Legislation

§ 313. Notice of termination. 1. (a) No contract of insurance for
which a certificate of insurance has been filed with the commissioner
shall be terminated by cancellation by the insurer until at least twenty
days after mailing to the named insured at the address shown on the
policy a notice of termination by regular mail, with a certificate of
mailing, properly endorsed by the postal service to be obtained, except
where the cancellation is for non-payment of premium in which case
fifteen days notice of cancellation by the insurer shall be sufficient,
provided, however, if another insurance contract has been procured, such
other insurance contract shall, as of its effective date and hour,
terminate the insurance previously in effect with respect to any motor
vehicles designated in both contracts. No contract of insurance for
which a certificate of insurance has been filed with the commissioner in
which a natural person is the named insured and the motor vehicle is
used predominantly for non-business purposes shall be non-renewed by an
insurer unless at least forty-five, but not more than sixty days in
advance of the renewal date the insurer mails or delivers to the named
insured at the address shown on the policy a written notice of its
intention not to renew. No such contract of insurance in which the named
insured is not a natural person or the motor vehicle is used
predominantly for business purposes shall be non-renewed by an insurer
unless at least twenty days in advance of the renewal date the insurer
mails or delivers to the named insured at the address shown on the
policy a written notice of its intention not to renew. All notices of
non-renewal shall be sent by regular mail with a certificate of mailing,
properly endorsed by the postal service to be obtained. Time of the
effective date and hour of termination stated in the notice shall become
the end of the policy period. Every notice or acknowledgement of
termination for any cause whatsoever sent to the insured shall include
in type of which the face shall not be smaller than twelve point a
statement that proof of financial security is required to be maintained
continuously throughout the registration period and a notice prescribed
by the commissioner indicating the punitive effects of failure to
maintain continuous proof of financial security and actions which may be
taken by the insured to avoid such punitive effects.

(b) Every insurer shall retain a copy of the notice of termination
mailed pursuant to this chapter and shall retain the certificate of
mailing obtained from the postal service upon the mailing of the
original of said notice. A copy of a notice of termination and the
certificate of mailing, when kept in the regular course of the insurer's
business, shall constitute conclusive proof of compliance with the
mailing requirements of this chapter.

* 2. (a) Upon the termination of an owner's policy of liability
insurance, other than an owner's policy of liability insurance for a
motorcycle, at the request of the insured or by cancellation by the
insurer, the insurer shall file a notice of termination with reference
to such policy, as opposed to any insured vehicle or vehicles under such
policy, with the commissioner not later than thirty days following the
effective date of such cancellation or other termination, in accordance
with the regulations required by paragraph (c) of this subdivision. An
insurer shall not file a notice of termination with the commissioner
except as required by this subdivision.

(b) Upon the issuance of an owner's policy of liability insurance the
insurer shall file a notice or confirmation of issuance with reference
to such policy not later than fourteen days following the effective date
of such issuance, and not later than seven days following the effective
date for policies issued after January first, two thousand one, in
accordance with the regulations required by paragraph (c) of this
subdivision.

(c) The commissioner shall promulgate regulations establishing
procedures for issuance of proof of insurance and for reporting by
insurers of notices of termination and policy issuance, either
electronically or by paper copy, at the option of the department. Such
reporting shall be required for every cancellation or termination which
is effective on or after July first, nineteen hundred eighty-four and
for every policy issuance which is effective on or after January first,
two thousand; provided, however, that should the commissioner find,
after testing of reporting procedures, that it would be feasible to
require reporting for policy cancellations, terminations or issuances
effective on an earlier date, he may by regulation so require reporting
on such earlier date, but in no event shall reporting be required for
cancellations or terminations effective prior to February first,
nineteen hundred eighty-four nor for policy issuances effective prior to
September first, nineteen hundred ninety-nine. Insurers shall cooperate
fully with the commissioner in any such testing of reporting procedures.

(d) Upon application by an insurer, the commissioner may extend the
period for filing of notices of termination by such insurer for up to
fifteen days, and for seven days for policies issued by an insurer.
Extensions shall not be granted unless the insurer demonstrates to the
satisfaction of the commissioner that compliance with the notice period
would result in substantial hardship to the insurer. The commissioner
shall maintain a list of extensions granted pursuant to this paragraph.

* NB Effective until December 31, 2028

* 2. The commissioner shall promulgate regulations establishing
procedures for issuance of proof of insurance.

* NB Effective December 31, 2028

* 3. A cancellation or termination for which notice is required to be
filed with the commissioner pursuant to subdivision two of this section
shall not be effective with respect to persons other than the named
insured and members of the insured's household until the insurer has
filed a notice thereof with the commissioner or until another insurance
policy covering the same risk has been procured, except that a notice
filed with the commissioner, in the format prescribed by the
commissioner, within the period prescribed in subdivision two of this
section shall be effective as of the date certified therein, regardless
of whether a suspension order is issued pursuant to section three
hundred eighteen of this article. A receipt from the department stating
that a notice of termination has been filed shall be deemed conclusive
evidence of such filing. An insurer shall cooperate with the
commissioner in attempting to identify persons not in compliance with
this article in cases where the information reported by the insurer does
not correspond with records maintained by the department.

* NB Effective until December 31, 2028

* 3. A cancellation or termination for which notice is required to be
filed with the commissioner shall not be effective with respect to
persons other than the named insured and members of the insured's
household until the insurer has filed a notice thereof with the
commissioner or until another insurance policy covering the same risk
has been procured, except that a notice filed with the commissioner, in
the format prescribed by the commissioner, shall be effective as of the
date certified therein, regardless of whether a suspension order is
issued pursuant to section three hundred eighteen of this article. A
receipt from the department stating that a notice of termination has
been filed shall be deemed conclusive evidence of such filing. An
insurer shall cooperate with the commissioner in attempting to identify
persons not in compliance with this article in cases where the
information reported by the insurer does not correspond with records
maintained by the department.

* NB Effective December 31, 2028

* 4. Notwithstanding any other provision of this article to the
contrary, the commissioner shall establish a pilot program to maintain
an up-to-date insured vehicle identification database to assist in
identifying uninsured motor vehicles. Such databases shall be
implemented by the department pursuant to standards prescribed by the
commissioner or an agent designated by the commissioner which shall seek
technical assistance from affected insurers and the New York Automobile
Insurance Plan. This program shall utilize all information collected
pursuant to this section and shall also include the following elements:

(a) In addition to and in conjunction with the provisions of
subdivision two of this section, insurers that write private passenger
or commercial motor vehicle insurance in this state shall also submit to
the department, either electronically or by paper copy, at the option of
the department, information that identifies those policies that have
been cancelled, terminated or non-renewed and all policies that have
been issued, the date when such insurance lapses, and any other
information that the commissioner deems necessary to efficiently
identify and track uninsured vehicles in this state such as a
policyholder's address, policy number, vehicle registration number, and
vehicle identification number. The department may exempt from such pilot
program the transfer of information on certain classifications of
vehicles that are in the opinion of the department generally insured and
which it is difficult to identify uninsured vehicles within such
classification, such as large commercial vehicle fleets;

(b) The department shall forward to each motor vehicle insurer, at
such times as deemed necessary and appropriate by the commissioner, a
listing of all the registrants the department has on file as insured
with that insurer. Such insurer shall then review the listing within
thirty days of receipt of the listing and report to the department which
of the registrants the insurer does not insure;

(c) The commissioner shall, in conjunction with the superintendent of
state police and local law enforcement officials formulate a means to
allow such database to be easily accessible to on-duty law enforcement
personnel in the performance of their official duties for the purpose of
verifying whether an operator maintains proper insurance coverage and to
increase compliance with the motor vehicle financial security laws under
this article and article eight of this title;

(d) In developing the mechanism to electronically transfer information
to the department, the commissioner shall consult with the
superintendent of financial services and insurers to adopt a
standardized system of organizing, recording and transferring such
information so as to minimize insurer administrative expenses. The
commissioner shall to the maximum extent possible utilize nationally
recognized electronic data information systems such as those developed
by the American National Standards Institute or the American Association
of Motor Vehicle Administrators;

(e)(1) Either simultaneously or after the up-dated database system has
been established, the commissioner shall develop a computer indicator
that can be imprinted on a vehicle registration sticker or on a sticker
to be affixed to the insured's license plate. Such indicator system
shall enable law enforcement personnel and other authorized persons when
acting in the course of their official duties to access the department's
database so that such persons can ascertain whether a vehicle is
properly insured or not insured;

