New York Laws
Article 34 - Insurance Contracts-Property/casualty
3457 - Group Insurance Policies for Certain for Hire Motor Vehicles.

(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
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 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 section three
thousand four hundred twenty of this article, section three hundred
seventy of the vehicle and traffic law, 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 section three hundred seventy of the vehicle and traffic law
and paragraph two of subsection (f) of section three thousand four
hundred twenty of this article;
(B) supplemental spousal liability insurance pursuant to subsection
(g) of 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 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 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 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 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 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.

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