STATE OF NEW YORK ________________________________________________________________________ 1823 2025-2026 Regular Sessions IN ASSEMBLY January 14, 2025 ___________ Introduced by M. of A. ROSENTHAL, SIMONE -- read once and referred to the Committee on Insurance AN ACT to amend the general business law and the insurance law, in relation to insurance requirements for third-party food delivery service The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 391-v of the general business law, as added by 2 chapter 693 of the laws of 2021, is amended to read as follows: 3 § 391-v. Third-party food delivery agreements and insurance require- 4 ments. 1. For the purposes of this section, the following terms shall 5 have the following meanings: 6 (a) "Agreement" means a written contractual agreement between a food 7 service establishment and a third-party food delivery service authoriz- 8 ing the inclusion of the food service establishment's products on the 9 third-party food delivery platform. 10 (b) "Delivery available period" means the period when a delivery 11 network driver: 12 (i) has logged on to a digital network; 13 (ii) is available to receive requests to provide delivery services 14 from a delivery network company; 15 (iii) is operating a personal vehicle; and 16 (iv) is not providing delivery services or operating in the delivery 17 service period. 18 (c) "Delivery network company" means a corporation, partnership, sole 19 proprietorship, or other entity that operates in this state and uses a 20 digital network to connect a delivery network company customer to a 21 delivery network driver to provide delivery services. 22 (d) "Delivery network company customer" or "customer" means a person 23 who orders goods that are delivered by a delivery network driver at the 24 direction of such person. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00726-01-5
A. 1823 2 1 (e) "Delivery network company seller" means a corporation, partner- 2 ship, sole proprietorship, or other entity that operates in this state 3 and uses a digital network to sell its goods to delivery network company 4 customers, for delivery by delivery network drivers, which may be a food 5 service establishment. 6 (f) "Delivery network driver" means an individual who provides inde- 7 pendent delivery services through a digital network using a personal 8 vehicle. 9 (g) "Delivery services" means the fulfillment of delivery requests 10 made by a customer through a digital network, including the pickup of 11 any goods and the delivery of the goods to a customer by a delivery 12 network driver. Delivery services may include a series of deliveries to 13 different customers, or to different locations at the direction of a 14 customer. 15 (h) "Delivery service period" means the period: 16 (i) beginning when a delivery network driver starts operating a 17 personal vehicle en route to pick up goods for a delivery or series of 18 deliveries as documented via a digital network controlled by a delivery 19 network company; 20 (ii) continuing while the delivery network driver transports the 21 requested delivery or deliveries; and 22 (iii) ending upon delivery of the requested goods to: 23 (A) the delivery network company customer or the last delivery network 24 company customer in a series of deliveries or to a location designated 25 by the delivery network company customer or the last location so desig- 26 nated in a series of deliveries; or 27 (B) a location designated by the delivery network company, including 28 for purposes of returning the goods. 29 (i) "Digital network" means any online-enabled application, software, 30 website, or system offered or utilized by a delivery network company 31 that enables deliveries with delivery network drivers. 32 (j) "Food service establishment" means a place where food is provided 33 for individual portion service directly to the consumer whether such 34 food is provided free of charge or sold, and whether consumption occurs 35 on or off the premises or is provided from a pushcart, stand or vehicle. 36 [(c)](k) "Personal vehicle" means a motor vehicle or a limited use 37 motorcycle as defined in section one hundred twenty-one-b of the vehicle 38 and traffic law, that is: 39 (i) used by a delivery network driver to provide delivery services; 40 and 41 (ii) owned, leased, or otherwise authorized for use by the delivery 42 network driver. 