2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3458*2 - Group Insurance for Peer-to-Peer Car Sharing Programs.

* §  3458.  Group insurance for peer-to-peer car sharing programs. (a)
For the 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 peer-to-peer car sharing group policy.
(2) "Group policyholder" means an administrator.
(3) "Group policy member" means a shared vehicle  owner  or  a  shared
vehicle driver participating in a program.
(4)  "Peer-to-peer car sharing group policy" or "group policy" means a
group policy, including certificates issued to the group members,  where
the  group  policyholder  is  an  administrator  and the policy provides
insurance to the administrator and to group members:
(A) in accordance with  the  requirements  of  article  forty  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
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.
(5)  "Peer-to-peer  car  sharing  program" or "program" shall have the
same meaning as set forth in article forty of the general business law.
(6)   "Peer-to-peer   car   sharing    program    administrator"    or
"administrator"  shall  have  the  same  meaning as set forth in article
forty of the general business law.
(7) "Shared vehicle driver" shall have the same meaning as  set  forth
in article forty of the general business law.
(8) "Shared vehicle owner" shall have the same meaning as set forth in
article forty of the general business law.
(9)  "Peer-to-peer  car  sharing period" or "car sharing period" shall
have the same meaning as set forth  in  article  forty  of  the  general
business law.
(10)  "Motor  vehicle"  shall  have  the  same meaning as set forth in
article forty of the general business law.
(b) An insurer may issue or issue for delivery in this state  a  group
policy  to  an  administrator as a group policyholder only in accordance
with the provisions of this section.
(c) (1) A group policy shall provide coverage  for  a  shared  vehicle
owner's  motor  vehicle  in  accordance with the requirements of article
forty of the general business law.
(2) A group policy may provide:
(A) coverage for limits higher than the  minimum  limits  required  by
subdivision two of section nine hundred one of the general business law,
with regard to financial responsibility coverage;
(B)  supplemental  spousal  liability insurance pursuant to subsection
(g) of section three thousand four hundred twenty of this chapter; 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)  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  group  policy,  including  certificates,  shall  be  issued  by
authorized  insurers  or through excess line brokers pursuant to section
two thousand one hundred eighteen of this chapter.
(5) 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:
(1) wholly by the group policyholder;
(2) wholly by the group policy members; or
(3) jointly by the group policyholder and the group policy 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 policy members, or both; or
(B) paid or refunded to those group policy 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 or refund to the group policy members;
(ii) if the group policyholder distributes the payment or refund, then
the insurer shall be responsible for conducting an  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,
then  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 group policy, the
premium for which was paid out of  funds  contributed  by  group  policy
members  specifically  for the coverage, then the dividend shall be paid
or refunded by the  group  policyholder  to  the  group  policy  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 policy
members.
(4) For the purposes of this subsection, "dividend" means a return  by
an insurer to a group policyholder of excess premiums paid by that group
policyholder  in  light  of  its  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
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  policy
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 policy member in an  amount
not  less  than  that  required by article forty of the general business
law, and may provide coverage for limits higher than the minimum  limits
required under the law.
(h)(1) The insurer shall be responsible for the mailing or delivery of
a  certificate  of  insurance  to  each  group  policy member, provided,
however, that the insurer may delegate the mailing or  delivery  to  the
administrator.  The  insurer  also  shall  be responsible for mailing or
delivery   to  each  group  policy  member  an  amended  certificate  of
insurance, or endorsement to the certificate, whenever there is a change
of  limits;  change  in  type  of  coverage;  addition,  reduction,   or
elimination  of  coverage;  or  addition  of  exclusion, under the group
policy or certificate.
(2) The certificate shall contain in substance all material terms  and
conditions  of  coverage afforded to the group policy member, unless the
group policy is incorporated by reference and a copy of the group policy
accompanies the certificate.
(3) If coverage afforded to the group policy member is  in  excess  of
other  applicable insurance coverage, then the certificate shall contain
a notice advising the group policy  member  that  if  the  group  policy
member has other insurance coverage, specified coverages under the 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  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.
(j)  A  group  policy  or  certificate 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
subparagraphs (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
subparagraphs  (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 or to an
electronic mail address at which the group policyholder has consented to
receive such notice.
(i) Where all or part of the premium is derived from funds contributed
by the group policy member specifically for the  coverage,  the  insurer
also  shall  mail or deliver written notice of cancellation of the group
policy to the group policy member at the group policy  member's  mailing
address  or  to  an  electronic  mail  address at which the group policy
member has consented to receive such notice. Such cancellation shall not
become effective until thirty days after the insurer mails  or  delivers
the written notice to the group policy member.
(ii)  Where none of the premium is derived from funds contributed by a
group  policy  member  specifically  for   the   coverage,   the   group
policyholder  shall  mail  or deliver written notice to the group policy
member advising the group policy member of the cancellation of the group

policy and the effective date of cancellation.  The  group  policyholder
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 policy member at the group
policy member's mailing address, or to an  electronic  mail  address  at
which  the group policy member has consented to receive such notice, and
to the group policyholder at the mailing  address  shown  in  the  group
policy  or to an electronic mail address at which the group policyholder
has consented to receive such notice.
(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 policy member; and
(B) The group policyholder shall mail or  deliver  written  notice  to
each   affected   group   policy  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 policy member's mailing address,  or  to  an
electronic  mail  address at which the group policy member has consented
to receive such notice, at least thirty days prior to the effective date
of cancellation.
(4) A group policy member may cancel optional coverage upon  providing
notice  to  the group policyholder. For the purposes of this subsection,
"optional coverage" means coverage other than  financial  responsibility
coverage that an individual group policy member purchases on an optional
basis.  "Optional coverage" does not mean optional vehicle protection as
defined in article forty of the general business law.
(5)(A) A group policy and all certificates shall be issued or  renewed
for  a  one-year  policy  period  unless the group policy provides for a
longer 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 the insurer mails or delivers
to the group policyholder and all group policy members written notice of
nonrenewal,  or  conditional  renewal, at least thirty but not more than
one hundred twenty days prior to the expiration date  specified  in  the
group policy or, if no date is specified, then the next anniversary date
of the group policy.
(6) Where the group policyholder nonrenews the group policy, the group
policyholder  shall  mail or deliver written notice to each group member
advising the group policy 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.
(7) Every notice of cancellation, nonrenewal, or  conditional  renewal
from  an  insurer  shall  set  forth  the specific reason or reasons for
cancellation, nonrenewal, or conditional renewal.
(8)(A) An insurer shall not be required under this subsection to  give
notice  to  a  group  policy  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  policy  member  if substantially similar
coverage has  been  obtained  from  another  insurer  without  lapse  of
coverage.
(9)(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  policy
member  in  regard  to  the  group policy 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 policy member required or
permitted  under  this  section  may  be  made  by  electronic  mail  if
affirmative  verifiable  consent  to  such  method  of delivery has been
previously received from such group policy member.
(l)  An  insurer  may  issue  a  group  policy  to  an   administrator
notwithstanding that it may be a condition of using or operating a motor
vehicle through the administrator's program for the shared vehicle owner
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
this chapter.
(n)  Coverage  under  a group policy, as provided for in this section,
shall not be dependent on  an  insurer  that  issued  a  shared  vehicle
owner's  policy of liability insurance or other motor vehicle insurance,
nor shall an insurer be required to first deny a claim before the  group
policy shall afford coverage pursuant to this section.
* NB There are 2 § 3458's