Assembly Bill A7839

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7839
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 16, 2017
                                ___________
 
 Introduced by M. of A. DiPIETRO -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance law, in relation to transportation network
   companies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The insurance law is amended by adding a new  section  3441
 to read as follows:
   §  3441.  TRANSPORTATION  NETWORK COMPANIES.   (A) NOTWITHSTANDING ANY
 OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
 TION NETWORK COMPANIES.
   (B) FOR PURPOSES OF  THIS  SECTION  THE  FOLLOWING  DEFINITIONS  SHALL
 APPLY:
   (1)  "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A TRANSPORTATION
 NETWORK COMPANY DRIVER AND IS OWNED  OR  LEASED  BY  THE  TRANSPORTATION
 NETWORK COMPANY DRIVER.
   (2)  "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
 WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
 NY THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION  NETWORK
 COMPANY DRIVERS.
   (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
 SOLE  PROPRIETORSHIP,  OR  OTHER  ENTITY THAT IS OPERATING IN THIS STATE
 THAT USES A DIGITAL NETWORK TO CONNECT  TRANSPORTATION  NETWORK  COMPANY
 RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
 RIDES.
   (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
 VIDUAL WHO:
   (A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
 A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
 TRANSPORTATION NETWORK COMPANY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01668-02-7
              

 A. 7839                             2
 
   (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
 RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
 PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
 FEE.
   (5)  "TRANSPORTATION  NETWORK COMPANY RIDER" OR "RIDER" MEANS AN INDI-
 VIDUAL OR PERSONS WHO USE A  TRANSPORTATION  NETWORK  COMPANY'S  DIGITAL
 NETWORK  TO  CONNECT  WITH  A TRANSPORTATION NETWORK DRIVER WHO PROVIDES
 PREARRANGED RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE  BETWEEN
 POINTS CHOSEN BY THE RIDER.
   (6)  "PREARRANGED  RIDE"  MEANS  THE  PROVISION OF TRANSPORTATION BY A
 DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
 RIDER THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANSPORTATION  NETWORK
 COMPANY,  CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER, AND
 ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
   (7) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
 SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
   (C)  A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
 COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP  POLICY,  SHALL  MAINTAIN
 PRIMARY AUTOMOBILE INSURANCE THAT:
   (1)  RECOGNIZES  THAT  THE  DRIVER IS A TRANSPORTATION NETWORK COMPANY
 DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS  FOR  COMPEN-
 SATION AND COVERS THE DRIVER:
   (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
 NY'S DIGITAL NETWORK; OR
   (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
   (2)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
 A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS  LOGGED  ON  TO
 THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
 RECEIVE  TRANSPORTATION  REQUESTS  BUT  IS  NOT ENGAGED IN A PREARRANGED
 RIDE:
   (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF  AT  LEAST
 FIFTY  THOUSAND  DOLLARS  FOR  DEATH  AND  BODILY INJURY PER PERSON, ONE
 HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER  INCIDENT,  AND
 TWENTY-FIVE  THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
 FACTION OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH  IN
 SECTION  THREE  THOUSAND  FOUR  HUNDRED  TWENTY OF THIS ARTICLE, ARTICLE
 FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER.
   (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
 ANY OF THE FOLLOWING:
   (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
 COMPANY DRIVER; OR
   (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
 BY THE TRANSPORTATION NETWORK COMPANY; OR
   (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
   (3)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
 A TRANSPORTATION NETWORK COMPANY DRIVER  IS  ENGAGED  IN  A  PREARRANGED
 RIDE:
   (A)  PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
 MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND  COVER-
 AGE  IN  SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
 FORTH IN SECTION THREE THOUSAND FOUR HUNDRED  TWENTY  OF  THIS  ARTICLE,
 ARTICLE  FIFTY-ONE  OF  THIS  CHAPTER AND REGULATIONS PROMULGATED THERE-
 UNDER.
   (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
 ANY OF THE FOLLOWING:

