§ 3458*2 — Group insurance for peer-to-peer car sharing programs

* § 3458. Group insurance for peer-to-peer car sharing programs. (a)\nFor the 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 peer-to-peer car sharing group policy.\n (2) "Group policyholder" means an administrator.\n (3) "Group policy member" means a shared vehicle owner or a shared\nvehicle driver participating in a program.\n (4) "Peer-to-peer car sharing group policy" or "group policy" means a\ngroup policy, including certificates issued to the group members, where\nthe group policyholder is an administrator and the policy provides\ninsurance to the administrator and to group members:\n (A) in accordance with the requirements of article forty of the\ngeneral business 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 (5) "Peer-to-peer car sharing program" or "program" shall have the\nsame meaning as set forth in article forty of the general business law.\n (6) "Peer-to-peer car sharing program administrator" or\n"administrator" shall have the same meaning as set forth in article\nforty of the general business law.\n (7) "Shared vehicle driver" shall have the same meaning as set forth\nin article forty of the general business law.\n (8) "Shared vehicle owner" shall have the same meaning as set forth in\narticle forty of the general business law.\n (9) "Peer-to-peer car sharing period" or "car sharing period" shall\nhave the same meaning as set forth in article forty of the general\nbusiness law.\n (10) "Motor vehicle" shall have the same meaning as set forth in\narticle forty of the general business law.\n (b) An insurer may issue or issue for delivery in this state a group\npolicy to an administrator as a group policyholder only in accordance\nwith the provisions of this section.\n (c) (1) A group policy shall provide coverage for a shared vehicle\nowner's motor vehicle in accordance with the requirements of article\nforty of the general business law.\n (2) A group policy may provide:\n (A) coverage for limits higher than the minimum limits required by\nsubdivision two of section nine hundred one of the general business law,\nwith regard to financial responsibility coverage;\n (B) supplemental spousal liability insurance pursuant to subsection\n(g) of section three thousand four hundred twenty of this chapter; 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) 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 group policy, including certificates, shall be issued by\nauthorized insurers or through excess line brokers pursuant to section\ntwo thousand one hundred eighteen of this chapter.\n (5) 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:\n (1) wholly by the group policyholder;\n (2) wholly by the group policy members; or\n (3) jointly by the group policyholder and the group policy 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 policy members, or both; or\n (B) paid or refunded to those group policy members insured on the date\nthe payment or refund is made to the group policyholder, if distributed\nby the 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 or refund to the group policy members;\n (ii) if the group policyholder distributes the payment or refund, then\nthe insurer shall be responsible for conducting an audit to ascertain\nthat the payment or refund is actually made in accordance with the\nallocation procedure; and\n (iii) if the group policyholder fails to make the payment or refund,\nthen the insurer shall make the payment or refund directly or use the\nmethod provided 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 group policy, the\npremium for which was paid out of funds contributed by group policy\nmembers specifically for the coverage, then the dividend shall be paid\nor refunded by the group policyholder to the group policy members\ninsured on the date the payment or refund is made to the group\npolicyholder net of reasonable expenses incurred by the group\npolicyholder in paying or refunding the dividend to such group policy\nmembers.\n (4) For the purposes of this subsection, "dividend" means a return by\nan insurer to a group policyholder of excess premiums paid by that group\npolicyholder in light of its favorable loss experience, including\nretrospective premium credits or retrospective premium refunds. The term\n"dividend" does not include reimbursements or fees received by a group\npolicyholder in connection with the operation or administration of a\ngroup policy, including administrative reimbursements, fees for services\nprovided by the group policyholder, or transactional service fees.\n (f) The insurer shall treat in like manner all eligible group policy\nmembers of the same class and status.\n (g) Each policy written pursuant to this section shall provide per\noccurrence limits of coverage for each group policy member in an amount\nnot less than that required by article forty of the general business\nlaw, and may provide coverage for limits higher than the minimum limits\nrequired under the law.\n (h)(1) The insurer shall be responsible for the mailing or delivery of\na certificate of insurance to each group policy member, provided,\nhowever, that the insurer may delegate the mailing or delivery to the\nadministrator. The insurer also shall be responsible for mailing or\ndelivery to each group policy member an amended certificate of\ninsurance, or endorsement to the certificate, whenever there is a change\nof limits; change in type of coverage; addition, reduction, or\nelimination of coverage; or addition of exclusion, under the group\npolicy or certificate.\n (2) The certificate shall contain in substance all material terms and\nconditions of coverage afforded to the group policy member, unless the\ngroup policy is incorporated by reference and a copy of the group policy\naccompanies the certificate.