NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A959
SPONSOR: Hyndman
 
TITLE OF BILL:
An act to amend the insurance law and the vehicle and traffic law, in
relation to premium reductions of commercial risk insurance policies
covering for-hire vehicles and to amend a chapter of the laws of 2020
amending the insurance law relating to establishing the for-hire motor
vehicle safety program as proposed in legislative bills numbers S. 7881
and A. 9763-A, in relation to the effectiveness of such chapter
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would make clarifying changes to chapter 347 of the laws of
2020 to permit associations representing for-hire motor vehicles to
establish and implement comprehensive educational programs to promote
for-hire motor vehicle safety and to ensure that insureds that elect to
complete a for-hire vehicle safety course may also remain eligible for
the national / defensive driving course and the associated premium rate
reduction on their personal motor vehicle policy.
 
SUMMARY OF PROVISIONS:
Section one of the bill is amended to require approval of all for-hire
safety driving courses by the Commissioner of Motor Vehicles.
Sections two and three of the bill would ensure that for-hire vehicle
drivers that elect to take and complete a for-hire vehicle safety course
can receive a premium rate reduction on their commercial vehicle policy
and still be eligible for a personal motor vehicle policy reduction if
such individuals were to take and complete the national defensive driv-
ing course.
Section four of the bill would make technical edits.
Section five of the bill would amend the vehicle and traffic law to
require the Commissioner of Motor Vehicles to evaluate and approve all
for-hire safety courses.
Section six would provide for the effective date.
 
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, the underlying bill
authorized associations representing for-hire vehicles with a capacity
of eight or more persons to create comprehensive vehicle safety programs
and requires insurers to provide actuarially appropriate premium
reductions to insureds that successfully complete these safety programs.
This bill language was negotiated in order to ensure that drivers that
elect to take the for hire safety driving course and receive an actual
early appropriate premium rate reduction on their commercial auto policy
may also remain eligible for a premium rate reduction on their personal
auto policy upon completion of the national defensive driving course. In
this way, more affordable coverage can be available for these drivers
while still allowing for the standard defensive driving course reduction
on personal auto insurance policies.
 
