S. 6760--B 2
DIGITAL NETWORK TO CONNECT A DELIVERY NETWORK COMPANY CUSTOMER TO A
DELIVERY NETWORK DRIVER TO PROVIDE DELIVERY SERVICES.
(D) "DELIVERY NETWORK COMPANY CUSTOMER" OR "CUSTOMER" MEANS A PERSON
WHO ORDERS GOODS THAT ARE DELIVERED BY A DELIVERY NETWORK DRIVER AT THE
DIRECTION OF SUCH PERSON.
(E) "DELIVERY NETWORK COMPANY SELLER" MEANS A CORPORATION, PARTNER-
SHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT OPERATES IN THIS STATE
AND USES A DIGITAL NETWORK TO SELL ITS GOODS TO DELIVERY NETWORK COMPANY
CUSTOMERS, FOR DELIVERY BY DELIVERY NETWORK DRIVERS, WHICH MAY BE A FOOD
SERVICE ESTABLISHMENT.
(F) "DELIVERY NETWORK DRIVER" MEANS AN INDIVIDUAL WHO PROVIDES INDE-
PENDENT DELIVERY SERVICES THROUGH A DIGITAL NETWORK USING A PERSONAL
VEHICLE.
(G) "DELIVERY SERVICES" MEANS THE FULFILLMENT OF DELIVERY REQUESTS
MADE BY A CUSTOMER THROUGH A DIGITAL NETWORK, INCLUDING THE PICKUP OF
ANY GOODS AND THE DELIVERY OF THE GOODS TO A CUSTOMER BY A DELIVERY
NETWORK DRIVER. DELIVERY SERVICES MAY INCLUDE A SERIES OF DELIVERIES TO
DIFFERENT CUSTOMERS, OR TO DIFFERENT LOCATIONS AT THE DIRECTION OF A
CUSTOMER.
(H) "DELIVERY SERVICE PERIOD" MEANS THE PERIOD:
(I) BEGINNING WHEN A DELIVERY NETWORK DRIVER STARTS OPERATING A
PERSONAL VEHICLE EN ROUTE TO PICK UP GOODS FOR A DELIVERY OR SERIES OF
DELIVERIES AS DOCUMENTED VIA A DIGITAL NETWORK CONTROLLED BY A DELIVERY
NETWORK COMPANY;
(II) CONTINUING WHILE THE DELIVERY NETWORK DRIVER TRANSPORTS THE
REQUESTED DELIVERY OR DELIVERIES; AND
(III) ENDING UPON DELIVERY OF THE REQUESTED GOODS TO:
(A) THE DELIVERY NETWORK COMPANY CUSTOMER OR THE LAST DELIVERY NETWORK
COMPANY CUSTOMER IN A SERIES OF DELIVERIES OR TO A LOCATION DESIGNATED
BY THE DELIVERY NETWORK COMPANY CUSTOMER OR THE LAST LOCATION SO DESIG-
NATED IN A SERIES OF DELIVERIES; OR
(B) A LOCATION DESIGNATED BY THE DELIVERY NETWORK COMPANY, INCLUDING
FOR PURPOSES OF RETURNING THE GOODS.
(I) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
WEBSITE, OR SYSTEM OFFERED OR UTILIZED BY A DELIVERY NETWORK COMPANY
THAT ENABLES DELIVERIES WITH DELIVERY NETWORK DRIVERS.
(J) "Food service establishment" means a place where food is provided
for individual portion service directly to the consumer whether such
food is provided free of charge or sold, and whether consumption occurs
on or off the premises or is provided from a pushcart, stand or vehicle.
[(c)](K) "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE OR A LIMITED USE
MOTORCYCLE AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-B OF THE VEHICLE
AND TRAFFIC LAW, THAT IS:
(I) USED BY A DELIVERY NETWORK DRIVER TO PROVIDE DELIVERY SERVICES;
AND
(II) OWNED, LEASED, OR OTHERWISE AUTHORIZED FOR USE BY THE DELIVERY
NETWORK DRIVER.
(L) "Third-party food delivery service" means any [website, mobile
application or other internet service] DIGITAL NETWORK OPERATED BY A
DELIVERY NETWORK COMPANY that offers or arranges for the sale (INCLUDING
FOR SAME-DAY PICKUP) or delivery (INCLUDING SAME-DAY DELIVERY) of
PRODUCTS (INCLUDING food and beverages) prepared by, [and the same-day
delivery or same-day pickup of food and beverage from,] a food service
establishment located in the state.
[(d)] (M) "Third-party food delivery platform" means the online or
mobile platform of the third-party food delivery service on which a
S. 6760--B 3
consumer can view products available for sale and place an order for a
food service establishment's products.
2. (a) A third-party food delivery service shall not list, advertise,
promote, or sell a food service establishment's products, or arrange for
the delivery of an order of such products, on a third-party food deliv-
ery platform without a valid agreement with the food service establish-
ment (OR AN AUTHORIZED THIRD-PARTY AGENT OR DESIGNEE) authorizing the
inclusion of their products on such platform.
(b) An agreement executed in accordance with this section shall not
include a provision, clause, or covenant that requires a food service
establishment to indemnify a third-party food delivery service, any
independent contractor [acting on behalf of the] PROVIDING INDEPENDENT
DELIVERY SERVICES third-party food delivery service, or any registered
agent of the third-party food delivery service, for any damages or harm
by an act or omission occurring after the food service establishment's
product leaves the place of business of the food service establishment.
To the extent an agreement contains such a provision, such provision
shall be deemed void and unenforceable.
(c) A food service establishment included on a third-party food deliv-
ery platform in violation of this section shall have the right to bring
an action in a court of competent jurisdiction for damages, penalties as
set forth in this section, and injunctive relief. Such court, in its
discretion, may also award reasonable court costs and attorneys' fees.
[(d)] 3. (A) A DELIVERY NETWORK COMPANY SHALL ENSURE THAT, DURING THE
DELIVERY AVAILABLE PERIOD, IF IT APPLIES, AND DURING THE DELIVERY
SERVICE PERIOD, PRIMARY AUTOMOBILE LIABILITY INSURANCE IS IN PLACE THAT
RECOGNIZES THAT THE DRIVER IS A DELIVERY NETWORK DRIVER OR THAT DOES NOT
EXCLUDE COVERAGE FOR USE OF A PERSONAL VEHICLE TO PROVIDE DELIVERIES.
(B) DURING THE DELIVERY SERVICE PERIOD AND DELIVERY AVAILABLE PERIOD,
THE DELIVERY NETWORK DRIVER, DELIVERY NETWORK COMPANY, OR ANY COMBINA-
TION OF THE TWO SHALL MAINTAIN A MOTOR VEHICLE LIABILITY INSURANCE POLI-
CY THAT PROVIDES THE COVERAGE REQUIRED UNDER ARTICLE FIFTY-THREE OF THE
INSURANCE LAW DURING THE DELIVERY AVAILABLE PERIOD AND DELIVERY SERVICE
PERIOD IN AMOUNTS NOT LESS THAN:
(I) FOR BODILY INJURY AND PROPERTY DAMAGE TO THIRD PARTIES:
(A) FIFTY THOUSAND DOLLARS ($50,000) OR THE AMOUNT REQUIRED UNDER
PARAGRAPH ONE OF SUBSECTION (A) OF SECTION FIVE THOUSAND THREE HUNDRED
THREE OF THE INSURANCE LAW, WHICHEVER IS GREATER, FOR ALL DAMAGES ARIS-
ING OUT OF BODILY INJURY SUSTAINED BY ANY ONE PERSON AS A RESULT OF ANY
ONE ACCIDENT;
(B) ONE HUNDRED THOUSAND DOLLARS ($100,000) OR THE AMOUNT REQUIRED
UNDER PARAGRAPH ONE OF SUBSECTION (A) OF SECTION FIVE THOUSAND THREE
HUNDRED THREE OF THE INSURANCE LAW, WHICHEVER IS GREATER, FOR ALL
DAMAGES ARISING OUT OF BODILY INJURY SUSTAINED BY ALL PERSONS AS A
RESULT OF ANY ONE ACCIDENT; AND
(C) TWENTY-FIVE THOUSAND DOLLARS ($25,000) OR THE AMOUNT REQUIRED
UNDER PARAGRAPH TWO OF SUBSECTION (A) OF SECTION FIVE THOUSAND THREE
HUNDRED THREE OF THE INSURANCE LAW, WHICHEVER IS GREATER, FOR ALL
DAMAGES ARISING OUT OF DAMAGE TO OR DESTRUCTION OF PROPERTY AS A RESULT
OF ANY ONE ACCIDENT.
