New York State Assembly

 
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A09763 Summary:

A09763 Actions:

A09763 Committee Votes:

Committee:INSURANCE   Chair:Cahill      
DATE:02/26/2020AYE/NAY:14/6  Action: Favorable refer to committee Codes        
Cahill
Aye
Garbarino
Nay
Cook
Aye
Hawley
Nay
Pretlow
Aye
Blankenbush
Nay
Rivera
Aye
Finch
Absent
Cymbrowitz
Aye
Palmesano
Nay
Lavine
Aye
Byrne
Nay
Steck
Aye
Schmitt
Nay
Dilan
Aye
Hunter
Aye
Simotas
Aye
Niou
Aye
Rosenthal
Excused
Stern
Aye
McDonald
Aye
Jacobson
Aye

Committee:CODES   Chair:Lentol      
DATE:03/03/2020AYE/NAY:16/5  Action: Favorable         
Lentol
Aye
Morinello
Nay
Schimminger
Excused
Giglio
Nay
Pretlow
Aye
Montesano
Aye
Cook
Aye
Palumbo
Nay
Cymbrowitz
Aye
Garbarino
Nay
O'Donnell
Aye
Reilly
Nay
Lavine
Aye
Perry
Aye
Abinanti
Aye
Weprin
Aye
Mosley
Aye
Hevesi
Aye
Fahy
Aye
Seawright
Aye
Rosenthal
Aye
Walker
Aye

A09763 Floor Votes:

A09763 Memo:

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.

A09763 Text:

 
                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.

A09763 LFIN:

 
NO LFIN

A09763 Chamber Video/Transcript: