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S08437 Summary:

S08437 Actions:

S08437 Committee Votes:

S08437 Floor Votes:

S08437 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8437
 
                    IN SENATE
 
                                      June 1, 2020
                                       ___________
 
        Introduced  by  Sen.  LIU  --  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  group  policies  for
          motor  vehicles  engaged  in  the business of carrying or transporting
          passengers for-hire
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The insurance law is amended by adding a new section 3457
     2  to read as follows:
     3    § 3457. Group fleet policy for motor vehicles engaged in the  business
     4  of  carrying  or transporting passengers for-hire. (a) (i) Every author-
     5  ized insurer that issues or issues for delivery in this state  a  policy
     6  of  commercial  risk  insurance  insuring  against losses or liabilities
     7  arising out of the ownership, operation, or  use  of  a  motor  vehicle,
     8  shall  establish  and  offer  a  group fleet policy insuring against the
     9  losses or liabilities arising out of the  ownership  of  motor  vehicles
    10  engaged in the business of carrying or transporting passengers for-hire,
    11  having  a seating capacity of not less than eight passengers. Such group
    12  fleet policy shall provide coverage for more than  one  vehicle  through
    13  one  policy.  Such  group  fleet  policies shall be subject to all laws,
    14  rules and regulations applicable to policies of commercial  risk  insur-
    15  ance  insuring  against  losses or liabilities arising out of the owner-
    16  ship, operation, or use of a motor vehicle engaged in  the  business  of
    17  carrying  or transporting passengers for-hire, having a seating capacity
    18  of not less than eight passengers, including but not  limited  to  laws,
    19  rules  and  regulations  establishing  financial responsibility require-
    20  ments.
    21    (ii) For the purpose of this section, a  "group  fleet  policy"  shall
    22  mean,  a  policy  issued by an authorized insurer in this state insuring
    23  against losses or liabilities arising out of  ownership,  operation,  or
    24  use of a motor vehicle engaged in the business of carrying or transport-
    25  ing  passengers  for-hire,  having  a  seating capacity of not less than
    26  eight passengers, and such policy shall cover more than one vehicle.
    27    (b) The group fleet policy may be issued to:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15098-07-0
        S. 8437                             2
 
     1    (i) Any person, firm, association, corporation or other  entity  which
     2  shall  be deemed the policyholder, where the policy insures the for-hire
     3  motor vehicles owned by such person, firm, association,  corporation  or
     4  other entity; or
     5    (ii) An association where such association shall be deemed the policy-
     6  holder;  where all the eligible members of the association have the same
     7  profession, trade, or occupation, and the association has been organized
     8  and maintained in good faith for purposes principally other than that of
     9  obtaining insurance, and has been in active existence for at  least  two
    10  years, and where the policy insures the members of the association.
    11    (c)  An  authorized  insurer issuing policies pursuant to this section
    12  shall provide a multiple vehicle reduction based on the number of  motor
    13  vehicles that will be covered under such policy. Such reduction shall be
    14  based   on   actuarially  appropriate  reductions  as  provided  for  in
    15  subsection (e) of this section. Each insurer required  to  provide  such
    16  reduction shall submit a report to the superintendent at the end of each
    17  calendar  year  identifying  the  number  of  policies eligible for such
    18  discount and the number of policies to  which  such  discount  has  been
    19  applied.
    20    (d)  A  member of an association shall not be deemed to be an employee
    21  of such association solely because such member is covered under a  group
    22  fleet policy issued to an association pursuant to this section.
    23    (e)  Authorized  insurers  required  to establish group fleet policies
    24  pursuant to this section shall make such policies available for purchase
    25  no later than January first, two thousand twenty-one.
    26    (f) The superintendent shall provide for  an  actuarially  appropriate
    27  reduction  in the rates of premiums for commercial risk insurance appli-
    28  cable to motor vehicles engaged in the business of  carrying  or  trans-
    29  porting  passengers for-hire, having a seating capacity of not less than
    30  eight passengers, for policies that provide coverage for multiple  vehi-
    31  cles.  Nothing  in  this  section  shall  be  construed to authorize any
    32  increase in premium rates for any other policy issued by such authorized
    33  insurer as a result of any group fleet policy premium rate.
    34    (g) The superintendent may promulgate any rules and regulations neces-
    35  sary to implement the provisions of this section.
    36    § 2. This act shall take effect immediately.