NY State Senate Bill 2019-S8437

Senate Bill S8437

Signed By Governor

2019-2020 Legislative Session

Relates to group policies for motor vehicles engaged in the business of carrying or transporting passengers for-hire

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Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 23, 2020	approval memo.67 signed chap.374
Dec 11, 2020	delivered to governor
Jul 23, 2020	returned to senate passed assembly ordered to third reading cal.469 substituted for a9761a referred to codes delivered to assembly passed senate ordered to third reading cal.1021
Jun 01, 2020	referred to insurance

Votes

- Jul 23, 2020 - Floor Vote
  S8437
  
  42
  
  Aye
  
  18
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 23, 2020
      
      aye (42)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (18)
      
      Akshar
      
      Amedore
      
      Borrello
      
      Funke
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jordan
      
      LaValle
      
      Little
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Serino
      
      Seward
      
      Tedisco
  Jul 22, 2020 - Rules Committee Vote
  S8437
  
  13
  
  Aye
  
  6
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jul 22, 2020
      
      aye (13)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Gianaris
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      nay (6)
      
      Griffo
      
      LaValle
      
      Little
      
      Ortt
      
      Robach
      
      Seward

co-Sponsors

2019-S8437 (ACTIVE) - Details

See Assembly Version of this Bill:: A9761
Law Section:: Insurance Law
Laws Affected:: Add §3457, Ins L

2019-S8437 (ACTIVE) - Summary

Provides that every authorized insurer that issues or issues for delivery in this state a policy of commercial risk insurance insuring against losses or liabilities arising out of the ownership, operation, or use of a motor vehicle, shall establish a group fleet policy insuring against the losses or liabilities arising out of the ownership of motor vehicles engaged in the business of carrying or transporting passengers for-hire, having a seating capacity of not less than eight passengers.

2019-S8437 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8437

SPONSOR: LIU
 
TITLE OF BILL:

An act to amend the insurance law, in relation to group policies for
motor vehicles engaged in the business of carrying or transporting
passengers for-hire

 
PURPOSE OR GENERAL IDEA OF BILL:

To authorize the sale of group fleet auto policies for motor vehicles
engaged in the business of carrying or transporting passengers for-hire.

 
SUMMARY OF PROVISIONS:

Section one of the bill would add a new section 3460 to the Insurance
Law. This section would:

* Require insurers that issue policies of commercial risk insurance
insuring against the losses and liabilities arising out of the ownership

of a motor vehicle to establish group fleet auto policies and creates a
definition for such policies, which cover motor vehicles engaged in the
business of transporting passengers for-hire with a seating capacity of
not less than eight passengers;

* Provide that group fleet policies may be issued to (1) any person,
firm, association, corporation or other entity where the policy insures
for-hire vehicles owned by such person, firm, association, corporation
or other entity or (2) an association that has been in active existence
for at least two years, that has been organized for purposes other than
that of obtaining insurance and whose members have the same trade or
occupation, where the policy insures the association's members;

* Require insurers to provide a multiple vehicle reduction to insureds
based on the number of motor vehicles that will be covered under such
policy and to submit annual reports to the Department of Financial
Services (DFS) identifying the number of policies eligible for such
discount and the number of policies to which such discount has been
applied;

* Provide that an association member shall not be deemed to be an
employee of such association solely because the member is covered under
an association's group auto policy;

* Require insurers to make the group auto policies available for sale no
later than January 1, 2021; and

* Require DFS to provide for an actuarially appropriate reduction in
commercial auto insurance premiums for policies that provide coverage
for multiple vehicles.

*Ensures that the language under this bill would not authorize any addi-
tional increases in premium rates as a result of any one group fleet
policy premium rate.

Section two of the bill would provide the effective date. JUSTIFICATION:


Section 370 of the Vehicle and Traffic Law requires minimum liability
coverages for for-hire vehicles based on carrying capacity. tart III of
Chapter 59 of the Laws of 2019 increased the liability coverage required
for for-hire vehicles with a capacity of eight or more persons to a
minimum of $1.5 million. This has resulted in increases in the rates of
premiums for this coverage. In order to make this coverage more afforda-
ble, this bill would authorize the sale of group auto policies covering
for-hire vehicles with a capacity of eight or more persons and require
insurers to provide a multiple vehicle discount to insureds based on the
number of vehicles covered under such policies.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S8437 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8437
 
                             I N  S E N A T E
 
                               June 1, 2020
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation  to  group  policies  for
   motor  vehicles  engaged  in  the business of carrying or transporting
   passengers for-hire
 
