New York Laws
Article 34 - Insurance Contracts-Property/casualty
3458*2 - Group Insurance for Peer-to-Peer Car Sharing Programs.

(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 peer-to-peer car sharing group policy.
(2) "Group policyholder" means an administrator.
(3) "Group policy member" means a shared vehicle owner or a shared
vehicle driver participating in a program.
(4) "Peer-to-peer car sharing group policy" or "group policy" means a
group policy, including certificates issued to the group members, where
the group policyholder is an administrator and the policy provides
insurance to the administrator and to group members:
(A) in accordance with the requirements of article forty of the
general business law;
(B) of the type described in paragraph thirteen, fourteen, or nineteen
of subsection (a) of section one thousand one hundred thirteen of this
chapter; and
(C) in satisfaction of the financial responsibility requirements set
forth in section three thousand four hundred twenty of this article,
subdivision four of section three hundred eleven 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 motor vehicle.
(5) "Peer-to-peer car sharing program" or "program" shall have the
same meaning as set forth in article forty of the general business law.
(6) "Peer-to-peer car sharing program administrator" or
"administrator" shall have the same meaning as set forth in article
forty of the general business law.
(7) "Shared vehicle driver" shall have the same meaning as set forth
in article forty of the general business law.
(8) "Shared vehicle owner" shall have the same meaning as set forth in
article forty of the general business law.
(9) "Peer-to-peer car sharing period" or "car sharing period" shall
have the same meaning as set forth in article forty of the general
business law.
(10) "Motor vehicle" shall have the same meaning as set forth in
article forty of the general business law.
(b) An insurer may issue or issue for delivery in this state a group
policy to an administrator as a group policyholder only in accordance
with the provisions of this section.
(c) (1) A group policy shall provide coverage for a shared vehicle
owner's motor vehicle in accordance with the requirements of article
forty of the general business law.
(2) A group policy may provide:
(A) coverage for limits higher than the minimum limits required by
subdivision two of section nine hundred one of the general business law,
with regard to financial responsibility coverage;
(B) supplemental spousal liability insurance pursuant to subsection
(g) of section three thousand four hundred twenty of this chapter; 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) The coverage described in paragraphs one and two of this
subsection may be provided in one group policy or in separate group
policies.
(4) A group policy, including certificates, shall be issued by
authorized insurers or through excess line brokers pursuant to section
two thousand one hundred eighteen of this chapter.
(5) 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:
(1) wholly by the group policyholder;
(2) wholly by the group policy members; or
(3) jointly by the group policyholder and the group policy members.
(e)(1) Any policy dividend, retrospective premium credit, or
retrospective premium refund in respect of premiums paid by the group
policyholder may:
(A) be applied to reduce the premium contribution of the group
policyholder, but not in excess of the proportion to its contribution;
or
(B) be retained by the group policyholder.
(2) Any policy dividend, retrospective premium credit, or
retrospective premium refund not distributed under paragraph one of this
subsection shall be:
(A) applied to reduce future premiums and, accordingly, future
contributions, of existing or future group policy members, or both; or
(B) paid or refunded to those group policy members insured on the date
the payment or refund is made to the group policyholder, if distributed
by the group policyholder, or on the date of mailing, if distributed
directly by the insurer, subject to the following requirements:
(i) the insurer shall be responsible for determining the allocation of
the payment or refund to the group policy members;
(ii) if the group policyholder distributes the payment or refund, then
the insurer shall be responsible for conducting an audit to ascertain
that the payment or refund is actually made in accordance with the
allocation procedure; and
(iii) if the group policyholder fails to make the payment or refund,
then the insurer shall make the payment or refund directly or use the
method provided in subparagraph (A) of this paragraph.
(3) Notwithstanding paragraphs one and two of this subsection, if a
dividend accrues upon termination of coverage under a group policy, the
premium for which was paid out of funds contributed by group policy
members specifically for the coverage, then the dividend shall be paid
or refunded by the group policyholder to the group policy members
insured on the date the payment or refund is made to the group
policyholder net of reasonable expenses incurred by the group
policyholder in paying or refunding the dividend to such group policy
members.
(4) For the purposes of this subsection, "dividend" means a return by
an insurer to a group policyholder of excess premiums paid by that group
policyholder in light of its favorable loss experience, including
retrospective premium credits or retrospective premium refunds. The term
"dividend" does not include reimbursements or fees received by a group
policyholder in connection with the operation or administration of a
group policy, including administrative reimbursements, fees for services
provided by the group policyholder, or transactional service fees.
(f) The insurer shall treat in like manner all eligible group policy
members of the same class and status.
(g) Each policy written pursuant to this section shall provide per
occurrence limits of coverage for each group policy member in an amount
not less than that required by article forty of the general business
law, and may provide coverage for limits higher than the minimum limits
required under the law.
(h)(1) The insurer shall be responsible for the mailing or delivery of
a certificate of insurance to each group policy member, provided,
however, that the insurer may delegate the mailing or delivery to the
administrator. The insurer also shall be responsible for mailing or
delivery to each group policy member an amended certificate of
insurance, or endorsement to the certificate, whenever there is a change
of limits; change in type of coverage; addition, reduction, or
elimination of coverage; or addition of exclusion, under the group
policy or certificate.
(2) The certificate shall contain in substance all material terms and
conditions of coverage afforded to the group policy member, unless the
group policy is incorporated by reference and a copy of the group policy
accompanies the certificate.
(3) If coverage afforded to the group policy member is in excess of
other applicable insurance coverage, then the certificate shall contain
a notice advising the group policy member that if the group policy
member has other insurance coverage, specified coverages under the group
policy will be excess over the other insurance.
(i) 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.
(j) A group policy or certificate 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)(A) An insurer may terminate a group policy or certificate only if
cancellation is based on one or more of the reasons set forth in
subparagraphs (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 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.
(B) Where the premium is derived wholly from funds contributed by the
group policyholder, an insurer may cancel an individual certificate only
if cancellation is based on one or more of the reasons set forth in
subparagraphs (B), (C), or (H) of paragraph one of subsection (c) of
section three thousand four hundred twenty-six of this article.
(2)(A) 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 or to an
electronic mail address at which the group policyholder has consented to
receive such notice.
(i) Where all or part of the premium is derived from funds contributed
by the group policy member specifically for the coverage, the insurer
also shall mail or deliver written notice of cancellation of the group
policy to the group policy member at the group policy member's mailing
address or to an electronic mail address at which the group policy
member has consented to receive such notice. Such cancellation shall not
become effective until thirty days after the insurer mails or delivers
the written notice to the group policy member.
(ii) Where none of the premium is derived from funds contributed by a
group policy member specifically for the coverage, the group
policyholder shall mail or deliver written notice to the group policy
member advising the group policy member of the cancellation of the group

