NY S01471

Allows insurers to rescind or retroactively cancel newly issued automobile insurance policies within 30 days if the initial premium payment fails due to a nonexistent bank account, with 10 business days notice to the policyholder to remit payment.

Prohibits Motor Vehicle Accident Indemnification Corporation from subrogating claims against insurers that rescind coverage under this provision, and requires injured parties to recover under their own policies or MVAIC if uninsured.

Extends coverage under uninsured/underinsured motorist provisions to include vehicles whose policies have been rescinded or cancelled under this section, and vehicles involved in accidents staged to defraud insurers.

Clarifies that vehicles involved in accidents staged to defraud insurers are covered under Motor Vehicle Accident Indemnification Corporation provisions, except for vehicles owned and operated by the perpetrators of such staged accidents.

Exempts rescissions or cancellations under this section from standard 20-day cancellation notice requirements in Vehicle and Traffic Law, and takes effect one year after enactment.