§ 3455 — Transportation network company group insurance policies

New York § 3455

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 34: Insurance Contracts-property/casualty

Text

§ 3455. Transportation network company group insurance policies. (a)\nFor purposes of this section, the following definitions shall apply:\n (1) "Transportation network company" shall have the same meaning as\nset forth in article forty-four-B of the vehicle and traffic law.\n (2) "Certificate" or "certificate of insurance" means any policy,\ncontract or other evidence of insurance, or endorsement thereto, issued\nto a group member under a transportation network company group policy.\n (3) "Transportation network company group policy" or "group policy"\nmeans a group policy, including certificates issued to the group\nmembers, where the group policyholder is a transportation network\ncompany and the policy provides insurance to the transportation network\ncompany and to group members:\n (A) in accordance with the requirements of article forty-four-B of the\nvehicle and traffic law;\n (B) of the type described in paragraph thirteen, fourteen, or nineteen\nof subsection (a) of section one thousand one hundred thirteen of this\nchapter; and\n (C) in satisfaction of the financial responsibility requirements set\nforth in section three thousand four hundred twenty of this article,\nsubdivision four of section three hundred eleven of the vehicle and\ntraffic law, article fifty-one of this chapter, and such other\nrequirements or regulations that may apply for the purposes of\nsatisfying the financial responsibility requirements with respect to the\nuse or operation of a motor vehicle.\n (4) "Group member" means a transportation network company driver as\ndefined in article forty-four-B of the vehicle and traffic law.\n (5) "Group policyholder" means a transportation network company.\n (6) "TNC vehicle" shall have the meaning set forth in article\nforty-four-B of the vehicle and traffic law.\n (b) An insurer may issue or issue for delivery in this state a\ntransportation network company group policy to a transportation network\ncompany as a group policyholder only in accordance with the provisions\nof this section.\n (c)(1) A transportation network company group policy shall provide\ncoverage for a TNC vehicle in accordance with the requirements of\narticle forty-four-B of the vehicle and traffic law.\n (2) A transportation network company group policy may provide:\n (A) coverage for limits higher than the minimum limits required\npursuant to article forty-four-B of the vehicle and traffic law.\n (B) supplementary uninsured/underinsured motorists insurance for\nbodily injury pursuant to paragraph two of subsection (f) of section\nthree thousand four hundred twenty of this article;\n (C) supplemental spousal liability insurance pursuant to subsection\n(g) of section three thousand four hundred twenty of this chapter; and\n (D) motor vehicle physical damage coverage as described in paragraph\nnineteen of subsection (a) of section one thousand one hundred thirteen\nof this chapter.\n (3) The coverage described in paragraphs one and two of this\nsubsection may be provided in one group policy or in separate group\npolicies.\n (4) A transportation network company group policy, including\ncertificates, shall be issued by authorized insurers or from excess line\nbrokers pursuant to section sixteen six hundred ninety-three of the\nvehicle and traffic law.\n (5) A policyholder also may be an insured under a group policy.\n (d) The premium for the transportation network company group policy,\nincluding certificates may be paid by the group policyholder from the\nfunds contributed:\n (1) wholly by the group policyholder;\n (2) wholly by the group members; or\n (3) jointly by the group policyholder and the group members.\n (e) (1) Any policy dividend, retrospective premium credit, or\nretrospective premium refund in respect of premiums paid by the group\npolicyholder may:\n (A) be applied to reduce the premium contribution of the group\npolicyholder, but not in excess of the proportion to its contribution;\nor\n (B) be retained by the group policyholder.\n (2) Any policy dividend, retrospective premium credit, or\nretrospective premium refund not distributed under paragraph one of this\nsubsection shall be:\n (A) applied to reduce future premiums and, accordingly, future\ncontributions, of existing or future group members, or both; or\n (B) paid or refunded to those group members insured on the date the\npayment or refund is made to the group policyholder, if distributed by\nthe group policyholder, or on the date of mailing, if distributed\ndirectly by the insurer, subject to the following requirements:\n (i) The insurer shall be responsible for determining the allocation of\nthe payment of refund to the group members;\n (ii) If the group policyholder distributes the payment or refund, the\ninsurer shall be responsible for audit to ascertain that the payment or\nrefund is actually made in accordance with the allocation procedure; and\n (iii) If the group policyholder fails to make the payment or refund,\nthe insurer shall make the payment or refund directly or use the method\nprovided in subparagraph (A) of this paragraph.