 A. 7839                             3

   (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
 COMPANY DRIVER; OR
   (II)  AUTOMOBILE  INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
 BY THE TRANSPORTATION NETWORK COMPANY; OR
   (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
   (4) A TRANSPORTATION NETWORK  COMPANY  SHALL,  UPON  ENTERING  INTO  A
 CONTRACTUAL  AGREEMENT  WITH  A  TRANSPORTATION  NETWORK COMPANY DRIVER,
 PROVIDE NOTICE TO THE TRANSPORTATION NETWORK  COMPANY  DRIVER  THAT  THE
 DRIVER  MAY  NEED  ADDITIONAL INSURANCE COVERAGE INCLUDING MOTOR VEHICLE
 PHYSICAL  DAMAGE  COVERAGE  AS  DESCRIBED  IN  PARAGRAPH   NINETEEN   OF
 SUBSECTION  (A)  OF  SECTION  ONE  THOUSAND ONE HUNDRED THIRTEEN OF THIS
 CHAPTER IF THE DRIVER'S PERSONAL VEHICLE IS SUBJECT TO A LEASE OR  LOAN.
 A  TRANSPORTATION  NETWORK  COMPANY  SHALL  ALSO POST THIS NOTICE ON ITS
 WEBSITE IN A PROMINENT PLACE.
   (5) IF INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR  THREE  OF
 THIS  SUBSECTION  HAS  LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE,
 INSURANCE MAINTAINED BY A TRANSPORTATION NETWORK COMPANY  SHALL  PROVIDE
 THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
 OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
   (6)  COVERAGE  UNDER  AN AUTOMOBILE INSURANCE POLICY MAINTAINED BY THE
 TRANSPORTATION NETWORK COMPANY SHALL NOT  BE  DEPENDENT  ON  A  PERSONAL
 AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
 INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
   (7) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
 ER  AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL BE
 ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE  BROKER  LICENSED  PURSUANT  TO
 ARTICLE TWENTY-ONE OF THIS CHAPTER.
   (8)  INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL BE
 DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
 SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
 TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
 ARTICLE  FIFTY-ONE  OF  THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
 UNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR  THE  PURPOSES  OF
 SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
 USE OR OPERATION OF A MOTOR VEHICLE.
   (9)  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL CARRY PROOF OF
 COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
 OR HER AT ALL TIMES DURING HIS OR HER USE OF  A  VEHICLE  IN  CONNECTION
 WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
 AN  ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
 INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
 MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS,  UPON  REQUEST.  UPON
 SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
 DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
 TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE  TRANS-
 PORTATION  NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
 THE TIME OF AN ACCIDENT.
   (D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE  IN  WRITING  TO
 TRANSPORTATION  NETWORK  COMPANY  DRIVERS  THE FOLLOWING BEFORE THEY ARE
 ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
 NETWORK COMPANY'S DIGITAL NETWORK:
   (1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF  COVERAGE  AND  THE
 LIMITS  FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK COMPANY
 PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
 VEHICLE IN CONNECTION WITH A TRANSPORTATION  NETWORK  COMPANY'S  DIGITAL
 NETWORK; AND

 A. 7839                             4
 
   (2)  THAT  THE  TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
 INSURANCE POLICY MIGHT NOT PROVIDE ANY  COVERAGE  WHILE  THE  DRIVER  IS
 LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
 AVAILABLE  TO  RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
 RANGED RIDE, DEPENDING ON ITS TERMS.
   (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
 EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
 OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
 OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
 DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
 RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
 AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
   (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
   (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
   (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
   (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
 NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
 OF THIS CHAPTER.
   (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
 THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
 THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
 DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
 NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
 DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
 SATION.
   (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
 COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
 SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
   (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
 SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
 ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
 BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
 INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
 THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
 TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
 PUBLIC.
   (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
 A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
 RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
 INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
 MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
   (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
 NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
 OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
 FACILITATE  THE  EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
 PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER  IF
 APPLICABLE,  INCLUDING  THE  PRECISE TIMES THAT A TRANSPORTATION NETWORK
 COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
 DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING  AND  IN
 THE  TWELVE  HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
 TO ONE ANOTHER A CLEAR  DESCRIPTION  OF  THE  COVERAGE,  EXCLUSIONS  AND
 LIMITS   PROVIDED   UNDER  ANY  AUTOMOBILE  INSURANCE  MAINTAINED  UNDER
 SUBSECTION (C) OF THIS SECTION.
   § 2. The insurance law is amended by adding a new section 3455 to read
 as follows:

