2006 New York Code - 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.
    * NB Effective until June 30, 2007
    * 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 such notice
  of termination for any such 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  that
  failure to maintain such proof of financial security requires revocation
  of  the  registration  of  the  motor  vehicle,  unless the registration
  certificate and number plates of such vehicle have been  surrendered  to
  the  commissioner  prior  to  the  time at which the termination becomes
  effective.
    (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.
    * NB Effective June 30, 2007
    * 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 June 30, 2007
    * 2.  Upon  the termination of insurance by cancellation or failure to
  renew, notice of such cancellation or other termination shall  be  filed
  by  the  insurer  with  the  commissioner  not  later  than  thirty days
  following the effective date of such cancellation or other  termination.
  However,  no  insurer shall be required to file a notice of cancellation
  or other termination under this paragraph where  the  insurer  has  been
  advised  by  the commissioner that such insurance has been superseded by
  another insurance contract which took effect at or prior to the time  at
  which  the  termination  became  effective,  or  where  the  insured has
  surrendered his  registration  certificate  and  number  plates  to  the
  commissioner  and  has  delivered  to  the  insurer a copy of the notice
  indicating surrender at or prior to the time at  which  the  termination
  became effective.
    * NB Effective June 30, 2007
    * 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 June 30, 2007
    * 3.  The  provisions  of  this  section  which require that notice of
  termination of insurance be given the department shall not apply  during
  any  period  in which the commissioner has exercised the authority given
  him in subdivision five of section three hundred twelve of this chapter.
  The commissioner may, during such  period,  in  lieu  of  the  statement
  required  by  subdivision  one,  prescribe  the  form  and  content of a
  statement concerning the provisions of this act to be contained  in  all
  notices  of termination, and may further specify the form and content of
  an appropriate notice to be included  on  the  envelope  in  which  such
  notice of termination is mailed.
    * NB Effective June 30, 2007
    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 insurance 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.