N.Y. Vehicle & Traffic Law § 313: Notice of termination

§ 313. Notice of termination. 1. (a) No contract of insurance for

which a certificate of insurance has been filed with the commissioner

shall be terminated by cancellation by the insurer until at least twenty

days after mailing to the named insured at the address shown on the

policy a notice of termination by regular mail, with a certificate of

mailing, properly endorsed by the postal service to be obtained, except

where the cancellation is for non-payment of premium in which case

fifteen days notice of cancellation by the insurer shall be sufficient,

provided, however, if another insurance contract has been procured, such

other insurance contract shall, as of its effective date and hour,

terminate the insurance previously in effect with respect to any motor

vehicles designated in both contracts. No contract of insurance for

which a certificate of insurance has been filed with the commissioner in

which a natural person is the named insured and the motor vehicle is

used predominantly for non-business purposes shall be non-renewed by an

insurer unless at least forty-five, but not more than sixty days in

advance of the renewal date the insurer mails or delivers to the named

insured at the address shown on the policy a written notice of its

intention not to renew. No such contract of insurance in which the named

insured is not a natural person or the motor vehicle is used

predominantly for business purposes shall be non-renewed by an insurer

unless at least twenty days in advance of the renewal date the insurer

mails or delivers to the named insured at the address shown on the

policy a written notice of its intention not to renew. All notices of

non-renewal shall be sent by regular mail with a certificate of mailing,

properly endorsed by the postal service to be obtained. Time of the

effective date and hour of termination stated in the notice shall become

the end of the policy period. Every notice or acknowledgement of

termination for any cause whatsoever sent to the insured shall include

in type of which the face shall not be smaller than twelve point a

statement that proof of financial security is required to be maintained

continuously throughout the registration period and a notice prescribed

by the commissioner indicating the punitive effects of failure to

maintain continuous proof of financial security and actions which may be

taken by the insured to avoid such punitive effects.

(b) Every insurer shall retain a copy of the notice of termination

mailed pursuant to this chapter and shall retain the certificate of

mailing obtained from the postal service upon the mailing of the

original of said notice. A copy of a notice of termination and the

certificate of mailing, when kept in the regular course of the insurer's

business, shall constitute conclusive proof of compliance with the

mailing requirements of this chapter.

* 2. (a) Upon the termination of an owner's policy of liability

insurance, other than an owner's policy of liability insurance for a

motorcycle, at the request of the insured or by cancellation by the

insurer, the insurer shall file a notice of termination with reference

to such policy, as opposed to any insured vehicle or vehicles under such

policy, with the commissioner not later than thirty days following the

effective date of such cancellation or other termination, in accordance

with the regulations required by paragraph (c) of this subdivision. An

insurer shall not file a notice of termination with the commissioner

except as required by this subdivision.

(b) Upon the issuance of an owner's policy of liability insurance the

insurer shall file a notice or confirmation of issuance with reference

to such policy not later than fourteen days following the effective date

of such issuance, and not later than seven days following the effective

date for policies issued after January first, two thousand one, in

accordance with the regulations required by paragraph (c) of this

subdivision.

(c) The commissioner shall promulgate regulations establishing

procedures for issuance of proof of insurance and for reporting by

insurers of notices of termination and policy issuance, either

electronically or by paper copy, at the option of the department. Such

reporting shall be required for every cancellation or termination which

is effective on or after July first, nineteen hundred eighty-four and

for every policy issuance which is effective on or after January first,

two thousand; provided, however, that should the commissioner find,

after testing of reporting procedures, that it would be feasible to

require reporting for policy cancellations, terminations or issuances

effective on an earlier date, he may by regulation so require reporting

on such earlier date, but in no event shall reporting be required for

cancellations or terminations effective prior to February first,

nineteen hundred eighty-four nor for policy issuances effective prior to

September first, nineteen hundred ninety-nine. Insurers shall cooperate

fully with the commissioner in any such testing of reporting procedures.

(d) Upon application by an insurer, the commissioner may extend the

period for filing of notices of termination by such insurer for up to

fifteen days, and for seven days for policies issued by an insurer.

Extensions shall not be granted unless the insurer demonstrates to the

satisfaction of the commissioner that compliance with the notice period

would result in substantial hardship to the insurer. The commissioner

shall maintain a list of extensions granted pursuant to this paragraph.

