NY State Senate Bill 2023-S5959B

Senate Bill S5959B

Signed By Governor

2023-2024 Legislative Session

Authorizes certain policies issued by a risk retention group not chartered in this state

download bill text pdf

Current 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
Sep 15, 2023	approval memo.8 signed chap.438
Sep 07, 2023	delivered to governor
Jun 08, 2023	returned to senate passed assembly ordered to third reading rules cal.704 substituted for a5718b
Jun 05, 2023	referred to insurance delivered to assembly passed senate
May 31, 2023	amended on third reading 5959b
May 24, 2023	advanced to third reading
May 23, 2023	2nd report cal.
May 22, 2023	1st report cal.1188
Apr 10, 2023	print number 5959a
Apr 10, 2023	amend and recommit to insurance
Mar 23, 2023	referred to insurance

Votes

- Jun 5, 2023 - Floor Vote
  S5959B
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 5, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Cooney
      
      Felder
  May 22, 2023 - Insurance Committee Vote
  S5959B
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 22, 2023
      
      aye (11)
      
      Addabbo Jr.
      
      Borrello
      
      Breslin
      
      Cooney
      
      Harckham
      
      Helming
      
      Kennedy
      
      Martinez
      
      O'Mara
      
      Sanders Jr.
      
      Scarcella-Spanton

Bill Amendments

Original

B (Active)

co-Sponsors

2023-S5959 - Details

See Assembly Version of this Bill:: A5718
Law Section:: Insurance Law
Laws Affected:: Amd §5913, Ins L; amd §§311 & 370, V & T L
Versions Introduced in 2023-2024 Legislative Session:: S5959, A5718

2023-S5959 - Summary

Authorizes certain policies issued by a risk retention group not chartered in this state but which is registered with the superintendent of financial services under the federal liability risk retention act of 1986, comprised entirely of organizations to which contributions are eligible for deduction under section 501(c)(3) of the internal revenue code and which qualifies as a charitable risk pool under section 501(n) of the internal revenue code.

2023-S5959 - Sponsor Memo

                                 
BILL NUMBER: S5959                  Revised 3/28/2023

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the insurance law and the vehicle and traffic law, in
relation to owner's policies of liability insurance issued by a risk
retention group not chartered within this state

 
PURPOSE:

To allow risk retention groups which meet a minimum surplus requirement
and which are registered in NYS to offer automobile insurance coverage
to nonprofit organizations in this state.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 5913 of the Insurance Law to allow insurance
coverage by a risk retention group pursuant to section 311 of the Vehi-
cle and Traffic Law as amended in section 2 of this bill.

Section 2 amends (b) and (c) of subdivision 4 of section 311 of the

Vehicle and Traffic Law to include within the definition of "owner's
policy of liability insurance" a policy issued by a risk retention group
which has a minimum $15 million surplus and is registered in New York
State and which exclusively insures 501(c)(3) nonprofit organizations
that are registered in this state.

Section 3 amends the opening paragraph of subdivision 5 of section 311
of the Vehicle and Traffic Law to allow a risk retention group author-
ized to issue an owner's policy of liability insurance

Section 4 amends subdivision 10 of section 311 of the Vehicle and Traf-
fic Law to allow risk retention groups to issue insurance cards

Section 5 is the effective date.

 
JUSTIFICATION:

Nonprofit carshares are community-focused, membership-based services
that provide access to cars for local trips to people who can't or
choose not to buy their own vehicle. While there are a few carshares in
NYS right now, the opportunity exists to significantly expand this
service and its many benefits. This includes improved access to mobility
for low- to moderate-income people and reducing transportation emissions
as it has similar emissions reduction effects as public transit.

However, due to a requirement that all insurers providing coverage in
New York State be domiciled here, the state's only nonprofit carshares
will soon be unable to secure required automobile insurance and will be
forced to close their operations. This legislation explicitly allows
risk retention groups which have at least a $15 million surplus, and
which are insuring 501(c)(3) nonprofit organizations exclusively, to be
registered in and offer insurance coverage in New York State.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
immediately.

