Bill Text: NY S06760 | 2023-2024 | General Assembly | Amended
Bill Title: Requires a delivery network company to ensure that, during the delivery available period, if it applies, and during the delivery service period, primary automobile liability insurance is in place that recognizes that the driver is a delivery network driver or that does not exclude coverage for use of a personal vehicle to provide deliveries.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-06-03 - PRINT NUMBER 6760B [S06760 Detail]
Download: New_York-2023-S06760-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6760--B 2023-2024 Regular Sessions IN SENATE May 9, 2023 ___________ Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law and the insurance law, in relation to insurance requirements for third-party food delivery service The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 391-v of the general business law, as added by 2 chapter 693 of the laws of 2021, is amended to read as follows: 3 § 391-v. Third-party food delivery agreements and insurance require- 4 ments. 1. For the purposes of this section, the following terms shall 5 have the following meanings: 6 (a) "Agreement" means a written contractual agreement between a food 7 service establishment and a third-party food delivery service authoriz- 8 ing the inclusion of the food service establishment's products on the 9 third-party food delivery platform. 10 (b) "Delivery available period" means the period when a delivery 11 network driver: 12 (i) has logged on to a digital network; 13 (ii) is available to receive requests to provide delivery services 14 from a delivery network company; 15 (iii) is operating a personal vehicle; and 16 (iv) is not providing delivery services or operating in the delivery 17 service period. 18 (c) "Delivery network company" means a corporation, partnership, sole 19 proprietorship, or other entity that operates in this state and uses a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10975-06-4S. 6760--B 2 1 digital network to connect a delivery network company customer to a 2 delivery network driver to provide delivery services. 3 (d) "Delivery network company customer" or "customer" means a person 4 who orders goods that are delivered by a delivery network driver at the 5 direction of such person. 6 (e) "Delivery network company seller" means a corporation, partner- 7 ship, sole proprietorship, or other entity that operates in this state 8 and uses a digital network to sell its goods to delivery network company 9 customers, for delivery by delivery network drivers, which may be a food 10 service establishment. 11 (f) "Delivery network driver" means an individual who provides inde- 12 pendent delivery services through a digital network using a personal 13 vehicle. 14 (g) "Delivery services" means the fulfillment of delivery requests 15 made by a customer through a digital network, including the pickup of 16 any goods and the delivery of the goods to a customer by a delivery 17 network driver. Delivery services may include a series of deliveries to 18 different customers, or to different locations at the direction of a 19 customer. 20 (h) "Delivery service period" means the period: 21 (i) beginning when a delivery network driver starts operating a 22 personal vehicle en route to pick up goods for a delivery or series of 23 deliveries as documented via a digital network controlled by a delivery 24 network company; 25 (ii) continuing while the delivery network driver transports the 26 requested delivery or deliveries; and 27 (iii) ending upon delivery of the requested goods to: 28 (A) the delivery network company customer or the last delivery network 29 company customer in a series of deliveries or to a location designated 30 by the delivery network company customer or the last location so desig- 31 nated in a series of deliveries; or 32 (B) a location designated by the delivery network company, including 33 for purposes of returning the goods. 34 (i) "Digital network" means any online-enabled application, software, 35 website, or system offered or utilized by a delivery network company 36 that enables deliveries with delivery network drivers. 37 (j) "Food service establishment" means a place where food is provided 38 for individual portion service directly to the consumer whether such 39 food is provided free of charge or sold, and whether consumption occurs 40 on or off the premises or is provided from a pushcart, stand or vehicle. 41 [(c)](k) "Personal vehicle" means a motor vehicle or a limited use 42 motorcycle as defined in section one hundred twenty-one-b of the vehicle 43 and traffic law, that is: 44 (i) used by a delivery network driver to provide delivery services; 45 and 46 (ii) owned, leased, or otherwise authorized for use by the delivery 47 network driver. 48 (l) "Third-party food delivery service" means any [website, mobile49application or other internet service] digital network operated by a 50 delivery network company that offers or arranges for the sale (including 51 for same-day pickup) or delivery (including same-day delivery) of 52 products (including food and beverages) prepared by, [and the same-day53delivery or same-day pickup of food and beverage from,] a food service 54 establishment located in the state. 