 A. 7839                             5
 
   § 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES.   (A)
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
   (1)  "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
 IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE  OF
 THIS ARTICLE.
   (2)  "CERTIFICATE"  OR  "CERTIFICATE  OF  INSURANCE" MEANS ANY POLICY,
 CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT  THERE-
 TO,  ISSUED  TO  A  GROUP  MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
 GROUP POLICY.
   (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY"  OR  "GROUP  POLICY"
 MEANS  GROUP  POLICY, INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS,
 WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
 POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY  AND  TO
 GROUP MEMBERS:
   (A)  IN  ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF SECTION
 THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
   (B) OF THE TYPE DESCRIBED  IN  PARAGRAPHS  THIRTEEN,  FOURTEEN  AND/OR
 NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
 OF THIS CHAPTER; AND
   (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIREMENTS  SET
 FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
 SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
 TRAFFIC  LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMUL-
 GATED THEREUNDER.
   (4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER"  AS
 DEFINED  IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-
 ONE OF THIS ARTICLE.
   (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
   (6) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
 (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
   (B)  AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
 PORTATION NETWORK COMPANY  GROUP  POLICY  TO  A  TRANSPORTATION  NETWORK
 COMPANY  AS  A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
 OF THIS SECTION.
   (C)(1) A TRANSPORTATION NETWORK COMPANY  GROUP  POLICY  SHALL  PROVIDE
 COVERAGE  FOR  A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF
 SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF  THIS
 ARTICLE.
   (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
   (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
 ANT  TO  SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
 OF THIS ARTICLE;
   (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
 LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF  SECTION  THREE
 THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
   (C)  SUPPLEMENTAL  SPOUSAL  LIABILITY INSURANCE PURSUANT TO SUBSECTION
 (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
   (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
 NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
 OF THIS CHAPTER.
   (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
 SUBSECTION  MAY  BE  PROVIDED  IN  ONE GROUP POLICY OR IN SEPARATE GROUP
 POLICIES.
   (4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY,  INCLUDING  CERTIF-
 ICATES,  SHALL  BE  ISSUED BY AN INSURER AUTHORIZED OR ELIGIBLE TO WRITE

 A. 7839                             6
 
 INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
 LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
   (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
   (D)  THE  PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
 INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP  POLICYHOLDER  FROM  THE
 FUNDS CONTRIBUTED:
   (1) WHOLLY BY THE GROUP POLICYHOLDER;
   (2) WHOLLY BY THE GROUP MEMBERS; OR
   (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
   (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
 SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
 HOLDER MAY:
   (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
 HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
   (B) BE RETAINED BY THE GROUP POLICYHOLDER.
   (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETROSPEC-
 TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
 SUBSECTION SHALL BE:
   (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
 CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
   (B)  PAID  OR  REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
 PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED  BY
 THE  GROUP  POLICYHOLDER,  OR  ON  THE  DATE  OF MAILING, IF DISTRIBUTED
 DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
 THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
   (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND,  THE
 INSURER  SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
 REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
   (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT  OR  REFUND,
 THE  INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
 PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
   (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS  SUBSECTION,  IF  A
 DIVIDEND  ACCRUES  UPON  TERMINATION  OF COVERAGE UNDER A TRANSPORTATION
 NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR  WHICH  WAS  PAID  OUT  OF
 FUNDS  CONTRIBUTED  BY  GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
 DIVIDEND SHALL BE PAID OR REFUNDED BY  THE  GROUP  POLICYHOLDER  TO  THE
 GROUP  MEMBERS  INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
 GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES  INCURRED  BY  THE  GROUP
 POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
   (4)  FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
 THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY  OF  EXCESS
 PREMIUMS  TO  THE  GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
 ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR  RETROSPECTIVE  PREMIUM
 REFUNDS.  THE  TERM  "DIVIDEND"  DOES NOT INCLUDE REIMBURSEMENTS OR FEES
 RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION  WITH  THE  OPERATION  OR
 ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
 ING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR SERVICES PROVIDED BY THE
 GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
   (F) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE  GROUP  MEMBERS
 OF THE SAME CLASS AND STATUS.
   (G)  EACH  POLICY  WRITTEN  PURSUANT TO THIS SECTION SHALL PROVIDE PER
 OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER  IN  AN  AMOUNT  NOT
 LESS  THAN  THAT REQUIRED BY OF SUBSECTION (C) OF SECTION THREE THOUSAND
 FOUR HUNDRED FORTY-ONE OF THIS ARTICLE, AND  MAY  PROVIDE  COVERAGE  FOR
 LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.

