S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4108--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 27, 2015
                                      ___________
       Introduced  by  Sens.  SEWARD,  DILAN, VALESKY -- read twice and ordered
         printed, and when printed to be committed to the Committee  on  Insur-
         ance  --  committee  discharged,  bill  amended,  ordered reprinted as
         amended and recommitted to said committee
       AN ACT to amend the insurance law, in relation to transportation network
         companies
         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 3441
    2  to read as follows:
    3    S 3441. TRANSPORTATION  NETWORK  COMPANIES.  (A)  NOTWITHSTANDING  ANY
    4  OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
    5  TION NETWORK COMPANIES.
    6    (B)  FOR  PURPOSES  OF  THIS  SECTION  THE FOLLOWING DEFINITIONS SHALL
    7  APPLY:
    8    (1) "PERSONAL VEHICLE" MEANS A VEHICLE THAT IS USED BY  A  TRANSPORTA-
    9  TION NETWORK COMPANY DRIVER AND IS:
   10    (A)  OWNED,  LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA-
   11  TION NETWORK COMPANY DRIVER; AND
   12    (B) NOT A TAXICAB, LIVERY OR FOR-HIRE VEHICLE.
   13    (2) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION,  SOFTWARE,
   14  WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
   15  NY  THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION NETWORK
   16  COMPANY DRIVERS.
   17    (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
   18  SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS  OPERATING  IN  THIS  STATE
   19  THAT  USES  A  DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY
   20  RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
   21  RIDES. A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO  CONTROL,
   22  DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09417-02-5
       S. 4108--A                          2
    1  DRIVERS  THAT  CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
    2  WRITTEN CONTRACT.
    3    (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
    4  VIDUAL WHO:
    5    (A)  RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES
    6  FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF  A  FEE
    7  TO THE TRANSPORTATION NETWORK COMPANY; AND
    8    (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
    9  RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
   10  PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
   11  FEE.
   12    (5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS  AN  INDI-
   13  VIDUAL  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
   14  NETWORK TO CONNECT WITH A TRANSPORTATION  NETWORK  DRIVER  WHO  PROVIDES
   15  PREARRANGED  RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
   16  POINTS CHOSEN BY THE RIDER.
   17    (6) "PREARRANGED RIDE" MEANS THE  PROVISION  OF  TRANSPORTATION  BY  A
   18  DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
   19  RIDER  THROUGH  A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
   20  COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER,  AND
   21  ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
   22  A  PREARRANGED  RIDE  DOES  NOT  INCLUDE TRANSPORTATION PROVIDED USING A
   23  TAXICAB, LIVERY, OR OTHER FOR-HIRE VEHICLE.
   24    (7) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
   25  SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
   26    (C)  A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
   27  COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP  POLICY,  SHALL  MAINTAIN
   28  PRIMARY AUTOMOBILE INSURANCE THAT:
   29    (1)  RECOGNIZES  THAT  THE  DRIVER IS A TRANSPORTATION NETWORK COMPANY
   30  DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS  FOR  COMPEN-
   31  SATION AND COVERS THE DRIVER:
   32    (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
   33  NY'S DIGITAL NETWORK; OR
   34    (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
   35    (2)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
   36  A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS  LOGGED  ON  TO
   37  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
   38  RECEIVE  TRANSPORTATION  REQUESTS  BUT  IS  NOT ENGAGED IN A PREARRANGED
   39  RIDE:
   40    (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF  AT  LEAST
   41  FIFTY  THOUSAND  DOLLARS  FOR  DEATH  AND  BODILY INJURY PER PERSON, ONE
   42  HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER  INCIDENT,  AND
   43  TWENTY-FIVE  THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
   44  FACTION OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH  IN
   45  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE AND ARTICLE
   46  FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THEREUNDER.
   47    (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
   48  ANY OF THE FOLLOWING:
   49    (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
   50  COMPANY DRIVER; OR
   51    (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
   52  BY THE TRANSPORTATION NETWORK COMPANY; OR
   53    (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
   54    (3)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
   55  A TRANSPORTATION NETWORK COMPANY DRIVER  IS  ENGAGED  IN  A  PREARRANGED
   56  RIDE:
       S. 4108--A                          3
    1    (A)  PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
    2  MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND  COVER-
    3  AGE  IN  SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
    4  FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE  AND
    5  ARTICLE  FIFTY-ONE  OF  THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
    6  UNDER.
    7    (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
    8  ANY OF THE FOLLOWING:
    9    (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
   10  COMPANY DRIVER; OR
   11    (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
   12  BY THE TRANSPORTATION NETWORK COMPANY; OR
   13    (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
   14    (4)  IF  INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
   15  THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE  THE  REQUIRED  COVERAGE,
   16  INSURANCE  MAINTAINED  BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
   17  THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
   18  OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
   19    (5) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY  MAINTAINED  BY  THE
   20  TRANSPORTATION  NETWORK  COMPANY  SHALL  NOT  BE DEPENDENT ON A PERSONAL
   21  AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
   22  INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
   23    (6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
   24  ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL  BE
   25  ELIGIBLE  FOR  PLACEMENT  BY  AN EXCESS LINE BROKER LICENSED PURSUANT TO
   26  ARTICLE TWENTY-ONE OF THIS CHAPTER.
   27    (7) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL  BE
   28  DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
   29  SUBDIVISION  FOUR  OF  SECTION  THREE  HUNDRED ELEVEN OF THE VEHICLE AND
   30  TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
   31  AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THER-
   32  EUNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR THE  PURPOSES  OF
   33  SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
   34  USE OR OPERATION OF A MOTOR VEHICLE.
   35    (8)  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL CARRY PROOF OF
   36  COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
   37  OR HER AT ALL TIMES DURING HIS OR HER USE OF  A  VEHICLE  IN  CONNECTION
   38  WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
   39  AN  ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
   40  INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
   41  MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS,  UPON  REQUEST.  UPON
   42  SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
   43  DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
   44  TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE  TRANS-
   45  PORTATION  NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
   46  THE TIME OF AN ACCIDENT.
   47    (D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE  IN  WRITING  TO
   48  TRANSPORTATION  NETWORK  COMPANY  DRIVERS  THE FOLLOWING BEFORE THEY ARE
   49  ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
   50  NETWORK COMPANY'S DIGITAL NETWORK:
   51    (1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF  COVERAGE  AND  THE
