FOR IMMEDIATE RELEASE
DEPARTMENT INSTRUCTS LIVERY INSURERS TO PROVIDE CONTINUED INSURANCE
Department Provides Details On Renewal and Payment Plan and Offers Handbook to Livery Drivers
The New York State Insurance Department announced today that renewal and payment plans have been worked out with Highlands Insurance Company and Sureco (Mutual Services Casualty Insurance Company) to continue insurance coverage for livery drivers. The Department has also identified several new markets for livery coverage. In addition, the Department has made available a unique guide, A Handbook For Livery Drivers that offers tips and suggestions for avoiding fraud in connection with procuring livery insurance.
"Livery drivers provide a crucial service to the people of New York City. We have been working closely with the insurers to ensure that all drivers continue to have adequate insurance coverage," said Superintendent Gregory V. Serio. "When making automobile insurance decisions it is critical that livery drivers be aware of what is appropriate coverage and be mindful of fraudulent brokers or agents. The Department is pleased to provide the Handbook as a vital resource for livery drivers as they navigate the process of securing necessary insurance coverage."
The installment plan with Highlands Insurance Company ensures that livery drivers will continue to have insurance coverage. These livery drivers had bought three-year automobile insurance policies in 2000 and had wrongly received nonrenwal notices. The Department has instructed Highlands to continue coverage for these drivers provided that the drivers pay 50% of their total premium immediately to Highlands Insurance Company. The balance must be paid by August 2, 2001 to maintain coverage pursuant to their three-year policies.
In addition, the Department is monitoring the reporting of reinstatements to the Department of Motor Vehicles (DMV). The Department has been assured by both Sureco and Highlands that they are correctly reporting the reinstatements to DMV.
The Department has identified Hereford Insurance Company and American Transit Insurance Company as expanding markets through which livery coverage can be obtained. The Department continues to work on other issues relating to livery insurance, including assuring that fees and premiums are remitted to carriers or properly credited to operators.
The Department has made available a guide for livery drivers. A Handbook For Livery Drivers is available in both English and Spanish. The new guide offers tips to livery drivers regarding what constitutes appropriate automobile insurance coverage, how to secure coverage and how to guarantee continued coverage once premiums are paid. In addition, the handbook provides tips on how to avoid becoming a victim of insurance fraud when shopping for automobile insurance coverage.
Consumers may request a copy of the Handbook by calling the Departments toll free number at 1-800-342-3736. To report suspected incidents of insurance fraud call 1-888-FRAUD-NY (1-888-372-8369).