Senate Bill S7950

                                 
BILL NUMBER: S7950

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the insurance law, in relation to establishing a captive
insurance program for commuter vans

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is for the Superintendent of the New York State
Department of Financial Services to create and implement a captive
insurance program for commuter vans in the State of New York.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends the state's insurance law by adding a new section
7013, which create a captive insurance program for commuter vans.

Section 2: Contains the bill's effective date clause, which provides
that the act shall take effect on the ninetieth day afte'rthall have
become a law.
              

 
JUSTIFICATION:

Commuter vans (also known as "Dollar Vans") are an essential means of
transportation for many New Yorkers who reside in the City of New York.
These commuter vans typically operate in communities that are under-
served through the public mass transit systems. Hence, they are a
pivotal piece in the transportation apparatus of the City of New York.

It is also of note that the economic eco-system of commuter vans is
critical in minority communities, since these communities typically
operate and use this affordable transportation method. Due to many
factors, which were exacerbated by the COVID-l9 pandemic starting in the
year 2020. The commuter vans industry has been crippled due to not
having access to reliable and affordable insurance of the vans itself.
Often forcing many van operators to shut down, or potentially having
uninsured or under-insured vans operating on the roads.

Consequently, this legislation aims at creating a captive insurance
program through the New York State Department of Finance. Which could be
a lifeline in ensuring that the State of New York encourages growing
local business by providing them access to affordable insurance.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S8255 - Referred to Insurance

 
FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.