\n (3) Notwithstanding paragraphs one and two of this subsection, if a\ndividend accrues upon termination of coverage under a transportation\nnetwork company group policy, the premium for which was paid out of\nfunds contributed by group members specifically for the coverage, the\ndividend shall be paid or refunded by the group policyholder to the\ngroup members insured on the date the payment or refund is made to the\ngroup policyholder, net of reasonable expenses incurred by the group\npolicyholder in paying or refunding the dividend to such group members.\n (4) For the purposes of this subsection, "dividend" means a return by\nthe insurer of a transportation network company group policy of excess\npremiums to the group policyholder in light of favorable loss\nexperience, including retrospective premium credits or retrospective\npremium refunds. The term "dividend" does not include reimbursements or\nfees received by a group policyholder in connection with the operation\nor administration of a transportation network company group policy,\nincluding administrative reimbursements, fees for services provided by\nthe group policyholder, or transactional service fees.\n (f) The insurer shall treat in like manner all eligible group members\nof the same class and status.\n (g) Each policy written pursuant to this section shall provide per\noccurrence limits of coverage for each group member in an amount not\nless than that required by this article, and may provide coverage for\nlimits higher than the minimum limits required under the law.\n (h) (1) The insurer shall be responsible for mailing or delivery of a\ncertificate of insurance to each group member insured under the\ntransportation network company group policy, provided, however, that the\ninsurer may delegate the mailing or delivery to the transportation\nnetwork company. The insurer shall also be responsible for the mailing\nor delivery to each group member of an amended certificate of insurance\nor endorsement to the certificate, whenever there is a change in limits;\nchange in type of coverage; addition, reduction, or elimination of\ncoverage; or addition of exclusion, under the transportation network\ncompany group policy or certificate.\n (2) The certificate shall contain in substance all material terms and\nconditions of coverage afforded to group members, unless the\ntransportation network company group policy is incorporated by reference\nand a copy of the group policy accompanies the certificate.\n (3) If any coverage afforded to the group member is excess of\napplicable insurance coverage, the certificate shall contain a notice\nadvising the group members that, if the member has other insurance\ncoverage, specified coverages under the transportation network company\ngroup policy will be excess over the other insurance.\n (i) A group policyholder shall comply with the provisions of section\ntwo thousand one hundred twenty-two of this chapter, in the same manner\nas an agent or broker, in any advertisement, sign, pamphlet, circular,\ncard, or other public announcement referring to coverage under a\ntransportation network company group policy or certificate.\n (j) A transportation network company group policy shall not be subject\nto section three thousand four hundred twenty-five or section three\nthousand four hundred twenty-six of this article; provided that the\nfollowing requirements shall apply with regard to termination of\ncoverage:\n (1)(A) An insurer may terminate a group policy or certificate only if\ncancellation is based on one or more of the reasons set forth in\nsubparagraph (A) through (D) or (F) through (H) of paragraph one of\nsubsection (c) of section three thousand four hundred twenty-six of this\narticle; provided, however, that an act or omission by a group member\nthat would constitute the basis for cancellation of an individual\ncertificate shall not constitute the basis for cancellation of the group\npolicy.\n (B) Where the premium is derived wholly from funds contributed by the\ngroup policyholder, an insurer may cancel an individual certificate only\nif cancellation is based on one or more of the reasons set forth in\nsubparagraph (B), (C) or (H) of paragraph one of subsection (c) of\nsection three thousand four hundred twenty-six of this article.\n (2) (A) An insurer's cancellation of a group policy, including all\ncertificates, shall not become effective until thirty days after the\ninsurer mails or delivers written notice of cancellation to the group\npolicyholder at the mailing address shown in the policy.