Authorizes an association representing motor vehicles engaged in the business of carrying or transporting passengers for-hire, having a seating capacity of not less than eight passengers, to create and implement a comprehensive educational program designed to advance for-hire motor vehicle safety and provide such training; allows for a reduction in rates of certain commercial risk insurance premiums for motor vehicles upon completion of such course; authorizes the superintendent of financial services to promulgate any necessary rules and regulations; makes related provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9763A
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the insurance law, in relation to establishing the for-
hire motor vehicle safety program
PURPOSE OR GENERAL IDEA OF BILL:
To permit associations representing for-hire motor vehicles to establish
and implement comprehensive educational programs to promote for-hire
motor vehicle safety.
SUMMARY OF PROVISIONS:
Section one of the bill would add a new section 2353 to the Insurance
Law authorizing associations representing motor vehicles engaged in the
business of transporting passengers for-hire, having a seating capacity
of not less than eight passengers, to create and implement comprehensive
educational programs which provide for the training of all operators in
the safe operation of for-hire motor vehicles, and education about safe-
ty equipment that can enhance the safe operation of vehicles and train-
ing related to passenger safety. Such safety training program would be
required to be evaluated and approved by the Superintendent of the
Department of Financial Services. Section one would also require associ-
ations to issue certificates of completion to members who successfully
complete the course, and would require the Department of Financial
Services and insurers to provide for an actuarially appropriate
reduction for a period of three years in the rates of premiums for
commercial risk insurance applicable to for-hire motor vehicles for the
completion of a course on for-hire vehicle safety by an insured.
Section two of the bill would provide the effective date. DIFFERENCE
BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
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, this bill would author-
ize associations representing for-hire vehicles with a capacity of eight
or more persons to create comprehensive vehicle safety programs and
would require insurers to provide actuarially appropriate premium
reductions to insureds that successfully complete these safety programs.
This bill would also provide standards for the subject areas which these
programs must address.
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.
STATE OF NEW YORK
________________________________________________________________________
9763--A
IN ASSEMBLY
February 10, 2020
___________
Introduced by M. of A. HYNDMAN, COOK, PERRY, VANEL -- read once and
referred to the Committee on Insurance -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the insurance law, in relation to establishing the for-
hire motor vehicle safety program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 2353
2 to read as follows:
3 § 2353. For-hire motor vehicle safety program; reduction in rates of
4 certain commercial risk insurance premiums for motor vehicles. (a) For
5 the purposes of this section, an association shall mean an association
6 where all the eligible members of the association have the same profes-
7 sion, trade, or occupation, and the association has been organized and
8 maintained in good faith for purposes principally other than that of
9 obtaining insurance, and has been in active existence for at least two
10 years.
11 (b) An association representing motor vehicles engaged in the business
12 of carrying or transporting passengers for-hire, having a seating capac-
13 ity of not less than eight passengers, shall be authorized to create and
14 implement a comprehensive educational program designed to advance for-
15 hire motor vehicle safety, which provides for the training of all opera-
16 tors in the safe operation of for-hire motor vehicles, education about
17 safety equipment that can enhance the safe operation of vehicles, and
18 training related to passenger safety. Such program shall include, but
19 not be limited to, instruction which addresses the following subject
20 areas:
21 (1) the concept of collision prevention, including a discussion of the
22 factors involved in traffic situations;
23 (2) alcohol and drug use as a contributing factor in motor vehicle
24 collisions;
25 (3) accident prevention techniques;
26 (4) the use of occupant restraints;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15096-05-0
A. 9763--A 2
1 (5) the risk factors involved in driver attitude and behavior such as
2 speeding, reckless and aggressive driving, and improper lane use;
3 (6) traffic laws in New York state;
4 (7) physical and mental condition of drivers;
5 (8) conditions and strategies of driving;
6 (9) safe driving techniques in hazardous weather conditions including
7 rain, wind, snow, ice, sleet and fog;
8 (10) equipment that can enhance the safe operation of vehicles; and
9 (11) passenger safety including but not limited to recommending the
10 use of seat belts to passengers, warning passengers to exercise care
11 when boarding and exiting a vehicle and notifying passengers of emergen-
12 cy exits if applicable.
13 (c) The association described in subsection (b) of this section shall
14 provide a certificate to members of such association who successfully
15 complete a course of instruction on for-hire vehicle safety as author-
16 ized pursuant to this section.
17 (d) The superintendent shall provide for an actuarially appropriate
18 reduction for a period of three years in the rates of premiums for
19 commercial risk insurance applicable to motor vehicles engaged in the
20 business of carrying or transporting passengers for-hire, having a seat-
21 ing capacity of not less than eight passengers, for each triennial
22 completion of a course of instruction on for-hire motor vehicle safety
23 as authorized pursuant to this section. The superintendent shall evalu-
24 ate and approve any for-hire vehicle safety program created pursuant to
25 this section within sixty days of the effective date of this section.
26 (e) An authorized insurer shall, upon submission of a certificate by
27 an insured evidencing that such insured has completed a course of
28 instruction on for-hire motor vehicle safety as authorized pursuant to
29 this section, provide an actuarially appropriate reduction, for a period
30 of three years, of the premium for such insured's commercial risk insur-
31 ance applicable to motor vehicles engaged in the business of carrying or
32 transporting passengers for-hire, having a seating capacity of not less
33 than eight passengers.
34 (f) The superintendent may promulgate any rules and regulations neces-
35 sary to implement the provisions of this section.
36 § 2. This act shall take effect immediately and shall apply to all
37 policies issued, renewed, modified, altered or amended on or after the
38 sixtieth day following the effective date of this act.
