N.Y. Insurance Law Section 3457
Group insurance policies for certain for hire motor vehicles


(a)

For purposes of this section, the following definitions shall apply:

(1)

“Certificate” or “certificate of insurance” means any policy, contract or other evidence of insurance, or endorsement thereto, issued to a group member under a for hire motor vehicle group policy.

(2)

“For hire motor vehicle” or “vehicle” means a motor vehicle engaged in the business of carrying or transporting passengers for hire, having a seating capacity of not less than eight passengers, excluding the driver.

(3)

“For hire motor vehicle group policy” or “group policy” means a group policy, including certificates issued to the group members, where the group policy provides insurance to the group members or both the group policyholder and the group members of the type described in paragraph twelve, thirteen, fourteen, or nineteen of subsection (a) of § 1113 (Kinds of insurance authorized)section one thousand one hundred thirteen of this chapter.

(4)

“Group member” means the owner of a for hire motor vehicle.

(5)

“Group policyholder” means a sponsoring entity.

(6)

“Owner” shall have the same meaning as set forth in Vehicle & Traffic Law § 128 (Owner)section one hundred twenty-eight of the vehicle and traffic law.

(7)

“Sponsoring entity” means: (A) an association or other organization, or a trustee or trustees of a fund established, created, or maintained for the benefit of one or more associations or other organizations, where all the eligible members of the association or associations or other organization or organizations have the same profession, trade, or occupation, and the association or associations or other organization or organizations have been organized and maintained in good faith for purposes principally other than that of obtaining insurance, and have been in active existence for at least two years; (B) an entity that owns for hire motor vehicles and leases them to drivers; or (C) any other entity where the superintendent has determined in a regulation that the members are engaged in a common enterprise, or have an economic or social affinity or relationship, and that the issuance of the group policy would not be contrary to the best interests of the public.

(b)

An authorized insurer may issue or issue for delivery in this state a group policy to a sponsoring entity as a group policyholder only in accordance with the provisions of this section.

(c)

(1) A group policy shall provide coverage in satisfaction of the financial responsibility requirements set forth in § 3420 (Liability insurance)section three thousand four hundred twenty of this article, Vehicle & Traffic Law § 370 (Indemnity bonds or insurance policies)section three hundred seventy of the vehicle and traffic law, article 51 (Comprehensive Motor Vehicle Insurance Reparations)article fifty-one of this chapter, and such other requirements or regulations that may apply for the purposes of satisfying the financial responsibility requirements with respect to the use or operation of a for hire motor vehicle.

(2)

A group policy may provide: (A) coverage for limits higher than the minimum limits required pursuant to Vehicle & Traffic Law § 370 (Indemnity bonds or insurance policies)section three hundred seventy of the vehicle and traffic law and paragraph two of subsection (f) of § 3420 (Liability insurance)section three thousand four hundred twenty of this article; (B) supplemental spousal liability insurance pursuant to subsection (g) of § 3420 (Liability insurance)section three thousand four hundred twenty of this article; and (C) motor vehicle physical damage coverage as described in paragraph nineteen of subsection (a) of § 1113 (Kinds of insurance authorized)section one thousand one hundred thirteen of this chapter.

(3)

A group policy, including certificates, shall be issued by an authorized insurer.

(4)

A policyholder also may be an insured under a group policy.

(d)

The premium for the group policy, including certificates, may be paid by the group policyholder from the funds contributed wholly by the group members or jointly by the group policyholder and the group members.

(e)

Each policy written pursuant to this section shall provide per occurrence limits of coverage for each group member in an amount not less than that required by this article and may provide coverage for limits higher than the minimum limits required pursuant to law.

(f)

(1) The insurer shall be responsible for mailing or delivery of a certificate of insurance to each group member insured under the group policy. The insurer shall also be responsible for the mailing or delivery to each group member of an amended certificate of insurance or endorsement to the certificate whenever there is a change in limits, change in type of coverage, addition, reduction, or elimination of coverage or addition of an exclusion, under the group policy or certificate.

(2)

The certificate shall contain in substance all material terms and conditions of coverage afforded to group members, unless the group policy is incorporated by reference and a copy of the group policy accompanies the certificate.

(g)

A group policyholder shall comply with the provisions of § 2122 (Advertising by insurance producers)section two thousand one hundred twenty-two of this chapter, in the same manner as an insurance agent or insurance broker, in any advertisement, sign, pamphlet, circular, card, or other public announcement referring to coverage under a group policy or certificate.

(h)

A group policy shall not be subject to section three thousand four hundred twenty-five or section three thousand four hundred twenty-six of this article, provided that the following requirements shall apply with regard to termination of coverage:

(1)

An insurer may cancel a group policy or certificate only if cancellation is based on one or more of the reasons set forth in subparagraph (A) through (D) or (F) through (H) of paragraph one of subsection (c) of § 3426 (Commercial lines insurance)section three thousand four hundred twenty-six of this article; provided, however, that: (A) an insurer may cancel an individual certificate if the driver’s license of the group member insured under that certificate is suspended or revoked during the period of coverage, other than a suspension issued pursuant to subdivision one of Vehicle & Traffic Law § 510-B (Suspension and revocation for violations committed during probationary periods)section five hundred ten-b of the vehicle and traffic law or one or more administrative suspensions arising from the same incident that has or have been terminated prior to the effective date of the cancellation; and (B) an act or omission by a group member that would constitute the basis for cancellation of an individual certificate shall not constitute the basis for cancellation of the group policy.

(2)

An insurer’s cancellation of a group policy, including all certificates, shall not become effective until thirty days after the insurer mails or delivers written notice of cancellation to the group policyholder at the mailing address shown in the policy. The insurer shall also mail or deliver written notice of cancellation of the group policy, including all certificates, to the group member at the group member’s mailing address. Such cancellation shall not become effective until thirty days after the insurer mails or delivers the written notice to the group member.

