NY Ins L § 3455 (2021)
2021 New York Laws ISC - Insurance Article 34 - Insurance Contracts-Property/casualty 3455 - Transportation Network Company Group Insurance Policies.

§  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.  (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 company 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 requirements  or  regulations  that  may  apply  for  the  purposes   of satisfying the financial responsibility requirements with respect to the use or operation 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.  (5) "Group policyholder" means a transportation network company.  (6) "TNC  vehicle"  shall  have  the  meaning  set  forth  in  article forty-four-B of the vehicle and traffic law.  (b)  An  insurer  may  issue  or  issue  for  delivery in this state a transportation network company group policy to a transportation  network company  as  a group policyholder only in accordance with the provisions of this section.  (c)(1) A transportation network company  group  policy  shall  provide coverage  for  a  TNC  vehicle  in  accordance  with the requirements of article 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 pursuant to article forty-four-B of the vehicle and traffic law.  (B)   supplementary  uninsured/underinsured  motorists  insurance  for bodily injury pursuant to paragraph two of  subsection  (f)  of  section three thousand four hundred twenty of this article;  (C)  supplemental  spousal  liability insurance pursuant to subsection (g) of section three thousand four hundred twenty of this chapter; and  (D) motor vehicle physical damage coverage as described  in  paragraph nineteen  of subsection (a) of section one thousand one hundred thirteen of this chapter.  (3)  The  coverage  described  in  paragraphs  one  and  two  of  this subsection  may  be  provided  in  one group policy or in separate group policies.  (4)  A  transportation  network  company   group   policy,   including 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) A policyholder also may be an insured under a group policy.  (d) The premium for the transportation network company  group  policy, including  certificates  may  be paid by the group policyholder from the funds contributed:  (1) wholly by the group policyholder;  (2) wholly by the group members; or  (3) jointly by the group policyholder and the group members.  (e)   (1)  Any  policy  dividend,  retrospective  premium  credit,  or retrospective premium refund in respect of premiums paid  by  the  group policyholder may:  (A)  be  applied  to  reduce  the  premium  contribution  of the group policyholder, 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 retrospective premium refund not distributed under paragraph one of this subsection shall be:  (A)  applied  to  reduce  future  premiums  and,  accordingly,  future contributions, of existing or future group members, or both; or  (B)  paid  or  refunded to those group members insured on the date the payment or refund is made to the group policyholder, if  distributed  by the  group  policyholder,  or  on  the  date  of mailing, if distributed directly by the insurer, subject to the following requirements:  (i) The insurer shall be responsible for determining the allocation of the payment of refund to the group members;  (ii) If the group policyholder distributes the payment or refund,  the insurer  shall be responsible for audit to ascertain that the payment or refund is actually made in accordance with the allocation procedure; and  (iii) If the group policyholder fails to make the payment  or  refund, the  insurer shall make the payment or refund directly or use the method provided in subparagraph (A) of this paragraph.  (3) Notwithstanding paragraphs one and two of this  subsection,  if  a dividend  accrues  upon  termination  of coverage under a transportation network company group policy, the premium for  which  was  paid  out  of funds  contributed  by  group members specifically for the coverage, the dividend shall be paid or refunded by  the  group  policyholder  to  the group  members  insured on the date the payment or refund is made to the group policyholder, net of reasonable expenses  incurred  by  the  group policyholder in paying or refunding the dividend to such group members.  (4)  For the purposes of this subsection, "dividend" means a return by the insurer of a transportation network company group policy  of  excess premiums   to   the  group  policyholder  in  light  of  favorable  loss experience, including retrospective  premium  credits  or  retrospective premium  refunds. The term "dividend" does not include reimbursements or fees received by a group policyholder in connection with  the  operation or  administration  of  a  transportation  network company group policy, 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 transportation network company group policy, provided, however, that the insurer  may  delegate  the  mailing  or  delivery to the transportation 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.  (2)  The certificate shall contain in substance all material terms and conditions  of  coverage  afforded  to   group   members,   unless   the transportation 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 applicable 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 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 transportation network company group policy or certificate.  (j) A transportation network company group policy shall not be subject to  section  three  thousand  four  hundred twenty-five or section three thousand four hundred twenty-six of  this  article;  provided  that  the following  requirements  shall  apply  with  regard  to  termination  of 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 subparagraph (A) through (D) or (F) through  (H)  of  paragraph  one  of subsection (c) of section three thousand four hundred twenty-six of this article;  provided,  however,  that an act or omission by a group member that would constitute  the  basis  for  cancellation  of  an  individual certificate shall not constitute the basis for cancellation of the group policy.  (B)  Where the premium is derived wholly from funds contributed by the group policyholder, an insurer may cancel an individual certificate only if cancellation is based on one or more of  the  reasons  set  forth  in subparagraph  (B),  (C)  or  (H)  of  paragraph one of subsection (c) of section three thousand four hundred twenty-six of this article.  (2) (A) An insurer's cancellation of a  group  policy,  including  all certificates,  shall  not  become  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 cancellation 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 effective 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 anniversary 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, nonrenewal, 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 coverage 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) 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.  (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.