   52  LIMITS  FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK COMPANY
   53  PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
   54  VEHICLE IN CONNECTION WITH A TRANSPORTATION  NETWORK  COMPANY'S  DIGITAL
   55  NETWORK; AND
       S. 4108--A                          4
    1    (2)  THAT  THE  TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
    2  INSURANCE POLICY MIGHT NOT PROVIDE ANY  COVERAGE  WHILE  THE  DRIVER  IS
    3  LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
    4  AVAILABLE  TO  RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
    5  RANGED RIDE, DEPENDING ON ITS TERMS.
    6    (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
    7  EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
    8  OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
    9  OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
   10  DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
   11  RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
   12  AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
   13    (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
   14    (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
   15    (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
   16    (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
   17  NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
   18  OF THIS CHAPTER.
   19    (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
   20  THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
   21  THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
   22  DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
   23  NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
   24  DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
   25  SATION.
   26    (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
   27  COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
   28  SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
   29    (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
   30  SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
   31  ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
   32  BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
   33  INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
   34  THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
   35  TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
   36  PUBLIC.
   37    (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
   38  A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
   39  RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
   40  INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
   41  MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
   42    (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
   43  NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
   44  OF  THIS  SECTION SHALL COOPERATE TO FACILITATE THE EXCHANGE OF RELEVANT
   45  INFORMATION WITH DIRECTLY INVOLVED PARTIES AND ANY INSURER OF THE TRANS-
   46  PORTATION NETWORK COMPANY DRIVER IF APPLICABLE,  INCLUDING  THE  PRECISE
   47  TIMES  THAT A TRANSPORTATION NETWORK COMPANY DRIVER LOGGED ON AND OFF OF
   48  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK IN THE TWELVE  HOUR
   49  PERIOD  IMMEDIATELY  PRECEDING AND IN THE TWELVE HOUR PERIOD IMMEDIATELY
   50  FOLLOWING THE ACCIDENT AND DISCLOSE TO ONE ANOTHER A  CLEAR  DESCRIPTION
   51  OF  THE  COVERAGE,  EXCLUSIONS  AND LIMITS PROVIDED UNDER ANY AUTOMOBILE
   52  INSURANCE MAINTAINED UNDER SUBSECTION (C) OF THIS SECTION.
   53    S 2. The insurance law is amended by adding a new section 3455 to read
   54  as follows:
   55    S 3455. GROUP INSURANCE POLICY FOR TRANSPORTATION  NETWORK  COMPANIES.
   56  (A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
       S. 4108--A                          5
    1    (1)  "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
    2  IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE  OF
    3  THIS ARTICLE.
    4    (2) "FINANCIAL RESPONSIBILITY COVERAGE" MEANS COVERAGE IN SATISFACTION
    5  OF  THE  FINANCIAL  RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION
    6  FOUR OF SECTION THREE HUNDRED ELEVEN OF THE  VEHICLE  AND  TRAFFIC  LAW,
    7  SECTION  THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE, AND ARTICLE
    8  FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED  THEREUNDER,  AND
    9  SUCH  OTHER  REQUIREMENTS  THAT MAY APPLY FOR THE PURPOSES OF SATISFYING
   10  THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT  TO  THE  USE  OR
   11  OPERATION OF THE MOTOR VEHICLE.
   12    (3) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
   13    (4) "GROUP POLICY MEMBER" MEANS A TRANSPORTATION NETWORK COMPANY DRIV-
   14  ER  AS  DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED
   15  FORTY-ONE OF THIS ARTICLE.
   16    (5) "PREARRANGED RIDE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
   17  (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
   18    (6) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" SHALL HAVE THE
   19  MEANING  SET  FORTH  IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR
   20  HUNDRED FORTY-ONE OF THIS ARTICLE.
   21    (7) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
   22  (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
   23    (B)  AN  INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A GROUP
   24  POLICY TO A TRANSPORTATION NETWORK COMPANY AS A GROUP POLICYHOLDER  ONLY
   25  IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
   26    (C)  (1)  A GROUP POLICY SHALL PROVIDE COVERAGE FOR A PERSONAL VEHICLE
   27  IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF  SECTION  THREE
   28  THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
   29    (2) A GROUP POLICY MAY PROVIDE:
   30    (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
   31  ANT  TO  SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
   32  OF THIS ARTICLE;
   33    (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
   34  LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF  SECTION  THREE
   35  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
   36    (C)  SUPPLEMENTAL  SPOUSAL  LIABILITY INSURANCE PURSUANT TO SUBSECTION
   37  (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
   38    (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
   39  NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
   40  OF THIS CHAPTER.
   41    (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
   42  SUBSECTION  MAY  BE  PROVIDED  IN  ONE GROUP POLICY OR IN SEPARATE GROUP
   43  POLICIES.
   44    (4) A GROUP POLICY, INCLUDING CERTIFICATES,  SHALL  BE  ISSUED  BY  AN
   45  INSURER  AUTHORIZED  OR  ELIGIBLE  TO  WRITE INSURANCE IN THIS STATE AND
   46  SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE BROKER LICENSED PURSU-
   47  ANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
   48    (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
   49    (D) THE PREMIUM FOR THE GROUP POLICY, INCLUDING CERTIFICATES,  MAY  BE
   50  PAID BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED:
   51    (1) WHOLLY BY THE GROUP POLICYHOLDER;
   52    (2) WHOLLY BY THE GROUP POLICY MEMBERS; OR
   53    (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP POLICY MEMBERS.
   54    (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
   55  SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
   56  HOLDER MAY:
       S. 4108--A                          6
    1    (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
    2  HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
    3    (B) BE RETAINED BY THE GROUP POLICYHOLDER.