policy and the effective date of cancellation. The group policyholder
shall mail or deliver the written notice within ninety days after
receiving notice of cancellation from the insurer.
(B) An insurer's cancellation of an individual certificate shall not
become effective until thirty days after the insurer mails or delivers
written notice of cancellation to the group policy member at the group
policy member's mailing address, or to an electronic mail address at
which the group policy member has consented to receive such notice, and
to the group policyholder at the mailing address shown in the group
policy or to an electronic mail address at which the group policyholder
has consented to receive such notice.
(3)(A) A group policyholder may cancel a group policy, including all
certificates, or any individual certificate, for any reason upon thirty
days' written notice to the insurer and each group policy member; and
(B) The group policyholder shall mail or deliver written notice to
each affected group policy 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 policy member's mailing address, or to an
electronic mail address at which the group policy member has consented
to receive such notice, at least thirty days prior to the effective date
of cancellation.
(4) A group policy member may cancel optional coverage upon providing
notice to the group policyholder. For the purposes of this subsection,
"optional coverage" means coverage other than financial responsibility
coverage that an individual group policy member purchases on an optional
basis. "Optional coverage" does not mean optional vehicle protection as
defined in article forty of the general business law.
(5)(A) A group policy and all certificates shall be issued or renewed
for a one-year policy period unless the group policy provides for a
longer 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 the insurer mails or delivers
to the group policyholder and all group policy members written notice of
nonrenewal, or conditional renewal, at least thirty but not more than
one hundred twenty days prior to the expiration date specified in the
group policy or, if no date is specified, then the next anniversary date
of the group policy.
(6) Where the group policyholder nonrenews the group policy, the group
policyholder shall mail or deliver written notice to each group member
advising the group policy member of nonrenewal of the group policy and
the effective date of nonrenewal. The group policyholder shall mail or
deliver written notice at least thirty days prior to the nonrenewal.
(7) Every notice of cancellation, nonrenewal, or conditional renewal
from an insurer shall set forth the specific reason or reasons for
cancellation, nonrenewal, or conditional renewal.
(8)(A) An insurer shall not be required under this subsection to give
notice to a group policy member if the insurer has been advised by
either the group policyholder or another insurer that substantially
similar coverage has been obtained from the other insurer without lapse
of coverage.
(B) A group policyholder shall not be required under this subsection
to give notice to a group policy member if substantially similar
coverage has been obtained from another insurer without lapse of
coverage.
(9)(A) If, prior to the effective date of cancellation, nonrenewal, or
conditional renewal of the group policy, or a certificate, whether

initiated by the insurer, group policyholder or by the group policy
member in regard to the group policy member's certificate, coverage
attaches pursuant to the terms of a 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 subparagraph (B) of paragraph one of this subsection.
(k) Any mailing or delivery to a group policy member required or
permitted under this section may be made by electronic mail if
affirmative verifiable consent to such method of delivery has been
previously received from such group policy member.
(l) An insurer may issue a group policy to an administrator
notwithstanding that it may be a condition of using or operating a motor
vehicle through the administrator's program for the shared vehicle owner
to participate in such group policy.
(m) 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.
(n) Coverage under a group policy, as provided for in this section,
shall not be dependent on an insurer that issued a shared vehicle
owner's policy of liability insurance or other motor vehicle insurance,
nor shall an insurer be required to first deny a claim before the group
policy shall afford coverage pursuant to this section.
* NB There are 2 § 3458's

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