55 [(d)] (m) "Third-party food delivery platform" means the online or 56 mobile platform of the third-party food delivery service on which aS. 6760--B 3 1 consumer can view products available for sale and place an order for a 2 food service establishment's products. 3 2. (a) A third-party food delivery service shall not list, advertise, 4 promote, or sell a food service establishment's products, or arrange for 5 the delivery of an order of such products, on a third-party food deliv- 6 ery platform without a valid agreement with the food service establish- 7 ment (or an authorized third-party agent or designee) authorizing the 8 inclusion of their products on such platform. 9 (b) An agreement executed in accordance with this section shall not 10 include a provision, clause, or covenant that requires a food service 11 establishment to indemnify a third-party food delivery service, any 12 independent contractor [acting on behalf of the] providing independent 13 delivery services third-party food delivery service, or any registered 14 agent of the third-party food delivery service, for any damages or harm 15 by an act or omission occurring after the food service establishment's 16 product leaves the place of business of the food service establishment. 17 To the extent an agreement contains such a provision, such provision 18 shall be deemed void and unenforceable. 19 (c) A food service establishment included on a third-party food deliv- 20 ery platform in violation of this section shall have the right to bring 21 an action in a court of competent jurisdiction for damages, penalties as 22 set forth in this section, and injunctive relief. Such court, in its 23 discretion, may also award reasonable court costs and attorneys' fees. 24 [(d)] 3. (a) A delivery network company shall ensure that, during the 25 delivery available period, if it applies, and during the delivery 26 service period, primary automobile liability insurance is in place that 27 recognizes that the driver is a delivery network driver or that does not 28 exclude coverage for use of a personal vehicle to provide deliveries. 29 (b) During the delivery service period and delivery available period, 30 the delivery network driver, delivery network company, or any combina- 31 tion of the two shall maintain a motor vehicle liability insurance poli- 32 cy that provides the coverage required under article fifty-three of the 33 insurance law during the delivery available period and delivery service 34 period in amounts not less than: 35 (i) For bodily injury and property damage to third parties: 36 (A) fifty thousand dollars ($50,000) or the amount required under 37 paragraph one of subsection (a) of section five thousand three hundred 38 three of the insurance law, whichever is greater, for all damages aris- 39 ing out of bodily injury sustained by any one person as a result of any 40 one accident; 41 (B) one hundred thousand dollars ($100,000) or the amount required 42 under paragraph one of subsection (a) of section five thousand three 43 hundred three of the insurance law, whichever is greater, for all 44 damages arising out of bodily injury sustained by all persons as a 45 result of any one accident; and 46 (C) twenty-five thousand dollars ($25,000) or the amount required 47 under paragraph two of subsection (a) of section five thousand three 48 hundred three of the insurance law, whichever is greater, for all 49 damages arising out of damage to or destruction of property as a result 50 of any one accident. 51 (ii) For basic reparation benefits, the amount set forth in paragraphs 52 three and four of subsection (a) of section five thousand three hundred 53 three of the insurance law. 54 (c) If the insurance coverage maintained by a delivery network driver 55 in accordance with paragraphs (a) and (b) of this subdivision has lapsedS. 6760--B 4 1 or does not provide the required coverage, insurance maintained by the 2 delivery network company shall: 3 (i) provide the coverage required by paragraphs (a) and (b) of this 4 subdivision beginning with the first dollar of a claim; and 5 (ii) have the duty to defend a claim made under the coverage provided 6 under paragraph (b) of this subdivision. 7 (d) Coverage under an automobile insurance policy maintained by the 8 delivery network company shall not be dependent upon another motor vehi- 9 cle liability insurer first denying a claim, nor shall another motor 10 vehicle liability insurance policy be required to first deny a claim. 11 (e) Insurance coverage required by this section may be obtained from 12 an insurance company duly licensed to transact business under the insur- 13 ance laws of this state or by an eligible excess lines broker licensed 14 under section two thousand one hundred five of the insurance law. 15 Insurance coverage required by this section may be obtained through a 16 group policy maintained by the delivery network company. 