    4    (2)  ANY  POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
    5  TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
    6  SUBSECTION SHALL BE:
    7    (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
    8  CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP POLICY MEMBERS, OR BOTH; OR
    9    (B) PAID OR REFUNDED TO THOSE GROUP POLICY MEMBERS INSURED ON THE DATE
   10  THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED
   11  BY  THE  GROUP  POLICYHOLDER,  OR ON THE DATE OF MAILING, IF DISTRIBUTED
   12  DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
   13    (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
   14  THE PAYMENT OR REFUND TO THE GROUP POLICY MEMBERS;
   15    (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THEN
   16  THE INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT
   17  OR REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION  PROCEDURE;
   18  AND
   19    (III)  IF  THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
   20  THEN THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY  OR  USE  THE
   21  METHOD PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
   22    (3)  NOTWITHSTANDING  PARAGRAPHS  ONE AND TWO OF THIS SUBSECTION, IF A
   23  DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A GROUP POLICY,  THE
   24  PREMIUM  FOR  WHICH  WAS  PAID  OUT OF FUNDS CONTRIBUTED BY GROUP POLICY
   25  MEMBERS SPECIFICALLY FOR THE COVERAGE, THEN THE DIVIDEND SHALL  BE  PAID
   26  OR  REFUNDED  BY  THE  GROUP  POLICYHOLDER  TO  THE GROUP POLICY MEMBERS
   27  INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE  GROUP  POLICY-
   28  HOLDER  NET OF REASONABLE EXPENSES INCURRED BY THE GROUP POLICYHOLDER IN
   29  PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP POLICY MEMBERS.
   30    (4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN  BY
   31  AN INSURER TO A GROUP POLICYHOLDER OF EXCESS PREMIUMS PAID BY THAT GROUP
   32  POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERIENCE, INCLUDING RETROSPEC-
   33  TIVE  PREMIUM  CREDITS OR RETROSPECTIVE PREMIUM REFUNDS. THE TERM "DIVI-
   34  DEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES RECEIVED BY A GROUP  POLI-
   35  CYHOLDER  IN  CONNECTION WITH THE OPERATION OR ADMINISTRATION OF A GROUP
   36  POLICY,  INCLUDING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR  SERVICES
   37  PROVIDED BY THE GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
   38    (F)  THE  INSURER  MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP POLICY
