What's happening
This bill establishes a for-hire motor vehicle safety program and requires insurance premium reductions for operators completing certified safety training.
Why it matters
Promotes safer roads by incentivizing for-hire vehicle operators (like shuttle or van services) to complete comprehensive safety training. , covering topics such as collision prevention, impairment, passenger safety, and hazardous weather driving—potentially reducing accidents involving larger passenger vehicles.
Establishes a standardized, certified safety curriculum for for-hire motor vehicle operators. , which could lead to more consistent safety practices across the industry and set a benchmark for driver education in this sector.
Creates a direct financial benefit (insurance premium reductions) tied to actual safety training completion. , encouraging operators and companies to invest in ongoing driver education and potentially lowering operational costs for compliant businesses.
Empowers industry associations to develop and certify these training programs, subject to state approval. , which may foster industry-led innovation in safety while ensuring state oversight and enforcement to maintain program quality.
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Who cares
For-hire vehicle operators and owners
Insureds completing an authorized safety course could receive an actuarially appropriate commercial insurance premium reduction for three years for vehicles seating at least eight passengers.
For-hire transportation trade associations
Qualifying associations could create safety training programs and would issue certificates to members who successfully complete them.
Commercial motor vehicle insurers
Authorized insurers would have to provide the three-year premium reduction when an insured submits a certificate showing completion of an authorized course.
State insurance superintendent
The superintendent would evaluate and approve safety programs within 60 days of the bill’s effective date and provide for actuarially appropriate premium reductions.
Headline styles
Lower Insurance for Safer Drivers
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
1 Co-sponsor
History
- Substituted by A9763A
- Ordered to third reading cal.832
- Reported and committed to rules
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Lower Insurance for Safer Drivers
Signed by Governor · Sponsor Alicia Hyndman
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7881
IN SENATE
February 28, 2020
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to establishing the forhire motor vehicle safety program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 2353 to read as follows:
§ 2353. For-hire motor vehicle safety program; reduction in rates of certain commercial risk insurance premiums for motor vehicles. (a) For the purposes of this section, an association shall mean an association where all the eligible members of the association have the same profession, trade, or occupation, and the association has been organized and maintained in good faith for purposes principally other than that of obtaining insurance, and has been in active existence for at least two years.
(b) An association representing motor vehicles engaged in the business of carrying or transporting passengers for-hire, having a seating capacity of not less than eight passengers, shall be authorized to create and implement a comprehensive educational program designed to advance forhire motor vehicle safety, which provides for the training of all operators in the safe operation of for-hire motor vehicles, education about safety equipment that can enhance the safe operation of vehicles, and training related to passenger safety. Such program shall include, but not be limited to, instruction which addresses the following subject areas:
(1) the concept of collision prevention, including a discussion of the factors involved in traffic situations;
(2) alcohol and drug use as a contributing factor in motor vehicle collisions;
(3) accident prevention techniques;
(4) the use of occupant restraints;
(5) the risk factors involved in driver attitude and behavior such as speeding, reckless and aggressive driving, and improper lane use;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15096-06-0
S. 7881 2
(6) traffic laws in New York state;
(7) physical and mental condition of drivers;
(8) conditions and strategies of driving;
(9) safe driving techniques in hazardous weather conditions including rain, wind, snow, ice, sleet and fog;
(10) equipment that can enhance the safe operation of vehicles; and
(11) passenger safety including but not limited to recommending the use of seat belts to passengers, warning passengers to exercise care when boarding and exiting a vehicle and notifying passengers of emergency exits if applicable.
(c) The association described in subsection (b) of this section shall provide a certificate to members of such association who successfully complete a course of instruction on for-hire vehicle safety as authorized pursuant to this section.
(d) The superintendent shall provide for an actuarially appropriate reduction for a period of three years in the rates of premiums for commercial risk insurance applicable to motor vehicles engaged in the business of carrying or transporting passengers for-hire, having a seating capacity of not less than eight passengers, for each triennial completion of a course of instruction on for-hire motor vehicle safety as authorized pursuant to this section. The superintendent shall evaluate and approve any for-hire vehicle safety program created pursuant to this section within sixty days of the effective date of this section.
(e) An authorized insurer shall, upon submission of a certificate by an insured evidencing that such insured has completed a course of instruction on for-hire motor vehicle safety as authorized pursuant to this section, provide an actuarially appropriate reduction, for a period of three years, of the premium for such insured's commercial risk insurance applicable to motor vehicles engaged in the business of carrying or transporting passengers for-hire, having a seating capacity of not less than eight passengers.
(f) The superintendent may promulgate any rules and regulations necessary to implement the provisions of this section.
§ 2. This act shall take effect immediately and shall apply to all policies issued, renewed, modified, altered or amended on or after the sixtieth day following the effective date of this act.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to establishing the for- hire motor vehicle safety program
Purpose or general idea of bill
To permit associations representing for-hire motor vehicles to establish and implement comprehensive educational programs to promote for-hire motor vehicle safety.
Summary of provisions
Section one of the bill would add a new section 2353 to the Insurance Law authorizing associations representing motor vehicles engaged in the business of transporting passengers for-hire, having a seating capacity of not less than eight passengers, to create and implement comprehensive educational programs which provide for the training of all operators in the safe operation of for-hire motor vehicles, and education about safe- ty equipment that can enhance the safe operation of vehicles and train- ing related to passenger safety. Such safety training program would be required to be evaluated and approved by the Superintendent of the Department of Financial Services. Section one would also require associ- ations to issue certificates of completion to members who successfully complete the course, and would require the Department of Financial Services and insurers to provide for an actuarially appropriate reduction for a period of three years in the rates of premiums for commercial risk insurance applicable to for-hire motor vehicles for the completion of a course on for-hire vehicle safety by an insured.
Section two of the bill provides the effective date.
Justification
Section 370 of the Vehicle and Traffic Law requires minimum liability coverages for for-hire vehicles based on carrying capacity. Part III of Chapter 59 of the Laws of 2019 increased the liability coverage required for for-hire vehicles with a capacity of eight or more persons to a minimum of $1.5 million. This has resulted in increases in the rates of premiums for this coverage.
In order to make this coverage more affordable, this bill would author- ize associations representing for-hire vehicles with a capacity of eight or more persons to create comprehensive vehicle safety programs and would require insurers to provide actuarially appropriate premium reductions to insureds that successfully complete these safety programs. This bill would also provide standards for the subject areas which these programs must address.
Prior legislative history
New.
Fiscal implications for state and local governments
None.
Effective date
Immediately and shall apply to all policies issued, renewed, modified, altered or amended the sixtieth day following the effective date of this act.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.