(2) Such computer indicator system shall enable authorized persons in
the performance of their official duties to access information such as
the registrant's name, vehicle identification number, name of insurer,
current status of insurance, vehicle registration number and other
information that the commissioner deems necessary to implement the
provisions of this section. The commissioner in developing such computer
indicator system shall enable authorized persons in the performance of
their official duties to access only such information that is necessary
to detect uninsured motor vehicles or accomplish other goals clearly
established and authorized by law. Such computer indicator system shall
be designed to protect the personal privacy interests of motorists;

(f) The commissioner shall maintain an insured vehicle database system
that is accurate to within a period of fourteen days and a computer
indicator system described in paragraph (e) of this subdivision within
twenty-four months of the effective date of this subdivision and to
within seven days by January first, two thousand one. The commissioner
shall submit to the legislature a report within eighteen months from the
date this subdivision takes effect which outlines the progress being
made to implement such database and computer indicator system. After
such database and computer indicator system is established and put into
operation, the commissioner shall make recommendations to the
legislature to alter, minimize or eliminate the need for the issuance of
insurance identification cards, simplify the requirements to demonstrate
proof of financial security and certificate of insurance currently
required by this article, eliminate the requirement for production of
proof of financial security to accompany applications for registrations
or renewals thereof provided that such database indicates that the
registrant is insured, and the repeal or modification of section three
hundred twelve-a of this article. The commissioner shall also make
recommendations to the legislature to streamline and shorten the notice
termination requirements of subdivisions one, two and three of this
section and section three hundred eighteen of this article. Such report
shall be submitted to the legislature within twelve months from the date
such database and indicator system has been implemented;

(g) To minimize the cost of this program, the commissioner, if he
deems it necessary and prudent, can initially limit the scope of this
project to a select number of vehicle classifications or insurers;

(h) Notwithstanding any other provision of law, information obtained
by the department pursuant to this section shall not be disclosed, used,
sold, accessed, utilized in any manner or released by the department to
any person, corporation, or state and local agency, except in response
to a specific, individual request for such information authorized
pursuant to the federal driver's privacy protection act (18 U.S.C. 2721
et.seq.). The department shall institute measures to ensure that only
authorized persons are permitted to access such information for the
purposes specified by this section. Persons who knowingly release or
disclose information from such database for a purpose other than those
described as authorized by this section or to a person not entitled to
receive it shall be guilty of a misdemeanor for each such release or
disclosure; and

(i) The commissioner may postpone implementation of such pilot
database and computer indicator system for a period of time not to
exceed eighteen months if he or she determines that the program is not
ready for implementation. Should the commissioner determine that such
system cannot be implemented during the eighteen months extension, then
the commissioner shall report to the legislature the reasons why such
program cannot be implemented and request that the law be amended to
delay its implementation date.

* NB Effective until December 31, 2028

* 4. Notwithstanding any other provision of this article to the
contrary, the commissioner shall establish a system for the online
verification of motor vehicle liability insurance to enable the
commissioner to access up-to-date insured vehicle identification
information to assist in identifying uninsured motor vehicles, and shall
verify motor vehicle owners' policies of liability insurance through the
utilization of such online verification system. Such online verification
system shall be implemented by the department pursuant to standards
prescribed by the commissioner who shall seek technical assistance from
affected insurers and the New York Automobile Insurance Plan. This
online verification system shall utilize all information collected
pursuant to this section and shall also include the following elements:

(a) Insurers that write private passenger or commercial motor vehicle
insurance in this state shall, with respect to every motor vehicle
insured by such insurer in the state and in compliance with any rules
and regulations promulgated by the commissioner for the online
verification system established pursuant to this subdivision, provide
the commissioner access to information that identifies those motor
vehicle liability insurance policies that have been cancelled,
terminated or non-renewed and all such policies that have been issued,
the date when such insurance lapses, and any other information that the
commissioner deems necessary to efficiently identify and track uninsured
vehicles in this state such as a policyholder's address, policy number,
vehicle registration number, and vehicle identification number. The
department may exempt from such online verification system the transfer
of information on certain classifications of vehicles that are in the
opinion of the department generally insured and which it is difficult to
identify uninsured vehicles within such classification, such as large
commercial vehicle fleets;