   39  MEMBERS OF THE SAME CLASS AND STATUS.
   40    (G) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS  OF  SECTION
   41  TWO  THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
   42  AS AN INSURANCE AGENT OR INSURANCE BROKER, IN ANY  ADVERTISEMENT,  SIGN,
   43  PAMPHLET,  CIRCULAR,  CARD,  OR  OTHER  PUBLIC ANNOUNCEMENT REFERRING TO
   44  COVERAGE UNDER A GROUP POLICY OR CERTIFICATE.
   45    (H) EXCEPT AS PROVIDED IN SUBSECTION (I)  OF  THIS  SECTION,  A  GROUP
   46  POLICY  OR  CERTIFICATE  SHALL  NOT BE SUBJECT TO SECTION THREE THOUSAND
   47  FOUR HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED  TWENTY-
   48  SIX OF THIS ARTICLE.
   49    (I)  (1)  AN INSURER MAY TERMINATE A GROUP POLICY ONLY IF CANCELLATION
   50  IS BASED ON ONE OR MORE OF THE REASONS SET FORTH  IN  SUBPARAGRAPHS  (A)
   51  THROUGH  (D)  OR  (F)  THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
   52  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
   53    (2) AN INSURER MAY TERMINATE AN INDIVIDUAL CERTIFICATE ONLY IF CANCEL-
   54  LATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPARAGRAPHS
   55  (B) OR (C) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE  THOUSAND
   56  FOUR  HUNDRED  TWENTY-FIVE OF THIS ARTICLE, PROVIDED, HOWEVER THAT WHERE
       S. 4108--A                          7
    1  THE PREMIUM IS DERIVED WHOLLY OR PARTIALLY FROM FUNDS CONTRIBUTED BY THE
    2  GROUP POLICYHOLDER, AN INSURER ALSO MAY CANCEL  THE  INDIVIDUAL  CERTIF-
    3  ICATE  IF  CANCELLATION IS BASED ON THE REASON SET FORTH IN SUBPARAGRAPH
    4  (A)  OF  PARAGRAPH  ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR
    5  HUNDRED TWENTY-FIVE OF THIS ARTICLE.
    6    (3) IF AN INSURER TERMINATES AN  INDIVIDUAL  CERTIFICATE  PURSUANT  TO
    7  PARAGRAPH  TWO  OF  THIS  SUBSECTION,  THEN THE INSURER SHALL NOTIFY THE
    8  GROUP POLICYHOLDER IN WRITING THAT THE INSURER HAS TERMINATED THE  INDI-
    9  VIDUAL  CERTIFICATE AND THE GROUP POLICY MEMBER SHALL BE PROHIBITED FROM
   10  PROVIDING A PREARRANGED RIDE.
   11    (4) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIF-
   12  ICATES, SHALL NOT BECOME EFFECTIVE UNTIL TWENTY DAYS AFTER  THE  INSURER
   13  MAILS  OR  DELIVERS  WRITTEN NOTICE OF CANCELLATION TO THE GROUP POLICY-
   14  HOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY, EXCEPT  FIFTEEN  DAYS
   15  WRITTEN  NOTICE  SHALL  BE  SUFFICIENT  WHERE  THE  CANCELLATION  IS FOR
   16  NON-PAYMENT OF PREMIUM.
   17    (J) CANCELLATION BY THE GROUP POLICYHOLDER. A GROUP  POLICYHOLDER  MAY
   18  CANCEL  A GROUP POLICY FOR ANY REASON UPON TWENTY DAYS WRITTEN NOTICE TO