(II) FOR BASIC REPARATION BENEFITS, THE AMOUNT SET FORTH IN PARAGRAPHS
THREE AND FOUR OF SUBSECTION (A) OF SECTION FIVE THOUSAND THREE HUNDRED
THREE OF THE INSURANCE LAW.
(C) IF THE INSURANCE COVERAGE MAINTAINED BY A DELIVERY NETWORK DRIVER
IN ACCORDANCE WITH PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION HAS LAPSED
S. 6760--B 4
OR DOES NOT PROVIDE THE REQUIRED COVERAGE, INSURANCE MAINTAINED BY THE
DELIVERY NETWORK COMPANY SHALL:
(I) PROVIDE THE COVERAGE REQUIRED BY PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION BEGINNING WITH THE FIRST DOLLAR OF A CLAIM; AND
(II) HAVE THE DUTY TO DEFEND A CLAIM MADE UNDER THE COVERAGE PROVIDED
UNDER PARAGRAPH (B) OF THIS SUBDIVISION.
(D) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY MAINTAINED BY THE
DELIVERY NETWORK COMPANY SHALL NOT BE DEPENDENT UPON ANOTHER MOTOR VEHI-
CLE LIABILITY INSURER FIRST DENYING A CLAIM, NOR SHALL ANOTHER MOTOR
VEHICLE LIABILITY INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
(E) INSURANCE COVERAGE REQUIRED BY THIS SECTION MAY BE OBTAINED FROM
AN INSURANCE COMPANY DULY LICENSED TO TRANSACT BUSINESS UNDER THE INSUR-
ANCE LAWS OF THIS STATE OR BY AN ELIGIBLE EXCESS LINES BROKER LICENSED
UNDER SECTION TWO THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW.
INSURANCE COVERAGE REQUIRED BY THIS SECTION MAY BE OBTAINED THROUGH A
GROUP POLICY MAINTAINED BY THE DELIVERY NETWORK COMPANY.
(F) THE COVERAGE REQUIRED PURSUANT TO PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION SHALL BE DEEMED TO MEET THE REQUIREMENTS FOR FINANCIAL
RESPONSIBILITY UNDER THE VEHICLE AND TRAFFIC LAW.
(G) A DELIVERY NETWORK DRIVER SHALL CARRY PROOF OF INSURANCE REQUIRED
PURSUANT TO PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION AT ALL TIMES
WHILE USING A PERSONAL VEHICLE IN CONNECTION WITH A DIGITAL NETWORK. IN
THE EVENT OF AN ACCIDENT, A DELIVERY NETWORK DRIVER SHALL, UPON REQUEST,
PROVIDE INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED
PARTIES, AUTOMOBILE INSURERS, AND INVESTIGATING LAW ENFORCEMENT OFFI-
CERS. THE INSURANCE COVERAGE INFORMATION MAY BE DISPLAYED OR PROVIDED
IN EITHER PAPER OR ELECTRONIC FORM AS PROVIDED BY REGULATION OF THE
COMMISSIONER OF MOTOR VEHICLES. A DELIVERY NETWORK DRIVER SHALL, UPON
REQUEST, DISCLOSE TO THE DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSUR-
ERS, AND INVESTIGATING LAW ENFORCEMENT OFFICERS WHETHER THE DRIVER WAS
OPERATING DURING THE DELIVERY AVAILABLE PERIOD OR THE DELIVERY SERVICE
PERIOD AT THE TIME OF THE ACCIDENT.
