BILL NUMBER: S8432REVISED 1/30/2024
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the insurance law, in relation to establishing a captive
insurance program for commuter vans, black cars, ambulettes and para-
transit vehicles, and small school buses
 
PURPOSE:
The purpose of this legislation is to provide for-hire vehicle operators
the option for a parent insurance company to provide risk mitigation
services in underwriting to reduce insurance rates for policyholders
that experience excessive insurance costs in New York State
 
SUMMARY OF PROVISIONS:
Section 1 creates a captive insurance program for commuter vans, pre-ar-
ranged for-hire vehicles, and accessible vehicles.
Section 2 provides the effective date.
 
JUSTIFICATION:
The culmination of issues that have affected the for-hire transit market
in NY have made commuter vans and other transit options expensive to
operate by reducing the financial pool from which insurers could pull
from for claims, thereby putting greater costs onto vehicle operators.
Commuter van numbers in NYC dwindled from 300+ to -50 during COVID 19.
Many commuter vans and other transit options are being booted and repos-
sessed because they can't afford to operate. Since the Parks Insurance
receivership, insurance policies were forced into the DFS assigned risk
plan through AIPSO. Due to NYS insurance costs exceeding $40,000-55,000/
year per driver/van under this policy, many drivers use New Jersey,
Connecticut or other out of state plates to operate in New York City.
This bill aims to stabilize the NYS for hire transit market by creating
a captive insurance program under DFS, where insurers can provide risk
mitigation services to strategically reduce the cost of insurance for
drivers where the costs have continued to be prohibitive for entrepre-
neurs.
 
LEGISLATIVE HISTORY:
2024: Amended.
2023: 54862 COMRIE / A5294 Anderson - vetoed
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately.