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.