(H) IN A CLAIMS COVERAGE INVESTIGATION, A DELIVERY NETWORK COMPANY OR
ITS INSURER SHALL COOPERATE WITH ALL INSURERS THAT ARE INVOLVED IN THE
CLAIMS COVERAGE INVESTIGATION TO FACILITATE THE EXCHANGE OF INFORMATION
AND SHALL IMMEDIATELY PROVIDE UPON REQUEST BY DIRECTLY INVOLVED PARTIES
OR ANY INSURER THE PRECISE TIMES THAT A DELIVERY NETWORK DRIVER BEGAN
AND ENDED THE DELIVERY AVAILABLE PERIOD AND/OR THE DELIVERY SERVICE
PERIOD ON THE DELIVERY NETWORK COMPANY'S DIGITAL NETWORK IN THE TWELVE-
HOUR PERIOD IMMEDIATELY PRECEDING THE ACCIDENT AND IN THE TWELVE-HOUR
PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT. INSURERS POTENTIALLY PROVID-
ING THE COVERAGE REQUIRED BY THIS SUBDIVISION SHALL DISCLOSE UPON
REQUEST BY ANY OTHER SUCH INSURER INVOLVED IN THE PARTICULAR CLAIM, THE
APPLICABLE COVERAGES, EXCLUSIONS, AND LIMITS PROVIDED UNDER ANY AUTOMO-
BILE INSURANCE MAINTAINED IN ORDER TO SATISFY THE REQUIREMENTS OF THIS
SUBDIVISION.
(I) THE INSURER OR INSURERS OF A DELIVERY NETWORK COMPANY PROVIDING
COVERAGE UNDER PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION SHALL ASSUME
PRIMARY LIABILITY FOR A CLAIM WHEN A DISPUTE EXISTS AS TO WHEN THE
DELIVERY AVAILABLE PERIOD AND/OR THE DELIVERY SERVICE PERIOD BEGAN OR
ENDED AND THE DELIVERY NETWORK COMPANY DOES NOT HAVE AVAILABLE, DID NOT
RETAIN, OR FAILS TO PROVIDE THE INFORMATION REQUIRED BY PARAGRAPH (H) OF
THIS SUBDIVISION.
(J) A DELIVERY NETWORK COMPANY SHALL ALSO MAINTAIN COMMERCIAL GENERAL
LIABILITY INSURANCE WITH A LIMIT OF NO LESS THAN ONE MILLION DOLLARS FOR
EACH OCCURRENCE AND TWO MILLION DOLLARS AGGREGATE THAT INCLUDES COVERAGE
S. 6760--B 5
FOR THE DELIVERY NETWORK COMPANY'S LIABILITY FOR INJURIES ARISING OUT OF
THE USE OF AN ELECTRIC SCOOTER, AS DEFINED IN SECTION ONE HUNDRED FOUR-
TEEN-E OF THE VEHICLE AND TRAFFIC LAW, OR BICYCLE WITH ELECTRIC ASSIST,
AS DEFINED IN SECTION ONE HUNDRED TWO-C OF THE VEHICLE AND TRAFFIC LAW.
4. (A) A DELIVERY NETWORK COMPANY SHALL NOT BE DEEMED TO CONTROL,
DIRECT, OR MANAGE A PERSONAL VEHICLE OR DELIVERY NETWORK DRIVER THAT
CONNECTS TO THE COMPANY'S DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
WRITTEN CONTRACT.
(B) A DELIVERY NETWORK COMPANY SHALL NOT PERMIT A DELIVERY NETWORK
DRIVER TO ENGAGE IN DELIVERY SERVICES ON THE COMPANY'S DIGITAL NETWORK
UNTIL THE COMPANY DISCLOSES IN WRITING TO THE DRIVER:
(I) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR EACH COVERAGE, THAT THE COMPANY PROVIDES WHILE THE DRIVER
USES A PERSONAL VEHICLE IN CONNECTION WITH THE COMPANY'S DIGITAL
NETWORK; AND
(II) THAT THE DRIVER'S OWN MOTOR VEHICLE LIABILITY INSURANCE POLICY
MIGHT NOT PROVIDE ANY COVERAGE DURING A DELIVERY AVAILABLE PERIOD, IF
APPLICABLE, OR A DELIVERY SERVICE PERIOD.
(C) A DELIVERY NETWORK COMPANY HAS NO DISCLOSURE OBLIGATION TO ANY
PERSON WHICH IS NOT EXPRESSLY MANDATED BY THIS SUBDIVISION.
