESS OF TWO THOUSAND DOLLARS, PROVIDED THAT THE ASSIGNMENT
OF  POINTS OR ANY POLICY SURCHARGE SHALL BE PERMISSIBLE FOR ANY ACCIDENT
WHICH RESULTS IN BODILY INJURY OR IF THE INSURED HAS MORE THAN ONE ACCI-
DENT IN THE MERIT RATING EXPERIENCE PERIOD, WHICH RESULTS IN  AN  AGGRE-
GATE AMOUNT OF DAMAGE IN EXCESS OF TWO THOUSAND DOLLARS. NOTHING IN THIS
SUBSECTION  SHALL  CHANGE  THE  DOLLAR  AMOUNT OF THE ACCIDENT REPORTING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04195-05-0
              

S. 1700--A                          2

THRESHOLD REQUIRED UNDER PARAGRAPH ONE OF SUBDIVISION (A) OF SECTION SIX
HUNDRED FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (B)  has  been  found  guilty of a traffic infraction under any of the
provisions of the vehicle and traffic law provided, however,  that  this
provision shall not apply to a conviction for a violation which occurred
during  the thirty-six month period ending on the last day of the fourth
month preceding the month of the effective date of the  policy  if  such
conviction consisted of:
  (1)  operating  a  motor vehicle at a speed of more than fifteen miles
per hour in excess of the legal limit;
  (2) operating a motor vehicle in excess of the speed limit,  or  in  a
reckless manner, where injury or death results therefrom;
  (3)  operating  a motor vehicle in excess of the speed limit, or reck-
less driving, or any combination thereof, on three or more occasions;
  (4) operating a motor vehicle while intoxicated  or  impaired  by  the
consumption of alcohol;
  (5)  operating  a  motor  vehicle while impaired by the use of a drug,
within the meaning of section one thousand one hundred ninety-two of the
vehicle and traffic law;
  (6) homicide or assault arising out of the use or operation of a motor
vehicle, or criminal negligence in the use or operation of a motor vehi-
cle resulting in the injury or death of another person, or use or opera-
tion of a motor vehicle directly or indirectly in the  commission  of  a
felony;
  (7)  operating  a motor vehicle while seeking to avoid apprehension or
arrest by a law enforcement officer;
  (8) filing or attempting to file  a  false  or  fraudulent  automobile
insurance  claim,  or  knowingly  aiding  or  abetting  in the filing or
attempted filing of any such claim;
  (9) leaving the scene of an incident without reporting;
  (10) filing a false document with the department of motor vehicles, or
using a license or registration obtained by filing a false document with
the department of motor vehicles;
  (11) operating a motor vehicle in a race or speed test;
  (12) knowingly permitting or authorizing an unlicensed driver to oper-
ate a motor vehicle insured under the policy;
  (13) operating a motor vehicle insured  under  the  policy  without  a
valid  license  or  registration  in  effect,  except  when  the  person
convicted had possessed  a  valid  license  or  registration  which  had
expired  and  was subsequently renewed, or during a period of revocation
or suspension thereof, or in violation of the limitations applicable  to
a  license issued pursuant to article twenty-one or article twenty-one-a
of the vehicle and traffic law; or
  (14) two or more moving violations of any other provision of the vehi-
cle and traffic law;
  [(b)] (C) has had a temporary suspension of a driver's license pending
a hearing, prosecution or investigation or an indefinite suspension of a
driver's license which is issued because of the failure  of  the  person
suspended  to perform an act, which suspension will be terminated by the
performance of the act by the person suspended, or has had more than one
such temporary or indefinite suspension arising out of the same incident
issued against him or her, provided that  the  foregoing  provisions  of
this  section  shall  not apply if such suspension or suspensions has or
have not been terminated on or before the effective date of the  policy;
or

S. 1700--A                          3

  [(c)]  (D)  with respect to a non-commercial private passenger automo-
bile insurance policy, has had an accident while operating a  commercial
vehicle  in the course of employment and in the discharge of the employ-
ee's duties at the time of the accident, unless the accident  is  deter-
mined  to have been caused by the intentional action or gross negligence
of the insured.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law provided that the amendments to section  2335
of the insurance law made by section one of this act shall expire on the
same  date as such section expires; and provided, further, that this act
shall only apply to policies entered into, modified, or  renewed  on  or
after such effective date.