   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 3457
 to read as follows:
   § 3457. GROUP FLEET POLICY FOR MOTOR VEHICLES ENGAGED IN THE  BUSINESS
 OF  CARRYING  OR TRANSPORTING PASSENGERS FOR-HIRE. (A) (I) EVERY AUTHOR-
 IZED INSURER THAT ISSUES OR ISSUES FOR DELIVERY IN THIS STATE  A  POLICY
 OF  COMMERCIAL  RISK  INSURANCE  INSURING  AGAINST LOSSES OR LIABILITIES
 ARISING OUT OF THE OWNERSHIP, OPERATION, OR  USE  OF  A  MOTOR  VEHICLE,
 SHALL  ESTABLISH  AND  OFFER  A  GROUP FLEET POLICY INSURING AGAINST THE
 LOSSES OR LIABILITIES ARISING OUT OF THE  OWNERSHIP  OF  MOTOR  VEHICLES
 ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR-HIRE,
 HAVING  A SEATING CAPACITY OF NOT LESS THAN EIGHT PASSENGERS. SUCH GROUP
 FLEET POLICY SHALL PROVIDE COVERAGE FOR MORE THAN  ONE  VEHICLE  THROUGH
 ONE  POLICY.  SUCH  GROUP  FLEET  POLICIES SHALL BE SUBJECT TO ALL LAWS,
 RULES AND REGULATIONS APPLICABLE TO POLICIES OF COMMERCIAL  RISK  INSUR-
 ANCE  INSURING  AGAINST  LOSSES OR LIABILITIES ARISING OUT OF THE OWNER-
 SHIP, OPERATION, OR USE OF A MOTOR VEHICLE ENGAGED IN  THE  BUSINESS  OF
 CARRYING  OR TRANSPORTING PASSENGERS FOR-HIRE, HAVING A SEATING CAPACITY
 OF NOT LESS THAN EIGHT PASSENGERS, INCLUDING BUT NOT  LIMITED  TO  LAWS,
 RULES  AND  REGULATIONS  ESTABLISHING  FINANCIAL RESPONSIBILITY REQUIRE-
 MENTS.
   (II) FOR THE PURPOSE OF THIS SECTION, A  "GROUP  FLEET  POLICY"  SHALL
 MEAN,  A  POLICY  ISSUED BY AN AUTHORIZED INSURER IN THIS STATE INSURING
 AGAINST LOSSES OR LIABILITIES ARISING OUT OF  OWNERSHIP,  OPERATION,  OR
 USE OF A MOTOR VEHICLE ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORT-
 ING  PASSENGERS  FOR-HIRE,  HAVING  A  SEATING CAPACITY OF NOT LESS THAN
 EIGHT PASSENGERS, AND SUCH POLICY SHALL COVER MORE THAN ONE VEHICLE.
   (B) THE GROUP FLEET POLICY MAY BE ISSUED TO:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15098-07-0

 S. 8437                             2
 
   (I) ANY PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTITY  WHICH
 SHALL  BE DEEMED THE POLICYHOLDER, WHERE THE POLICY INSURES THE FOR-HIRE
 MOTOR VEHICLES OWNED BY SUCH PERSON, FIRM, ASSOCIATION,  CORPORATION  OR
 OTHER ENTITY; OR
   (II) AN ASSOCIATION WHERE SUCH ASSOCIATION SHALL BE DEEMED THE POLICY-
 HOLDER;  WHERE ALL THE ELIGIBLE MEMBERS OF THE ASSOCIATION HAVE THE SAME
 PROFESSION, TRADE, OR OCCUPATION, AND THE ASSOCIATION HAS BEEN ORGANIZED
 AND MAINTAINED IN GOOD FAITH FOR PURPOSES PRINCIPALLY OTHER THAN THAT OF
 OBTAINING INSURANCE, AND HAS BEEN IN ACTIVE EXISTENCE FOR AT  LEAST  TWO
 YEARS, AND WHERE THE POLICY INSURES THE MEMBERS OF THE ASSOCIATION.
   (C)  AN  AUTHORIZED  INSURER ISSUING POLICIES PURSUANT TO THIS SECTION
 SHALL PROVIDE A MULTIPLE VEHICLE REDUCTION BASED ON THE NUMBER OF  MOTOR
 VEHICLES THAT WILL BE COVERED UNDER SUCH POLICY. SUCH REDUCTION SHALL BE
 BASED   ON   ACTUARIALLY  APPROPRIATE  REDUCTIONS  AS  PROVIDED  FOR  IN
 SUBSECTION (E) OF THIS SECTION. EACH INSURER REQUIRED  TO  PROVIDE  SUCH
 REDUCTION SHALL SUBMIT A REPORT TO THE SUPERINTENDENT AT THE END OF EACH
 CALENDAR  YEAR  IDENTIFYING  THE  NUMBER  OF  POLICIES ELIGIBLE FOR SUCH
 DISCOUNT AND THE NUMBER OF POLICIES TO  WHICH  SUCH  DISCOUNT  HAS  BEEN
 APPLIED.
   (D)  A  MEMBER OF AN ASSOCIATION SHALL NOT BE DEEMED TO BE AN EMPLOYEE
 OF SUCH ASSOCIATION SOLELY BECAUSE SUCH MEMBER IS COVERED UNDER A  GROUP
 FLEET POLICY ISSUED TO AN ASSOCIATION PURSUANT TO THIS SECTION.
   (E)  AUTHORIZED  INSURERS  REQUIRED  TO ESTABLISH GROUP FLEET POLICIES
 PURSUANT TO THIS SECTION SHALL MAKE SUCH POLICIES AVAILABLE FOR PURCHASE
 NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE.
   (F) THE SUPERINTENDENT SHALL PROVIDE FOR  AN  ACTUARIALLY  APPROPRIATE
 REDUCTION  IN THE RATES OF PREMIUMS FOR COMMERCIAL RISK INSURANCE APPLI-
 CABLE TO MOTOR VEHICLES ENGAGED IN THE BUSINESS OF  CARRYING  OR  TRANS-
 PORTING  PASSENGERS FOR-HIRE, HAVING A SEATING CAPACITY OF NOT LESS THAN
 EIGHT PASSENGERS, FOR POLICIES THAT PROVIDE COVERAGE FOR MULTIPLE  VEHI-
 CLES.  NOTHING  IN  THIS  SECTION  SHALL  BE  CONSTRUED TO AUTHORIZE ANY
 INCREASE IN PREMIUM RATES FOR ANY OTHER POLICY ISSUED BY SUCH AUTHORIZED
 INSURER AS A RESULT OF ANY GROUP FLEET POLICY PREMIUM RATE.
   (G) THE SUPERINTENDENT MAY PROMULGATE ANY RULES AND REGULATIONS NECES-
 SARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.

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Senate Bill S8437

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Sponsored By

John C. Liu