S T A T E O F N E W Y O R K
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8053
I N S E N A T E
January 5, 2024
___________
Introduced by Sen. WEBB -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend 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; and to amend a chapter of the laws of
2023 amending the insurance law and the vehicle and traffic law relat-
ing to owner's policies of liability insurance issued by a risk
retention group not chartered within this state, as proposed in legis-
lative bills numbers S.5959-B and A.5718-B, in relation to a study and
reporting on the impact of such bill, required reporting by certain
risk retention groups of examinations, audits, or other investi-
gations, performed by another state's insurance commissioner and the
effectiveness thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs (b), (c) and (d) of subdivision 4 of section 311
of the vehicle and traffic law, paragraphs (b) and (c) as amended by a
chapter of the laws of 2023 amending the insurance law and the vehicle
and traffic law relating to owner's policies of liability insurance
issued by a risk retention group not chartered within this state, as
proposed in legislative bills numbers S.5959-B and A.5718-B, 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) WHERE A VEHICLE IS REGISTERED BY A NOT-FOR-PROFIT ORGANIZATION THAT
IS TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE FEDERAL INTERNAL REVENUE
CODE, 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, PROVIDED THAT
THE VEHICLE BEING REGISTERED DOES NOT HAVE A SEATING CAPACITY OF MORE
THAN FIFTEEN PASSENGERS, IS NOT A LIMOUSINE OR LUXURY LIMOUSINE, AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10375-12-4
S. 8053 2
WHERE SUCH VEHICLES ARE NOT SOLELY FOR PERSONAL USE BY A DIRECTOR, OFFI-
CER, AUTHORIZED PERSON, OR KEY PERSON, THEIR RELATIVES OR RELATED
PARTIES; or
(c) In the case of a vehicle lawfully registered in another state, or
in both this state and another state, (i) a policy issued by an author-
ized insurer, or (ii) WHERE A VEHICLE IS REGISTERED BY A NOT-FOR-PROFIT
ORGANIZATION THAT IS TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE FEDERAL
INTERNAL REVENUE CODE, 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, PROVIDED THAT THE VEHICLE BEING REGISTERED DOES NOT HAVE A SEAT-
ING CAPACITY OF MORE THAN FIFTEEN PASSENGERS, IS NOT A LIMOUSINE OR
LUXURY LIMOUSINE, AND WHERE SUCH VEHICLES ARE NOT SOLELY FOR PERSONAL
USE BY A DIRECTOR, OFFICER, AUTHORIZED PERSON, OR KEY PERSON, THEIR
RELATIVES OR RELATED PARTIES, or (iii) a policy issued by an unauthor-
ized insurer authorized to transact business in another state if such
unauthorized insurer files with the commissioner in form to be approved
by 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
(d) The form of which has been approved by the superintendent, EXCEPT
IN THE CASE OF A RISK RETENTION GROUP NOT CHARTERED IN THIS STATE. No
such policy shall be issued or delivered in this state until a copy of
the form of policy shall have been on file with the superintendent for
at least thirty days, unless sooner approved in writing by the super-
intendent, nor if within said period of thirty days the superintendent
shall have notified the carrier in writing that in [his] THE SUPERINTEN-
DENT'S opinion, specifying the reasons therefor, the form of policy does
not comply with the laws of this state.