43 (l) "Third-party food delivery service" means any [website, mobile 44 application or other internet service] digital network operated by a 45 delivery network company that offers or arranges for the sale (including 46 for same-day pickup) or delivery (including same-day delivery) of 47 products (including food and beverages) prepared by, [and the same-day 48 delivery or same-day pickup of food and beverage from,] a food service 49 establishment located in the state. 50 [(d)] (m) "Third-party food delivery platform" means the online or 51 mobile platform of the third-party food delivery service on which a 52 consumer can view products available for sale and place an order for a 53 food service establishment's products. 54 2. (a) A third-party food delivery service shall not list, advertise, 55 promote, or sell a food service establishment's products, or arrange for 56 the delivery of an order of such products, on a third-party food deliv-
A. 1823 3 1 ery platform without a valid agreement with the food service establish- 2 ment (or an authorized third-party agent or designee) authorizing the 3 inclusion of their products on such platform. 4 (b) An agreement executed in accordance with this section shall not 5 include a provision, clause, or covenant that requires a food service 6 establishment to indemnify a third-party food delivery service, any 7 independent contractor [acting on behalf of the] providing independent 8 delivery services third-party food delivery service, or any registered 9 agent of the third-party food delivery service, for any damages or harm 10 by an act or omission occurring after the food service establishment's 11 product leaves the place of business of the food service establishment. 12 To the extent an agreement contains such a provision, such provision 13 shall be deemed void and unenforceable. 14 (c) A food service establishment included on a third-party food deliv- 15 ery platform in violation of this section shall have the right to bring 16 an action in a court of competent jurisdiction for damages, penalties as 17 set forth in this section, and injunctive relief. Such court, in its 18 discretion, may also award reasonable court costs and attorneys' fees. 19 [(d)] 3. (a) A delivery network company shall ensure that, during the 20 delivery available period, if it applies, and during the delivery 21 service period, primary automobile liability insurance is in place that 22 recognizes that the driver is a delivery network driver or that does not 23 exclude coverage for use of a personal vehicle to provide deliveries. 24 (b) During the delivery service period and delivery available period, 25 the delivery network driver, delivery network company, or any combina- 26 tion of the two shall maintain a motor vehicle liability insurance poli- 27 cy that provides the coverage required under article fifty-three of the 28 insurance law during the delivery available period and delivery service 29 period in amounts not less than: 30 (i) For bodily injury and property damage to third parties: 31 (A) fifty thousand dollars ($50,000) or the amount required under 32 paragraph one of subsection (a) of section five thousand three hundred 33 three of the insurance law, whichever is greater, for all damages aris- 34 ing out of bodily injury sustained by any one person as a result of any 35 one accident; 36 (B) one hundred thousand dollars ($100,000) or the amount required 37 under paragraph one of subsection (a) of section five thousand three 38 hundred three of the insurance law, whichever is greater, for all 39 damages arising out of bodily injury sustained by all persons as a 40 result of any one accident; and 41 (C) twenty-five thousand dollars ($25,000) or the amount required 42 under paragraph two of subsection (a) of section five thousand three 43 hundred three of the insurance law, whichever is greater, for all 44 damages arising out of damage to or destruction of property as a result 45 of any one accident. 46 (ii) For basic reparation benefits, the amount set forth in paragraphs 47 three and four of subsection (a) of section five thousand three hundred 48 three of the insurance law. 49 (c) If the insurance coverage maintained by a delivery network driver 50 in accordance with paragraphs (a) and (b) of this subdivision has lapsed 51 or does not provide the required coverage, insurance maintained by the 52 delivery network company shall: 53 (i) provide the coverage required by paragraphs (a) and (b) of this 54 subdivision beginning with the first dollar of a claim; and 55 (ii) have the duty to defend a claim made under the coverage provided 56 under paragraph (b) of this subdivision.
