A00959 Summary:

BILL NOA00959
 
SAME ASSAME AS S00894
 
SPONSORHyndman
 
COSPNSR
 
MLTSPNSR
 
Amd §§2353 & 2336, Ins L; add §397-c, V & T L; amd §2, Chap of 2020 (as proposed in S.7881 & A.9763-A)
 
Relates to premium reductions of commercial risk insurance policies covering for-hire vehicles and a for-hire motor vehicle safety program.
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A00959 Actions:

BILL NOA00959
 
01/06/2021referred to insurance
01/12/2021reported referred to rules
01/12/2021reported
01/12/2021rules report cal.5
01/12/2021ordered to third reading rules cal.5
01/12/2021passed assembly
01/12/2021delivered to senate
01/12/2021REFERRED TO RULES
01/20/2021SUBSTITUTED FOR S894
01/20/20213RD READING CAL.47
01/20/2021PASSED SENATE
01/20/2021RETURNED TO ASSEMBLY
01/27/2021delivered to governor
01/28/2021signed chap.4
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A00959 Committee Votes:

INSURANCE Chair:Cahill DATE:01/12/2021AYE/NAY:25/0 Action: Favorable refer to committee Rules
CahillAyeBlankenbushAye
CookAyeHawleyAye
PretlowAyeByrneAye
RiveraAyeSchmittAye
CymbrowitzAyePalmesanoAye
LavineAyeDiPietroAye
SteckAyeGandolfoAye
DilanAye
HunterAye
NiouAye
RosenthalAye
SternAye
McDonaldAye
JacobsonAye
WilliamsAye
MeeksAye
ForrestAye
AndersonAye

RULES Chair:Gottfried DATE:01/12/2021AYE/NAY:30/0 Action: Favorable
HeastieExcusedBarclayAye
GottfriedAyeHawleyAye
NolanAyeGiglioAye
WeinsteinAyeBlankenbushAye
PretlowAyeNorrisAye
CookAyeMontesanoAye
GlickAyeRaAye
AubryAyeBrabenecAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye
BraunsteinAye
DickensAye
DavilaAye

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A00959 Floor Votes:

DATE:01/12/2021Assembly Vote  YEA/NAY: 149/0
AbbateYClarkYGalefYLavineYPeoples-StokesYSimonY
AbinantiYColtonYGallagherERLawlerYPerryYSimpsonY
AndersonYConradYGallahanYLemondesYPheffer AmatoYSmithY
AngelinoYCookYGandolfoYLunsfordYPichardoYSmullenY
AshbyYCruzYGiglio JAYLupardoYPretlowYSolagesY
AubryYCusickYGiglio JMYMagnarelliYQuartYForrestY
BarclayYCymbrowitzYGlickYMamdaniYRaYSteckY
BarnwellYDarlingYGonzalez-RojasYManktelowYRajkumarYSternY
BarrettYDavilaYGoodellYMcDonaldYRamosYStirpeY
BarronYDe La RosaYGottfriedYMcDonoughYReillyYTagueY
BenedettoYDeStefanoYGriffinYMcMahonYReyesYTannousisY
BichotteYDickensYGuntherYMeeksYRichardsonYTaylorY
BlankenbushYDilanYHawleyYMikulinYRivera J YThieleY
BrabenecYDinowitzYHevesiYMiller B YRivera JDYVanelY
BraunsteinYDiPietroYHunterYMiller MLYRodriguezYWalczykY
BronsonYDursoYHyndmanYMitaynesYRosenthal D YWalkerY
BrownYEichensteinYJacksonYMontesanoYRosenthal L YWallaceY
BurdickYEnglebrightYJacobsonYMorinelloYRozicYWalshY
BurgosYEpsteinYJean-PierreYNiouYSalkaYWeinsteinY
BurkeYFahyYJensenYNolanYSantabarbaraYWeprinY
ButtenschonYFallYJonesYNorrisYSayeghYWilliamsY
ByrneYFernandezYJoynerYO'DonnellYSchmittYWoernerY
ByrnesYFitzpatrickYKellesYOtisYSeawrightYZebrowskiY
CahillYFriendYKimYPalmesanoYSeptimoYZinermanY
CarrollYFrontusYLalorYPaulinYSillittiYMr. SpeakerY

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A00959 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A959
 