\n (3) If coverage afforded to the group policy member is in excess of\nother applicable insurance coverage, then the certificate shall contain\na notice advising the group policy member that if the group policy\nmember has other insurance coverage, specified coverages under the group\npolicy 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 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 (j) A group policy or certificate shall not be subject to section\nthree thousand four hundred twenty-five or section three thousand four\nhundred twenty-six of this article, provided that the following\nrequirements shall apply with regard to termination of coverage:\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\nsubparagraphs (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\nsubparagraphs (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 or to an\nelectronic mail address at which the group policyholder has consented to\nreceive such notice.\n (i) Where all or part of the premium is derived from funds contributed\nby the group policy member specifically for the coverage, the insurer\nalso shall mail or deliver written notice of cancellation of the group\npolicy to the group policy member at the group policy member's mailing\naddress or to an electronic mail address at which the group policy\nmember has consented to receive such notice. Such cancellation shall not\nbecome effective until thirty days after the insurer mails or delivers\nthe written notice to the group policy member.\n (ii) Where none of the premium is derived from funds contributed by a\ngroup policy member specifically for the coverage, the group\npolicyholder shall mail or deliver written notice to the group policy\nmember advising the group policy member of the cancellation of the group\npolicy and the effective date of cancellation. The group policyholder\nshall mail or deliver the written notice within ninety days after\nreceiving notice of cancellation from 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 policy member at the group\npolicy member's mailing address, or to an electronic mail address at\nwhich the group policy member has consented to receive such notice, and\nto the group policyholder at the mailing address shown in the group\npolicy or to an electronic mail address at which the group policyholder\nhas consented to receive such notice.\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 policy member; and\n (B) The group policyholder shall mail or deliver written notice to\neach affected group policy member of the group policyholder's\ncancellation of the group policy or certificate and the effective date\nof cancellation. The group policyholder shall mail or deliver the\nwritten notice to the group policy member's mailing address, or to an\nelectronic mail address at which the group policy member has consented\nto receive such notice, at least thirty days prior to the effective date\nof cancellation.\n (4) A group policy member may cancel optional coverage upon providing\nnotice to the group policyholder. For the purposes of this subsection,\n"optional coverage" means coverage other than financial responsibility\ncoverage that an individual group policy member purchases on an optional\nbasis. "Optional coverage" does not mean optional vehicle protection as\ndefined in article forty of the general business law.\n (5)(A) A group policy and all certificates shall be issued or renewed\nfor a one-year policy period unless the group policy provides for a\nlonger policy 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 the insurer mails or delivers\nto the group policyholder and all group policy members written notice of\nnonrenewal, or conditional renewal, at least thirty but not more than\none hundred twenty days prior to the expiration date specified in the\ngroup policy or, if no date is specified, then the next anniversary date\nof the group policy.\n (6) Where the group policyholder nonrenews the group policy, the group\npolicyholder shall mail or deliver written notice to each group member\nadvising the group policy member of nonrenewal of the group policy and\nthe effective date of nonrenewal. The group policyholder shall mail or\ndeliver written notice at least thirty days prior to the nonrenewal.\n (7) Every notice of cancellation, nonrenewal, or conditional renewal\nfrom an insurer shall set forth the specific reason or reasons for\ncancellation, nonrenewal, or conditional renewal.\n (8)(A) An insurer shall not be required under this subsection to give\nnotice to a group policy member if the insurer has been advised by\neither the group policyholder or another insurer that substantially\nsimilar coverage has been obtained from the other insurer without lapse\nof coverage.\n (B) A group policyholder shall not be required under this subsection\nto give notice to a group policy member if substantially similar\ncoverage has been obtained from another insurer without lapse of\ncoverage.\n (9)(A) If, prior to the effective date of cancellation, nonrenewal, or\nconditional renewal of the group policy, or a certificate, whether\ninitiated by the insurer, group policyholder or by the group policy\nmember in regard to the group policy member's certificate, coverage\nattaches pursuant to the terms of a 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 subparagraph (B) of paragraph one of this subsection.\n (k) Any mailing or delivery to a group policy member required or\npermitted under this section may be made by electronic mail if\naffirmative verifiable consent to such method of delivery has been\npreviously received from such group policy member.\n (l) An insurer may issue a group policy to an administrator\nnotwithstanding that it may be a condition of using or operating a motor\nvehicle through the administrator's program for the shared vehicle owner\nto 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\nthis chapter.\n (n) Coverage under a group policy, as provided for in this section,\nshall not be dependent on an insurer that issued a shared vehicle\nowner's policy of liability insurance or other motor vehicle insurance,\nnor shall an insurer be required to first deny a claim before the group\npolicy shall afford coverage pursuant to this section.\n * NB There are 2 § 3458's\n