N.Y. Insurance Law § 3458*2: Group insurance for peer-to-peer car sharing programs

* § 3458. Group insurance for peer-to-peer car sharing programs. (a)

For the purposes of this section, the following definitions shall apply:

(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