NY State Senate Bill 2023-S8432

Senate Bill S8432

2023-2024 Legislative Session

Establishes a captive insurance program for commuter vans, black cars, ambulettes and paratransit vehicles, and small school buses pre-arranged for-hire vehicles, and accessible vehicles

download bill text pdf

Current Bill Status - In Senate Committee Insurance Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 29, 2024	referred to insurance

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2023-S8432 (ACTIVE) - Details

See Assembly Version of this Bill:: A9099
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §7013, Ins L

2023-S8432 (ACTIVE) - Summary

Establishes a captive insurance program for commuter vans, black cars, ambulettes and paratransit vehicles, small school buses, and charter buses that are engaged in the business of carrying or transporting eight to twenty-four passengers for hire; pre-arranged for-hire vehicles and accessible vehicles; defines terms.

2023-S8432 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8432REVISED 1/30/2024

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to establishing a captive
insurance program for commuter vans, black cars, ambulettes and para-
transit vehicles, and small school buses

 
PURPOSE:

The purpose of this legislation is to provide for-hire vehicle operators
the option for a parent insurance company to provide risk mitigation
services in underwriting to reduce insurance rates for policyholders
that experience excessive insurance costs in New York State

 
SUMMARY OF PROVISIONS:

Section 1 creates a captive insurance program for commuter vans, pre-ar-
ranged for-hire vehicles, and accessible vehicles.

Section 2 provides the effective date.

 
JUSTIFICATION:

The culmination of issues that have affected the for-hire transit market
in NY have made commuter vans and other transit options expensive to
operate by reducing the financial pool from which insurers could pull
from for claims, thereby putting greater costs onto vehicle operators.

Commuter van numbers in NYC dwindled from 300+ to -50 during COVID 19.
Many commuter vans and other transit options are being booted and repos-
sessed because they can't afford to operate. Since the Parks Insurance
receivership, insurance policies were forced into the DFS assigned risk
plan through AIPSO. Due to NYS insurance costs exceeding $40,000-55,000/
year per driver/van under this policy, many drivers use New Jersey,
Connecticut or other out of state plates to operate in New York City.

This bill aims to stabilize the NYS for hire transit market by creating
a captive insurance program under DFS, where insurers can provide risk
mitigation services to strategically reduce the cost of insurance for
drivers where the costs have continued to be prohibitive for entrepre-
neurs.

 
LEGISLATIVE HISTORY:

2024: Amended.

2023: 54862 COMRIE / A5294 Anderson - vetoed

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2023-S8432 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8432
 
                             I N  S E N A T E
 
                             January 29, 2024
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 establishing a captive
   insurance program for commuter vans, black cars, ambulettes and  para-
   transit vehicles, and small school buses
 
   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  7013
 to read as follows:
   §  7013.  CAPTIVE  INSURANCE  PROGRAM  FOR COMMUTER VANS, PRE-ARRANGED
 FOR-HIRE VEHICLES, AND ACCESSIBLE  VEHICLES.    (A)  THE  SUPERINTENDENT
 SHALL  UTILIZE  AND  IMPLEMENT  A CAPTIVE INSURANCE PROGRAM FOR COMMUTER
 VANS, PRE-ARRANGED FOR-HIRE VEHICLES, AND ACCESSIBLE VEHICLES  THAT  ARE
 ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE.
 THE PROGRAM SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
   (1) IDENTIFYING AND LICENSING A CAPTIVE INSURANCE COMPANY OR COMPANIES
 TO  PROVIDE  NECESSARY INSURANCE COVERAGE TO COMMUTER VANS, PRE-ARRANGED
 FOR-HIRE VEHICLES, AND ACCESSIBLE VEHICLES;
   (2) STANDARDS FOR ENROLLMENT OF ELIGIBLE COMMUTER  VANS,  PRE-ARRANGED
 FOR-HIRE  VEHICLES,  AND  ACCESSIBLE  VEHICLES  INCLUDING MECHANISMS FOR
 DETERMINING ELIGIBILITY; AND
   (3) STANDARDS FOR MONITORING THE PERFORMANCE OF SUCH CAPTIVE INSURANCE
 COMPANY OR COMPANIES  IN  PROVIDING  AFFORDABLE  INSURANCE  COVERAGE  TO
 COMMUTER  VANS,  PRE-ARRANGED FOR-HIRE VEHICLES, AND ACCESSIBLE VEHICLES
 PARTICIPATING IN THE PROGRAM PURSUANT TO SUBSECTION (C) OF THIS SECTION.
   (B) FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE
 THE FOLLOWING MEANINGS:
   (1)  "COMMUTER VAN" SHALL MEAN A COMMUTER VAN SERVICE HAVING A SEATING
 CAPACITY OF NINE PASSENGERS BUT NOT MORE THAN TWENTY-FOUR PASSENGERS  OR
 SUCH  GREATER  CAPACITY  AS THE SUPERINTENDENT MAY ESTABLISH BY RULE AND
 CARRYING PASSENGERS FOR HIRE. THE TERM "COMMUTER VAN" SHALL INCLUDE, BUT
 NOT BE LIMITED TO, SHUTTLES AND TRANSPORTATION VANS.
   (2) "PRE-ARRANGED FOR-HIRE VEHICLE" SHALL MEAN A MOTOR VEHICLE THAT IS
 USED IN THE BUSINESS OF TRANSPORTING PASSENGERS FOR  COMPENSATION  ON  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09645-03-4
 S. 8432                             2
 