A. 1823 4 1 (d) Coverage under an automobile insurance policy maintained by the 2 delivery network company shall not be dependent upon another motor vehi- 3 cle liability insurer first denying a claim, nor shall another motor 4 vehicle liability insurance policy be required to first deny a claim. 5 (e) Insurance coverage required by this section may be obtained from 6 an insurance company duly licensed to transact business under the insur- 7 ance laws of this state or by an eligible excess lines broker licensed 8 under section two thousand one hundred five of the insurance law. 9 Insurance coverage required by this section may be obtained through a 10 group policy maintained by the delivery network company. 11 (f) The coverage required pursuant to paragraphs (a) and (b) of this 12 subdivision shall be deemed to meet the requirements for financial 13 responsibility under the vehicle and traffic law. 14 (g) A delivery network driver shall carry proof of insurance required 15 pursuant to paragraphs (a) and (b) of this subdivision at all times 16 while using a personal vehicle in connection with a digital network. In 17 the event of an accident, a delivery network driver shall, upon request, 18 provide insurance coverage information to the directly interested 19 parties, automobile insurers, and investigating law enforcement offi- 20 cers. The insurance coverage information may be displayed or provided 21 in either paper or electronic form as provided by regulation of the 22 commissioner of motor vehicles. A delivery network driver shall, upon 23 request, disclose to the directly interested parties, automobile insur- 24 ers, and investigating law enforcement officers whether the driver was 25 operating during the delivery available period or the delivery service 26 period at the time of the accident. 27 (h) In a claims coverage investigation, a delivery network company or 28 its insurer shall cooperate with all insurers that are involved in the 29 claims coverage investigation to facilitate the exchange of information 30 and shall immediately provide upon request by directly involved parties 31 or any insurer the precise times that a delivery network driver began 32 and ended the delivery available period and/or the delivery service 33 period on the delivery network company's digital network in the twelve- 34 hour period immediately preceding the accident and in the twelve-hour 35 period immediately following the accident. Insurers potentially provid- 36 ing the coverage required by this subdivision shall disclose upon 37 request by any other such insurer involved in the particular claim, the 38 applicable coverages, exclusions, and limits provided under any automo- 39 bile insurance maintained in order to satisfy the requirements of this 40 subdivision. 41 (i) The insurer or insurers of a delivery network company providing 42 coverage under paragraphs (a) and (b) of this subdivision shall assume 43 primary liability for a claim when a dispute exists as to when the 44 delivery available period and/or the delivery service period began or 45 ended and the delivery network company does not have available, did not 46 retain, or fails to provide the information required by paragraph (h) of 47 this subdivision. 48 (j) A delivery network company shall also maintain commercial general 49 liability insurance with a limit of no less than one million dollars for 50 each occurrence and two million dollars aggregate that includes coverage 51 for the delivery network company's liability for injuries arising out of 52 the use of an electric scooter, as defined in section one hundred four- 53 teen-e of the vehicle and traffic law, or bicycle with electric assist, 54 as defined in section one hundred two-c of the vehicle and traffic law. 55 4. (a) A delivery network company shall not be deemed to control, 56 direct, or manage a personal vehicle or delivery network driver that
A. 1823 5 1 connects to the company's digital network, except where agreed to by 2 written contract. 3 (b) A delivery network company shall not permit a delivery network 4 driver to engage in delivery services on the company's digital network 5 until the company discloses in writing to the driver: 6 (i) the insurance coverage, including the types of coverage and the 7 limits for each coverage, that the company provides while the driver 8 uses a personal vehicle in connection with the company's digital 9 network; and 10 (ii) that the driver's own motor vehicle liability insurance policy 11 might not provide any coverage during a delivery available period, if 12 applicable, or a delivery service period. 13 (c) A delivery network company has no disclosure obligation to any 14 person which is not expressly mandated by this subdivision. 15 5. (a) Nothing in subdivision three or four of this section shall be 16 construed to: 17 (i) invalidate or limit an exclusion contained in a motor vehicle 18 liability insurance policy, including any policy in use or approved for 19 use that excludes coverage for motor vehicles used for delivery, or for 20 any business use; or 21 (ii) invalidate, limit, or restrict an insurer's ability under exist- 22 ing law to underwrite any insurance policy, or cancel and/or non-renew 23 policies. 