S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7157
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 10, 2017
                                ___________
 
 Introduced  by  M.  of A. OAKS, KOLB, BARCLAY, MONTESANO, WALTER, FINCH,
   BLANKENBUSH, CASTORINA, ERRIGO -- Multi-Sponsored by -- M. of A. McDO-
   NOUGH, McLAUGHLIN, PALMESANO, STEC -- 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.
              

                                                            LBD08390-01-7

 A. 7157                             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.
   § 2.  This act shall take effect immediately.