 PRE-ARRANGED  BASIS,  AND  OPERATED  IN SUCH BUSINESS UNDER A LICENSE OR
 PERMIT ISSUED BY A LICENSING JURISDICTION.  SUCH TERM SHALL INCLUDE, BUT
 NOT BE LIMITED TO, SMALL SCHOOL BUSES PURSUANT TO  SECTION  ONE  HUNDRED
 FORTY-TWO OR SIXTEEN HUNDRED FORTY-TWO-A OF THE VEHICLE AND TRAFFIC LAW.
 THE  TERM  "PRE-ARRANGED  FOR-HIRE  VEHICLE"  SHALL APPLY TO VEHICLES AS
 DEFINED IN THIS PARAGRAPH REGARDLESS OF ANY OTHER PROVISION OF LOCAL LAW
 OR RULE DEFINING OR DESCRIBING SUCH VEHICLES BY ANY OTHER TERMS SUCH  AS
 SCHOOL BUS, CHARTER BUS, LIVERY, TAXI, BLACK CAR, OR LUXURY LIMOUSINE.
   (3) "ACCESSIBLE VEHICLE" SHALL MEAN A VEHICLE THAT:
   (A) COMPLIES WITH THE ACCESSIBILITY REQUIREMENTS OF THE AMERICANS WITH
 DISABILITIES  ACT  OF  1990, AS AMENDED, AND THE REGULATIONS PROMULGATED
 THEREUNDER;
   (B) IS EQUIPPED WITH A LIFT, RAMP OR ANY OTHER DEVICE, ARRANGEMENT  OR
 ALTERATION,  SO IT IS CAPABLE OF TRANSPORTING INDIVIDUALS WHO USE WHEEL-
 CHAIRS, SCOOTERS, OR OTHER MOBILITY AIDS WHILE  THEY  REMAIN  SEATED  IN
 THEIR WHEELCHAIRS, SCOOTERS, OR OTHER MOBILITY AIDS;
   (C)  IS  EQUIPPED  WITH AN ASSISTIVE LISTENING SYSTEM FOR PERSONS WITH
 HEARING IMPAIRMENTS THAT IS CONNECTED WITH ANY INTERCOM, VIDEO OR  AUDIO
 SYSTEM,  WHEN  SUCH  A  SYSTEM  IS INSTALLED OR DESIGNED AND APPROVED TO
 PROVIDE SERVICE TO PERSONS WITH DISABILITIES;
   (D) IS EQUIPPED WITH STANDARDIZED SIGNS PRINTED IN: (I)  BRAILLE;  AND
 (II) LARGE-PRINT TEXT SO THAT SUCH SIGNS ARE VISIBLE TO PERSONS WITH LOW
 VISION;
   (E) PROVIDES SUFFICIENT FLOOR SPACE TO ACCOMMODATE A SERVICE ANIMAL;
   (F)  IF POWERED BY A HYBRID-ELECTRIC MOTOR, IS EQUIPPED WITH AN APPRO-
 PRIATE DEVICE TO ENABLE PERSONS WHO ARE BLIND TO HEAR  THE  APPROACH  OF
 THE  VEHICLE AS READILY AS THEY CAN HEAR A CONVENTIONAL GASOLINE-POWERED
 VEHICLE;
   (G) SHALL INCLUDE, BUT NOT BE LIMITED TO, "AMBULETTE" WHICH SHALL HAVE
 THE SAME MEANING SET FORTH IN 17 NYCRR PART 720.8 OR "PARATRANSIT" VEHI-
 CLE WHICH MEANS A SPECIAL-PURPOSE  VEHICLE,  DESIGNED  AND  EQUIPPED  TO
 PROVIDE  NONEMERGENCY  TRANSPORT, THAT HAS WHEELCHAIR-CARRYING CAPACITY,
 STRETCHER-CARRYING CAPACITY, OR THE ABILITY TO CARRY DISABLED PERSONS AS
 DEFINED IN SECTION FIFTEEN-B OF THE TRANSPORTATION LAW.
   (C) INSURANCE COMPANIES SHALL MAINTAIN REQUIREMENTS, INCLUDING BUT NOT
 LIMITED TO: $500,000 COMBINED  SINGLE  LIMITS  (CSL);  $50,000  PERSONAL
 INJURY PROTECTION (PIP) (BASIC); AND  $25,000/$50,000 UNINSURED MOTORIST
 COVERAGE  (UM/UIM).    IN  ADDITION,  ALL  NO FAULT INSURANCE RELATED TO
 COMMUTER VANS, PRE-ARRANGED FOR-HIRE VEHICLES, AND  ACCESSIBLE  VEHICLES
 INSURED  IN  THIS  PROGRAM WILL RELY ON THE MEDICAL TREATMENT GUIDELINES
 PROMULGATED IN EXISTING WORKERS' COMPENSATION LAW.
   § 2. This act shall take effect immediately.

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