March 17, 1980
Amendment to Circular Letter No. 1 (1980)
TO: ALL INSURERS LICENSED TO WRITE AUTOMOBILE INSURANCE IN NEW YORK STATE
RE: CHAPTER 685 OF THE LAWS OF 1979: MOTOR VEHICLE LIABILITY INSURANCE PREMIUM REDUCTION FOR COMPLETION OF AN ACCIDENT PREVENTION COURSE
APPLICABILITY OF PREMIUM REDUCTION TO COMMERCIAL VEHICLES
On January 4, 1980 Circular Letter No. 1 (1980 was issued as a guide to insurers in filing programs to comply with Chapter 685 of the Laws of 1979 relating to premium reductions for completion of accident prevention courses.
The Circular Letter contains nine illustrative questions and answers. Upon further consideration of the issues addressed therein, it has been concluded that the answer to Question "f" on page five should be further clarified and expanded.
Question "f" asks: "Are commercial vehicles eligible for the premium reduction?" The following answer should replace that contained in the original circular letter:
ANSWER: Insurers are not required to offer premium reductions for accident prevention courses on commercial motor vehicle insurance policies which are subject to experience rating, or which would be eligible for experience rating or any other commercial rating plan which reflects the individual characteristics of the risk. Insurers are, however, urged to consider accident prevention courses in their evaluation of rates for commercial policies which are subject to schedule rating.
For other commercial risks, i.e., those which are not or would not be eligible for experience rating or other commercial rating plans, the following principles are applicable:
1. where there is a clearly defined principal operator who has successfully completed an acceptable accident prevention course, the premium reduction should be given for the specific commercial motor vehicle(s) operated by that person.
2. Additionally, where all operators of a commercial motor vehicle successfully complete an acceptable accident prevention course, the premium reduction should be granted for that vehicle.
3. where the commercial motor vehicle is rated in accordance with private passenger manual rules, the premium reduction should be given in the same manner as would apply to private passenger vehicles.
Whether or not a premium reduction is given to the commercial insured, all operators of commercial vehicles who successfully complete such an acceptable course shall be eligible for premium reduction on their own personal insurance policies, in accordance with the rules for those policies.
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This amplification of Circular Letter No. 1 (1980) is intended to avoid the possibility of duplicate premium reductions to commercial risks whose rates already reflect their own actual driving experience.
This amendment should be attached to and made a part of Circular Letter No. 1 (1980).
Very truly yours;
Albert B. Lewis
Superintendent of Insurance