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.

                             
                     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.