2023-S5959 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5959
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2023
                                ___________
 
 Introduced  by  Sens. WEBB, BROUK -- read twice and ordered printed, and
   when printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
   relation  to  owner's policies of liability insurance issued by a risk
   retention group not chartered within this state

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 5913 of the insurance law, as added by chapter 109
 of the laws of 1988, is amended to read as follows:
   § 5913. Financial responsibility. [Wherever]  EXCEPT  AS  PROVIDED  IN
 SECTION  THREE  HUNDRED  ELEVEN OF THE VEHICLE AND TRAFFIC LAW, WHEREVER
 pursuant to the laws of this state or any political subdivision of  this
 state  a  demonstration  of  financial  responsibility  is required as a
 condition for obtaining a  license  or  permit  to  undertake  specified
 activities,  if  any  such requirement may not be satisfied by obtaining
 insurance coverage from an insurer not authorized to do business in this
 state, such requirement may not be  satisfied  by  purchasing  insurance
 from a risk retention group not chartered in this state.
   §  2.  Paragraphs  (b)  and (c) of subdivision 4 of section 311 of the
 vehicle and traffic law, paragraph (c) as amended by chapter 200 of  the
 laws of 1974, are amended to read as follows:
   (b) In the case of a vehicle registered in this state, a policy issued
 by  (I) an insurer duly authorized to transact business in this state OR
 (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS STATE WITH  A  MINIMUM
 OF  FIFTEEN  MILLION  DOLLARS  OF  SURPLUS AND WHICH EXCLUSIVELY INSURES
 501(C)(3) NONPROFIT ORGANIZATIONS THAT ARE REGISTERED IN THIS STATE; or
   (c) In the case of a vehicle lawfully registered in another state,  or
 in both this state and another state, [either] (I) a policy issued by an
 authorized insurer, or (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS
 STATE  WITH  A  MINIMUM OF FIFTEEN MILLION DOLLARS OF SURPLUS AND EXCLU-
 SIVELY INSURES 501(C)(3) NONPROFIT ORGANIZATIONS THAT ARE REGISTERED  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10375-01-3

 S. 5959                             2
 
 THIS  STATE, OR (III) a policy issued by an unauthorized insurer author-
 ized to transact business in another state if such unauthorized  insurer
 files  with  the  commissioner in form to be approved by him a statement
 consenting  to  service  of  process and declaring its policies shall be
 deemed to be varied to comply with the requirements of this article; and
   § 3. The opening paragraph of subdivision 5  of  section  311  of  the
 vehicle  and traffic law, as amended by chapter 569 of the laws of 1981,
 is amended to read as follows:
   The term "certificate of insurance" shall mean any evidence issued  by
 or  on  behalf of an insurance company duly authorized to transact busi-
 ness in this state, OR RISK  RETENTION  GROUP  AUTHORIZED  TO  ISSUE  AN
 OWNER'S  POLICY OF LIABILITY INSURANCE PURSUANT TO THIS SECTION, stating
 in such form as the commissioner may  prescribe  or  approve  that  such
 company  OR  SUCH  RISK  RETENTION GROUP has issued an owner's policy of
 liability insurance on the motor vehicle or vehicles designated therein.
 Such certificate shall contain information as required  by  the  commis-
 sioner including at least the following except as otherwise provided:
   §  4. Subdivision 10 of section 311 of the vehicle and traffic law, as
 amended by chapter 103 of the laws  of  1972,  is  amended  to  read  as
 follows:
   10.  "Insurance Identification Card" shall mean a card issued by or on
 behalf of an insurance company or bonding  company  duly  authorized  to
 transact  business  in this state, OR RISK RETENTION GROUP AUTHORIZED TO
 ISSUE AN OWNER'S POLICY OF LIABILITY INSURANCE PURSUANT TO THIS SECTION,
 stating in such form as the commissioner may prescribe or  approve  that
 such  company  OR SUCH RISK RETENTION GROUP has issued an owner's policy
 of liability insurance or a financial security bond on the motor vehicle
 or vehicles designated therein. Such card shall contain such information
 and shall be valid during such  period  as  may  be  prescribed  by  the
 commissioner. If an owner shall have filed a financial security deposit,
 or  shall  have  qualified as a self-insurer under section three hundred
 sixteen of this [chapter] ARTICLE, the  term  "insurance  identification
 card"  shall  mean  a card issued by the department which evidences that
 such deposit has been filed or that such owner has so qualified.
   § 5. This act shall take effect immediately.

