Bill Text: NY S05959 | 2023-2024 | General Assembly | Amended
Bill Title: Authorizes certain policies issued by a risk retention group not chartered in this state but which is registered with the superintendent of financial services under the federal liability risk retention act of 1986, comprised entirely of organizations to which contributions are eligible for deduction under section 501(c)(3) of the internal revenue code and which qualifies as a charitable risk pool under section 501(n) of the internal revenue code.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2023-09-15 - APPROVAL MEMO.8 [S05959 Detail]
Download: New_York-2023-S05959-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5959--B Cal. No. 1188 2023-2024 Regular Sessions IN SENATE March 23, 2023 ___________ Introduced by Sens. WEBB, BROUK, COONEY, KENNEDY, RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the insurance law and the vehicle and traffic law, in relation to owner's policies of liability insurance issued by a risk retention group not chartered within this state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 5913 of the insurance law, as added by chapter 109 2 of the laws of 1988, is amended to read as follows: 3 § 5913. Financial responsibility. [Wherever] Except as provided in 4 sections three hundred eleven and three hundred seventy of the vehicle 5 and traffic law, wherever pursuant to the laws of this state or any 6 political subdivision of this state a demonstration of financial respon- 7 sibility is required as a condition for obtaining a license or permit to 8 undertake specified activities, if any such requirement may not be 9 satisfied by obtaining insurance coverage from an insurer not authorized 10 to do business in this state, such requirement may not be satisfied by 11 purchasing insurance from a risk retention group not chartered in this 12 state. Every insurance policy issued by a risk retention group not 13 chartered in this state pursuant to sections three hundred eleven and 14 three hundred seventy of the vehicle and traffic law shall contain the 15 notice set forth in section five thousand nine hundred five of this 16 article. 17 § 2. Paragraphs (b) and (c) of subdivision 4 of section 311 of the 18 vehicle and traffic law, paragraph (c) as amended by chapter 200 of the 19 laws of 1974, are amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10375-10-3S. 5959--B 2 1 (b) In the case of a vehicle registered in this state, a policy issued 2 by (i) an insurer duly authorized to transact business in this state or 3 (ii) a risk retention group not chartered in this state but which is 4 registered with the superintendent under the federal liability risk 5 retention act of 1986, comprised entirely of organizations that are 6 tax-exempt under section 501(c)(3) of the federal internal revenue code 7 and where the risk retention group qualifies as a charitable risk pool 8 under section 501(n) of the federal internal revenue code; or 9 (c) In the case of a vehicle lawfully registered in another state, or 10 in both this state and another state, [either] (i) a policy issued by an 11 authorized insurer, or (ii) a risk retention group not chartered in this 12 state but which is registered with the superintendent under the federal 13 liability risk retention act of 1986, comprised entirely of organiza- 14 tions that are tax-exempt under section 501(c)(3) of the federal inter- 15 nal revenue code and where the risk retention group qualifies as a char- 16 itable risk pool under section 501(n) of the federal internal revenue 17 code, or (iii) a policy issued by an unauthorized insurer authorized to 18 transact business in another state if such unauthorized insurer files 19 with the commissioner in form to be approved by [him] them a statement 20 consenting to service of process and declaring its policies shall be 21 deemed to be varied to comply with the requirements of this article; and 22 § 3. The opening paragraph of subdivision 5 of section 311 of the 23 vehicle and traffic law, as amended by chapter 569 of the laws of 1981, 24 is amended to read as follows: 25 The term "certificate of insurance" shall mean any evidence issued by 26 or on behalf of an insurance company duly authorized to transact busi- 27 ness in this state, or a risk retention group authorized to issue an 28 owner's policy of liability insurance pursuant to subdivision four of 29 this section, stating in such form as the commissioner may prescribe or 30 approve that such company or such risk retention group has issued an 31 owner's policy of liability insurance on the motor vehicle or vehicles 32 designated therein. Such certificate shall contain information as 33 required by the commissioner including at least the following except as 34 otherwise provided: 35 § 4. Subdivision 10 of section 311 of the vehicle and traffic law, as 36 amended by chapter 103 of the laws of 1972, is amended to read as 37 follows: 38 10. "Insurance Identification Card" shall mean a card issued by or on 39 behalf of an insurance