17 (f) The coverage required pursuant to paragraphs (a) and (b) of this 18 subdivision shall be deemed to meet the requirements for financial 19 responsibility under the vehicle and traffic law. 20 (g) A delivery network driver shall carry proof of insurance required 21 pursuant to paragraphs (a) and (b) of this subdivision at all times 22 while using a personal vehicle in connection with a digital network. In 23 the event of an accident, a delivery network driver shall, upon request, 24 provide insurance coverage information to the directly interested 25 parties, automobile insurers, and investigating law enforcement offi- 26 cers. The insurance coverage information may be displayed or provided 27 in either paper or electronic form as provided by regulation of the 28 commissioner of motor vehicles. A delivery network driver shall, upon 29 request, disclose to the directly interested parties, automobile insur- 30 ers, and investigating law enforcement officers whether the driver was 31 operating during the delivery available period or the delivery service 32 period at the time of the accident. 33 (h) In a claims coverage investigation, a delivery network company or 34 its insurer shall cooperate with all insurers that are involved in the 35 claims coverage investigation to facilitate the exchange of information 36 and shall immediately provide upon request by directly involved parties 37 or any insurer the precise times that a delivery network driver began 38 and ended the delivery available period and/or the delivery service 39 period on the delivery network company's digital network in the twelve- 40 hour period immediately preceding the accident and in the twelve-hour 41 period immediately following the accident. Insurers potentially provid- 42 ing the coverage required by this subdivision shall disclose upon 43 request by any other such insurer involved in the particular claim, the 44 applicable coverages, exclusions, and limits provided under any automo- 45 bile insurance maintained in order to satisfy the requirements of this 46 subdivision. 47 (i) The insurer or insurers of a delivery network company providing 48 coverage under paragraphs (a) and (b) of this subdivision shall assume 49 primary liability for a claim when a dispute exists as to when the 50 delivery available period and/or the delivery service period began or 51 ended and the delivery network company does not have available, did not 52 retain, or fails to provide the information required by paragraph (h) of 53 this subdivision. 54 (j) A delivery network company shall also maintain commercial general 55 liability insurance with a limit of no less than one million dollars for 56 each occurrence and two million dollars aggregate that includes coverageS. 6760--B 5 1 for the delivery network company's liability for injuries arising out of 2 the use of an electric scooter, as defined in section one hundred four- 3 teen-e of the vehicle and traffic law, or bicycle with electric assist, 4 as defined in section one hundred two-c of the vehicle and traffic law. 5 4. (a) A delivery network company shall not be deemed to control, 6 direct, or manage a personal vehicle or delivery network driver that 7 connects to the company's digital network, except where agreed to by 8 written contract. 9 (b) A delivery network company shall not permit a delivery network 10 driver to engage in delivery services on the company's digital network 11 until the company discloses in writing to the driver: 12 (i) the insurance coverage, including the types of coverage and the 13 limits for each coverage, that the company provides while the driver 14 uses a personal vehicle in connection with the company's digital 15 network; and 16 (ii) that the driver's own motor vehicle liability insurance policy 17 might not provide any coverage during a delivery available period, if 18 applicable, or a delivery service period. 19 (c) A delivery network company has no disclosure obligation to any 20 person which is not expressly mandated by this subdivision. 21 5. (a) Nothing in subdivision three or four of this section shall be 22 construed to: 23 (i) invalidate or limit an exclusion contained in a motor vehicle 24 liability insurance policy, including any policy in use or approved for 25 use that excludes coverage for motor vehicles used for delivery, or for 26 any business use; or 27 (ii) invalidate, limit, or restrict an insurer's ability under exist- 28 ing law to underwrite any insurance policy, or cancel and/or non-renew 29 policies. 30 (b) Nothing in subdivision three or four of this section limits the 31 scope of federal or state law regarding the delivery or transport of 32 goods. Deliveries made pursuant to this section that are subject to 33 federal or state law regarding the delivery or transport of goods shall 34 also comply with the requirements of those laws. In the event of a 35 conflict between subdivision three or four of this section and another 36 law dealing with the delivery or transport of goods, the other law 37 prevails. 38 6. (a) Any person that knowingly violates [any provision] subdivision 39 two of this section shall be subject to a civil penalty of up to one 40 thousand dollars per violation. Each day [a] that each food service 41 establishment is included on a third-party food delivery platform [and42each food service establishment included on a third-party food delivery43platform] shall be considered a separate violation. 44 (b) The third-party delivery service that violates subdivision three 45 of this section shall be subject to a civil penalty of up to one thou- 46 sand dollars per violation. Each delivery begun or completed without 47 the financial responsibility requirements required by subdivision three 48 of this section shall be considered a separate violation. 