S T A T E O F N E W Y O R K
________________________________________________________________________
4108--B
2015-2016 Regular Sessions
I N S E N A T E
February 27, 2015
___________
Introduced by Sens. SEWARD, DILAN, VALESKY -- read twice and ordered
printed, and when printed to be committed to the Committee on Insur-
ance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the insurance law, in relation to transportation network
companies
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 3441
to read as follows:
S 3441. TRANSPORTATION NETWORK COMPANIES. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
(B) FOR PURPOSES OF THIS SECTION THE FOLLOWING DEFINITIONS SHALL
APPLY:
(1) "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A TRANSPORTATION
NETWORK COMPANY DRIVER AND IS OWNED OR LEASED BY THE TRANSPORTATION
NETWORK COMPANY DRIVER.
(2) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION NETWORK
COMPANY DRIVERS.
(3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS OPERATING IN THIS STATE
THAT USES A DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES. A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO CONTROL,
DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09417-03-5
S. 4108--B 2
DRIVERS THAT CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
WRITTEN CONTRACT.
(4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
(A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
TRANSPORTATION NETWORK COMPANY; AND
(B) USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANS-
PORTATION NETWORK COMPANY IN RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
(5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS AN INDI-
VIDUAL OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK DRIVER WHO PROVIDES
PREARRANGED RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
(6) "PREARRANGED RIDE" MEANS THE PROVISION OF TRANSPORTATION BY A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER, AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
A PREARRANGED RIDE DOES NOT INCLUDE TRANSPORTATION PROVIDED USING A
TAXICAB, LIVERY, LIMOUSINE, OR OTHER FOR-HIRE VEHICLE.
(7) "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
(C) A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP POLICY, SHALL MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
(1) RECOGNIZES THAT THE DRIVER IS A TRANSPORTATION NETWORK COMPANY
DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION AND COVERS THE DRIVER:
(A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
(B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
(2) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS LOGGED ON TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE TRANSPORTATION REQUESTS BUT IS NOT ENGAGED IN A PREARRANGED
RIDE:
(A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF AT LEAST
FIFTY THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER PERSON, ONE
HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER INCIDENT, AND
TWENTY-FIVE THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
FACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE, ARTICLE
FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER.
(B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
(I) AUTOMOBILE INSURANCE MAINTAINED BY THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
(II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
(III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
(3) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A TRANSPORTATION NETWORK COMPANY DRIVER IS ENGAGED IN A PREARRANGED
RIDE:
S. 4108--B 3
(A) PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND COVER-
AGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THERE-
UNDER.
(B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
(I) AUTOMOBILE INSURANCE MAINTAINED BY THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
(II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
(III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
(4) IF INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE,
INSURANCE MAINTAINED BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
(5) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY MAINTAINED BY THE
TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEPENDENT ON A PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
(6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL BE
ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE BROKER LICENSED PURSUANT TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
(7) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
UNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR THE PURPOSES OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
(8) A TRANSPORTATION NETWORK COMPANY DRIVER SHALL CARRY PROOF OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR HER AT ALL TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS, UPON REQUEST. UPON
SUCH REQUEST, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE TRANS-
PORTATION NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
THE TIME OF AN ACCIDENT.
(D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE IN WRITING TO
TRANSPORTATION NETWORK COMPANY DRIVERS THE FOLLOWING BEFORE THEY ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
(1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR EACH COVERAGE, THAT THE TRANSPORTATION NETWORK COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK; AND
S. 4108--B 4
(2) THAT THE TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
INSURANCE POLICY MIGHT NOT PROVIDE ANY COVERAGE WHILE THE DRIVER IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
(E) (1) INSURERS THAT WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN
OWNER OR OPERATOR OF A PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER PROVIDES A PREARRANGED RIDE. THIS
RIGHT TO EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
(A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
(B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
(C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
(D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT UNDER
THE LAW TO THE CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE WHILE THE
DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE THE
DRIVER OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
(3) NOTHING SHALL BE DEEMED TO PRECLUDE AN INSURER FROM PROVIDING
COVERAGE FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
(4) AUTOMOBILE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY CLAIM EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY
INCLUDING ANY POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR VEHICLES USED
TO CARRY PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
(5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST
A DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE AUTOMOBILE
INSURANCE TO THE SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
(6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
FACILITATE THE EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER IF
APPLICABLE, INCLUDING THE PRECISE TIMES THAT A TRANSPORTATION NETWORK
COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING AND IN
THE TWELVE HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS AND
LIMITS PROVIDED UNDER ANY AUTOMOBILE INSURANCE MAINTAINED UNDER
SUBSECTION (C) OF THIS SECTION.