24 (b) Nothing in subdivision three or four of this section limits the 25 scope of federal or state law regarding the delivery or transport of 26 goods. Deliveries made pursuant to this section that are subject to 27 federal or state law regarding the delivery or transport of goods shall 28 also comply with the requirements of those laws. In the event of a 29 conflict between subdivision three or four of this section and another 30 law dealing with the delivery or transport of goods, the other law 31 prevails. 32 6. (a) Any person that knowingly violates [any provision] subdivision 33 two of this section shall be subject to a civil penalty of up to one 34 thousand dollars per violation. Each day [a] that each food service 35 establishment is included on a third-party food delivery platform [and 36 each food service establishment included on a third-party food delivery 37 platform] shall be considered a separate violation. 38 (b) The third-party delivery service that violates subdivision three 39 of this section shall be subject to a civil penalty of up to one thou- 40 sand dollars per violation. Each delivery begun or completed without 41 the financial responsibility requirements required by subdivision three 42 of this section shall be considered a separate violation. 43 § 2. The insurance law is amended by adding a new section 3459-a to 44 read as follows: 45 § 3459-a. Delivery service exclusions for motor vehicle insurance 46 policies. (a) The definitions set forth in section three hundred nine- 47 ty-one-v of the general business law shall apply to this section. 48 (b) Notwithstanding any other provision of law to the contrary, an 49 authorized insurer that writes motor vehicle liability insurance in the 50 state may exclude any and all coverage and the duty to defend or indem- 51 nify for any injury or loss that occurs during the delivery available 52 period and the delivery service period, including but not limited to: 53 (1) liability coverage for bodily injury and property damage; 54 (2) coverage provided pursuant to article fifty-one of this chapter; 55 (3) uninsured motorist coverage; 56 (4) supplementary uninsured/underinsured motorist coverage; and
A. 1823 6 1 (5) motor vehicle physical damage coverage as described in paragraph 2 nineteen of subsection (a) of section one thousand one hundred thirteen 3 of this chapter. 4 (c) Nothing in this article shall invalidate or limit an exclusion 5 contained in a motor vehicle insurance policy, including any insurance 6 policy in use or approved for use that shall exclude coverage for motor 7 vehicles made available for rent, sharing, hire or any business use. 8 (d) Nothing in this section invalidates or limits an exclusion 9 contained in a motor vehicle liability insurance policy, including any 10 insurance policy in use or approved for use that excludes coverage for 11 motor vehicles used for delivery or for any business use. 12 (e) Nothing in this section invalidates, limits or restricts an insur- 13 er's ability under existing law to underwrite any insurance policy. 14 Nothing in this section invalidates, limits or restricts an insurer's 15 ability under existing law to cancel and non-renew policies. 16 (f) A motor vehicle liability insurer that defends or indemnifies a 17 claim against a delivery network driver that is excluded under the terms 18 of its policy shall have the right to seek recovery against the insurer 19 providing coverage under paragraphs (a) and (b) of subdivision three of 20 section three hundred ninety-one-v of the general business law if the 21 claim: 22 (i) occurs during the delivery available period or the delivery 23 service period; and 24 (ii) is excluded under the terms of its policy. 25 § 3. Section 3455 of the insurance law, as added by section 6 of part 26 AAA of chapter 59 of the laws of 2017, is amended to read as follows: 27 § 3455. Transportation network company group insurance policies. (a) 28 For purposes of this section, the following definitions shall apply: 29 (1) "Transportation network company" shall have the same meaning as 30 set forth in article forty-four-B of the vehicle and traffic law. 31 (2) "Certificate" or "certificate of insurance" means any policy, 32 contract or other evidence of insurance, or endorsement thereto, issued 33 to a group member under a transportation network company group policy or 34 a delivery network company group policy. 35 (3) "Transportation network company group policy" or "group policy" 36 means a group policy, including certificates issued to the group 37 members, where the group policyholder is a transportation network compa- 38 ny and the policy provides insurance to the transportation network 39 company and to group members: 40 (A) in accordance with the requirements of article forty-four-B of the 41 vehicle and traffic law; 42 (B) of the type described in paragraph thirteen, fourteen, or nineteen 43 of subsection (a) of section one thousand one hundred thirteen of this 44 chapter; and 45 (C) in satisfaction of the financial responsibility requirements set 46 forth in section three thousand four hundred twenty of this article, 47 subdivision four of section three hundred eleven of the vehicle and 48 traffic law, article fifty-one of this chapter, and such other require- 49 ments or regulations that may apply for the purposes of satisfying the 50 financial responsibility requirements with respect to the use or opera- 51 tion of a motor vehicle. 52 (4) "Group member" means a transportation network company driver as 53 defined in article forty-four-B of the vehicle and traffic law, and/or a 54 delivery network driver as defined in section three hundred ninety-one-v 55 of the general business law.