49 § 2. The insurance law is amended by adding a new section 3459-a to 50 read as follows: 51 § 3459-a. Delivery service exclusions for motor vehicle insurance 52 policies. (a) The definitions set forth in section three hundred nine- 53 ty-one-v of the general business law shall apply to this section. 54 (b) Notwithstanding any other provision of law to the contrary, an 55 authorized insurer that writes motor vehicle liability insurance in the 56 state may exclude any and all coverage and the duty to defend or indem-S. 6760--B 6 1 nify for any injury or loss that occurs during the delivery available 2 period and the delivery service period, including but not limited to: 3 (1) liability coverage for bodily injury and property damage; 4 (2) coverage provided pursuant to article fifty-one of this chapter; 5 (3) uninsured motorist coverage; 6 (4) supplementary uninsured/underinsured motorist coverage; and 7 (5) motor vehicle physical damage coverage as described in paragraph 8 nineteen of subsection (a) of section one thousand one hundred thirteen 9 of this chapter. 10 (c) Nothing in this article shall invalidate or limit an exclusion 11 contained in a motor vehicle insurance policy, including any insurance 12 policy in use or approved for use that shall exclude coverage for motor 13 vehicles made available for rent, sharing, hire or any business use. 14 (d) Nothing in this section invalidates or limits an exclusion 15 contained in a motor vehicle liability insurance policy, including any 16 insurance policy in use or approved for use that excludes coverage for 17 motor vehicles used for delivery or for any business use. 18 (e) Nothing in this section invalidates, limits or restricts an insur- 19 er's ability under existing law to underwrite any insurance policy. 20 Nothing in this section invalidates, limits or restricts an insurer's 21 ability under existing law to cancel and non-renew policies. 22 (f) A motor vehicle liability insurer that defends or indemnifies a 23 claim against a delivery network driver that is excluded under the terms 24 of its policy shall have the right to seek recovery against the insurer 25 providing coverage under paragraphs (a) and (b) of subdivision three of 26 section three hundred ninety-one-v of the general business law if the 27 claim: 28 (i) occurs during the delivery available period or the delivery 29 service period; and 30 (ii) is excluded under the terms of its policy. 31 § 3. Section 3455 of the insurance law, as added by section 6 of part 32 AAA of chapter 59 of the laws of 2017, is amended to read as follows: 33 § 3455. Transportation network company group insurance policies. (a) 34 For purposes of this section, the following definitions shall apply: 35 (1) "Transportation network company" shall have the same meaning as 36 set forth in article forty-four-B of the vehicle and traffic law. 37 (2) "Certificate" or "certificate of insurance" means any policy, 38 contract or other evidence of insurance, or endorsement thereto, issued 39 to a group member under a transportation network company group policy or 40 a delivery network company group policy. 41 (3) "Transportation network company group policy" or "group policy" 42 means a group policy, including certificates issued to the group 43 members, where the group policyholder is a transportation network compa- 44 ny and the policy provides insurance to the transportation network 45 company and to group members: 46 (A) in accordance with the requirements of article forty-four-B of the 47 vehicle and traffic law; 48 (B) of the type described in paragraph thirteen, fourteen, or nineteen 49 of subsection (a) of section one thousand one hundred thirteen of this 50 chapter; and 51 (C) in satisfaction of the financial responsibility requirements set 52 forth in section three thousand four hundred twenty of this article, 53 subdivision four of section three hundred eleven of the vehicle and 54 traffic law, article fifty-one of this chapter, and such other require- 55 ments or regulations that may apply for the purposes of satisfying theS. 6760--B 7 1 financial responsibility requirements with respect to the use or opera- 2 tion of a motor vehicle. 3 (4) "Group member" means a transportation network company driver as 4 defined in article forty-four-B of the vehicle and traffic law, and/or a 5 delivery network driver as defined in section three hundred ninety-one-v 6 of the general business law. 7 (5) "Group policyholder" means a transportation network company 8 and/or a delivery network company. 9 (6) "TNC vehicle" shall have the meaning set forth in article forty- 10 four-B of the vehicle and traffic law. 11 (7) "Delivery network company" shall have the same meaning as set 12 forth in section three hundred ninety-one-v of the general business law. 13 (8) "Delivery network company group policy" means a group policy, 14 including certificates issued to the group members, where the group 15 policyholder is a delivery network company and the policy provides 16 insurance to the delivery network company and to group members: 17 (A) in accordance with the requirements of section three hundred nine- 18 ty-one-v of the general business law; 19 (B) of the type described in paragraph thirteen, fourteen, or nineteen 20 of subsection (a) of section one thousand one hundred thirteen of this 21 chapter; and 22 (C) in satisfaction of the financial responsibility requirements set 23 forth in section three thousand four hundred twenty of this article, 24 subdivision four of section three hundred eleven of the vehicle and 25 traffic law, article fifty-one of this chapter, and such other require- 26 ments or regulations that may apply for the purposes of satisfying the 27 financial responsibility requirements with respect to the use or opera- 28 tion of a motor vehicle. 