(b) The commissioner shall, in conjunction with the superintendent of
state police and local law enforcement officials formulate a means to
allow information from such online verification system to be easily
accessible to on-duty law enforcement personnel in the performance of
their official duties for the purpose of verifying whether an operator
maintains proper insurance coverage and to increase compliance with the
motor vehicle financial security laws under this article and article
eight of this title;

(c) In developing the mechanism for such online verification system to
electronically transfer information to the department, the commissioner
shall consult with the superintendent of financial services and insurers
to adopt a standardized system of organizing, recording and transferring
such information so as to minimize insurer administrative expenses. The
commissioner shall to the maximum extent possible utilize nationally
recognized electronic data information systems such as those developed
by the American National Standards Institute or the American Association
of Motor Vehicle Administrators;

(d)(1) Either simultaneously or after the online verification system
has been established, the commissioner shall develop a computer
indicator that can be imprinted on a vehicle registration sticker or on
a sticker to be affixed to the insured's license plate. Such indicator
system shall enable law enforcement personnel and other authorized
persons when acting in the course of their official duties to access
information in the department's online verification system so that such
persons can ascertain whether a vehicle is properly insured or not
insured;

(2) Such computer indicator system shall enable authorized persons in
the performance of their official duties to access information such as
the registrant's name, vehicle identification number, name of insurer,
current status of insurance, vehicle registration number and other
information that the commissioner deems necessary to implement the
provisions of this section. The commissioner in developing such computer
indicator system shall enable authorized persons in the performance of
their official duties to access only such information that is necessary
to detect uninsured motor vehicles or accomplish other goals clearly
established and authorized by law. Such computer indicator system shall
be designed to protect the personal privacy interests of motorists;

(e) (i) The commissioner shall maintain such online verification
system which shall be accurate to within a period of seven days;

(ii) The commissioner shall provide that such online verification
system shall, at a minimum:

(1) have the capability for the department to send requests to motor
vehicle insurers for verification of evidence of a motor vehicle owner's
policy of liability insurance as prescribed by this chapter via web
services, through the internet, or a similar proprietary or common
carrier electronic system, as well as to receive from motor vehicle
insurers verification of evidence of a motor vehicle owner's policy of
liability insurance in a form and manner as prescribed by the
commissioner;

(2) incorporate information security protections for such system. For
the purposes of this section, "information security" shall mean
protecting information and information systems from unauthorized access,
use, disclosure, disruption, modification, or destruction in order to
provide (A) integrity, which shall mean guarding against improper
information modification or destruction, and includes ensuring
information nonrepudiation and authenticity, (B) confidentiality, which
shall mean preserving authorized restrictions on access and disclosure,
including means for protecting personal privacy and proprietary
information, and (C) availability, which shall mean ensuring timely and
reliable access to and use of information as authorized by this
subdivision;

(3) have the capability of being utilized for verification of
mandatory motor vehicle liability insurance coverage as prescribed by
this chapter and the ability to be interfaced, wherever authorized by
law, with existing or future state systems, in a form and manner as
prescribed by the commissioner;

(4) have the capability of enabling the department to make inquiries
to motor vehicle insurers for evidence of a motor vehicle owner's policy
of liability insurance as set forth in paragraph (a) of this
subdivision;

(5) have the capability of responding to each request of the
department for motor vehicle liability insurance information within an
amount of time determined by the commissioner; and

(6) have the capability of responding within the time established;

(f) Notwithstanding any other provision of law, information obtained
by the department pursuant to this section shall not be disclosed, used,
sold, accessed, utilized in any manner or released by the department to
any person, corporation, or state and local agency, except in response
to a specific, individual request for such information authorized
pursuant to the federal driver's privacy protection act (18 U.S.C. 2721
et.seq.). The department shall institute measures to ensure that only
authorized persons are permitted to access such information for the
purposes specified by this section. Persons who knowingly release or
disclose information from such online verification system for a purpose
other than those described as authorized by this section or to a person
not entitled to receive it shall be guilty of a misdemeanor for each
such release or disclosure; and

(g) Undergo an appropriate testing and pilot period of not less than
one year, after which the commissioner shall certify in writing to the
governor, the temporary president of the senate, and the speaker of the
assembly that such system is fully operational.

* NB Effective December 31, 2028