co-Sponsors

2023-S5959A - Details

See Assembly Version of this Bill:: A5718
Law Section:: Insurance Law
Laws Affected:: Amd §5913, Ins L; amd §§311 & 370, V & T L
Versions Introduced in 2023-2024 Legislative Session:: S5959, A5718

2023-S5959A - Summary

2023-S5959A - Sponsor Memo

                                 
BILL NUMBER: S5959AREVISED 4/12/2023

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the insurance law and the vehicle and traffic law, in
relation to owner's policies of liability insurance issued by a risk
retention group not chartered within this state

 
PURPOSE:

To allow risk retention groups which meet a minimum surplus requirement
and which are registered in NYS to offer automobile insurance coverage
to nonprofit organizations in this state.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 5913 of the Insurance Law to allow insurance
coverage by a risk retention group pursuant to section 311 of the Vehi-
cle and Traffic Law as amended in section 2 of this bill.

Section 2 amends (b) and (c) of subdivision 4 of section 311 of the

Vehicle and Traffic Law to include within the definition of "owner's
policy of liability insurance" a policy issued by a Risk Retention Group
(RRG) registered in New York State under the Federal Liability Risk
Retention Act of 1986.

Section 3 amends the opening paragraph of subdivision 5 of section 311
of the Vehicle and Traffic Law to allow a risk retention group author-
ized to issue an owner's policy of liability insurance

Section 4 amends subdivision 10 of section 311 of the Vehicle and Traf-
fic Law to allow risk retention groups to issue insurance cards

Section 5 is the effective date.

 
JUSTIFICATION:

Nonprofit carshares are community-focused, membership-based services
that provide access to cars for local trips to people who can't or
choose not to buy their own vehicle.

While there are a few carshares in NYS right now, the opportunity exists
to significantly expand this service and its many benefits.  This
includes improved access to mobility for low- to moderate-income people
and reducing transportation emissions as it has similar emissions
reduction effects as public transit.

However, due to a requirement that all insurers providing coverage in
New York State be domiciled here, the state's only nonprofit carshares
will soon be unable to secure required automobile insurance and will be
forced to close their operations. This legislation explicitly allows
risk retention groups registered in New York State under the Federal
Liability Risk Retention Act of 1986, and which are insuring 501(c)(3)
nonprofit organizations exclusively, to be registered in and offer
insurance coverage in New York State.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S5959A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5959--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2023
                                ___________
 
 Introduced  by  Sens. WEBB, BROUK -- read twice and ordered printed, and
   when printed to be committed to the Committee on Insurance --  commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
   relation  to  owner's policies of liability insurance issued by a risk
   retention group not chartered within this state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 5913 of the insurance law, as added by chapter 109
 of the laws of 1988, is amended to read as follows:
   § 5913. Financial responsibility. [Wherever]  EXCEPT  AS  PROVIDED  IN
 SECTION  THREE  HUNDRED  ELEVEN OF THE VEHICLE AND TRAFFIC LAW, WHEREVER
 pursuant to the laws of this state or any political subdivision of  this
 state  a  demonstration  of  financial  responsibility  is required as a
 condition for obtaining a  license  or  permit  to  undertake  specified
 activities,  if  any  such requirement may not be satisfied by obtaining
 insurance coverage from an insurer not authorized to do business in this
 state, such requirement may not be  satisfied  by  purchasing  insurance
 from a risk retention group not chartered in this state.
   §  2.  Paragraphs  (b)  and (c) of subdivision 4 of section 311 of the
 vehicle and traffic law, paragraph (c) as amended by chapter 200 of  the
 laws of 1974, are amended to read as follows:
   (b) In the case of a vehicle registered in this state, a policy issued
 by  (I) an insurer duly authorized to transact business in this state OR
 (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS  STATE  BUT  WHICH  IS
 REGISTERED  WITH  THE  SUPERINTENDENT  UNDER  THE FEDERAL LIABILITY RISK
 RETENTION ACT OF 1986, COMPRISED  ENTIRELY  OF  ORGANIZATIONS  TO  WHICH
 CONTRIBUTIONS  ARE ELIGIBLE FOR DEDUCTION UNDER SECTION 501(C)(3) OF THE
 FEDERAL INTERNAL REVENUE CODE AND WHICH QUALIFIES AS A  CHARITABLE  RISK
 POOL UNDER SECTION 501(N) OF THE FEDERAL INTERNAL REVENUE CODE; or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10375-02-3

