NY Veh & Traf L § 313 (2021)
2021 New York Laws VAT - Vehicle and Traffic Title 3 - Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions Article 6 - Motor Vehicle Financial Security Act 313 - Notice of Termination.

§ 313. Notice  of  termination. 1.  (a)  No  contract of insurance for which a certificate of insurance has been filed  with  the  commissioner shall be terminated by cancellation by the insurer until at least twenty days  after  mailing  to  the  named insured at the address shown on the policy a notice of termination by regular mail, with  a  certificate  of mailing,  properly endorsed by the postal service to be obtained, except where the cancellation is for  non-payment  of  premium  in  which  case fifteen  days notice of cancellation by the insurer shall be sufficient, provided, however, if another insurance contract has been procured, such other insurance contract shall, as  of  its  effective  date  and  hour, terminate  the  insurance previously in effect with respect to any motor vehicles designated in both contracts.  No  contract  of  insurance  for which a certificate of insurance has been filed with the commissioner in which  a  natural  person  is the named insured and the motor vehicle is used predominantly for non-business purposes shall be non-renewed by  an insurer  unless  at  least  forty-five,  but not more than sixty days in advance of the renewal date the insurer mails or delivers to  the  named insured  at  the  address  shown  on  the policy a written notice of its intention not to renew. No such contract of insurance in which the named insured  is  not  a  natural  person  or  the  motor  vehicle  is   used predominantly  for  business purposes shall be non-renewed by an insurer unless at least twenty days in advance of the renewal date  the  insurer mails  or  delivers  to  the  named  insured at the address shown on the policy a written notice of its intention not to renew.  All  notices  of non-renewal shall be sent by regular mail with a certificate of mailing, properly  endorsed  by  the  postal  service to be obtained. Time of the effective date and hour of termination stated in the notice shall become the end of  the  policy  period.  Every  notice  or  acknowledgement  of termination  for  any cause whatsoever sent to the insured shall include in type of which the face shall not  be  smaller  than  twelve  point  a statement  that proof of financial security is required to be maintained continuously throughout the registration period and a notice  prescribed by  the  commissioner  indicating  the  punitive  effects  of failure to maintain continuous proof of financial security and actions which may be taken by the insured to avoid such punitive effects.  (b) Every insurer shall retain a copy of  the  notice  of  termination mailed  pursuant  to  this  chapter  and shall retain the certificate of mailing obtained from  the  postal  service  upon  the  mailing  of  the original  of  said  notice.  A  copy  of a notice of termination and the certificate of mailing, when kept in the regular course of the insurer's business, shall constitute  conclusive  proof  of  compliance  with  the mailing requirements of this chapter.   2.  (a)  Upon  the  termination  of  an  owner's  policy  of liability insurance, other than an owner's policy of  liability  insurance  for  a motorcycle,  at  the  request  of  the insured or by cancellation by the insurer, the insurer shall file a notice of termination  with  reference to such policy, as opposed to any insured vehicle or vehicles under such policy,  with  the commissioner not later than thirty days following the effective date of such cancellation or other termination, in  accordance with  the  regulations required by paragraph (c) of this subdivision. An insurer shall not file a notice of  termination  with  the  commissioner except as required by this subdivision.  (b)  Upon the issuance of an owner's policy of liability insurance the insurer shall file a notice or confirmation of issuance  with  reference to such policy not later than fourteen days following the effective date of  such issuance, and not later than seven days following the effective date for policies issued after  January  first,  two  thousand  one,  in  accordance  with  the  regulations  required  by  paragraph  (c) of this subdivision.  (c)   The   commissioner  shall  promulgate  regulations  establishing procedures for issuance of proof  of  insurance  and  for  reporting  by insurers   of   notices  of  termination  and  policy  issuance,  either electronically or by paper copy, at the option of the  department.  