Bill Text: NY S01700 | 2009-2010 | General Assembly | Amended
Bill Title: Prohibits insurers from imposing a surcharge for accidents where the property damage does not exceed two thousand dollars and where no physical injury resulted.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-07-30 - SIGNED CHAP.277 [S01700 Detail]
Download: New_York-2009-S01700-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1700--B
Cal. No. 746
2009-2010 Regular Sessions
I N S E N A T E
February 5, 2009
___________
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance -- recommitted
to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
-- reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading -- again amended and
ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the insurance law, in relation to prohibiting surcharges
for certain automobile accidents
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 2335 of the insurance law, subsection (c) as added
2 by chapter 747 of the laws of 1990 and as relettered by chapter 152 of
3 the laws of 1998, is amended to read as follows:
4 S 2335. Motor vehicle liability insurance rates; prohibition of
5 surcharges for certain ACCIDENTS AND traffic infractions. No insurer
6 authorized to transact or transacting business in this state, or
7 controlling or controlled by or under common control by or with an
8 insurer authorized to transact or transacting business in this state,
9 which sells a policy providing motor vehicle liability insurance cover-
10 age in this state shall increase the policy premium in connection with
11 the insurance permitted or required by this chapter solely because the
12 insured or any other person who customarily operates an automobile
13 covered by the policy:
14 (a) HAS HAD AN ACCIDENT THAT DOES NOT RESULT IN AGGREGATE DAMAGE TO
15 PROPERTY IN EXCESS OF TWO THOUSAND DOLLARS, PROVIDED THAT ANY POLICY
16 SURCHARGE SHALL BE PERMISSIBLE FOR ANY ACCIDENT WHICH RESULTS IN BODILY
17 INJURY OR IF THE INSURED HAS MORE THAN ONE ACCIDENT IN THE MERIT RATING
18 EXPERIENCE PERIOD. NOTHING IN THIS SUBSECTION SHALL CHANGE THE DOLLAR
19 AMOUNT OF THE ACCIDENT REPORTING THRESHOLD REQUIRED UNDER PARAGRAPH ONE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04195-09-0
S. 1700--B 2
1 OF SUBDIVISION (A) OF SECTION SIX HUNDRED FIVE OF THE VEHICLE AND TRAF-
2 FIC LAW.
3 (B) has been found guilty of a traffic infraction under any of the
4 provisions of the vehicle and traffic law provided, however, that this
5 provision shall not apply to a conviction for a violation which occurred
6 during the thirty-six month period ending on the last day of the fourth
7 month preceding the month of the effective date of the policy if such
8 conviction consisted of:
9 (1) operating a motor vehicle at a speed of more than fifteen miles
10 per hour in excess of the legal limit;
11 (2) operating a motor vehicle in excess of the speed limit, or in a
12 reckless manner, where injury or death results therefrom;
13 (3) operating a motor vehicle in excess of the speed limit, or reck-
14 less driving, or any combination thereof, on three or more occasions;
15 (4) operating a motor vehicle while intoxicated or impaired by the
16 consumption of alcohol;
17 (5) operating a motor vehicle while impaired by the use of a drug,
18 within the meaning of section one thousand one hundred ninety-two of the
19 vehicle and traffic law;
20 (6) homicide or assault arising out of the use or operation of a motor
21 vehicle, or criminal negligence in the use or operation of a motor vehi-
22 cle resulting in the injury or death of another person, or use or opera-
23 tion of a motor vehicle directly or indirectly in the commission of a
24 felony;
25 (7) operating a motor vehicle while seeking to avoid apprehension or
26 arrest by a law enforcement officer;
27 (8) filing or attempting to file a false or fraudulent automobile
28 insurance claim, or knowingly aiding or abetting in the filing or
29 attempted filing of any such claim;
30 (9) leaving the scene of an incident without reporting;
31 (10) filing a false document with the department of motor vehicles, or
32 using a license or registration obtained by filing a false document with
33 the department of motor vehicles;
34 (11) operating a motor vehicle in a race or speed test;
35 (12) knowingly permitting or authorizing an unlicensed driver to oper-
36 ate a motor vehicle insured under the policy;
37 (13) operating a motor vehicle insured under the policy without a
38 valid license or registration in effect, except when the person
39 convicted had possessed a valid license or registration which had
40 expired and was subsequently renewed, or during a period of revocation
41 or suspension thereof, or in violation of the limitations applicable to
42 a license issued pursuant to article twenty-one or article twenty-one-a
43 of the vehicle and traffic law; or
44 (14) two or more moving violations of any other provision of the vehi-
45 cle and traffic law;
46 [(b)] (C) has had a temporary suspension of a driver's license pending
47 a hearing, prosecution or investigation or an indefinite suspension of a
48 driver's license which is issued because of the failure of the person
49 suspended to perform an act, which suspension will be terminated by the
50 performance of the act by the person suspended, or has had more than one
51 such temporary or indefinite suspension arising out of the same incident
52 issued against him or her, provided that the foregoing provisions of
53 this section shall not apply if such suspension or suspensions has or
54 have not been terminated on or before the effective date of the policy;
55 or
S. 1700--B 3
1 [(c)] (D) with respect to a non-commercial private passenger automo-
2 bile insurance policy, has had an accident while operating a commercial
3 vehicle in the course of employment and in the discharge of the employ-
4 ee's duties at the time of the accident, unless the accident is deter-
5 mined to have been caused by the intentional action or gross negligence
6 of the insured.
7 S 2. This act shall take effect on the one hundred twentieth day after
8 it shall have become a law provided that the amendments to section 2335
9 of the insurance law made by section one of this act shall expire on the
10 same date as such section expires; and provided, further, that this act
11 shall only apply to policies entered into, modified, or renewed on or
12 after such effective date.
