2023 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.