Senate Bill S7312

                                BILL NUMBER:S7312A

TITLE OF BILL:
An act
to amend the insurance law, in relation to uninsured and underinsured
motorist coverage for corporate and business entities, volunteer fire
departments and volunteer ambulance services

PURPOSE:
To ensure that employees of a corporate or business entity,
volunteer firefighters and volunteer ambulance crews, while acting in
the scope of their duties for a corporate or business entity,
volunteer fire department or volunteer ambulance service, shall be
covered by the maximum available supplemental uninsured/underinsured
motorist coverage in an insurance policy that names such corporate or
business entity or volunteer fire department or volunteer ambulance
service as a named insured.

SUMMARY OF PROVISIONS:
This bill amends section 3420(f) of the
insurance law pertaining to mandatory uninsured motorist coverage and
optional supplemental uninsured/underinsured motorist coverage
("SUM") by clarifying the definition of the term "named insured" when
the "named insured" is a corporate or business entity or a volunteer
fire department or volunteer ambulance service.

              

This bill provides that an insurance policy that includes SUM coverage
that names a corporate or business entity, volunteer fire department
or volunteer ambulance service as a named insured shall be deemed to
provide the maximum SUM coverage available under that particular
policy to any individual employed by such corporate or business
entity, or who is a member of such volunteer fire department or
volunteer ambulance service, regardless of whether the individual is
an additional named insured under that policy, or is a named insured,
or is covered under any other policy providing SUM coverage.

JUSTIFICATION:
This issue arises because the mandatory New York SUM
endorsement required by 11 NYCRR Section 60-2.3 defines the term
"insured" to mean, in relevant part, "You, as the named insured and,
while residents of the same household, your spouse and the relatives
of either you or your spouse..." 11 NYCRR Sect. 60-2.3(f)(1).
Starting with Buckner v. MVAIC, 66 NY2d 211 (1985) and continuing
with an increasing number of Appellate Division decisions since, our
Courts have consistently held that when the "named insured" is an
entity such as a corporation or a volunteer fire department, the
individual officers, directors, employees or volunteers will not be
covered as "named insureds" even when they were injured within the
scope of their duties for the insured entity.
While these individuals might still be covered under 11 NYCRR Section
60-2.3(f)(2) if they were "occupying" a covered vehicle, the

definition of "named insured" as interpreted by our Courts creates a
gap in coverage for employees and volunteer firefighters and
ambulance crews injured by uninsured or underinsured vehicles in the
scope of their duties for the "named insured" entity while outside of
a covered vehicle.

This means that unless the definition of the term "insured" is
clarified, a corporation or business entity, volunteer fire
department, or volunteer ambulance service will be unable to provide
SUM coverage to its officers, employees or members who face risks
from uninsured or underinsured vehicles in the course of their
employment after exiting from covered vehicles. The danger is
particularly acute for volunteer firefighters, ambulance crews, and
for employees of delivery companies and refuse collectors, all of
whom are exposed to vehicle hazards after they have exited a covered
vehicle.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
120th day after it shall become law. Effective
immediately, the addition, amendment and/or repeal of any rules or
regulations necessary for the implementation of this act on its
effective date are authorized to be made on or before such effective
date.

                                BILL NUMBER:S7312B

TITLE OF BILL:
An act
to amend the insurance law, in relation to uninsured and underinsured
motorist coverage for ambulance services, volunteer fire
departments and voluntary ambulance services

PURPOSE:
To ensure that volunteer firefighters and
ambulance crews,
while acting in the scope of their duties shall be covered by the
maximum available supplemental uninsured/underinsured motorist
coverage in an insurance policy that names such volunteer fire
department or ambulance service as a named insured.

SUMMARY OF PROVISIONS:;
This bill amends section 3420(f) of the
insurance law pertaining to mandatory uninsured motorist coverage and
optional supplemental uninsured/underinsured motorist coverage
("SUM") by clarifying the definition of the term "named insured" when
the "named insured" is a corporate or business entity or a volunteer
fire department or volunteer ambulance service.

This bill provides that an insurance policy that includes SUM coverage
that names a volunteer fire department or ambulance service as a
              

named insured shall be deemed to provide the maximum SUM coverage
available under that particular policy to any individual who is a
member of such volunteer fire department or ambulance service,
regardless of whether the individual is an additional named insured
under that policy, or is a named insured, or is covered under any
other policy providing SUM coverage.

JUSTIFICATION:
This issue arises because the
mandatory New York SUM
endorsement required by II NYCRR Section 60-23 defines the term
"insured" to mean, in relevant part, "You, as the named insured and,
while residents of the same household, your spouse and the relatives
of either you or your spouse.. ." II NYCRR Sect 60-2.3(f)(1).
Starting with Buckner v. MVAIC, 66 NY2d 211 (1985) and continuing with
an increasing number of Appellate Division decisions since, our
Courts have consistently held that when the "named insured" is an
entity such as a a volunteer fire department, the individual
officers. directors, employees or volunteers will not be covered as
"named insureds" even when they were injured within the scope of
their duties for the insured entity. While these individuals might
still be covered under 11NYCRR Section 60-2.3(f)(2) if they were
"occupying" a covered vehicle, the definition of "named insured" as
interpreted by our Courts creates a gap in coverage for employees and
volunteer firefighters and ambulance crews injured by uninsured or
underinsured vehicles in the scope of their duties for the "named
insured" entity while outside of a covered vehicle.

This means that unless the definition of the term "insured" is
clarified a volunteer fire department, or ambulance service will be


unable to provide SUM coverage to its officers, employees or members
who face risks from uninsured or underinsured vehicles in the course
of their employment after exiting from covered vehicles. The danger
is particularly acute for volunteer firefighters and ambulance crews,
all of whom are exposed to vehicle hazards after they have exited a
covered vehicle.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
120th day after it shall become law and shall apply
to any policies issued or renewed on or after such date. Effective
immediately, the addition, amendment and/or repeal of any rules or
regulations necessary for the implementation of this act on its
effective date are authorized to be made on or before such effective
date.