company or bonding company duly authorized to 40 transact business in this state, or a risk retention group authorized to 41 issue an owner's policy of liability insurance pursuant to subdivision 42 four of this section, stating in such form as the commissioner may 43 prescribe or approve that such company or such risk retention group has 44 issued an owner's policy of liability insurance or a financial security 45 bond on the motor vehicle or vehicles designated therein. Such card 46 shall contain such information and shall be valid during such period as 47 may be prescribed by the commissioner. If an owner shall have filed a 48 financial security deposit, or shall have qualified as a self-insurer 49 under section three hundred sixteen of this [chapter] article, the term 50 "insurance identification card" shall mean a card issued by the depart- 51 ment which evidences that such deposit has been filed or that such owner 52 has so qualified. 53 § 5. The opening paragraph of subdivision 1 of section 370 of the 54 vehicle and traffic law, as amended by chapter 20 of the laws of 2002 55 and as further amended by section 104 of part A of chapter 62 of the 56 laws of 2011, is amended to read as follows:S. 5959--B 3 1 Every person, firm, association or corporation engaged in the business 2 of carrying or transporting passengers for hire in any motor vehicle or 3 motorcycle, except street cars, and motor vehicles or motorcycles owned 4 and operated by a municipality, and except as otherwise provided in this 5 section, which shall be operated over, upon or along any public street 6 or highway of the state of New York shall file with the commissioner of 7 motor vehicles for each motor vehicle or motorcycle intended to be so 8 operated evidence, in such form as the commissioner may prescribe, of a 9 corporate surety bond or a policy of insurance[,]: (a) approved as to 10 form by the superintendent of financial services in a company authorized 11 to do business in the state, approved by the superintendent as to 12 solvency and responsibility[,]; or (b) a risk retention group not char- 13 tered in this state but which is registered with the superintendent of 14 financial services under the federal liability risk retention act of 15 1986, comprised entirely of organizations that are tax-exempt under 16 section 501(c)(3) of the federal internal revenue code and where the 17 risk retention group qualifies as a charitable risk pool under section 18 501(n) of the federal internal revenue code. Such surety bond or policy 19 of insurance shall be conditioned for the payment of a minimum sum, 20 hereinafter called minimum liability, on a judgment or judgments for 21 damages, including damages for care and loss of services, because of 22 bodily injury to, or death of any one person in any one accident, and 23 subject to such minimum liability a maximum sum, hereinafter called 24 maximum liability on a judgment or judgments for damages, including 25 damages for care and loss of services because of bodily injury to, or 26 death of two or more persons in any one accident and for the payment of 27 a minimum sum, called minimum liability on all judgments for damages 28 because of injury to or destruction of property of others in any one 29 accident, recovered against such person, firm, association or corpo- 30 ration upon claims arising out of the same transaction or transactions 31 connected with the same subject of action, to be apportioned ratably 32 among the judgment creditors according to the amount of their respective 33 judgments for damage or injury caused in the operation, maintenance, use 34 or the defective construction of such motor vehicle or motorcycle as 35 follows: 36 § 6. Three years after the effective date of this act, the superinten- 37 dent of financial services, in consultation with the commissioner of 38 motor vehicles, shall study the impact of this act to determine the 39 efficacy of risk retention groups not chartered in this state issuing 40 vehicle insurance policies. Such study shall examine certain factors, 41 including, but not limited to: the quality and practicability of cover- 42 age on automotive accidents covered under such insurance policies, the 43 magnitude of need and interest in these types of insurance policies 44 across the state, customer satisfaction and fiscal surety using such 45 policies, the ability of the state to regulate such policies through the 46 federal limited risk retention act, and other data as is practicable 47 that would assess the potential impact on nonprofits that could be 48 covered by the expansion of eligibility of these policies for organiza- 49 tions that are tax-exempt under section 501(c)(3) of the federal inter- 50 nal revenue code. Such superintendent shall report the findings and any 51 recommendations of such study to the governor and the legislature no 52 later than four years after the effective date of this act. 53 § 7. This act shall take effect on the one hundred eightieth day 54 after it shall have become a law.