 A. 7839                             7
 
   (H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
 MAILING  OR  DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER
 INSURED UNDER THE  TRANSPORTATION  NETWORK  COMPANY  GROUP  POLICY.  THE
 INSURER  OR  THE  GROUP  POLICYHOLDER  SHALL ALSO BE RESPONSIBLE FOR THE
 MAILING  OR  DELIVERY  TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
 INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A  CHANGE
 IN  LIMITS;  CHANGE  IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
 NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER  THE  TRANSPORTATION
 NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
   (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
 CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
 TION NETWORK COMPANY GROUP POLICY IS INCORPORATED  BY  REFERENCE  AND  A
 COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
   (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
 BLE  INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
 THE GROUP MEMBERS THAT, IF THE  MEMBER  HAS  OTHER  INSURANCE  COVERAGE,
 SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
 CY WILL BE EXCESS OVER THE OTHER INSURANCE.
   (I)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
 TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
 AS  AN  AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
 CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A  TRANS-
 PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
   (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
 TO  SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OR SECTION THREE
 THOUSAND FOUR HUNDRED TWENTY-SIX OF  THIS  ARTICLE;  PROVIDED  THAT  THE
 FOLLOWING  REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
 AGE:
   (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY  IF
 CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
 AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
 (C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
 PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT  WOULD
 CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
 NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
   (B)  WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
 GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
 IF CANCELLATION IS BASED ON ONE OR MORE OF  THE  REASONS  SET  FORTH  IN
 SUBPARAGRAPH  (B),  (C)  OR  (H)  OF  PARAGRAPH ONE OF SUBSECTION (C) OF
 SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
   (2) (A) AN INSURER'S CANCELLATION OF A  GROUP  POLICY,  INCLUDING  ALL
 CERTIFICATES,  SHALL  NOT  BECOME  AFFECTIVE UNTIL THIRTY DAYS AFTER THE
 INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION  TO  THE  GROUP
 POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
   (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
 BY  THE  GROUP  MEMBER  SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
 ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP  POLICY
 TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
   (II)  WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
 GROUP MEMBER SPECIFICALLY FOR THE  COVERAGE,  THE  GROUP  POLICY  HOLDER
 SHALL  MAIL  OR  DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
 GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND  THE  EFFECTIVE
 DATE  OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
 WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
 FROM THE INSURER.

 A. 7839                             8
 
   (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE  SHALL  NOT
 BECOME  EFFECTIVE  UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
 WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
 MAILING ADDRESS AND TO THE GROUP POLICYHOLDER  AT  THE  MAILING  ADDRESS
 SHOWN IN THE GROUP POLICY.
   (3)  (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
 CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A  REASON  UPON  THIRTY
 DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
   (B)  THE  GROUP  POLICYHOLDER  SHALL MAIL OR DELIVER WRITTEN NOTICE TO
 EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S  CANCELLATION  OF
 THE  GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
 THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE  TO  THE
 GROUP  MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
 TIVE DATE OF CANCELLATION.
   (4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
 POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED  FOR  A  ONE-YEAR
 POLICY PERIOD.
   (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
 AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
 GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
   (I) THE INSURER MAILS OR DELIVERS TO THE GROUP  POLICYHOLDER  AND  ALL
 GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
   (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
 BUT  NOT  MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
 SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE  NEXT  ANNIVER-
 SARY DATE OF THE POLICY.
   (5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
 POLICYHOLDER  SHALL  MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
 ADVISING THE GROUP MEMBER OF NONRENEWAL OF  THE  GROUP  POLICY  AND  THE
 EFFECTIVE  DATE  OF  NONRENEWAL.  THE  GROUP  POLICYHOLDER SHALL MAIL OR
 DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
   (6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR  CONDITIONAL  RENEWAL
 SHALL  SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
 NEWAL, OR CONDITIONAL RENEWAL.
   (7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
 NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY  EITHER  THE
 GROUP  POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
 AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
   (B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER  THIS  SUBSECTION
 TO  GIVE  NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
 BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
   (8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,
 OR  CONDITIONAL  RENEWAL  OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
 INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP  MEMBER  IN
 REGARD  TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
 THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE  UNTIL
 EXPIRATION  OF  THE  APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
 POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR  CONDITIONAL
 NONRENEWAL OF THE GROUP POLICY.
   (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
 TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
 OF  CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
 PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
   (K) ANY MAILING OR DELIVERY TO A GROUP MEMBER  REQUIRED  OR  PERMITTED
 UNDER  THIS  SECTION  MAY  BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
 METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.

 A. 7839                             9
 
   (L) THE SUPERINTENDENT SHALL NOT APPROVE FOR DELIVERY ANY POLICY UNDER
 THIS SECTION FOR A VEHICLE WHICH IS LICENSED TO OPERATE BY  A  TAXI  AND
 LIMOUSINE  COMMISSION,  IN  ANY CITY WITH A POPULATION OF ONE MILLION OR
 MORE.
   § 3. Subsection (b) of section 5103 of the insurance law is amended by
 adding a new paragraph 4 to read as follows:
   (4)  IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A TRANSPORTATION
 NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER  AS  SUCH
 TERMS  ARE  DEFINED  IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR
 HUNDRED FORTY-ONE OF THIS CHAPTER.
   § 4. The municipal officers and boards in cities, towns, villages  and
 counties  of  this  state may adopt ordinances regulating transportation
 network companies including but not limited to comprehensive  background
 checks  of  prospective  drivers and on all other matters other than the
 insurance requirements set forth in section 3441 of the  insurance  law.
 Nothing  in  this  section  shall  authorize  any transportation network
 company or transportation network driver to  provide  passenger  pick-up
 service in a city with a population of one million or more except as may
 be authorized by such city.
   § 5. This act shall take effect immediately.