5. (A) NOTHING IN SUBDIVISION THREE OR FOUR OF THIS SECTION SHALL BE
CONSTRUED TO:
(I) INVALIDATE OR LIMIT AN EXCLUSION CONTAINED IN A MOTOR VEHICLE
LIABILITY INSURANCE POLICY, INCLUDING ANY POLICY IN USE OR APPROVED FOR
USE THAT EXCLUDES COVERAGE FOR MOTOR VEHICLES USED FOR DELIVERY, OR FOR
ANY BUSINESS USE; OR
(II) INVALIDATE, LIMIT, OR RESTRICT AN INSURER'S ABILITY UNDER EXIST-
ING LAW TO UNDERWRITE ANY INSURANCE POLICY, OR CANCEL AND/OR NON-RENEW
POLICIES.
(B) NOTHING IN SUBDIVISION THREE OR FOUR OF THIS SECTION LIMITS THE
SCOPE OF FEDERAL OR STATE LAW REGARDING THE DELIVERY OR TRANSPORT OF
GOODS. DELIVERIES MADE PURSUANT TO THIS SECTION THAT ARE SUBJECT TO
FEDERAL OR STATE LAW REGARDING THE DELIVERY OR TRANSPORT OF GOODS SHALL
ALSO COMPLY WITH THE REQUIREMENTS OF THOSE LAWS. IN THE EVENT OF A
CONFLICT BETWEEN SUBDIVISION THREE OR FOUR OF THIS SECTION AND ANOTHER
LAW DEALING WITH THE DELIVERY OR TRANSPORT OF GOODS, THE OTHER LAW
PREVAILS.
6. (A) Any person that KNOWINGLY violates [any provision] SUBDIVISION
TWO of this section shall be subject to a civil penalty of up to one
thousand dollars per violation. Each day [a] THAT EACH food service
establishment is included on a third-party food delivery platform [and
each food service establishment included on a third-party food delivery
platform] shall be considered a separate violation.
(B) THE THIRD-PARTY DELIVERY SERVICE THAT VIOLATES SUBDIVISION THREE
OF THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY OF UP TO ONE THOU-
SAND DOLLARS PER VIOLATION. EACH DELIVERY BEGUN OR COMPLETED WITHOUT
THE FINANCIAL RESPONSIBILITY REQUIREMENTS REQUIRED BY SUBDIVISION THREE
OF THIS SECTION SHALL BE CONSIDERED A SEPARATE VIOLATION.
§ 2. The insurance law is amended by adding a new section 3459-a to
read as follows:
§ 3459-A. DELIVERY SERVICE EXCLUSIONS FOR MOTOR VEHICLE INSURANCE
POLICIES. (A) THE DEFINITIONS SET FORTH IN SECTION THREE HUNDRED NINE-
TY-ONE-V OF THE GENERAL BUSINESS LAW SHALL APPLY TO THIS SECTION.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AN
AUTHORIZED INSURER THAT WRITES MOTOR VEHICLE LIABILITY INSURANCE IN THE
STATE MAY EXCLUDE ANY AND ALL COVERAGE AND THE DUTY TO DEFEND OR INDEM-
S. 6760--B 6
NIFY FOR ANY INJURY OR LOSS THAT OCCURS DURING THE DELIVERY AVAILABLE
PERIOD AND THE DELIVERY SERVICE PERIOD, INCLUDING BUT NOT LIMITED TO:
(1) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
(2) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
(3) UNINSURED MOTORIST COVERAGE;
(4) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORIST COVERAGE; AND
(5) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(C) NOTHING IN THIS ARTICLE SHALL INVALIDATE OR LIMIT AN EXCLUSION
CONTAINED IN A MOTOR VEHICLE INSURANCE POLICY, INCLUDING ANY INSURANCE
POLICY IN USE OR APPROVED FOR USE THAT SHALL EXCLUDE COVERAGE FOR MOTOR
VEHICLES MADE AVAILABLE FOR RENT, SHARING, HIRE OR ANY BUSINESS USE.
(D) NOTHING IN THIS SECTION INVALIDATES OR LIMITS AN EXCLUSION
CONTAINED IN A MOTOR VEHICLE LIABILITY INSURANCE POLICY, INCLUDING ANY
INSURANCE POLICY IN USE OR APPROVED FOR USE THAT EXCLUDES COVERAGE FOR
MOTOR VEHICLES USED FOR DELIVERY OR FOR ANY BUSINESS USE.