§ 2. The opening paragraph of subdivision 1 of section 370 of the
vehicle and traffic law, as amended by a chapter of the laws of 2023
amending the insurance law and the vehicle and traffic law relating to
owner's policies of liability insurance issued by a risk retention group
not chartered within this state, as proposed in legislative bills
numbers S.5959-B and A.5718-B, is amended to read as follows:
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) WHERE A VEHICLE IS REGISTERED BY A NOT-FOR-
PROFIT ORGANIZATION THAT IS TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE
FEDERAL INTERNAL REVENUE CODE, 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 that are tax-exempt under section
501(c)(3) of the federal internal revenue code and where the risk
S. 8053 3
retention group qualifies as a charitable risk pool under section 501(n)
of the federal internal revenue code, PROVIDED THAT THE VEHICLE BEING
REGISTERED DOES NOT HAVE A SEATING CAPACITY OF MORE THAN FIFTEEN
PASSENGERS, IS NOT A LIMOUSINE OR LUXURY LIMOUSINE, AND WHERE SUCH VEHI-
CLES ARE NOT SOLELY FOR PERSONAL USE BY A DIRECTOR, OFFICER, AUTHORIZED
PERSON, OR KEY PERSON, THEIR RELATIVES OR RELATED PARTIES. 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 acci-
dent, and subject to such minimum liability a maximum sum, hereinafter
called maximum liability on a judgment or judgments for damages, includ-
ing 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:
§ 3. Section 6 of a chapter of the laws of 2023 amending the insurance
law and the vehicle and traffic law relating to owner's policies of
liability insurance issued by a risk retention group not chartered with-
in this state, as proposed in legislative bills numbers S.5959-B and
A.5718-B, is amended and a new section 6-a is added to read as follows:
§ 6. [Three years after the effective date of this act, the] THE
superintendent of financial services, in consultation with the commis-
sioner of motor vehicles, shall study the impact of this act to deter-
mine 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 coverage on automotive accidents covered under such insurance poli-
cies, 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] LIABILITY risk retention act OF 1986, 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 organizations that are tax-exempt under section
501(c)(3) of the federal internal 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 effec-
tive date of this act] SEPTEMBER 1, 2027. A RISK RETENTION GROUP NOT
CHARTERED IN THIS STATE THAT ISSUES AN INSURANCE POLICY PURSUANT TO
SECTIONS THREE HUNDRED ELEVEN AND THREE HUNDRED SEVENTY OF THE VEHICLE
AND TRAFFIC LAW SHALL SUBMIT TO THE SUPERINTENDENT OF FINANCIAL
SERVICES, UPON THE SUPERINTENDENT'S REQUEST, THE INFORMATION NECESSARY
FOR THE SUPERINTENDENT TO COMPLETE THIS STUDY.
§ 6-A. PURSUANT TO 15 U.S. CODE 3902(A)(1)(E) ANY 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 THAT ARE
TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE FEDERAL INTERNAL REVENUE CODE
S. 8053 4
AND WHERE THE RISK RETENTION GROUP QUALIFIES AS A CHARITABLE RISK POOL
UNDER SECTION 501(N) OF THE FEDERAL INTERNAL REVENUE CODE, SHALL REPORT
TO THE DEPARTMENT OF FINANCIAL SERVICES ANY EXAMINATION, AUDIT, OR OTHER
INVESTIGATION, PERFORMED BY ANOTHER STATE'S INSURANCE COMMISSIONER AND
ITS FINDINGS, INCLUDING ANY ENFORCEMENT ACTIONS FILED OR SETTLEMENTS
ENTERED INTO, WITHIN 60 DAYS TO AVOID UNJUSTIFIED DUPLICATION AND UNJUS-
TIFIED REPETITION OF SUCH ACT.
§ 4. Section 7 of a chapter of the laws of 2023 amending the insurance
law and the vehicle and traffic law relating to owner's policies of
liability insurance issued by a risk retention group not chartered with-
in this state, as proposed in legislative bills numbers S.5959-B and
A.5718-B, is amended to read as follows:
§ 7. This act shall take effect [on the one hundred eightieth day
after it shall have become a law] MARCH 1, 2024.
§ 5. This act shall take effect immediately; provided however, that
sections one, two and three of this act shall take effect on the same
date and in the same manner as a chapter of the laws of 2023 amending
the insurance law and the vehicle and traffic law relating to owner's
policies of liability insurance issued by a risk retention group not
chartered within this state, as proposed in legislative bills numbers
S.5959-B and A.5718-B, takes effect.
