2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3457 - Group Insurance Policies for Certain for Hire Motor Vehicles.

§  3457. Group insurance policies for certain for hire motor vehicles.
(a) For purposes of this section, the following definitions shall apply:
(1) "Certificate" or "certificate  of  insurance"  means  any  policy,
contract  or other evidence of insurance, or endorsement thereto, issued
to a group member under a for hire motor vehicle group policy.
(2) "For hire motor  vehicle"  or  "vehicle"  means  a  motor  vehicle
engaged in the business of carrying or transporting passengers for hire,
having  a  seating capacity of not less than eight passengers, excluding
the driver.
(3) "For hire motor vehicle group policy" or "group  policy"  means  a
group  policy, including certificates issued to the group members, where
the group policy provides insurance to the group  members  or  both  the
group  policyholder  and  the  group  members  of  the type described in
paragraph twelve, thirteen, fourteen, or nineteen of subsection  (a)  of
section one thousand one hundred thirteen of this chapter.
(4) "Group member" means the owner of a for hire motor vehicle.
(5) "Group policyholder" means a sponsoring entity.
(6)  "Owner"  shall  have the same meaning as set forth in section one
hundred twenty-eight of the vehicle and traffic law.
(7) "Sponsoring entity" means:
(A) an association or other organization, or a trustee or trustees  of
a  fund  established,  created,  or maintained for the benefit of one or
more associations or other organizations, where all the eligible members
of  the  association  or   associations   or   other   organization   or
organizations  have  the  same profession, trade, or occupation, and the
association or associations or other organization or organizations  have
been  organized  and  maintained  in good faith for purposes principally
other than  that  of  obtaining  insurance,  and  have  been  in  active
existence for at least two years;
(B)  an  entity  that  owns for hire motor vehicles and leases them to
drivers; or
(C) any other entity where the  superintendent  has  determined  in  a
regulation  that the members are engaged in a common enterprise, or have
an economic or social affinity or relationship, and that the issuance of
the group policy would not be contrary to  the  best  interests  of  the
public.
(b)  An  authorized  insurer  may  issue or issue for delivery in this
state a group policy to a sponsoring entity as a group policyholder only
in accordance with the provisions of this section.
(c)(1) A group policy shall provide coverage in  satisfaction  of  the
financial   responsibility  requirements  set  forth  in  section  three
thousand four hundred twenty of  this  article,  section  three  hundred
seventy  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 for hire motor vehicle.
(2) A group policy may provide:
(A) coverage for  limits  higher  than  the  minimum  limits  required
pursuant to section three hundred seventy of the vehicle and traffic law
and  paragraph  two  of  subsection  (f)  of section three thousand four
hundred twenty of this article;
(B) supplemental spousal liability insurance  pursuant  to  subsection
(g) of section three thousand four hundred twenty of this article; and
(C)  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  group  policy,  including  certificates, shall be issued by an
authorized insurer.
(4) A policyholder also may be an insured under a group policy.
(d)  The  premium for the group policy, including certificates, may be
paid by the group policyholder from the funds contributed wholly by  the
group  members  or  jointly  by  the  group  policyholder  and the group
members.
(e) 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 pursuant to law.
(f)(1)  The  insurer shall be responsible for mailing or delivery of a
certificate of insurance to each group member insured  under  the  group
policy.  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  an  exclusion,  under  the  group  policy or
certificate.
(2) The certificate shall contain in substance all material terms  and
conditions  of  coverage  afforded  to  group  members, unless the group
policy is incorporated by reference and  a  copy  of  the  group  policy
accompanies the certificate.
(g)  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  insurance agent or insurance broker, in any advertisement, sign,
pamphlet, circular, card, or  other  public  announcement  referring  to
coverage under a group policy or certificate.
(h) A 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) An insurer may cancel  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:
(A)  an  insurer  may cancel an individual certificate if the driver's
license of the group member insured under that certificate is  suspended
or revoked during the period of coverage, other than a suspension issued
pursuant to subdivision one of section five hundred ten-b of the vehicle
and  traffic  law or one or more administrative suspensions arising from
the same incident  that  has  or  have  been  terminated  prior  to  the
effective date of the cancellation; and
(B)  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.
(2) 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. The insurer
shall also mail or deliver written notice of cancellation of  the  group
policy,  including  all  certificates,  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.
(3)(A)  A  group policyholder may cancel a group policy, including all
certificates, or any individual certificate,  for  any  reason  upon  at
least  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  sixty,
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)  Every  notice of cancellation, nonrenewal, or conditional renewal
shall set  forth  the  specific  reason  or  reasons  for  cancellation,
nonrenewal,  or  conditional  renewal and the insurer shall also mail or
deliver the notice to the insurance producer  that  procured  the  group
policy  when  the  group  policy  and  any  certificates  are cancelled,
nonrenewed, or conditionally renewed.
(6)(A) If, prior to the effective date of cancellation, nonrenewal, or
conditional  renewal  of  the  group  policy,  or  cancellation   of   a
certificate,  whether  initiated  by the insurer, group policyholder, or
group member in regard  to  the  group  member's  certificate,  coverage
attaches  pursuant  to  the terms of the 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 paragraph one of this subsection.
(i) 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 this chapter.
(j)  The superintendent may promulgate regulations pertaining to a for
hire  motor  vehicle  group  policy,  including  regulations   regarding
payments  of  dividends or retrospective premium refunds, minimum number
of group members, and other reasonable limitations.