 S. 5959--A                          2
 
   (c)  In the case of a vehicle lawfully registered in another state, or
 in both this state and another state, [either] (I) a policy issued by an
 authorized insurer, or (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS
 STATE BUT WHICH IS REGISTERED WITH THE SUPERINTENDENT UNDER THE  FEDERAL
 LIABILITY  RISK  RETENTION  ACT OF 1986, COMPRISED ENTIRELY OF ORGANIZA-
 TIONS TO WHICH CONTRIBUTIONS ARE ELIGIBLE FOR  DEDUCTION  UNDER  SECTION
 501(C)(3)  OF THE FEDERAL INTERNAL REVENUE CODE AND WHICH QUALIFIES AS A
 CHARITABLE RISK POOL UNDER SECTION 501(N) OF THE FEDERAL INTERNAL REVEN-
 UE CODE, OR (III) a policy issued by an unauthorized insurer  authorized
 to transact business in another state if such unauthorized insurer files
 with the commissioner in form to be approved by him a statement consent-
 ing  to service of process and declaring its policies shall be deemed to
 be varied to comply with the requirements of this article; and
   § 3. The opening paragraph of subdivision 5  of  section  311  of  the
 vehicle  and traffic law, as amended by chapter 569 of the laws of 1981,
 is amended to read as follows:
   The term "certificate of insurance" shall mean any evidence issued  by
 or  on  behalf of an insurance company duly authorized to transact busi-
 ness in this state, OR RISK  RETENTION  GROUP  AUTHORIZED  TO  ISSUE  AN
 OWNER'S  POLICY OF LIABILITY INSURANCE PURSUANT TO THIS SECTION, stating
 in such form as the commissioner may  prescribe  or  approve  that  such
 company  OR  SUCH  RISK  RETENTION GROUP has issued an owner's policy of
 liability insurance on the motor vehicle or vehicles designated therein.
 Such certificate shall contain information as required  by  the  commis-
 sioner including at least the following except as otherwise provided:
   §  4. Subdivision 10 of section 311 of the vehicle and traffic law, as
 amended by chapter 103 of the laws  of  1972,  is  amended  to  read  as
 follows:
   10.  "Insurance Identification Card" shall mean a card issued by or on
 behalf of an insurance company or bonding  company  duly  authorized  to
 transact  business  in this state, OR RISK RETENTION GROUP AUTHORIZED TO
 ISSUE AN OWNER'S POLICY OF LIABILITY INSURANCE PURSUANT TO THIS SECTION,
 stating in such form as the commissioner may prescribe or  approve  that
 such  company  OR SUCH RISK RETENTION GROUP has issued an owner's policy
 of liability insurance or a financial security bond on the motor vehicle
 or vehicles designated therein. Such card shall contain such information
 and shall be valid during such  period  as  may  be  prescribed  by  the
 commissioner. If an owner shall have filed a financial security deposit,
 or  shall  have  qualified as a self-insurer under section three hundred
 sixteen of this [chapter] ARTICLE, the  term  "insurance  identification
 card"  shall  mean  a card issued by the department which evidences that
 such deposit has been filed or that such owner has so qualified.
   § 5. This act shall take effect immediately.

co-Sponsors

2023-S5959B (ACTIVE) - Details

See Assembly Version of this Bill:: A5718
Law Section:: Insurance Law
Laws Affected:: Amd §5913, Ins L; amd §§311 & 370, V & T L
Versions Introduced in 2023-2024 Legislative Session:: S5959, A5718

2023-S5959B (ACTIVE) - Summary

2023-S5959B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5959B

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the insurance law and the vehicle and traffic law, in
relation to owner's policies of liability insurance issued by a risk
retention group not chartered within this state

 
PURPOSE:

To allow risk retention groups which meet a minimum surplus requirement
and which are registered in NYS to offer automobile insurance coverage
to nonprofit organizations in this state.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 5913 of the Insurance Law to allow insurance
coverage by a risk retention group pursuant to sections 311 and 370 of
the Vehicle and Traffic Law as amended in section 2 of this bill.