Such reporting  shall be required for every cancellation or termination which is effective on or after July first, nineteen  hundred  eighty-four  and for  every policy issuance which is effective on or after January first, two thousand; provided, however,  that  should  the  commissioner  find, after  testing  of  reporting  procedures,  that it would be feasible to require reporting for policy cancellations,  terminations  or  issuances effective  on an earlier date, he may by regulation so require reporting on such earlier date, but in no event shall reporting  be  required  for cancellations   or  terminations  effective  prior  to  February  first, nineteen hundred eighty-four nor for policy issuances effective prior to September first, nineteen hundred ninety-nine. Insurers shall  cooperate fully with the commissioner in any such testing of reporting procedures.  (d)  Upon  application  by an insurer, the commissioner may extend the period for filing of notices of termination by such insurer  for  up  to fifteen  days,  and  for  seven  days for policies issued by an insurer. Extensions shall not be granted unless the insurer demonstrates  to  the satisfaction  of the commissioner that compliance with the notice period would result in substantial hardship to the  insurer.  The  commissioner shall maintain a list of extensions granted pursuant to this paragraph.   3.  A  cancellation  or termination for which notice is required to be filed with the commissioner pursuant to subdivision two of this  section shall  not  be  effective  with  respect to persons other than the named insured and members of the insured's household  until  the  insurer  has filed  a notice thereof with the commissioner or until another insurance policy covering the same risk has been procured, except  that  a  notice filed   with   the   commissioner,  in  the  format  prescribed  by  the commissioner, within the period prescribed in subdivision  two  of  this section  shall be effective as of the date certified therein, regardless of whether a suspension  order  is  issued  pursuant  to  section  three hundred  eighteen of this article. A receipt from the department stating that a notice of termination has been filed shall be  deemed  conclusive evidence   of   such   filing.  An  insurer  shall  cooperate  with  the commissioner in attempting to identify persons not  in  compliance  with this article in cases where the information reported by the insurer does not correspond with records maintained by the department.   4.  Notwithstanding  any  other  provision  of  this  article  to  the contrary, the commissioner shall establish a pilot program  to  maintain an  up-to-date  insured  vehicle  identification  database  to assist in identifying  uninsured  motor  vehicles.   Such   databases   shall   be implemented  by  the  department pursuant to standards prescribed by the commissioner or an agent designated by the commissioner which shall seek technical assistance from affected insurers and the New York  Automobile Insurance  Plan.  This  program  shall utilize all information collected pursuant to this section and shall also include the following elements:  (a)  In  addition  to  and  in  conjunction  with  the  provisions  of subdivision  two  of this section, insurers that write private passenger or commercial motor vehicle insurance in this state shall also submit to the department, either electronically or by paper copy, at the option of the department, information that identifies  those  policies  that  have been  cancelled,  terminated  or  non-renewed and all policies that have been issued,  the  date  when  such  insurance  lapses,  and  any  other information   that  the  commissioner  deems  necessary  to  efficiently  identify  and  track  uninsured  vehicles  in  this  state  such  as   a policyholder's  address, policy number, vehicle registration number, and vehicle identification number. The department may exempt from such pilot program  the  transfer  of  information  on  certain  classifications of vehicles that are in the opinion of the department generally insured and which it  is  difficult  to  identify  uninsured  vehicles  within  such classification, such as large commercial vehicle fleets;  (b)  The  department  shall  forward to each motor vehicle insurer, at such times as deemed necessary and appropriate by  the  commissioner,  a listing  of  all  the  registrants the department has on file as insured with that insurer. Such insurer shall then  review  the  listing  within thirty days of receipt of the listing and report to the department which of the registrants the insurer does not insure;  (c)  The commissioner shall, in conjunction with the superintendent of state police and local law enforcement officials formulate  a  means  to allow  such  database to be easily accessible to on-duty law enforcement personnel in the performance of their official duties for the purpose of verifying whether an operator maintains proper insurance coverage and to increase compliance with the motor vehicle financial security laws under this article and article eight of this title;  (d) In developing the mechanism to electronically transfer information to  the  department,   the   commissioner   shall   consult   with   the superintendent   of   financial   services   and  insurers  to  adopt  a standardized system  of  organizing,  recording  and  transferring  such information  so  as  to  minimize  insurer  administrative expenses. The commissioner shall to the maximum  extent  possible  utilize  nationally recognized  electronic  data information systems such as those developed by the American National Standards Institute or the American Association of Motor Vehicle Administrators;  (e)(1) Either simultaneously or after the up-dated database system has been established, the commissioner shall develop  a  computer  indicator that  can be imprinted on a vehicle registration sticker or on a sticker to be affixed to the insured's  license  plate.  