29 (9) "Personal vehicle" shall have the meaning set forth in section 30 three hundred ninety-one-v of the general business law. 31 (10) "Group policy" means a transportation network company group poli- 32 cy and/or a delivery network company group policy. 33 (b) An insurer may issue or issue for delivery in this state a trans- 34 portation network company group policy to a transportation network 35 company, or a delivery network company group policy to a delivery 36 network company, as a group policyholder only in accordance with the 37 provisions of this section. 38 (c)(1) A transportation network company group policy shall provide 39 coverage for a TNC vehicle in accordance with the requirements of arti- 40 cle forty-four-B of the vehicle and traffic law. 41 (2) A transportation network company group policy may provide: 42 (A) coverage for limits higher than the minimum limits required pursu- 43 ant to article forty-four-B of the vehicle and traffic law. 44 (B) supplementary uninsured/underinsured motorists insurance for bodi- 45 ly injury pursuant to paragraph two of subsection (f) of section three 46 thousand four hundred twenty of this article; 47 (C) supplemental spousal liability insurance pursuant to subsection 48 (g) of section three thousand four hundred twenty of this [chapter] 49 article; and 50 (D) motor vehicle physical damage coverage as described in paragraph 51 nineteen of subsection (a) of section one thousand one hundred thirteen 52 of this chapter. 53 (3) A delivery network company group policy shall provide coverage for 54 a personal vehicle in accordance with the requirements of section three 55 hundred ninety-one-v of the general business law. 56 (4) A delivery network company group policy may provide:S. 6760--B 8 1 (A) coverage for limits higher than the minimum limits required pursu- 2 ant to section three hundred ninety-one-v of the general business law. 3 (B) supplementary uninsured/underinsured motorists insurance for bodi- 4 ly injury pursuant to paragraph two of subsection (f) of section three 5 thousand four hundred twenty of this article; 6 (C) supplemental spousal liability insurance pursuant to subsection 7 (g) of section three thousand four hundred twenty of this article; and 8 (D) motor vehicle physical damage coverage as described in paragraph 9 nineteen of subsection (a) of section one thousand one hundred thirteen 10 of this chapter. 11 (5) The coverage described in paragraphs one [and two] through four of 12 this subsection may be provided in one group policy or in separate group 13 policies. 14 [(4)] (6) A transportation network company group policy, including 15 certificates, or a delivery network company group policy, including 16 certificates, shall be issued by authorized insurers or from excess line 17 brokers pursuant to section sixteen [six] hundred ninety-three of the 18 vehicle and traffic law. 19 [(5)] (7) A policyholder also may be an insured under a group policy. 20 (d) The premium for the transportation network company group policy or 21 the delivery network company group policy, including certificates may be 22 paid by the group policyholder from the funds contributed: 23 (1) wholly by the group policyholder; 24 (2) wholly by the group members; or 25 (3) jointly by the group policyholder and the group members. 26 (e) (1) Any policy dividend, retrospective premium credit, or retro- 27 spective premium refund in respect of premiums paid by the group policy- 28 holder may: 29 (A) be applied to reduce the premium contribution of the group policy- 30 holder, but not in excess of the proportion to its contribution; or 31 (B) be retained by the group policyholder. 32 (2) Any policy dividend, retrospective premium credit, or retrospec- 33 tive premium refund not distributed under paragraph one of this 34 subsection shall be: 35 (A) applied to reduce future premiums and, accordingly, future 36 contributions, of existing or future group members, or both; or 37 (B) paid or refunded to those group members insured on the date the 38 payment or refund is made to the group policyholder, if distributed by 39 the group policyholder, or on the date of mailing, if distributed 40 directly by the insurer, subject to the following requirements: 41 (i) The insurer shall be responsible for determining the allocation of 42 the payment of refund to the group members; 43 (ii) If the group policyholder distributes the payment or refund, the 44 insurer shall be responsible for audit to ascertain that the payment or 45 refund is actually made in accordance with the allocation procedure; and 46 (iii) If the group policyholder fails to make the payment or refund, 47 the insurer shall make the payment or refund directly or use the method 48 provided in subparagraph (A) of this paragraph. 