S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5294
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced by M. of A. ANDERSON -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance law, in relation to establishing a captive
   insurance  program  for  commuter vans; and to amend the state finance
   law, in relation to establishing the commuter van trust fund

   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 UTILIZING EXISTING
 MONEYS PROVIDED VIA NEW YORK  STATE  COMMUTER  VAN  STABILIZATION  PILOT
 PROGRAM.  (A)  THE  SUPERINTENDENT SHALL UTILIZE AND IMPLEMENT A CAPTIVE
 INSURANCE PROGRAM FOR COMMUTER VANS 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;
   (2)  STANDARDS  FOR  ENROLLMENT  OF  ELIGIBLE COMMUTER VANS, 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 PARTICIPATING IN THE PROGRAM PURSUANT TO SUBSECTION (C) OF
 THIS SECTION.
   (B)  FOR  THE  PURPOSES OF THIS SECTION, THE TERM "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.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09645-01-3
              

 A. 5294                             2
 
 COMMUTER VANS INSURED IN THIS PROGRAM WILL RELY ON THE MEDICAL TREATMENT
 GUIDELINES PROMULGATED IN EXISTING WORKERS' COMPENSATION LAW.
   § 2. The state finance law is amended by adding a new section 89-dd to
 read as follows:
   §  89-DD.  COMMUTER  VAN TRUST FUND. 1. THERE IS HEREBY ESTABLISHED IN
 THE CUSTODY OF THE COMPTROLLER AND THE SUPERINTENDENT OR ITS  DESIGNATED
 AGENCY, A SPECIAL FUND TO BE KNOWN AS THE "COMMUTER VAN TRUST FUND".
   2.  SUCH  FUND  SHALL  CONSIST OF THE ELEVEN MILLION TWO HUNDRED FIFTY
 THOUSAND DOLLARS ALLOCATED IN THE FISCAL YEAR TWO THOUSAND  TWENTY-THREE
 NEW  YORK STATE BUDGET FOR THE NEW YORK STATE COMMUTER VAN STABILIZATION
 PILOT PROGRAM, IN ADDITION TO ALL OTHER GRANTS, BEQUESTS OR OTHER MONEYS
 APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM  ANY  OTHER  FUND  OR
 SOURCE PURSUANT TO LAW.
   3.  MONEYS  IN  THE COMMUTER VAN TRUST FUND SHALL BE KEPT SEPARATE AND
 APART AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN  THE  CUSTODY
 OF THE COMPTROLLER AND SHALL ONLY BE EXPENDED HEREIN AND IN SUCH AMOUNTS
 AS APPROVED BY THE DIVISION OF THE BUDGET.
   4. THE MONEYS RECEIVED BY SUCH FUND SHALL BE EXPENDED TO PAY FOR LOSS-
 ES IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS.
   5.  EMPIRE  STATE  DEVELOPMENT SHALL AUTHORIZE THREE OR MORE INSURANCE
 COMPANIES, WHICH HAVE A BIDDING WINDOW THAT WILL CLOSE THIRTY DAYS  FROM
 THE  EFFECTIVE  DATE  OF THIS SECTION TO PARTICIPATE IN THIS PROGRAM. AT
 THE END OF THE THIRTY DAYS, IN THE EVENT  THERE  IS  NOT  A  MINIMUM  OF
 THREE,  EMPIRE  STATE  DEVELOPMENT  SHALL DESIGNATE THE MOST WELL FUNDED
 COMMERCIAL AUTO INSURANCE COMPANIES CURRENTLY OPERATING IN NEW  YORK  TO
 WORK  WITH  EMPIRE STATE DEVELOPMENT AND THE COMMUTER VAN TRUST FUND, TO
 ISSUE COMMUTER VAN DRIVERS IN NEW YORK INSURANCE  POLICIES  WITH  LIMITS
 PROVIDED HEREIN.
   6.  IN  THE  EVENT  OF  CLAIMS IN EXCESS OF TWO HUNDRED FIFTY THOUSAND
 DOLLARS, INSURANCE COMPANIES DESIGNATED TO  PROVIDE  INSURANCE  POLICIES
 WILL MAINTAIN CUSTODY AT AN ANNUAL PROPORTIONALLY GRADIATED INCLINE WITH
 AN  INITIAL  ASSIGNED  RISK PAYOUT RATE OF TWENTY PERCENT OF THE OVERALL
 CLAIM IN THE FIRST YEAR, WITH AN  ADDITIONAL  TEN  PERCENT  EACH  FISCAL
 YEAR.    FOR  THE FIRST YEAR, THE COMMUTER VAN TRUST FUND SHALL MAINTAIN
 CUSTODY AT AN ASSIGNED RISK OF EIGHTY PERCENT,  AND  AN  ANNUAL  PROPOR-
 TIONALLY GRADIATED DECLINE OF TEN PERCENT.
   7.  AFTER FIVE YEARS THE CLAIMS ACTIVITY SHALL BE ACTUARIALLY ANALYZED
 AND IF THE RATES CAN MAINTAIN AN UNDERWRITING PROFIT AND A  LARGE  CLAIM
 WOULD  NOT PUT THE PROGRAM INTO A NEGATIVE COMBINED RATIO, THE AMOUNT OF
 MONEYS MAINTAINED IN THE FUND SHALL BE REDUCED.
   (A) AFTER FIVE YEARS OF THE EFFECTIVE DATE  OF  THIS  SECTION,  EMPIRE
 STATE  DEVELOPMENT  SHALL  REVISIT THE STABILIZATION OF THE COMMUTER VAN
 MARKET RELATIVE TO SECTION SEVEN THOUSAND THIRTEEN OF THE INSURANCE  LAW
 IN  NEW YORK STATE AND EITHER CONSIDER A NEW APPORTIONMENT TO THE COMMU-
 TER VAN TRUST FUND; OR
   (B) IN THE EVENT SUCH PROGRAM HAS STABILIZED THE COMMUTER  VAN  INSUR-
 ANCE MARKET, EMPIRE STATE DEVELOPMENT WILL RETURN ANY LEFTOVER MONEYS TO
 THE STATE GENERAL FUND.
   § 3. This act shall take effect immediately.