SPONSOR: Hyndman
  TITLE OF BILL: An act to amend the insurance law and the vehicle and traffic law, in relation to premium reductions of commercial risk insurance policies covering for-hire vehicles and to amend a chapter of the laws of 2020 amending the insurance law relating to establishing the for-hire motor vehicle safety program as proposed in legislative bills numbers S. 7881 and A. 9763-A, in relation to the effectiveness of such chapter   PURPOSE OR GENERAL IDEA OF BILL: This bill would make clarifying changes to chapter 347 of the laws of 2020 to permit associations representing for-hire motor vehicles to establish and implement comprehensive educational programs to promote for-hire motor vehicle safety and to ensure that insureds that elect to complete a for-hire vehicle safety course may also remain eligible for the national / defensive driving course and the associated premium rate reduction on their personal motor vehicle policy.   SUMMARY OF PROVISIONS: Section one of the bill is amended to require approval of all for-hire safety driving courses by the Commissioner of Motor Vehicles. Sections two and three of the bill would ensure that for-hire vehicle drivers that elect to take and complete a for-hire vehicle safety course can receive a premium rate reduction on their commercial vehicle policy and still be eligible for a personal motor vehicle policy reduction if such individuals were to take and complete the national defensive driv- ing course. Section four of the bill would make technical edits. Section five of the bill would amend the vehicle and traffic law to require the Commissioner of Motor Vehicles to evaluate and approve all for-hire safety courses. Section six would provide for the effective date.   JUSTIFICATION: Section 370 of the Vehicle and Traffic Law requires minimum liability coverages for for-hire vehicles based on carrying capacity. Part III of Chapter 59 of the Laws of 2019 increased the liability coverage required for for-hire vehicles with a capacity of eight or more persons to a minimum of $1.5 million. This has resulted in increases in the rates of premiums for this coverage. In order to make this coverage more affordable, the underlying bill authorized associations representing for-hire vehicles with a capacity of eight or more persons to create comprehensive vehicle safety programs and requires insurers to provide actuarially appropriate premium reductions to insureds that successfully complete these safety programs. This bill language was negotiated in order to ensure that drivers that elect to take the for hire safety driving course and receive an actual early appropriate premium rate reduction on their commercial auto policy may also remain eligible for a premium rate reduction on their personal auto policy upon completion of the national defensive driving course. In this way, more affordable coverage can be available for these drivers while still allowing for the standard defensive driving course reduction on personal auto insurance policies.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately and shall apply to all policies issued, renewed, modified, altered or amended the sixtieth day following the effective date of this act.
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A00959 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           959
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
          tee on Insurance
 
        AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
          relation  to  premium reductions of commercial risk insurance policies
          covering for-hire vehicles and to amend a chapter of the laws of  2020
          amending  the  insurance  law  relating to   establishing the for-hire
          motor vehicle safety program as proposed in legislative bills  numbers
          S.  7881 and A. 9763-A, in relation to the effectiveness of such chap-
          ter
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subsection  (d)  of section 2353 of the insurance law, as
     2  added by a chapter of the laws of 2020 amending the insurance law relat-
     3  ing to establishing the    for-hire  motor  vehicle  safety  program  as
     4  proposed  in legislative bills numbers S. 7881 and A. 9763-A, is amended
     5  to read as follows:
     6    (d) The superintendent shall provide for  an  actuarially  appropriate
     7  reduction  for  a  period  of  three  years in the rates of premiums for
     8  commercial risk insurance applicable to motor vehicles  engaged  in  the
     9  business of carrying or transporting passengers for-hire, having a seat-
    10  ing  capacity  of  not  less  than  eight passengers, for each triennial
    11  completion of a course of instruction on for-hire motor  vehicle  safety
    12  as  authorized  pursuant  to this section.  The [superintendent] commis-
    13  sioner of motor vehicles shall evaluate and approve any for-hire vehicle
    14  safety program created pursuant to this section within sixty days of the
    15  effective date of this section.
    16    § 2. Subsection (f) of section 2353 of the insurance law is relettered
    17  subsection (g) and a new subsection (f) is added to read as follows:
    18    (f) Any insured who successfully completes a course of instruction  on
    19  for-hire  motor  vehicle  safety pursuant to this section and receives a
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07186-01-1