Section 2 amends (b) and (c) of subdivision 4 of section 311 of the

Vehicle and Traffic Law to include within the definition of "owner's
policy of liability insurance" a policy issued by a Risk Retention Group
(RRG) registered in New York State under the Federal Liability Risk
Retention Act of 1986.

Section 3 amends the opening paragraph of subdivision 5 of section 311
of the Vehicle and Traffic Law to allow a risk retention group author-
ized to issue an owner's policy of liability insurance.

Section 4 amends subdivision 10 of section 311 of the Vehicle and Traf-
fic Law to allow risk retention groups to issue insurance cards.

Section 5 amends the opening paragraph of subdivision 1 of section 370
of the vehicle and traffic law enables RRGs to file with the commission-
er of motor vehicles a surety bond or policy of insurance.

Section 6 directs the superintendent of financial services to study the
impact of this act three years after enactment of this law to be
provided to the governor and legislature no later than four years after
the effective date.

Section 7 is the effective date.

 
JUSTIFICATION:

Nonprofit carshares are community-focused, membership-based services
that provide access to cars for local trips to people who can't or
choose not to buy their own vehicle. While there are a few carshares in
NYS right now, the opportunity exists to significantly expand this
service and its many benefits. This includes improved access to mobility
for low- to moderate-income people and reducing transportation emissions
as it has similar emissions reduction effects as public transit.

However, due to a requirement that all insurers providing coverage in
New York State be domiciled here, the state's only nonprofit carshares
will soon be unable to secure required automobile insurance and will be
forced to close their operations. This legislation explicitly allows
risk retention groups registered in New York State under the Federal
Liability Risk Retention Act of 1986, and which are insuring 501(c)(3)
nonprofit organizations exclusively, to be registered in and offer
insurance coverage in New York State.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S5959B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5959--B
     Cal. No. 1188
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2023
                                ___________
 
 Introduced by Sens. WEBB, BROUK, COONEY, KENNEDY, RYAN -- read twice and
   ordered  printed, and when printed to be committed to the Committee on
   Insurance -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted to said committee -- reported favorably from
   said committee, ordered to first and second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading
 
 AN  ACT  to  amend the insurance law and the vehicle and traffic law, in
   relation to owner's policies of liability insurance issued by  a  risk
   retention group not chartered within this state
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 5913 of the insurance law, as added by chapter  109
 of the laws of 1988, is amended to read as follows:
   §  5913.  Financial  responsibility.  [Wherever] EXCEPT AS PROVIDED IN
 SECTIONS THREE HUNDRED ELEVEN AND THREE HUNDRED SEVENTY OF  THE  VEHICLE
 AND  TRAFFIC  LAW,  WHEREVER  pursuant  to the laws of this state or any
 political subdivision of this state a demonstration of financial respon-
 sibility is required as a condition for obtaining a license or permit to
 undertake specified activities, if  any  such  requirement  may  not  be
 satisfied by obtaining insurance coverage from an insurer not authorized
 to  do  business in this state, such requirement may not be satisfied by
 purchasing insurance from a risk retention group not chartered  in  this
 state.    EVERY  INSURANCE  POLICY  ISSUED BY A RISK RETENTION GROUP NOT
 CHARTERED IN THIS STATE PURSUANT TO SECTIONS THREE  HUNDRED  ELEVEN  AND
 THREE  HUNDRED  SEVENTY OF THE VEHICLE AND TRAFFIC LAW SHALL CONTAIN THE
 NOTICE SET FORTH IN SECTION FIVE THOUSAND  NINE  HUNDRED  FIVE  OF  THIS
 ARTICLE.
   §  2.  Paragraphs  (b)  and (c) of subdivision 4 of section 311 of the
 vehicle and traffic law, paragraph (c) as amended by chapter 200 of  the
 laws of 1974, are amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10375-10-3
 S. 5959--B                          2
 
