BILL NUMBER: S51
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to risk
retention groups and commuter vans, pre-arranged for-hire vehicles, or
accessible vehicles; and to amend chapter 438 of the laws of 2023,
amending the insurance law and the vehicle and traffic law relating to
owner's policies of liability insurance issued by a risk retention group
not chartered within this state, in relation to certain risk retention
groups not chartered in this state
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow risk retention groups which meet a minimum surplus requirement
and which are registered in NYS to offer automobile insurance coverage
to commuter vans, pre-arranged for-hire vehicles, and accessible vehi-
cles in this state.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 5913 of the Insurance Law to allow insurance
coverage by a risk retention group pursuant to sections 311 and 370 of
the Vehicle and Traffic Law as amended in section 2 of this bill to
include coverage to commuter vans, pre-arranged for-hire vehicles, and
accessible vehicles.
Section 2 amends (c) of subdivision 4 of section 311 of the Vehicle and
Traffic Law to include within the definition of "owner's policy of
liability insurance" a policy issued by a Risk Retention Group (RRG)
registered in New York State under the Federal Liability R isk Retention
Act of 1986 to include coverage for commuter vans, pre-arranged for-hire
vehicles, and accessible vehicles.
Section 3 amends the opening paragraph of subdivision 5 of section 311
of the Vehicle and Traffic Law to allow a risk retention group author-
ized to issue an owner's policy of liability insurance for commuter
vans, pre-arranged for-hire vehicles, and accessible vehicles.
Section 4 is the effective date.
 
JUSTIFICATION:
Commuter vans, pre-arranged for-hire vehicles, and accessible vehicles
are community-focused for-hire services that pr ovide access to trans-
portation for local trips to people who rely on these options for daily
transport. While the number of these options are decreasing due to more
appealing insurance rates through out-of-state insurance in NYS right
now, the opportunity exists to expand the industry by broadening insur-
ance options. This includes improved access to mobility for low- to
moderate-income people and ensuring that these options have a better
opportunity to succeed under New York State rules and regulations.