(E) NOTHING IN THIS SECTION INVALIDATES, LIMITS OR RESTRICTS AN INSUR-
ER'S ABILITY UNDER EXISTING LAW TO UNDERWRITE ANY INSURANCE POLICY.
NOTHING IN THIS SECTION INVALIDATES, LIMITS OR RESTRICTS AN INSURER'S
ABILITY UNDER EXISTING LAW TO CANCEL AND NON-RENEW POLICIES.
(F) A MOTOR VEHICLE LIABILITY INSURER THAT DEFENDS OR INDEMNIFIES A
CLAIM AGAINST A DELIVERY NETWORK DRIVER THAT IS EXCLUDED UNDER THE TERMS
OF ITS POLICY SHALL HAVE THE RIGHT TO SEEK RECOVERY AGAINST THE INSURER
PROVIDING COVERAGE UNDER PARAGRAPHS (A) AND (B) OF SUBDIVISION THREE OF
SECTION THREE HUNDRED NINETY-ONE-V OF THE GENERAL BUSINESS LAW IF THE
CLAIM:
(I) OCCURS DURING THE DELIVERY AVAILABLE PERIOD OR THE DELIVERY
SERVICE PERIOD; AND
(II) IS EXCLUDED UNDER THE TERMS OF ITS POLICY.
§ 3. Section 3455 of the insurance law, as added by section 6 of part
AAA of chapter 59 of the laws of 2017, is amended to read as follows:
§ 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 same meaning as
set forth in article forty-four-B of the vehicle and traffic law.
(2) "Certificate" or "certificate of insurance" means any policy,
contract or other evidence of insurance, or endorsement thereto, issued
to a group member under a transportation network company group policy OR
A DELIVERY NETWORK COMPANY GROUP POLICY.
(3) "Transportation network company group policy" or "group policy"
means a group policy, including certificates issued to the group
members, where the group policyholder is a transportation network compa-
ny and the policy provides insurance to the transportation network
company and to group members:
(A) in accordance with the requirements of article forty-four-B of the
vehicle and traffic law;
(B) of the type described in paragraph thirteen, fourteen, 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 such other require-
ments or regulations that may apply for the purposes of satisfying the
S. 6760--B 7
financial responsibility requirements with respect to the use or opera-
tion of a motor vehicle.
(4) "Group member" means a transportation network company driver as
defined in article forty-four-B of the vehicle and traffic law, AND/OR A
DELIVERY NETWORK DRIVER AS DEFINED IN SECTION THREE HUNDRED NINETY-ONE-V
OF THE GENERAL BUSINESS LAW.
(5) "Group policyholder" means a transportation network company
AND/OR A DELIVERY NETWORK COMPANY.
(6) "TNC vehicle" shall have the meaning set forth in article forty-
four-B of the vehicle and traffic law.
(7) "DELIVERY NETWORK COMPANY" SHALL HAVE THE SAME MEANING AS SET
FORTH IN SECTION THREE HUNDRED NINETY-ONE-V OF THE GENERAL BUSINESS LAW.
(8) "DELIVERY NETWORK COMPANY GROUP POLICY" MEANS A GROUP POLICY,
INCLUDING CERTIFICATES ISSUED TO THE GROUP MEMBERS, WHERE THE GROUP
POLICYHOLDER IS A DELIVERY NETWORK COMPANY AND THE POLICY PROVIDES
INSURANCE TO THE DELIVERY NETWORK COMPANY AND TO GROUP MEMBERS:
(A) IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION THREE HUNDRED NINE-
TY-ONE-V OF THE GENERAL BUSINESS LAW;
(B) OF THE TYPE DESCRIBED IN PARAGRAPH THIRTEEN, FOURTEEN, 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 SUCH OTHER REQUIRE-
MENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE
FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERA-
TION OF A MOTOR VEHICLE.
(9) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN SECTION
THREE HUNDRED NINETY-ONE-V OF THE GENERAL BUSINESS LAW.