   (b) In the case of a vehicle registered in this state, a policy issued
 by  (I) an insurer duly authorized to transact business in this state OR
 (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS  STATE  BUT  WHICH  IS
 REGISTERED  WITH  THE  SUPERINTENDENT  UNDER  THE FEDERAL LIABILITY RISK
 RETENTION  ACT  OF  1986,  COMPRISED  ENTIRELY OF ORGANIZATIONS THAT ARE
 TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE FEDERAL INTERNAL REVENUE  CODE
 AND  WHERE  THE RISK RETENTION GROUP QUALIFIES AS A CHARITABLE RISK POOL
 UNDER SECTION 501(N) OF THE FEDERAL INTERNAL REVENUE CODE; or
   (c) In the case of a vehicle lawfully registered in another state,  or
 in both this state and another state, [either] (I) a policy issued by an
 authorized insurer, or (II) A RISK RETENTION GROUP NOT CHARTERED IN THIS
 STATE  BUT WHICH IS REGISTERED WITH THE SUPERINTENDENT UNDER THE FEDERAL
 LIABILITY RISK RETENTION ACT OF 1986, COMPRISED  ENTIRELY  OF  ORGANIZA-
 TIONS  THAT ARE TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE FEDERAL INTER-
 NAL REVENUE CODE AND WHERE THE RISK RETENTION GROUP QUALIFIES AS A CHAR-
 ITABLE RISK POOL UNDER SECTION 501(N) OF THE  FEDERAL  INTERNAL  REVENUE
 CODE,  OR (III) a policy issued by an unauthorized insurer authorized to
 transact business in another state if such  unauthorized  insurer  files
 with  the  commissioner in form to be approved by [him] THEM a statement
 consenting to service of process and declaring  its  policies  shall  be
 deemed to be varied to comply with the requirements of this article; and
   §  3.  The  opening  paragraph  of subdivision 5 of section 311 of the
 vehicle and traffic law, as amended by chapter 569 of the laws of  1981,
 is amended to read as follows:
   The  term "certificate of insurance" shall mean any evidence issued by
 or on behalf of an insurance company duly authorized to  transact  busi-
 ness  in  this  state,  OR A RISK RETENTION GROUP AUTHORIZED TO ISSUE AN
 OWNER'S POLICY OF LIABILITY INSURANCE PURSUANT TO  SUBDIVISION  FOUR  OF
 THIS  SECTION, stating in such form as the commissioner may prescribe or
 approve that such company OR SUCH RISK RETENTION  GROUP  has  issued  an
 owner's  policy  of liability insurance on the motor vehicle or vehicles
 designated therein.   Such  certificate  shall  contain  information  as
 required  by the commissioner including at least the following except as
 otherwise provided:
   § 4. Subdivision 10 of section 311 of the vehicle and traffic law,  as
 amended  by  chapter  103  of  the  laws  of 1972, is amended to read as
 follows:
   10. "Insurance Identification Card" shall mean a card issued by or  on
 behalf  of  an  insurance  company or bonding company duly authorized to
 transact business in this state, OR A RISK RETENTION GROUP AUTHORIZED TO
 ISSUE AN OWNER'S POLICY OF LIABILITY INSURANCE PURSUANT  TO  SUBDIVISION
 FOUR  OF  THIS  SECTION,  stating  in  such form as the commissioner may
 prescribe or approve that such company OR SUCH RISK RETENTION GROUP  has
 issued  an owner's policy of liability insurance or a financial security
 bond on the motor vehicle or  vehicles  designated  therein.  Such  card
 shall  contain such information and shall be valid during such period as
 may be prescribed by the commissioner. If an owner shall  have  filed  a
 financial  security  deposit,  or shall have qualified as a self-insurer
 under section three hundred sixteen of this [chapter] ARTICLE, the  term
 "insurance  identification card" shall mean a card issued by the depart-
 ment which evidences that such deposit has been filed or that such owner
 has so qualified.
   § 5.  The opening paragraph of subdivision 1 of  section  370  of  the
 vehicle  and  traffic  law, as amended by chapter 20 of the laws of 2002
 and as further amended by section 104 of part A of  chapter  62  of  the
 laws of 2011, is amended to read as follows:
 S. 5959--B                          3
 
