Prohibits insurers from refusing to renew a policy on certain automobiles used for volunteer social service transportation; distinguishes automobiles used for volunteer social service transportation from transportation company network vehicles and livery vehicles.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5710
SPONSOR: Solages TITLE OF BILL:
An act to amend the insurance law, in relation to prohibiting insurers
from refusing to renew a policy on certain automobiles used for volun-
teer social service transportation; and to amend the vehicle and traffic
law, in relation to distinguishing automobiles used for volunteer social
service transportation from transportation company network vehicles and
livery vehicles
PURPOSE:
To encourage volunteerism in transportation by explicitly prohibiting
insurance companies from denying or canceling insurance, imposing a
surcharge, or increasing rates solely on the basis of serving as a
volunteer driver.
SUMMARY:
Section 1. Amends subsection (s) of section 3425 of the insurance law.
Section 2. Amends paragraphs (vii) and (viii) of subdivision 1 of
section 1691 of the vehicle and traffic law.
Section 3. Amends section 121-e of the vehicle and traffic law.
Section 4. Sets the effective date.
JUSTIFICATION:
Access to transportation is vital to individuals living with mobility
impairments. These individuals rely on affordable volunteer-provided
transportation for several reasons such as grocery shopping and visits
to doctors appointments, pharmacies, and loved ones. Volunteer drivers,
however, often face difficulties when obtaining personal auto insurance.
Many volunteer drivers fear premium increases, claim denial, or even
insurance cancellation. Additionally, insurance companies may find it
difficult to distinguish volunteer drivers from for-profit drivers and
categorize them with larger, ride-hailing services such as Uber and
Lyft.
The need for volunteer drivers is increasing and the uncertainty over
auto insurance can disincentivize volunteer-provided transportation
programs. This bill prohibits insurance companies from denying or
canceling insurance, imposing a surcharge, or increasing rates solely on
the basis of serving as a volunteer driver, encouraging individuals
interested in providing volunteer driving services. This bill would also
differentiate between volunteer social service transportation and trans-
portation network companies and livery transportation, such as Uber and
Lyft.
RACIAL JUSTICE IMPACT:
TBD.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2023-24: A9365; referred to insurance.
2021-22: A9525; referred to insurance.
FISCAL IMPLICATIONS:
TBD.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law; provided that the provisions of section one of this act
shall apply to insurance policies issued or delivered on and after such
effective date.
STATE OF NEW YORK
________________________________________________________________________
5710
2025-2026 Regular Sessions
IN ASSEMBLY
February 20, 2025
___________
Introduced by M. of A. SOLAGES, SEPTIMO -- read once and referred to the
Committee on Insurance
AN ACT to amend the insurance law, in relation to prohibiting insurers
from refusing to renew a policy on certain automobiles used for volun-
teer social service transportation; and to amend the vehicle and traf-
fic law, in relation to distinguishing automobiles used for volunteer
social service transportation from transportation company network
vehicles and livery vehicles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (s) of section 3425 of the insurance law, as
2 added by chapter 408 of the laws of 2011, is amended to read as follows:
3 (s) With respect to automobile insurance[,]:
4 (1) no insurer shall refuse to issue or renew a covered individually-
5 owned private passenger policy solely on the [ground] grounds that the
6 motor vehicle to be insured under such policy shall be used for volun-
7 teer firefighting or for performing volunteer services for a nonprofit
8 charitable organization or governmental agency consisting of providing
9 social service transportation; and
10 (2) no insurer may impose a surcharge or increase premiums with
11 respect to a covered individually-owned private passenger policy solely
12 on the grounds that the motor vehicle to be insured under such policy
13 shall be used for performing volunteer services for a nonprofit charita-
14 ble organization or governmental agency consisting of providing social
15 service transportation.
16 § 2. Subparagraphs (vii) and (viii) of paragraph (c) of subdivision 1
17 of section 1691 of the vehicle and traffic law, as added by section 2 of
18 part AAA of chapter 59 of the laws of 2017, are amended to read as
19 follows:
20 (vii) any motor vehicle having a seating capacity of more than seven
21 passengers; [and]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09933-01-5
A. 5710 2
1 (viii) any motor vehicle subject to section three hundred seventy of
2 this chapter; and
3 (ix) any individually-owned private passenger motor vehicle used for
4 performing volunteer services for a nonprofit charitable organization or
5 governmental agency consisting of providing social service transporta-
6 tion.
7 § 3. Section 121-e of the vehicle and traffic law, as added by chapter
8 15 of the laws of 1983, is amended to read as follows:
9 § 121-e. Livery. Every motor vehicle, other than a taxicab or a bus,
10 used in the business of transporting passengers for compensation. Howev-
11 er, it shall not include:
12 1. vehicles which are rented or leased without a driver; or
13 2. any individually-owned private passenger motor vehicle used for
14 performing volunteer services for a nonprofit charitable organization or
15 governmental agency consisting of providing social service transporta-
16 tion.
17 § 4. This act shall take effect on the thirtieth day after it shall
18 have become a law; provided that the provisions of section one of this
19 act shall apply to insurance policies issued or delivered on and after
20 such effective date.