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
________________________________________________________________________
959
2021-2022 Regular Sessions
IN ASSEMBLY(Prefiled)
January 6, 2021
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law and the vehicle and traffic law, in
relation to premium reductions of commercial risk insurance policies
covering for-hire vehicles and to amend a chapter of the laws of 2020
amending the insurance law relating to establishing the for-hire
motor vehicle safety program as proposed in legislative bills numbers
S. 7881 and A. 9763-A, in relation to the effectiveness of such chap-
ter
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (d) of section 2353 of the insurance law, as
2 added by a chapter of the laws of 2020 amending the insurance law relat-
3 ing to establishing the for-hire motor vehicle safety program as
4 proposed in legislative bills numbers S. 7881 and A. 9763-A, is amended
5 to read as follows:
6 (d) The superintendent shall provide for an actuarially appropriate
7 reduction for a period of three years in the rates of premiums for
8 commercial risk insurance applicable to motor vehicles engaged in the
9 business of carrying or transporting passengers for-hire, having a seat-
10 ing capacity of not less than eight passengers, for each triennial
11 completion of a course of instruction on for-hire motor vehicle safety
12 as authorized pursuant to this section. The [superintendent] commis-
13 sioner of motor vehicles shall evaluate and approve any for-hire vehicle
14 safety program created pursuant to this section within sixty days of the
15 effective date of this section.
16 § 2. Subsection (f) of section 2353 of the insurance law is relettered
17 subsection (g) and a new subsection (f) is added to read as follows:
18 (f) Any insured who successfully completes a course of instruction on
19 for-hire motor vehicle safety pursuant to this section and receives a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07186-01-1
A. 959 2
1 premium reduction on the insured's commercial risk insurance policy
2 covering the for-hire vehicle shall not, during the period set forth in
3 subsection (e) of this section, also be eligible for an additional
4 premium reduction on the insured's commercial risk insurance policy
5 covering the for-hire vehicle for successful completion of the motor
6 vehicle accident prevention course, known as the national safety coun-
7 cil's defensive driving course, or any driver improvement course
8 approved by the department of motor vehicles as being equivalent to the
9 national safety council's defensive driving course, authorized under
10 section two thousand three hundred thirty-six of this article.
11 § 3. Subsection (a) of section 2336 of the insurance law, as amended
12 by chapter 751 of the laws of 2005, is amended to read as follows:
13 (a) (1) Any schedule of rates or rating plan for motor vehicle liabil-
14 ity and collision insurance submitted to the superintendent shall
15 provide for an actuarially appropriate reduction in premium charges for
16 any insured for a three year period after successfully completing a
17 motor vehicle accident prevention course, known as the national safety
18 council's defensive driving course, or any driver improvement course
19 approved by the department of motor vehicles as being equivalent to the
20 national safety council's defensive driving course, provided that,
21 except as provided in article twelve-C of the vehicle and traffic law,
22 there shall be no reduction in premiums for a [self instruction] self-
23 instruction defensive driving course or a course [which] that does not
24 provide for actual classroom instruction for a minimum number of hours
25 as determined by the department of motor vehicles. Such reduction in
26 premium charges shall be subsequently modified to the extent appropri-
27 ate, based upon analysis of loss experience statistics and other rele-
28 vant factors. All such accident prevention courses shall be monitored by
29 the department of motor vehicles and shall include components of
30 instruction in "Road Rage" awareness and in "Work Zone Safety" awareness
31 as defined by the commissioner of motor vehicles. The provisions of this
32 section shall not apply to attendance at a program pursuant to article
33 twenty-one of the vehicle and traffic law as a result of any traffic
34 infraction.
35 (2) Any insured who successfully completes a course pursuant to this
36 subsection and receives a premium reduction on the insured's insurance
37 policy covering the for-hire vehicle, shall not, during the period set
38 forth in subsection (e) of section two thousand three hundred fifty-
39 three of this article, also be eligible for an additional premium
40 reduction on the insured's commercial risk insurance policy covering the
41 for-hire motor vehicle for successful completion of the for-hire safety
42 motor vehicle course authorized under section two thousand three hundred
43 fifty-three of this article.
44 § 4. Subsection (a) of section 2336 of the insurance law, as amended
45 by chapter 585 of the laws of 2002, is amended to read as follows:
46 (a) (1) Any schedule of rates or rating plan for motor vehicle liabil-
47 ity and collision insurance submitted to the superintendent shall
48 provide for an actuarially appropriate reduction in premium charges for
49 any insured for a three year period after successfully completing a
50 motor vehicle accident prevention course, known as the national safety
51 council's defensive driving course, or any driver improvement course
52 approved by the department of motor vehicles as being equivalent to the
53 national safety council's defensive driving course, provided that in
54 either event there shall be no reduction in premiums for a [self
55 instruction] self-instruction defensive driving course or a course
56 [which] that does not provide for actual classroom instruction for a
A. 959 3
1 minimum number of hours as determined by the department of motor vehi-
2 cles. Such reduction in premium charges shall be subsequently modified
3 to the extent appropriate, based upon analysis of loss experience
4 statistics and other relevant factors. All such accident prevention
5 courses shall be monitored by the department of motor vehicles and shall
6 include components of instruction in "Road Rage" awareness and in "Work
7 Zone Safety" awareness as defined by the commissioner of motor vehicles.
8 The provisions of this section shall not apply to attendance at a
9 program pursuant to article twenty-one of the vehicle and traffic law as
10 a result of any traffic infraction.
11 (2) Any insured who successfully completes a course pursuant to this
12 subsection and receives a premium reduction on the insured's insurance
13 policy covering the for-hire vehicle, shall not, during the period set
14 forth in subsection (e) of section two thousand three hundred fifty-
15 three of this article, also be eligible for an additional premium
16 reduction on the insured's commercial risk insurance policy covering the
17 for-hire motor vehicle for successful completion of the for-hire safety
18 motor vehicle course authorized under section two thousand three hundred
19 fifty-three of this article.
20 § 5. The vehicle and traffic law is amended by adding a new section
21 397-c to read as follows:
22 § 397-c. For-hire motor vehicle safety program. The commissioner shall
23 evaluate and approve any for-hire motor vehicle safety program created
24 pursuant to section two thousand three hundred fifty-three of the insur-
25 ance law within sixty days of the effective date of such section.
26 § 6. Section 2 of a chapter of the laws of 2020 amending the insurance
27 law relating to establishing the for-hire motor vehicle safety program
28 as proposed in legislative bills numbers S. 7881 and A. 9763-A, is
29 amended to read as follows:
30 § 2. This act shall take effect [immediately and shall apply to all
31 policies issued, renewed, modified, altered or amended on or after the
32 sixtieth day following the effective date of this act] on the sixtieth
33 day after it shall have become a law.
34 § 7. This act shall take effect immediately; provided, however, that
35 sections one, two, three and five of this act shall take effect on the
36 same date and in the same manner as a chapter of the laws of 2020 amend-
37 ing the insurance law relating to establishing the for-hire motor
38 vehicle safety program as proposed in legislative bills numbers S. 7881
39 and A. 9763-A, takes effect; and provided further that the amendments
40 to subsection (a) of section 2336 of the insurance law made by section
41 three of this act shall be subject to the expiration and reversion of
42 such subsection when upon such date the provisions of section four of
43 this act shall take effect.