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

                                  6670

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 12, 2013
                               ___________

Introduced  by M. of A. OAKS, BARCLAY, HAWLEY, KOLB, MONTESANO -- Multi-
  Sponsored by -- M. of A. CORWIN, CROUCH, JORDAN,  McDONOUGH,  McLAUGH-
  LIN, PALMESANO, SALADINO -- 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04346-01-3
              

A. 6670                             2

of  notices of termination and policy issuance, either electronically or
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.  This act shall take effect immediately.