* NB Effective until December 31, 2028

* 2. The commissioner shall promulgate regulations establishing

procedures for issuance of proof of insurance.

* NB Effective December 31, 2028

* 3. A cancellation or termination for which notice is required to be

filed with the commissioner pursuant to subdivision two of this section

shall not be effective with respect to persons other than the named

insured and members of the insured's household until the insurer has

filed a notice thereof with the commissioner or until another insurance

policy covering the same risk has been procured, except that a notice

filed with the commissioner, in the format prescribed by the

commissioner, within the period prescribed in subdivision two of this

section shall be effective as of the date certified therein, regardless

of whether a suspension order is issued pursuant to section three

hundred eighteen of this article. A receipt from the department stating

that a notice of termination has been filed shall be deemed conclusive

evidence of such filing. An insurer shall cooperate with the

commissioner in attempting to identify persons not in compliance with

this article in cases where the information reported by the insurer does

not correspond with records maintained by the department.

* NB Effective until December 31, 2028

* 3. A cancellation or termination for which notice is required to be

filed with the commissioner shall not be effective with respect to

persons other than the named insured and members of the insured's

household until the insurer has filed a notice thereof with the

commissioner or until another insurance policy covering the same risk

has been procured, except that a notice filed with the commissioner, in

the format prescribed by the commissioner, shall be effective as of the

date certified therein, regardless of whether a suspension order is

issued pursuant to section three hundred eighteen of this article. A

receipt from the department stating that a notice of termination has

been filed shall be deemed conclusive evidence of such filing. An

insurer shall cooperate with the commissioner in attempting to identify

persons not in compliance with this article in cases where the

information reported by the insurer does not correspond with records

maintained by the department.

* NB Effective December 31, 2028

* 4. Notwithstanding any other provision of this article to the

contrary, the commissioner shall establish a pilot program to maintain

an up-to-date insured vehicle identification database to assist in

identifying uninsured motor vehicles. Such databases shall be

implemented by the department pursuant to standards prescribed by the

commissioner or an agent designated by the commissioner which shall seek

technical assistance from affected insurers and the New York Automobile

Insurance Plan. This program shall utilize all information collected

pursuant to this section and shall also include the following elements:

(a) In addition to and in conjunction with the provisions of

subdivision two of this section, insurers that write private passenger

or commercial motor vehicle insurance in this state shall also submit to

the department, either electronically or by paper copy, at the option of

the department, information that identifies those policies that have

been cancelled, terminated or non-renewed and all policies that have

been issued, the date when such insurance lapses, and any other

information that the commissioner deems necessary to efficiently

identify and track uninsured vehicles in this state such as a

policyholder's address, policy number, vehicle registration number, and

vehicle identification number. The department may exempt from such pilot

program the transfer of information on certain classifications of

vehicles that are in the opinion of the department generally insured and

which it is difficult to identify uninsured vehicles within such

classification, such as large commercial vehicle fleets;

(b) The department shall forward to each motor vehicle insurer, at

such times as deemed necessary and appropriate by the commissioner, a

listing of all the registrants the department has on file as insured

with that insurer. Such insurer shall then review the listing within

thirty days of receipt of the listing and report to the department which

of the registrants the insurer does not insure;

(c) The commissioner shall, in conjunction with the superintendent of

state police and local law enforcement officials formulate a means to

allow such database to be easily accessible to on-duty law enforcement

personnel in the performance of their official duties for the purpose of

verifying whether an operator maintains proper insurance coverage and to

increase compliance with the motor vehicle financial security laws under

this article and article eight of this title;

(d) In developing the mechanism to electronically transfer information

to the department, the commissioner shall consult with the

superintendent of financial services and insurers to adopt a

standardized system of organizing, recording and transferring such

information so as to minimize insurer administrative expenses. The

commissioner shall to the maximum extent possible utilize nationally

recognized electronic data information systems such as those developed

by the American National Standards Institute or the American Association

of Motor Vehicle Administrators;

(e)(1) Either simultaneously or after the up-dated database system has

been established, the commissioner shall develop a computer indicator

that can be imprinted on a vehicle registration sticker or on a sticker

to be affixed to the insured's license plate. Such indicator system

shall enable law enforcement personnel and other authorized persons when

acting in the course of their official duties to access the department's

database so that such persons can ascertain whether a vehicle is

properly insured or not insured;