Such  indicator  system shall enable law enforcement personnel and other authorized persons when acting in the course of their official duties to access the department's database  so  that  such  persons  can  ascertain  whether  a vehicle is properly insured or not insured;  (2) Such computer indicator system shall enable authorized persons  in the  performance  of their official duties to access information such as the registrant's name, vehicle identification number, name  of  insurer, current  status  of  insurance,  vehicle  registration  number and other information that the  commissioner  deems  necessary  to  implement  the provisions of this section. The commissioner in developing such computer indicator  system  shall enable authorized persons in the performance of their official duties to access only such information that is  necessary to  detect  uninsured  motor  vehicles or accomplish other goals clearly established and authorized by law. Such computer indicator system  shall be designed to protect the personal privacy interests of motorists;  (f) The commissioner shall maintain an insured vehicle database system that  is  accurate  to  within  a period of fourteen days and a computer indicator system described in paragraph (e) of this  subdivision  within twenty-four  months  of  the  effective  date of this subdivision and to within seven days by January first, two thousand one.  The  commissioner shall submit to the legislature a report within eighteen months from the date  this  subdivision  takes  effect which outlines the progress being made to implement such database and  computer  indicator  system.  After such  database and computer indicator system is established and put into operation,  the  commissioner  shall   make   recommendations   to   the  legislature to alter, minimize or eliminate the need for the issuance of insurance identification cards, simplify the requirements to demonstrate proof  of  financial  security  and  certificate  of insurance currently required  by  this  article, eliminate the requirement for production of proof of financial security to accompany applications for  registrations or  renewals  thereof  provided  that  such  database indicates that the registrant is insured, and the repeal or modification of  section  three hundred  twelve-a  of  this  article.  The  commissioner shall also make recommendations to the legislature to streamline and shorten the  notice termination  requirements  of  subdivisions  one,  two and three of this section and section three hundred eighteen of this article. Such  report shall be submitted to the legislature within twelve months from the date such database and indicator system has been implemented;  (g)  To  minimize  the  cost  of this program, the commissioner, if he deems it necessary and prudent, can initially limit the  scope  of  this project to a select number of vehicle classifications or insurers;  (h)  Notwithstanding  any other provision of law, information obtained by the department pursuant to this section shall not be disclosed, used, sold, accessed, utilized in any manner or released by the department  to any  person,  corporation, or state and local agency, except in response to a  specific,  individual  request  for  such  information  authorized pursuant  to the federal driver's privacy protection act (18 U.S.C. 2721 et.seq.). The department shall institute measures to  ensure  that  only authorized  persons  are  permitted  to  access such information for the purposes specified by this section. Persons  who  knowingly  release  or disclose  information  from such database for a purpose other than those described as authorized by this section or to a person not  entitled  to receive  it  shall  be  guilty of a misdemeanor for each such release or disclosure; and  (i)  The  commissioner  may  postpone  implementation  of  such  pilot database  and  computer  indicator  system  for  a period of time not to exceed eighteen months if he or she determines that the program  is  not ready  for  implementation.  Should the commissioner determine that such system cannot be implemented during the eighteen months extension,  then the  commissioner  shall  report to the legislature the reasons why such program cannot be implemented and request that the  law  be  amended  to delay its implementation date.