   Every person, firm, association or corporation engaged in the business
 of  carrying or transporting passengers for hire in any motor vehicle or
 motorcycle, except street cars, and motor vehicles or motorcycles  owned
 and operated by a municipality, and except as otherwise provided in this
 section,  which  shall be operated over, upon or along any public street
 or highway of the state of New York shall file with the commissioner  of
 motor  vehicles  for  each motor vehicle or motorcycle intended to be so
 operated evidence, in such form as the commissioner may prescribe, of  a
 corporate  surety  bond  or a policy of insurance[,]: (A) approved as to
 form by the superintendent of financial services in a company authorized
 to do business in the  state,  approved  by  the  superintendent  as  to
 solvency  and responsibility[,]; OR (B) A RISK RETENTION GROUP NOT CHAR-
 TERED IN THIS STATE BUT WHICH IS REGISTERED WITH THE  SUPERINTENDENT  OF
 FINANCIAL SERVICES UNDER THE  FEDERAL LIABILITY  RISK  RETENTION  ACT OF
 1986,  COMPRISED  ENTIRELY  OF  ORGANIZATIONS  THAT ARE TAX-EXEMPT UNDER
 SECTION 501(C)(3) OF THE FEDERAL INTERNAL REVENUE  CODE  AND  WHERE  THE
 RISK  RETENTION  GROUP QUALIFIES AS A CHARITABLE RISK POOL UNDER SECTION
 501(N) OF THE FEDERAL INTERNAL REVENUE CODE. SUCH SURETY BOND OR  POLICY
 OF  INSURANCE  SHALL  BE  conditioned  for the payment of a minimum sum,
 hereinafter called minimum liability, on a  judgment  or  judgments  for
 damages,  including  damages  for  care and loss of services, because of
 bodily injury to, or death of any one person in any  one  accident,  and
 subject  to  such  minimum  liability  a maximum sum, hereinafter called
 maximum liability on a judgment  or  judgments  for  damages,  including
 damages  for  care  and loss of services because of bodily injury to, or
 death of two or more persons in any one accident and for the payment  of
 a  minimum  sum,  called  minimum liability on all judgments for damages
 because of injury to or destruction of property of  others  in  any  one
 accident,  recovered  against  such  person, firm, association or corpo-
 ration upon claims arising out of the same transaction  or  transactions
 connected  with  the  same  subject of action, to be apportioned ratably
 among the judgment creditors according to the amount of their respective
 judgments for damage or injury caused in the operation, maintenance, use
 or the defective construction of such motor  vehicle  or  motorcycle  as
 follows:
   § 6. Three years after the effective date of this act, the superinten-
 dent  of  financial  services,  in consultation with the commissioner of
 motor vehicles, shall study the impact of  this  act  to  determine  the
 efficacy  of  risk  retention groups not chartered in this state issuing
 vehicle insurance policies. Such study shall  examine  certain  factors,
 including,  but not limited to: the quality and practicability of cover-
 age on automotive accidents covered under such insurance  policies,  the
 magnitude  of  need  and  interest  in these types of insurance policies
 across the state, customer satisfaction and  fiscal  surety  using  such
 policies, the ability of the state to regulate such policies through the
 federal  limited  risk  retention  act, and other data as is practicable
 that would assess the potential  impact  on  nonprofits  that  could  be
 covered  by the expansion of eligibility of these policies for organiza-
 tions that are tax-exempt under section 501(c)(3) of the federal  inter-
 nal  revenue code. Such superintendent shall report the findings and any
 recommendations of such study to the governor  and  the  legislature  no
 later than four years after the effective date of this act.
   §  7.    This  act  shall take effect on the one hundred eightieth day
 after it shall have become a law.

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Senate Bill S5959B

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Current Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

2023-S5959 - Details

2023-S5959 - Summary

2023-S5959 - Sponsor Memo

2023-S5959 - Bill Text download pdf

co-Sponsors

2023-S5959A - Details

2023-S5959A - Summary

2023-S5959A - Sponsor Memo

2023-S5959A - Bill Text download pdf

co-Sponsors

2023-S5959B (ACTIVE) - Details

2023-S5959B (ACTIVE) - Summary

2023-S5959B (ACTIVE) - Sponsor Memo

2023-S5959B (ACTIVE) - Bill Text download pdf

Comments