49 (3) Notwithstanding paragraphs one and two of this subsection, if a 50 dividend accrues upon termination of coverage under a transportation 51 network company group policy or delivery network company group policy, 52 the premium for which was paid out of funds contributed by group members 53 specifically for the coverage, the dividend shall be paid or refunded by 54 the group policyholder to the group members insured on the date the 55 payment or refund is made to the group policyholder, net of reasonableS. 6760--B 9 1 expenses incurred by the group policyholder in paying or refunding the 2 dividend to such group members. 3 (4) For the purposes of this subsection, "dividend" means a return by 4 the insurer of a transportation network company group policy or delivery 5 network company group policy of excess premiums to the group policyhold- 6 er in light of favorable loss experience, including retrospective premi- 7 um credits or retrospective premium refunds. The term "dividend" does 8 not include reimbursements or fees received by a group policyholder in 9 connection with the operation or administration of a transportation 10 network company group policy or delivery network company group policy, 11 including administrative reimbursements, fees for services provided by 12 the group policyholder, or transactional service fees. 13 (f) The insurer shall treat in like manner all eligible group members 14 of the same class and status. 15 (g) Each policy written pursuant to this section shall provide per 16 occurrence limits of coverage for each group member in an amount not 17 less than that required by this article, and may provide coverage for 18 limits higher than the minimum limits required under the law. 19 (h) (1) The insurer shall be responsible for mailing or delivery of a 20 certificate of insurance to each group member insured under the trans- 21 portation network company group policy or delivery network company group 22 policy, provided, however, that the insurer may delegate the mailing or 23 delivery to the transportation network company or delivery network 24 company. The insurer shall also be responsible for the mailing or 25 delivery to each group member of an amended certificate of insurance or 26 endorsement to the certificate, whenever there is a change in limits; 27 change in type of coverage; addition, reduction, or elimination of 28 coverage; or addition of exclusion, under the transportation network 29 company group policy or certificate or the delivery network company 30 group policy or certificate. 31 (2) The certificate shall contain in substance all material terms and 32 conditions of coverage afforded to group members, unless the transporta- 33 tion network company group policy or delivery network company group 34 policy is incorporated by reference and a copy of the group policy 35 accompanies the certificate. 36 (3) If any coverage afforded to the group member is excess of applica- 37 ble insurance coverage, the certificate shall contain a notice advising 38 the group members that, if the member has other insurance coverage, 39 specified coverages under the transportation network company group poli- 40 cy or delivery network company group policy will be excess over the 41 other insurance. 42 (i) A group policyholder shall comply with the provisions of section 43 two thousand one hundred twenty-two of this chapter, in the same manner 44 as an agent or broker, in any advertisement, sign, pamphlet, circular, 45 card, or other public announcement referring to coverage under a trans- 46 portation network company group policy or certificate or delivery 47 network company group policy or certificate. 48 (j) A transportation network company group policy or delivery network 49 company group policy shall not be subject to section three thousand four 50 hundred twenty-five or section three thousand four hundred twenty-six of 51 this article; provided that the following requirements shall apply with 52 regard to termination of coverage: 53 (1)(A) An insurer may terminate a group policy or certificate only if 54 cancellation is based on one or more of the reasons set forth in subpar- 55 agraph (A) through (D) or (F) through (H) of paragraph one of subsection 56 (c) of section three thousand four hundred twenty-six of this article;S. 6760--B 10 1 provided, however, that an act or omission by a group member that would 2 constitute the basis for cancellation of an individual certificate shall 3 not constitute the basis for cancellation of the group policy. 4 (B) Where the premium is derived wholly from funds contributed by the 5 group policyholder, an insurer may cancel an individual certificate only 6 if cancellation is based on one or more of the reasons set forth in 7 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of 8 section three thousand four hundred twenty-six of this article. 9 (2) (A) An insurer's cancellation of a group policy, including all 10 certificates, shall not become effective until thirty days after the 11 insurer mails or delivers written notice of cancellation to the group 12 policyholder at the mailing address shown in the policy. 13 (i) Where all or part of the premium is derived from funds contributed 14 by the group member specifically for the coverage, the insurer shall 15 also mail or deliver written notice of cancellation of the group policy 16 to the group member at the group member's mailing address. Such cancel- 17 lation shall not become effective until thirty days after the insurer 18 mails or delivers the written notice to the group member. 