(3)

(A) A group policyholder may cancel a group policy, including all certificates, or any individual certificate, for any reason upon at least thirty days written notice to the insurer and each group member; and (B) the group policyholder shall mail or deliver written notice to each affected group member of the group policyholder’s cancellation of the group policy or certificate and the effective date of cancellation. The group policyholder shall mail or deliver the written notice to the group member’s mailing address at least thirty days prior to the effective date of cancellation.

(4)

(A) Unless a group policy provides for a longer policy period, the policy and all certificates shall be issued or renewed for a one-year policy period. (B) The group policyholder shall be entitled to renew the group policy and all certificates upon timely payment of the premium billed to the group policyholder for the renewal, unless:

(i)

the insurer mails or delivers to the group policyholder and all group members written notice of nonrenewal or conditional renewal; and

(ii)

the insurer mails or delivers the written notice at least sixty, but not more than one hundred twenty days, prior to the expiration date specified in the policy or, if no date is specified, the next anniversary date of the policy.

(5)

Every notice of cancellation, nonrenewal, or conditional renewal shall set forth the specific reason or reasons for cancellation, nonrenewal, or conditional renewal and the insurer shall also mail or deliver the notice to the insurance producer that procured the group policy when the group policy and any certificates are cancelled, nonrenewed, or conditionally renewed.

(6)

(A) If, prior to the effective date of cancellation, nonrenewal, or conditional renewal of the group policy, or cancellation of a certificate, whether initiated by the insurer, group policyholder, or group member in regard to the group member’s certificate, coverage attaches pursuant to the terms of the group policy, then the coverage shall be effective until expiration of the applicable period of coverage provided in the group policy notwithstanding the cancellation, nonrenewal or conditional nonrenewal of the group policy. (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may terminate coverage under an individual certificate on the effective date of cancellation if the certificate is cancelled in accordance with the provisions of paragraph one of this subsection.

(i)

An insurer shall not include a mandatory arbitration clause in a policy that provides financial responsibility coverage under this section, except as permitted in § 5105 (Settlement between insurers)section five thousand one hundred five of this chapter.

(j)

The superintendent may promulgate regulations pertaining to a for hire motor vehicle group policy, including regulations regarding payments of dividends or retrospective premium refunds, minimum number of group members, and other reasonable limitations.

Source: Section 3457 — Group insurance policies for certain for hire motor vehicles, https://www.­nysenate.­gov/legislation/laws/ISC/3457 (updated Apr. 2, 2021; accessed Jun. 15, 2024).

3401
Insurable interest in property
3402
Executory contract not a change in interest, title or possession
3403
Anti-arson application
3404
Fire insurance contracts
3405
Fire insurance contract
3406
Copy of examination of insured to be delivered to insured
3407
Property insurance
3407‑A
Property/casualty insurance contract and policy standard provisions
3408
Fire insurance
3409
Distribution of hazardous material report forms
3410
Fire insurance contract
3411
Automobile physical damage insurance covering private passenger automobiles
3412
Automobile physical damage insurance covering private passenger automobiles
3413
Standard claim forms for fire losses
3414
Reports by insurers of certain casualty loss on property owned or operated by religious organizations
3415
Supplemental claim form to be submitted for certain fire loss claims in excess of ten thousand dollars in a city with a population of one...
3420
Liability insurance
3421
Homeowners’ liability insurance
3422
Hate crimes
3425
Certain property/casualty insurance policies
3426
Commercial lines insurance
3427
Gap insurance
3428
Cancellation of insurance contracts
3429
Geographical location of risks
3429‑A
Geographical location of risks in area serviced by a volunteer fire department
3430
Right of insured, agent or broker aggrieved on basis of geographical location of property or risks
3431
Immunity
3432
Immunity
3433
Termination of contracts or accounts of licensed agents or brokers
3434
Motor vehicle insurance policies
3435
Group property/casualty insurance
3435‑A
Motor vehicle insurance policies
3436
Medical malpractice insurance
3436*2
Group credit unemployment insurance and individual credit unemployment insurance
3436‑A
Adverse action against legal reproductive health care or gender-affirming care
3439
Reinsurance contracts excepted
3440
Insurance covering private passenger motor vehicles
3442
Credit card, debit card, or checking account group policies
3443
Workers’ compensation and employers’ liability insurance
3444
Flood insurance notice
3445
Windstorm insurance notice
3446
Product or system group insurance policies
3447
Qualification of environmental remediation insurance for tax credit
3448
Involuntary unemployment insurance policies
3449
Wireless communications equipment insurance policies
3450
Insurance for expenses incurred as a result of an act or threatened act of violence
3451
Identity theft group insurance policies
3451*2
Regulations
3452
Group property travel insurance policies
3453
Group policy for service providers listed in a commercial directory
3453*2
Self-service storage company group insurance policies
3453*3
Employer sponsored group personal excess insurance
3454
Sponsored group personal insurance
3455
Transportation network company group insurance policies
3456
Prohibition against cancellation of policy when motor vehicle is used or operated through a transportation network company program
3457
Group insurance policies for certain for hire motor vehicles
3458
Electronic notices and documents
3458*2
Group insurance for peer-to-peer car sharing programs
3459
Car share exclusions for motor vehicle insurance policies
3460
Prohibition against cancellation of policy when motor vehicle is used or operated through a peer-to-peer car sharing program
3461
Notice of claim
3462
Affordable housing underwriting and rating

Accessed:
Jun. 15, 2024

Last modified:
Apr. 2, 2021

§ 3457’s source at nysenate​.gov

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