(10) "GROUP POLICY" MEANS A TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY AND/OR A DELIVERY NETWORK COMPANY GROUP POLICY.
(b) An insurer may issue or issue for delivery in this state a trans-
portation network company group policy to a transportation network
company, OR A DELIVERY NETWORK COMPANY GROUP POLICY TO A DELIVERY
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 TNC vehicle in accordance with the requirements of arti-
cle forty-four-B of the vehicle and traffic law.
(2) A transportation network company group policy may provide:
(A) coverage for limits higher than the minimum limits required pursu-
ant to article forty-four-B of the vehicle and traffic law.
(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]
ARTICLE; 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) A DELIVERY NETWORK COMPANY GROUP POLICY SHALL PROVIDE COVERAGE FOR
A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION THREE
HUNDRED NINETY-ONE-V OF THE GENERAL BUSINESS LAW.
(4) A DELIVERY NETWORK COMPANY GROUP POLICY MAY PROVIDE:
S. 6760--B 8
(A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT TO SECTION THREE HUNDRED NINETY-ONE-V OF THE GENERAL BUSINESS LAW.
(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 ARTICLE; 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.
(5) The coverage described in paragraphs one [and two] THROUGH FOUR of
this subsection may be provided in one group policy or in separate group
policies.
[(4)] (6) A transportation network company group policy, including
certificates, OR A DELIVERY NETWORK COMPANY GROUP POLICY, INCLUDING
CERTIFICATES, shall be issued by authorized insurers or from excess line
brokers pursuant to section sixteen [six] hundred ninety-three of the
vehicle and traffic law.
[(5)] (7) A policyholder also may be an insured under a group policy.
(d) The premium for the transportation network company group policy OR
THE DELIVERY 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 OR DELIVERY 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
S. 6760--B 9
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 OR DELIVERY
NETWORK COMPANY GROUP POLICY of excess premiums to the group policyhold-
er in light of favorable loss experience, including retrospective premi-
um 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 OR DELIVERY NETWORK COMPANY GROUP POLICY,
including administrative reimbursements, fees for services provided by
the group policyholder, or transactional service fees.
(f) The insurer shall 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 this article, and may provide coverage for
limits higher than the minimum limits required under the law.
(h) (1) The insurer shall be responsible for mailing or delivery of a
certificate of insurance to each group member insured under the trans-
portation network company group policy OR DELIVERY NETWORK COMPANY GROUP
POLICY, provided, however, that the insurer may delegate the mailing or
delivery to the transportation network company OR DELIVERY NETWORK
COMPANY. The insurer 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 elimination of
coverage; or addition of exclusion, under the transportation network
company group policy or certificate OR THE DELIVERY 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 OR DELIVERY 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 OR DELIVERY NETWORK COMPANY GROUP POLICY 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 OR DELIVERY
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(j) A transportation network company group policy OR DELIVERY 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 coverage:
(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;
S. 6760--B 10
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 effective 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. Such cancel-
lation shall not become effective until thirty days after the insurer
mails or delivers the written notice to the group member.
(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.
(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 any 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) 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.
(5) 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.
S. 6760--B 11
(6) Every notice of cancellation, nonrenewal, or conditional renewal
shall set forth the specific reason or reasons for cancellation, nonre-
newal, or conditional renewal.
(7) (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.
(8) (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.
(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) (1) An insurer may issue a transportation network company group
policy to a transportation network company, notwithstanding that it may
be a condition of operating a vehicle on the transportation network
company's digital network for the TNC driver to participate in such
group policy.
(2) AN INSURER MAY ISSUE A DELIVERY NETWORK COMPANY GROUP POLICY TO A
DELIVERY NETWORK COMPANY, NOTWITHSTANDING THAT IT MAY BE A CONDITION OF
OPERATING A VEHICLE ON THE DELIVERY NETWORK COMPANY'S DIGITAL NETWORK
FOR THE DELIVERY NETWORK DRIVER TO PARTICIPATE IN SUCH GROUP POLICY.
(m) An insurer shall not include a mandatory arbitration clause in a
policy that provides financial responsibility coverage under this
section except as permitted in section five thousand one hundred five of
[the insurance law] THIS CHAPTER.
§ 4. This act shall take effect one year after it shall have become a
law.
