PIANY TELLS OF CHANGE WITH NEW YORK STATE OF DEPARTMENT OF MOTOR VEHICLES

*/Important information for NYS auto insurers, agents—/*
>
> *DMV’s required cancellation/nonrenewal language, other changes take
> effect **10/1/05***
>
> Effective Oct. 1, 2005, changes take effect in New York’s penalties for
> uninsured operation of a motor vehicle.
>
>
>
> Insurers are required to state these penalties in the warning statements
> contained on cancellation and nonrenewal notices affecting motor vehicle
> policies. The Department of Motor Vehicles (DMV) is adopting revised
> wording that will affect every such notice. (Notices that do not contain
> the correct wording could be ruled invalid by the courts.)
>
>
>
> The DMV’s proposed new language can be viewed at its Web site. PIANY has
> been in touch with the DMV to determine whether any changes are expected
> between the proposed language and the final adoption. The public comment
> period has now expired, and the DMV told PIANY it plans to adopt the
> language as proposed.
>
>
>
> You can view the proposed regulations in pdf format under their proposal
> date (7/20/05) at the DMV’s Web site. Note: Part 34 amendments contain
> the revisions to the required warning statement, while Part 35
> amendments set forth the changes in the penalties. Here is the link:
> http://www.nydmv.state.ny.us/iies.htm#geninfo.
>
>
>
> *NYSID advises insurers.* In Circular Letter 11 (2005)
> http://www.ins.state.ny.us/cl05_11.htm , the New York State Insurance
> Department advised: “All insurers should review their cancellation and
> nonrenewal notices and make the necessary revisions to comply with the
> requirements set forth by the Department of Motor Vehicles in Parts 34
> and 35 of the Commissioner of Motor Vehicles regulations (15 NYCRR 34
> and 15 NYCRR 35). Such notices are not policy forms and, therefore, are
> not required to be filed with the department.”
>
>
>
> These changes do */not/* apply to vehicles subject to Section 370 of
> Article 8 of the Vehicle and Traffic Law, e.g., for-hire vehicles, the
> NYSID said.
>
>
>
> *‘Grace period’ going to seven days (from 15).* In addition to the
> change in penalty fees, there is a change in the ‘grace period’ for a
> single instance of uninsured operation. In Section 318 of the Vehicle
> and Traffic Law, a registrant is not penalized if there is only one
> insurance lapse in any three-year period (unless the vehicle is being
> operated while uninsured), so long as the lapse does not exceed the
> grace period. Starting Oct. 1, 2005, this grace period is reduced from
> 15 to seven days. Any subsequent or longer period without insurance is a
> "chargeable lapse," which initiates a DMV suspension letter.
>
>
>
> *DMV MVR fees going up.* Also effective Oct. 1, 2005, the charge for
> accessing a driver’s motor vehicle records goes from $6 to $10 for
> manual searches conducted by DMV staff, and from $5 to $7 for searches
> done electronically. (Some vendors reportedly already have raised New
> York MVR prices in anticipation of this change.)
>