S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
S. 4108--B 5
S 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF
THIS ARTICLE.
(2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT THERE-
TO, ISSUED TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
GROUP POLICY.
(3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" OR "GROUP POLICY"
MEANS GROUP POLICY, INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS,
WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO
GROUP MEMBERS:
(A) IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF SECTION
THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
(B) OF THE TYPE DESCRIBED IN PARAGRAPHS THIRTEEN, FOURTEEN AND/OR
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER; AND
(C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMUL-
GATED THEREUNDER.
(4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER" AS
DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-
ONE OF THIS ARTICLE.
(5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
(6) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
(B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK
COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION.
(C)(1) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL PROVIDE
COVERAGE FOR A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF
SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS
ARTICLE.
(2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
(A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT TO SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
OF THIS ARTICLE;
(B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
(C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
(D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(3) THE COVERAGE DESCRIBED IN PARAGRAPHS ONE AND TWO OF THIS
SUBSECTION MAY BE PROVIDED IN ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
(4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF-
ICATES, SHALL BE ISSUED BY AN INSURER AUTHORIZED OR ELIGIBLE TO WRITE
S. 4108--B 6
INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
(5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
(D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE
FUNDS CONTRIBUTED:
(1) WHOLLY BY THE GROUP POLICYHOLDER;
(2) WHOLLY BY THE GROUP MEMBERS; OR
(3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
(E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
(A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
(B) BE RETAINED BY THE GROUP POLICYHOLDER.
(2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS
SUBSECTION SHALL BE:
(A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
(B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY
THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
(I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
(II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE
INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
(III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
(3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A
DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF
FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE
GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
(4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS
PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM
REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
(F) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
OF THE SAME CLASS AND STATUS.
(G) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT
LESS THAN THAT REQUIRED BY OF SUBDIVISION TWO OF SECTION TWO THOUSAND
TWO HUNDRED THREE OF THE VEHICLE AND TRAFFIC LAW, AND MAY PROVIDE COVER-
AGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
S. 4108--B 7
(H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER
INSURED UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLICY. THE
INSURER OR THE GROUP POLICYHOLDER SHALL ALSO BE RESPONSIBLE FOR THE
MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE
IN LIMITS; CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
(3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE MEMBER HAS OTHER INSURANCE COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
(I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED THAT THE
FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
(1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
(B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN
SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
(2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL
CERTIFICATES, SHALL NOT BECOME AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
(I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
(II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER
SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE
DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
S. 4108--B 8
(B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT
BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS
SHOWN IN THE GROUP POLICY.
(3) (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A REASON UPON THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
(B) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF
THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE
GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
(4) A GROUP MEMBER MAY CANCEL OPTIONAL COVERAGE UPON PROVIDING NOTICE
TO THE INSURER AND THE GROUP POLICYHOLDER. FOR THE PURPOSES OF THIS
PARAGRAPH, "OPTIONAL COVERAGE" MEANS COVERAGE OTHER THAN FINANCIAL
RESPONSIBILITY REQUIREMENTS DESCRIBED IN SUBPARAGRAPH (C) OF PARAGRAPH
THREE OF SUBSECTION (A) OF THIS SECTION THAT AN INDIVIDUAL GROUP MEMBER
PURCHASES ON AN OPTIONAL BASIS.
(5) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
(B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
(I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
(II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
(6) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
(7) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
(8) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
(B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
(9) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
S. 4108--B 9
(B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(K) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
(L) FORMS AND RATES FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN THIS STATE PURSUANT TO THIS SECTION SHALL BE FILED WITH THE SUPER-
INTENDENT IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THIS CHAPTER. THE
SUPERINTENDENT SHALL NOT APPROVE FOR DELIVERY ANY POLICY UNDER THIS
ARTICLE FOR A VEHICLE WHICH IS LICENSED TO OPERATE BY A TAXI AND LIMOU-
SINE COMMISSION, IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE.
S 3. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
(4) IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A TRANSPORTATION
NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER AS SUCH
TERMS ARE DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
S 4. This act shall take effect immediately.
