§ 3457 — Group insurance policies for certain for hire motor vehicles

§ 3457. Group insurance policies for certain for hire motor vehicles.\n(a) For purposes of this section, the following definitions shall apply:\n (1) "Certificate" or "certificate of insurance" means any policy,\ncontract or other evidence of insurance, or endorsement thereto, issued\nto a group member under a for hire motor vehicle group policy.\n (2) "For hire motor vehicle" or "vehicle" means a motor vehicle\nengaged in the business of carrying or transporting passengers for hire,\nhaving a seating capacity of not less than eight passengers, excluding\nthe driver.\n (3) "For hire motor vehicle group policy" or "group policy" means a\ngroup policy, including certificates issued to the group members, where\nthe group policy provides insurance to the group members or both the\ngroup policyholder and the group members of the type described in\nparagraph twelve, thirteen, fourteen, or nineteen of subsection (a) of\nsection one thousand one hundred thirteen of this chapter.\n (4) "Group member" means the owner of a for hire motor vehicle.\n (5) "Group policyholder" means a sponsoring entity.\n (6) "Owner" shall have the same meaning as set forth in section one\nhundred twenty-eight of the vehicle and traffic law.\n (7) "Sponsoring entity" means:\n (A) an association or other organization, or a trustee or trustees of\na fund established, created, or maintained for the benefit of one or\nmore associations or other organizations, where all the eligible members\nof the association or associations or other organization or\norganizations have the same profession, trade, or occupation, and the\nassociation or associations or other organization or organizations have\nbeen organized and maintained in good faith for purposes principally\nother than that of obtaining insurance, and have been in active\nexistence for at least two years;\n (B) an entity that owns for hire motor vehicles and leases them to\ndrivers; or\n (C) any other entity where the superintendent has determined in a\nregulation that the members are engaged in a common enterprise, or have\nan economic or social affinity or relationship, and that the issuance of\nthe group policy would not be contrary to the best interests of the\npublic.\n (b) An authorized insurer may issue or issue for delivery in this\nstate a group policy to a sponsoring entity as a group policyholder only\nin accordance with the provisions of this section.\n (c)(1) A group policy shall provide coverage in satisfaction of the\nfinancial responsibility requirements set forth in section three\nthousand four hundred twenty of this article, section three hundred\nseventy of the vehicle and traffic law, article fifty-one of this\nchapter, and such other requirements or regulations that may apply for\nthe purposes of satisfying the financial responsibility requirements\nwith respect to the use or operation of a for hire motor vehicle.\n (2) A group policy may provide:\n (A) coverage for limits higher than the minimum limits required\npursuant to section three hundred seventy of the vehicle and traffic law\nand paragraph two of subsection (f) of section three thousand four\nhundred twenty of this article;\n (B) supplemental spousal liability insurance pursuant to subsection\n(g) of section three thousand four hundred twenty of this article; and\n (C) 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) A group policy, including certificates, shall be issued by an\nauthorized insurer.\n (4) A policyholder also may be an insured under a group policy.\n (d) The premium for the group policy, including certificates, may be\npaid by the group policyholder from the funds contributed wholly by the\ngroup members or jointly by the group policyholder and the group\nmembers.\n (e) 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 pursuant to law.\n (f)(1) The insurer shall be responsible for mailing or delivery of a\ncertificate of insurance to each group member insured under the group\npolicy. The insurer shall also be responsible for the mailing or\ndelivery to each group member of an amended certificate of insurance or\nendorsement to the certificate whenever there is a change in limits,\nchange in type of coverage, addition, reduction, or elimination of\ncoverage or addition of an exclusion, under the group policy or\ncertificate.\n (2) The certificate shall contain in substance all material terms and\nconditions of coverage afforded to group members, unless the group\npolicy is incorporated by reference and a copy of the group policy\naccompanies the certificate.\n (g) 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 insurance agent or insurance broker, in any advertisement, sign,\npamphlet, circular, card, or other public announcement referring to\ncoverage under a group policy or certificate.\n (h) A group policy shall not be subject to section three thousand four\nhundred twenty-five or section three thousand four hundred twenty-six of\nthis article, provided that the following requirements shall apply with\nregard to termination of coverage:\n (1) An insurer may cancel 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:\n (A) an insurer may cancel an individual certificate if the driver's\nlicense of the group member insured under that certificate is suspended\nor revoked during the period of coverage, other than a suspension issued\npursuant to subdivision one of section five hundred ten-b of the vehicle\nand traffic law or one or more administrative suspensions arising from\nthe same incident that has or have been terminated prior to the\neffective date of the cancellation; and\n (B) an act or omission by a group member that would constitute the\nbasis for cancellation of an individual certificate shall not constitute\nthe basis for cancellation of the group policy.\n (2) 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. The insurer\nshall also mail or deliver written notice of cancellation of the group\npolicy, including all certificates, to the group member at the group\nmember's mailing address. Such cancellation shall not become effective\nuntil thirty days after the insurer mails or delivers the written notice\nto the group member.\n (3)(A) A group policyholder may cancel a group policy, including all\ncertificates, or any individual certificate, for any reason upon at\nleast thirty days written notice to the insurer and each group member;\nand\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 sixty,\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) Every notice of cancellation, nonrenewal, or conditional renewal\nshall set forth the specific reason or reasons for cancellation,\nnonrenewal, or conditional renewal and the insurer shall also mail or\ndeliver the notice to the insurance producer that procured the group\npolicy when the group policy and any certificates are cancelled,\nnonrenewed, or conditionally renewed.\n (6)(A) If, prior to the effective date of cancellation, nonrenewal, or\nconditional renewal of the group policy, or cancellation of a\ncertificate, whether initiated by the insurer, group policyholder, or\ngroup member in regard to the group member's certificate, coverage\nattaches pursuant to the terms of the group policy, then the coverage\nshall be effective until expiration of the applicable period of coverage\nprovided in the group policy notwithstanding the cancellation,\nnonrenewal or conditional nonrenewal 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 paragraph one of this subsection.\n (i) 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\nof this chapter.\n (j) The superintendent may promulgate regulations pertaining to a for\nhire motor vehicle group policy, including regulations regarding\npayments of dividends or retrospective premium refunds, minimum number\nof group members, and other reasonable limitations.\n