        A. 959                              2
 
     1  premium reduction on the  insured's  commercial  risk  insurance  policy
     2  covering  the for-hire vehicle shall not, during the period set forth in
     3  subsection (e) of this section,  also  be  eligible  for  an  additional
     4  premium  reduction  on  the  insured's  commercial risk insurance policy
     5  covering the for-hire vehicle for successful  completion  of  the  motor
     6  vehicle  accident  prevention course, known as the national safety coun-
     7  cil's  defensive  driving  course,  or  any  driver  improvement  course
     8  approved  by the department of motor vehicles as being equivalent to the
     9  national safety council's defensive  driving  course,  authorized  under
    10  section two thousand three hundred thirty-six of this article.
    11    §  3.  Subsection (a) of section 2336 of the insurance law, as amended
    12  by chapter 751 of the laws of 2005, is amended to read as follows:
    13    (a) (1) Any schedule of rates or rating plan for motor vehicle liabil-
    14  ity and  collision  insurance  submitted  to  the  superintendent  shall
    15  provide  for an actuarially appropriate reduction in premium charges for
    16  any insured for a three year  period  after  successfully  completing  a
    17  motor  vehicle  accident prevention course, known as the national safety
    18  council's defensive driving course, or  any  driver  improvement  course
    19  approved  by the department of motor vehicles as being equivalent to the
    20  national safety  council's  defensive  driving  course,  provided  that,
    21  except  as  provided in article twelve-C of the vehicle and traffic law,
    22  there shall be no reduction in premiums for a [self  instruction]  self-
    23  instruction  defensive  driving course or a course [which] that does not
    24  provide for actual classroom instruction for a minimum number  of  hours
    25  as  determined  by  the  department of motor vehicles. Such reduction in
    26  premium charges shall be subsequently modified to the  extent  appropri-
    27  ate,  based  upon analysis of loss experience statistics and other rele-
    28  vant factors. All such accident prevention courses shall be monitored by
    29  the department  of  motor  vehicles  and  shall  include  components  of
    30  instruction in "Road Rage" awareness and in "Work Zone Safety" awareness
    31  as defined by the commissioner of motor vehicles. The provisions of this
    32  section  shall  not apply to attendance at a program pursuant to article
    33  twenty-one of the vehicle and traffic law as a  result  of  any  traffic
    34  infraction.
    35    (2)  Any  insured who successfully completes a course pursuant to this
    36  subsection and receives a premium reduction on the  insured's  insurance
    37  policy  covering  the for-hire vehicle, shall not, during the period set
    38  forth in subsection (e) of section two  thousand  three  hundred  fifty-
    39  three  of  this  article,  also  be  eligible  for an additional premium
    40  reduction on the insured's commercial risk insurance policy covering the
    41  for-hire motor vehicle for successful completion of the for-hire  safety
    42  motor vehicle course authorized under section two thousand three hundred
    43  fifty-three of this article.
    44    §  4.  Subsection (a) of section 2336 of the insurance law, as amended
    45  by chapter 585 of the laws of 2002, is amended to read as follows:
    46    (a) (1) Any schedule of rates or rating plan for motor vehicle liabil-
    47  ity and  collision  insurance  submitted  to  the  superintendent  shall
    48  provide  for an actuarially appropriate reduction in premium charges for
    49  any insured for a three year  period  after  successfully  completing  a
    50  motor  vehicle  accident prevention course, known as the national safety
    51  council's defensive driving course, or  any  driver  improvement  course
    52  approved  by the department of motor vehicles as being equivalent to the
    53  national safety council's defensive driving  course,  provided  that  in
    54  either  event  there  shall  be  no  reduction  in  premiums for a [self
    55  instruction] self-instruction  defensive  driving  course  or  a  course
    56  [which]  that  does  not  provide for actual classroom instruction for a

        A. 959                              3
 
     1  minimum number of hours as determined by the department of  motor  vehi-
     2  cles.  Such  reduction in premium charges shall be subsequently modified
     3  to the extent  appropriate,  based  upon  analysis  of  loss  experience
     4  statistics  and  other  relevant  factors.  All such accident prevention
     5  courses shall be monitored by the department of motor vehicles and shall
     6  include components of instruction in "Road Rage" awareness and in  "Work
     7  Zone Safety" awareness as defined by the commissioner of motor vehicles.
     8  The  provisions  of  this  section  shall  not  apply to attendance at a
     9  program pursuant to article twenty-one of the vehicle and traffic law as
    10  a result of any traffic infraction.
    11    (2) Any insured who successfully completes a course pursuant  to  this
    12  subsection  and  receives a premium reduction on the insured's insurance
    13  policy covering the for-hire vehicle, shall not, during the  period  set
    14  forth  in  subsection  (e)  of section two thousand three hundred fifty-
    15  three of this article,  also  be  eligible  for  an  additional  premium
    16  reduction on the insured's commercial risk insurance policy covering the
    17  for-hire  motor vehicle for successful completion of the for-hire safety
    18  motor vehicle course authorized under section two thousand three hundred
    19  fifty-three of this article.
    20    § 5. The vehicle and traffic law is amended by adding  a  new  section
    21  397-c to read as follows:
    22    § 397-c. For-hire motor vehicle safety program. The commissioner shall
    23  evaluate  and  approve any for-hire motor vehicle safety program created
    24  pursuant to section two thousand three hundred fifty-three of the insur-
    25  ance law within sixty days of the effective date of such section.
    26    § 6. Section 2 of a chapter of the laws of 2020 amending the insurance
    27  law relating to  establishing the  for-hire motor vehicle safety program
    28  as proposed in legislative bills numbers  S.  7881  and  A.  9763-A,  is
    29  amended to read as follows:
    30    §  2.  This  act shall take effect [immediately and shall apply to all
    31  policies issued, renewed, modified, altered or amended on or  after  the
    32  sixtieth  day  following the effective date of this act] on the sixtieth
    33  day after it shall have become a law.
    34    § 7. This act shall take effect immediately; provided,  however,  that
    35  sections  one,  two, three and five of this act shall take effect on the
    36  same date and in the same manner as a chapter of the laws of 2020 amend-
    37  ing the insurance law relating to   establishing  the    for-hire  motor
    38  vehicle  safety program as proposed in legislative bills numbers S. 7881
    39  and A.  9763-A, takes effect; and provided further that  the  amendments
    40  to  subsection  (a) of section 2336 of the insurance law made by section
    41  three of this act shall be subject to the expiration  and  reversion  of
    42  such  subsection  when  upon such date the provisions of section four of
    43  this act shall take effect.
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A00959 LFIN:

 NO LFIN
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A00959 Chamber Video/Transcript:

1-12-21Video (@ 00:31:07)Transcript pdf Transcript html
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