A. 1823 7 1 (5) "Group policyholder" means a transportation network company 2 and/or a delivery network company. 3 (6) "TNC vehicle" shall have the meaning set forth in article forty- 4 four-B of the vehicle and traffic law. 5 (7) "Delivery network company" shall have the same meaning as set 6 forth in section three hundred ninety-one-v of the general business law. 7 (8) "Delivery network company group policy" means a group policy, 8 including certificates issued to the group members, where the group 9 policyholder is a delivery network company and the policy provides 10 insurance to the delivery network company and to group members: 11 (A) in accordance with the requirements of section three hundred nine- 12 ty-one-v of the general business law; 13 (B) of the type described in paragraph thirteen, fourteen, or nineteen 14 of subsection (a) of section one thousand one hundred thirteen of this 15 chapter; and 16 (C) in satisfaction of the financial responsibility requirements set 17 forth in section three thousand four hundred twenty of this article, 18 subdivision four of section three hundred eleven of the vehicle and 19 traffic law, article fifty-one of this chapter, and such other require- 20 ments or regulations that may apply for the purposes of satisfying the 21 financial responsibility requirements with respect to the use or opera- 22 tion of a motor vehicle. 23 (9) "Personal vehicle" shall have the meaning set forth in section 24 three hundred ninety-one-v of the general business law. 25 (10) "Group policy" means a transportation network company group poli- 26 cy and/or a delivery network company group policy. 27 (b) An insurer may issue or issue for delivery in this state a trans- 28 portation network company group policy to a transportation network 29 company, or a delivery network company group policy to a delivery 30 network company, as a group policyholder only in accordance with the 31 provisions of this section. 32 (c)(1) A transportation network company group policy shall provide 33 coverage for a TNC vehicle in accordance with the requirements of arti- 34 cle forty-four-B of the vehicle and traffic law. 35 (2) A transportation network company group policy may provide: 36 (A) coverage for limits higher than the minimum limits required pursu- 37 ant to article forty-four-B of the vehicle and traffic law. 38 (B) supplementary uninsured/underinsured motorists insurance for bodi- 39 ly injury pursuant to paragraph two of subsection (f) of section three 40 thousand four hundred twenty of this article; 41 (C) supplemental spousal liability insurance pursuant to subsection 42 (g) of section three thousand four hundred twenty of this [chapter] 43 article; and 44 (D) motor vehicle physical damage coverage as described in paragraph 45 nineteen of subsection (a) of section one thousand one hundred thirteen 46 of this chapter. 47 (3) A delivery network company group policy shall provide coverage for 48 a personal vehicle in accordance with the requirements of section three 49 hundred ninety-one-v of the general business law. 50 (4) A delivery network company group policy may provide: 51 (A) coverage for limits higher than the minimum limits required pursu- 52 ant to section three hundred ninety-one-v of the general business law. 53 (B) supplementary uninsured/underinsured motorists insurance for bodi- 54 ly injury pursuant to paragraph two of subsection (f) of section three 55 thousand four hundred twenty of this article;
A. 1823 8 1 (C) supplemental spousal liability insurance pursuant to subsection 2 (g) of section three thousand four hundred twenty of this article; and 3 (D) motor vehicle physical damage coverage as described in paragraph 4 nineteen of subsection (a) of section one thousand one hundred thirteen 5 of this chapter. 6 (5) The coverage described in paragraphs one [and two] through four of 7 this subsection may be provided in one group policy or in separate group 8 policies. 9 [(4)] (6) A transportation network company group policy, including 10 certificates, or a delivery network company group policy, including 11 certificates, shall be issued by authorized insurers or from excess line 12 brokers pursuant to section sixteen [six] hundred ninety-three of the 13 vehicle and traffic law. 14 [(5)] (7) A policyholder also may be an insured under a group policy. 15 (d) The premium for the transportation network company group policy or 16 the delivery network company group policy, including certificates may be 17 paid by the group policyholder from the funds contributed: 18 (1) wholly by the group policyholder; 19 (2) wholly by the group members; or 20 (3) jointly by the group policyholder and the group members. 21 (e) (1) Any policy dividend, retrospective premium credit, or retro- 22 spective premium refund in respect of premiums paid by the group policy- 23 holder may: 24 (A) be applied to reduce the premium contribution of the group policy- 25 holder, but not in excess of the proportion to its contribution; or 26 (B) be retained by the group policyholder. 27 (2) Any policy dividend, retrospective premium credit, or retrospec- 28 tive premium refund not distributed under paragraph one of this 29 subsection shall be: 30 (A) applied to reduce future premiums and, accordingly, future 31 contributions, of existing or future group members, or both; or 32 (B) paid or refunded to those group members insured on the date the 33 payment or refund is made to the group policyholder, if distributed by 34 the group policyholder, or on the date of mailing, if distributed 35 directly by the insurer, subject to the following requirements: 36 (i) The insurer shall be responsible for determining the allocation of 37 the payment of refund to the group members; 38 (ii) If the group policyholder distributes the payment or refund, the 39 insurer shall be responsible for audit to ascertain that the payment or 40 refund is actually made in accordance with the allocation procedure; and 41 (iii) If the group policyholder fails to make the payment or refund, 42 the insurer shall make the payment or refund directly or use the method 43 provided in subparagraph (A) of this paragraph. 