S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1823
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced  by  M.  of A. ROSENTHAL, SIMONE -- read once and referred to
   the Committee on Insurance
 
 AN ACT to amend the general business  law  and  the  insurance  law,  in
   relation  to  insurance  requirements  for  third-party  food delivery
   service
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  391-v  of  the general business law, as added by
 chapter 693 of the laws of 2021, is amended to read as follows:
   § 391-v. Third-party food delivery agreements AND  INSURANCE  REQUIRE-
 MENTS.  1.  For  the purposes of this section, the following terms shall
 have the following meanings:
   (a) "Agreement" means a written contractual agreement between  a  food
 service  establishment and a third-party food delivery service authoriz-
 ing the inclusion of the food service establishment's  products  on  the
 third-party food delivery platform.
   (b)  "DELIVERY  AVAILABLE  PERIOD"  MEANS  THE  PERIOD WHEN A DELIVERY
 NETWORK DRIVER:
   (I) HAS LOGGED ON TO A DIGITAL NETWORK;
   (II) IS AVAILABLE TO RECEIVE REQUESTS  TO  PROVIDE  DELIVERY  SERVICES
 FROM A DELIVERY NETWORK COMPANY;
   (III) IS OPERATING A PERSONAL VEHICLE; AND
   (IV)  IS  NOT PROVIDING DELIVERY SERVICES OR OPERATING IN THE DELIVERY
 SERVICE PERIOD.
   (C) "DELIVERY NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,  SOLE
 PROPRIETORSHIP,  OR  OTHER ENTITY THAT OPERATES IN THIS STATE AND USES A
 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00726-01-5
              

 A. 1823                             2
 
   (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
 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-
 A. 1823                             3
 
 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
 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.
 A. 1823                             4
 
   (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
 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
 A. 1823                             5
 
 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-
 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
 A. 1823                             6
 
   (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
 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.
 A. 1823                             7
 
   (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:
   (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;
 A. 1823                             8
 
   (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
 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-
 A. 1823                             9
 
 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;
 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
 A. 1823                            10
 
 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.
   (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
 A. 1823                            11
 
 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.