\n (i) Where all or part of the premium is derived from funds contributed\nby the group member specifically for the coverage, the insurer shall\nalso mail or deliver written notice of cancellation of the group policy\nto the group member at the group member's mailing address. Such\ncancellation shall not become effective until thirty days after the\ninsurer mails or delivers the written notice to the group member.\n (ii) Where none of the premium is derived from funds contributed by a\ngroup member specifically for the coverage, the group policy holder\nshall mail or deliver written notice to the group member advising the\ngroup member of the cancellation of the group policy and the effective\ndate of cancellation. The group policy holder shall mail or deliver the\nwritten notice within ninety days after receiving notice of cancellation\nfrom the insurer.\n (B) An insurer's cancellation of an individual certificate shall not\nbecome effective until thirty days after the insurer mails or delivers\nwritten notice of cancellation to the group member at the group member's\nmailing address and to the group policyholder at the mailing address\nshown in the group policy.\n (3) (A) A group policyholder may cancel a group policy, including all\ncertificates, or any individual certificate, for any reason upon thirty\ndays written notice to the insurer and each group member; and\n (B) The group policyholder shall mail or deliver written notice to\neach affected group member of the group policyholder's cancellation of\nthe group policy or certificate and the effective date of cancellation.\nThe group policyholder shall mail or deliver the written notice to the\ngroup member's mailing address at least thirty days prior to the\neffective date of cancellation.\n (4) (A) Unless a group policy provides for a longer policy period, the\npolicy and all certificates shall be issued or renewed for a one-year\npolicy period.\n (B) The group policyholder shall be entitled to renew the group policy\nand all certificates upon timely payment of the premium billed to the\ngroup policyholder for the renewal, unless:\n (i) the insurer mails or delivers to the group policyholder and all\ngroup members written notice of nonrenewal, or conditional renewal; and\n (ii) the insurer mails or delivers the written notice at least thirty,\nbut not more than one hundred twenty days prior to the expiration date\nspecified in the policy or, if no date is specified, the next\nanniversary date of the policy.\n (5) Where the group policyholder nonrenews the group policy, the group\npolicyholder shall mail or deliver written notice to each group member\nadvising the group member of nonrenewal of the group policy and the\neffective date of nonrenewal. The group policyholder shall mail or\ndeliver written notice at least thirty days prior to the nonrenewal.\n (6) Every notice of cancellation, nonrenewal, or conditional renewal\nshall set forth the specific reason or reasons for cancellation,\nnonrenewal, or conditional renewal.\n (7) (A) An insurer shall not be required under this subsection to give\nnotice to a group member if the insurer has been advised by either the\ngroup policyholder or another insurer that substantially similar\ncoverage has been obtained from the other insurer without lapse of\ncoverage.\n (B) A group policyholder shall not be required under this subsection\nto give notice to a group member if substantially similar coverage has\nbeen obtained from another insurer without lapse of coverage.\n (8) (A) If, prior to the effective date of cancellation, nonrenewal,\nor conditional renewal of the group policy, or a certificate, whether\ninitiated by the insurer, group policyholder or by the group member in\nregard to the group member's certificate, coverage attaches pursuant to\nthe terms of a group policy, then the coverage shall be effective until\nexpiration of the applicable period of coverage provided in the group\npolicy notwithstanding the cancellation, nonrenewal or conditional\nnonrenewal of the group policy.\n (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may\nterminate coverage under an individual certificate on the effective date\nof cancellation, if the certificate is cancelled in accordance with the\nprovisions of subparagraph (B) of paragraph one of this subsection.\n (k) Any mailing or delivery to a group member required or permitted\nunder this section may be made by electronic mail if consent to such\nmethod of delivery has been previously received from such group member.\n (l) An insurer may issue a transportation network company group policy\nto a transportation network company, notwithstanding that it may be a\ncondition of operating a vehicle on the transportation network company's\ndigital network for the TNC driver to participate in such group policy.\n (m) An insurer shall not include a mandatory arbitration clause in a\npolicy that provides financial responsibility coverage under this\nsection except as permitted in section five thousand one hundred five of\nthe insurance law.\n