19 (ii) Where none of the premium is derived from funds contributed by a 20 group member specifically for the coverage, the group policy holder 21 shall mail or deliver written notice to the group member advising the 22 group member of the cancellation of the group policy and the effective 23 date of cancellation. The group policy holder shall mail or deliver the 24 written notice within ninety days after receiving notice of cancellation 25 from the insurer. 26 (B) An insurer's cancellation of an individual certificate shall not 27 become effective until thirty days after the insurer mails or delivers 28 written notice of cancellation to the group member at the group member's 29 mailing address and to the group policyholder at the mailing address 30 shown in the group policy. 31 (3) (A) A group policyholder may cancel a group policy, including all 32 certificates, or any individual certificate, for any reason upon thirty 33 days written notice to the insurer and each group member; and 34 (B) The group policyholder shall mail or deliver written notice to 35 each affected group member of the group policyholder's cancellation of 36 the group policy or certificate and the effective date of cancellation. 37 The group policyholder shall mail or deliver the written notice to the 38 group member's mailing address at least thirty days prior to the effec- 39 tive date of cancellation. 40 (4) (A) Unless a group policy provides for a longer policy period, the 41 policy and all certificates shall be issued or renewed for a one-year 42 policy period. 43 (B) The group policyholder shall be entitled to renew the group policy 44 and all certificates upon timely payment of the premium billed to the 45 group policyholder for the renewal, unless: 46 (i) the insurer mails or delivers to the group policyholder and all 47 group members written notice of nonrenewal, or conditional renewal; and 48 (ii) the insurer mails or delivers the written notice at least thirty, 49 but not more than one hundred twenty days prior to the expiration date 50 specified in the policy or, if no date is specified, the next anniver- 51 sary date of the policy. 52 (5) Where the group policyholder nonrenews the group policy, the group 53 policyholder shall mail or deliver written notice to each group member 54 advising the group member of nonrenewal of the group policy and the 55 effective date of nonrenewal. The group policyholder shall mail or 56 deliver written notice at least thirty days prior to the nonrenewal.S. 6760--B 11 1 (6) Every notice of cancellation, nonrenewal, or conditional renewal 2 shall set forth the specific reason or reasons for cancellation, nonre- 3 newal, or conditional renewal. 4 (7) (A) An insurer shall not be required under this subsection to give 5 notice to a group member if the insurer has been advised by either the 6 group policyholder or another insurer that substantially similar cover- 7 age has been obtained from the other insurer without lapse of coverage. 8 (B) A group policyholder shall not be required under this subsection 9 to give notice to a group member if substantially similar coverage has 10 been obtained from another insurer without lapse of coverage. 11 (8) (A) If, prior to the effective date of cancellation, nonrenewal, 12 or conditional renewal of the group policy, or a certificate, whether 13 initiated by the insurer, group policyholder or by the group member in 14 regard to the group member's certificate, coverage attaches pursuant to 15 the terms of a group policy, then the coverage shall be effective until 16 expiration of the applicable period of coverage provided in the group 17 policy notwithstanding the cancellation, nonrenewal or conditional 18 nonrenewal of the group policy. 19 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may 20 terminate coverage under an individual certificate on the effective date 21 of cancellation, if the certificate is cancelled in accordance with the 22 provisions of subparagraph (B) of paragraph one of this subsection. 23 (k) Any mailing or delivery to a group member required or permitted 24 under this section may be made by electronic mail if consent to such 25 method of delivery has been previously received from such group member. 26 (l) (1) An insurer may issue a transportation network company group 27 policy to a transportation network company, notwithstanding that it may 28 be a condition of operating a vehicle on the transportation network 29 company's digital network for the TNC driver to participate in such 30 group policy. 31 (2) An insurer may issue a delivery network company group policy to a 32 delivery network company, notwithstanding that it may be a condition of 33 operating a vehicle on the delivery network company's digital network 34 for the delivery network driver to participate in such group policy. 35 (m) An insurer shall not include a mandatory arbitration clause in a 36 policy that provides financial responsibility coverage under this 37 section except as permitted in section five thousand one hundred five of 38 [the insurance law] this chapter. 39 § 4. This act shall take effect one year after it shall have become a 40 law.