44 (3) Notwithstanding paragraphs one and two of this subsection, if a 45 dividend accrues upon termination of coverage under a transportation 46 network company group policy or delivery network company group policy, 47 the premium for which was paid out of funds contributed by group members 48 specifically for the coverage, the dividend shall be paid or refunded by 49 the group policyholder to the group members insured on the date the 50 payment or refund is made to the group policyholder, net of reasonable 51 expenses incurred by the group policyholder in paying or refunding the 52 dividend to such group members. 53 (4) For the purposes of this subsection, "dividend" means a return by 54 the insurer of a transportation network company group policy or delivery 55 network company group policy of excess premiums to the group policyhold- 56 er in light of favorable loss experience, including retrospective premi-
A. 1823 9 1 um credits or retrospective premium refunds. The term "dividend" does 2 not include reimbursements or fees received by a group policyholder in 3 connection with the operation or administration of a transportation 4 network company group policy or delivery network company group policy, 5 including administrative reimbursements, fees for services provided by 6 the group policyholder, or transactional service fees. 7 (f) The insurer shall treat in like manner all eligible group members 8 of the same class and status. 9 (g) Each policy written pursuant to this section shall provide per 10 occurrence limits of coverage for each group member in an amount not 11 less than that required by this article, and may provide coverage for 12 limits higher than the minimum limits required under the law. 13 (h) (1) The insurer shall be responsible for mailing or delivery of a 14 certificate of insurance to each group member insured under the trans- 15 portation network company group policy or delivery network company group 16 policy, provided, however, that the insurer may delegate the mailing or 17 delivery to the transportation network company or delivery network 18 company. The insurer shall also be responsible for the mailing or 19 delivery to each group member of an amended certificate of insurance or 20 endorsement to the certificate, whenever there is a change in limits; 21 change in type of coverage; addition, reduction, or elimination of 22 coverage; or addition of exclusion, under the transportation network 23 company group policy or certificate or the delivery network company 24 group policy or certificate. 25 (2) The certificate shall contain in substance all material terms and 26 conditions of coverage afforded to group members, unless the transporta- 27 tion network company group policy or delivery network company group 28 policy is incorporated by reference and a copy of the group policy 29 accompanies the certificate. 30 (3) If any coverage afforded to the group member is excess of applica- 31 ble insurance coverage, the certificate shall contain a notice advising 32 the group members that, if the member has other insurance coverage, 33 specified coverages under the transportation network company group poli- 34 cy or delivery network company group policy will be excess over the 35 other insurance. 36 (i) A group policyholder shall comply with the provisions of section 37 two thousand one hundred twenty-two of this chapter, in the same manner 38 as an agent or broker, in any advertisement, sign, pamphlet, circular, 39 card, or other public announcement referring to coverage under a trans- 40 portation network company group policy or certificate or delivery 41 network company group policy or certificate. 42 (j) A transportation network company group policy or delivery network 43 company group policy shall not be subject to section three thousand four 44 hundred twenty-five or section three thousand four hundred twenty-six of 45 this article; provided that the following requirements shall apply with 46 regard to termination of coverage: 47 (1)(A) An insurer may terminate a group policy or certificate only if 48 cancellation is based on one or more of the reasons set forth in subpar- 49 agraph (A) through (D) or (F) through (H) of paragraph one of subsection 50 (c) of section three thousand four hundred twenty-six of this article; 51 provided, however, that an act or omission by a group member that would 52 constitute the basis for cancellation of an individual certificate shall 53 not constitute the basis for cancellation of the group policy. 54 (B) Where the premium is derived wholly from funds contributed by the 55 group policyholder, an insurer may cancel an individual certificate only 56 if cancellation is based on one or more of the reasons set forth in