(2) Such computer indicator system shall enable authorized persons in

the performance of their official duties to access information such as

the registrant's name, vehicle identification number, name of insurer,

current status of insurance, vehicle registration number and other

information that the commissioner deems necessary to implement the

provisions of this section. The commissioner in developing such computer

indicator system shall enable authorized persons in the performance of

their official duties to access only such information that is necessary

to detect uninsured motor vehicles or accomplish other goals clearly

established and authorized by law. Such computer indicator system shall

be designed to protect the personal privacy interests of motorists;

(f) The commissioner shall maintain an insured vehicle database system

that is accurate to within a period of fourteen days and a computer

indicator system described in paragraph (e) of this subdivision within

twenty-four months of the effective date of this subdivision and to

within seven days by January first, two thousand one. The commissioner

shall submit to the legislature a report within eighteen months from the

date this subdivision takes effect which outlines the progress being

made to implement such database and computer indicator system. After

such database and computer indicator system is established and put into

operation, the commissioner shall make recommendations to the

legislature to alter, minimize or eliminate the need for the issuance of

insurance identification cards, simplify the requirements to demonstrate

proof of financial security and certificate of insurance currently

required by this article, eliminate the requirement for production of

proof of financial security to accompany applications for registrations

or renewals thereof provided that such database indicates that the

registrant is insured, and the repeal or modification of section three

hundred twelve-a of this article. The commissioner shall also make

recommendations to the legislature to streamline and shorten the notice

termination requirements of subdivisions one, two and three of this

section and section three hundred eighteen of this article. Such report

shall be submitted to the legislature within twelve months from the date

such database and indicator system has been implemented;

(g) To minimize the cost of this program, the commissioner, if he

deems it necessary and prudent, can initially limit the scope of this

project to a select number of vehicle classifications or insurers;

(h) Notwithstanding any other provision of law, information obtained

by the department pursuant to this section shall not be disclosed, used,

sold, accessed, utilized in any manner or released by the department to

any person, corporation, or state and local agency, except in response

to a specific, individual request for such information authorized

pursuant to the federal driver's privacy protection act (18 U.S.C. 2721

et.seq.). The department shall institute measures to ensure that only

authorized persons are permitted to access such information for the

purposes specified by this section. Persons who knowingly release or

disclose information from such database for a purpose other than those

described as authorized by this section or to a person not entitled to

receive it shall be guilty of a misdemeanor for each such release or

disclosure; and

(i) The commissioner may postpone implementation of such pilot

database and computer indicator system for a period of time not to

exceed eighteen months if he or she determines that the program is not

ready for implementation. Should the commissioner determine that such

system cannot be implemented during the eighteen months extension, then

the commissioner shall report to the legislature the reasons why such

program cannot be implemented and request that the law be amended to

delay its implementation date.

* NB Effective until December 31, 2028

* 4. Notwithstanding any other provision of this article to the

contrary, the commissioner shall establish a system for the online

verification of motor vehicle liability insurance to enable the

commissioner to access up-to-date insured vehicle identification

information to assist in identifying uninsured motor vehicles, and shall

verify motor vehicle owners' policies of liability insurance through the

utilization of such online verification system. Such online verification

system shall be implemented by the department pursuant to standards

prescribed by the commissioner who shall seek technical assistance from

affected insurers and the New York Automobile Insurance Plan. This

online verification system shall utilize all information collected

pursuant to this section and shall also include the following elements:

(a) Insurers that write private passenger or commercial motor vehicle

insurance in this state shall, with respect to every motor vehicle

insured by such insurer in the state and in compliance with any rules

and regulations promulgated by the commissioner for the online

verification system established pursuant to this subdivision, provide

the commissioner access to information that identifies those motor

vehicle liability insurance policies that have been cancelled,

terminated or non-renewed and all such policies that have been issued,

the date when such insurance lapses, and any other information that the

commissioner deems necessary to efficiently identify and track uninsured

vehicles in this state such as a policyholder's address, policy number,

vehicle registration number, and vehicle identification number. The

department may exempt from such online verification system the transfer

of information on certain classifications of vehicles that are in the

opinion of the department generally insured and which it is difficult to

identify uninsured vehicles within such classification, such as large

commercial vehicle fleets;