   19  THE INSURER AND EACH GROUP POLICY MEMBER.
   20    (K) CANCELLATION BY THE GROUP POLICY MEMBER. A GROUP POLICY MEMBER MAY
   21  CANCEL OPTIONAL COVERAGE UPON PROVIDING NOTICE TO THE  INSURER  AND  THE
   22  GROUP  POLICYHOLDER.  FOR  THE  PURPOSES  OF  THIS SUBSECTION, "OPTIONAL
   23  COVERAGE" MEANS COVERAGE OTHER THAN  FINANCIAL  RESPONSIBILITY  COVERAGE
   24  THAT AN INDIVIDUAL GROUP POLICY MEMBER PURCHASES ON AN OPTIONAL BASIS.
   25    (L) (1) A GROUP POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED
   26  FOR  A  ONE-YEAR  POLICY  PERIOD  UNLESS THE GROUP POLICY PROVIDES FOR A
   27  LONGER POLICY PERIOD.
   28    (2) A GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE  GROUP  POLICY
   29  AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
   30  GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS THE INSURER MAILS OR DELIVERS
   31  TO THE GROUP POLICYHOLDER WRITTEN NOTICE OF NONRENEWAL,  OR  CONDITIONAL
   32  RENEWAL,  AT  LEAST FORTY-FIVE BUT NOT MORE THAN SIXTY DAYS PRIOR TO THE
   33  EXPIRATION DATE SPECIFIED IN THE POLICY OR, IF  NO  DATE  IS  SPECIFIED,
   34  THEN THE NEXT ANNIVERSARY DATE OF THE POLICY.
   35    (M)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
   36  FROM AN INSURER SHALL SET FORTH  THE  SPECIFIC  REASON  OR  REASONS  FOR
   37  CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL.
   38    (N)  TERMINATION  FROM  THE  GROUP  SHALL  TERMINATE  THE GROUP POLICY
   39  MEMBER'S COVERAGE.
   40    (O) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,  OR
   41  CONDITIONAL  RENEWAL  OF  THE  GROUP  POLICY,  OR A CERTIFICATE, WHETHER
   42  INITIATED BY THE INSURER, GROUP POLICYHOLDER, OR  BY  THE  GROUP  POLICY
   43  MEMBER  IN  REGARD  TO  THE  GROUP POLICY MEMBER'S CERTIFICATE, COVERAGE
   44  ATTACHES PURSUANT TO THE TERMS OF A  GROUP  POLICY,  THEN  THE  COVERAGE
   45  SHALL BE EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE
   46  PROVIDED  IN THE GROUP POLICY NOTWITHSTANDING THE CANCELLATION, NONRENE-
   47  WAL, OR CONDITIONAL NONRENEWAL OF THE GROUP POLICY.
   48    S 3. Subsection (b) of section 5103 of the insurance law is amended by
   49  adding a new paragraph 4 to read as follows:
   50    (4) IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A  TRANSPORTATION
   51  NETWORK  COMPANY  DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER AS SUCH
   52  TERMS ARE DEFINED IN SUBSECTION  (B)  OF  SECTION  THREE  THOUSAND  FOUR
   53  HUNDRED FORTY-ONE OF THIS CHAPTER.
   54    S 4. This act shall take effect on the one hundred twentieth day after
   55  it shall have become a law.