A. 1823 10 1 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of 2 section three thousand four hundred twenty-six of this article. 3 (2) (A) An insurer's cancellation of a group policy, including all 4 certificates, shall not become effective until thirty days after the 5 insurer mails or delivers written notice of cancellation to the group 6 policyholder at the mailing address shown in the policy. 7 (i) Where all or part of the premium is derived from funds contributed 8 by the group member specifically for the coverage, the insurer shall 9 also mail or deliver written notice of cancellation of the group policy 10 to the group member at the group member's mailing address. Such cancel- 11 lation shall not become effective until thirty days after the insurer 12 mails or delivers the written notice to the group member. 13 (ii) Where none of the premium is derived from funds contributed by a 14 group member specifically for the coverage, the group policy holder 15 shall mail or deliver written notice to the group member advising the 16 group member of the cancellation of the group policy and the effective 17 date of cancellation. The group policy holder shall mail or deliver the 18 written notice within ninety days after receiving notice of cancellation 19 from the insurer. 20 (B) An insurer's cancellation of an individual certificate shall not 21 become effective until thirty days after the insurer mails or delivers 22 written notice of cancellation to the group member at the group member's 23 mailing address and to the group policyholder at the mailing address 24 shown in the group policy. 25 (3) (A) A group policyholder may cancel a group policy, including all 26 certificates, or any individual certificate, for any reason upon thirty 27 days written notice to the insurer and each group member; and 28 (B) The group policyholder shall mail or deliver written notice to 29 each affected group member of the group policyholder's cancellation of 30 the group policy or certificate and the effective date of cancellation. 31 The group policyholder shall mail or deliver the written notice to the 32 group member's mailing address at least thirty days prior to the effec- 33 tive date of cancellation. 34 (4) (A) Unless a group policy provides for a longer policy period, the 35 policy and all certificates shall be issued or renewed for a one-year 36 policy period. 37 (B) The group policyholder shall be entitled to renew the group policy 38 and all certificates upon timely payment of the premium billed to the 39 group policyholder for the renewal, unless: 40 (i) the insurer mails or delivers to the group policyholder and all 41 group members written notice of nonrenewal, or conditional renewal; and 42 (ii) the insurer mails or delivers the written notice at least thirty, 43 but not more than one hundred twenty days prior to the expiration date 44 specified in the policy or, if no date is specified, the next anniver- 45 sary date of the policy. 46 (5) Where the group policyholder nonrenews the group policy, the group 47 policyholder shall mail or deliver written notice to each group member 48 advising the group member of nonrenewal of the group policy and the 49 effective date of nonrenewal. The group policyholder shall mail or 50 deliver written notice at least thirty days prior to the nonrenewal. 51 (6) Every notice of cancellation, nonrenewal, or conditional renewal 52 shall set forth the specific reason or reasons for cancellation, nonre- 53 newal, or conditional renewal. 54 (7) (A) An insurer shall not be required under this subsection to give 55 notice to a group member if the insurer has been advised by either the
A. 1823 11 1 group policyholder or another insurer that substantially similar cover- 2 age has been obtained from the other insurer without lapse of coverage. 3 (B) A group policyholder shall not be required under this subsection 4 to give notice to a group member if substantially similar coverage has 5 been obtained from another insurer without lapse of coverage. 6 (8) (A) If, prior to the effective date of cancellation, nonrenewal, 7 or conditional renewal of the group policy, or a certificate, whether 8 initiated by the insurer, group policyholder or by the group member in 9 regard to the group member's certificate, coverage attaches pursuant to 10 the terms of a group policy, then the coverage shall be effective until 11 expiration of the applicable period of coverage provided in the group 12 policy notwithstanding the cancellation, nonrenewal or conditional 13 nonrenewal of the group policy. 14 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may 15 terminate coverage under an individual certificate on the effective date 16 of cancellation, if the certificate is cancelled in accordance with the 17 provisions of subparagraph (B) of paragraph one of this subsection. 18 (k) Any mailing or delivery to a group member required or permitted 19 under this section may be made by electronic mail if consent to such 20 method of delivery has been previously received from such group member. 21 (l) (1) An insurer may issue a transportation network company group 22 policy to a transportation network company, notwithstanding that it may 23 be a condition of operating a vehicle on the transportation network 24 company's digital network for the TNC driver to participate in such 25 group policy. 26 (2) An insurer may issue a delivery network company group policy to a 27 delivery network company, notwithstanding that it may be a condition of 28 operating a vehicle on the delivery network company's digital network 29 for the delivery network driver to participate in such group policy. 30 (m) An insurer shall not include a mandatory arbitration clause in a 31 policy that provides financial responsibility coverage under this 32 section except as permitted in section five thousand one hundred five of 33 [the insurance law] this chapter. 34 § 4. This act shall take effect one year after it shall have become a 35 law.