(b) The commissioner shall, in conjunction with the superintendent of

state police and local law enforcement officials formulate a means to

allow information from such online verification system to be easily

accessible to on-duty law enforcement personnel in the performance of

their official duties for the purpose of verifying whether an operator

maintains proper insurance coverage and to increase compliance with the

motor vehicle financial security laws under this article and article

eight of this title;

(c) In developing the mechanism for such online verification system to

electronically transfer information to the department, the commissioner

shall consult with the superintendent of financial services and insurers

to adopt a standardized system of organizing, recording and transferring

such information so as to minimize insurer administrative expenses. The

commissioner shall to the maximum extent possible utilize nationally

recognized electronic data information systems such as those developed

by the American National Standards Institute or the American Association

of Motor Vehicle Administrators;

(d)(1) Either simultaneously or after the online verification system

has been established, the commissioner shall develop a computer

indicator that can be imprinted on a vehicle registration sticker or on

a sticker to be affixed to the insured's license plate. Such indicator

system shall enable law enforcement personnel and other authorized

persons when acting in the course of their official duties to access

information in the department's online verification system so that such

persons can ascertain whether a vehicle is properly insured or not

insured;

(2) Such computer indicator system shall enable authorized persons in

the performance of their official duties to access information such as

the registrant's name, vehicle identification number, name of insurer,

current status of insurance, vehicle registration number and other

information that the commissioner deems necessary to implement the

provisions of this section. The commissioner in developing such computer

indicator system shall enable authorized persons in the performance of

their official duties to access only such information that is necessary

to detect uninsured motor vehicles or accomplish other goals clearly

established and authorized by law. Such computer indicator system shall

be designed to protect the personal privacy interests of motorists;

(e) (i) The commissioner shall maintain such online verification

system which shall be accurate to within a period of seven days;

(ii) The commissioner shall provide that such online verification

system shall, at a minimum:

(1) have the capability for the department to send requests to motor

vehicle insurers for verification of evidence of a motor vehicle owner's

policy of liability insurance as prescribed by this chapter via web

services, through the internet, or a similar proprietary or common

carrier electronic system, as well as to receive from motor vehicle

insurers verification of evidence of a motor vehicle owner's policy of

liability insurance in a form and manner as prescribed by the

commissioner;

(2) incorporate information security protections for such system. For

the purposes of this section, "information security" shall mean

protecting information and information systems from unauthorized access,

use, disclosure, disruption, modification, or destruction in order to

provide (A) integrity, which shall mean guarding against improper

information modification or destruction, and includes ensuring

information nonrepudiation and authenticity, (B) confidentiality, which

shall mean preserving authorized restrictions on access and disclosure,

including means for protecting personal privacy and proprietary

information, and (C) availability, which shall mean ensuring timely and

reliable access to and use of information as authorized by this

subdivision;

(3) have the capability of being utilized for verification of

mandatory motor vehicle liability insurance coverage as prescribed by

this chapter and the ability to be interfaced, wherever authorized by

law, with existing or future state systems, in a form and manner as

prescribed by the commissioner;

(4) have the capability of enabling the department to make inquiries

to motor vehicle insurers for evidence of a motor vehicle owner's policy

of liability insurance as set forth in paragraph (a) of this

subdivision;

(5) have the capability of responding to each request of the

department for motor vehicle liability insurance information within an

amount of time determined by the commissioner; and

(6) have the capability of responding within the time established;

(f) Notwithstanding any other provision of law, information obtained

by the department pursuant to this section shall not be disclosed, used,

sold, accessed, utilized in any manner or released by the department to

any person, corporation, or state and local agency, except in response

to a specific, individual request for such information authorized

pursuant to the federal driver's privacy protection act (18 U.S.C. 2721

et.seq.). The department shall institute measures to ensure that only

authorized persons are permitted to access such information for the

purposes specified by this section. Persons who knowingly release or

disclose information from such online verification system for a purpose

other than those described as authorized by this section or to a person

not entitled to receive it shall be guilty of a misdemeanor for each

such release or disclosure; and

(g) Undergo an appropriate testing and pilot period of not less than

one year, after which the commissioner shall certify in writing to the

governor, the temporary president of the senate, and the speaker of the

assembly that such system is fully operational.

* NB Effective December 31, 2028