NY A08158

Allows insurers to rescind or retroactively cancel newly issued auto insurance policies within 60 days if the initial premium payment is not honored due to nonexistent or unauthorized bank/credit card accounts.

Injured persons during the 60-day cancellation period who would have been covered can recover under their own policy or through the motor vehicle accident indemnification corporation if uninsured, provided they did not participate in fraud.

Clarifies that motor vehicle accident indemnification corporation cannot subrogate claims against insurers that rescind or cancel policies under this provision.

Adds staged accidents as grounds for denial of coverage and uninsured motorist claims, except for innocent occupants or persons unaware of the staging or fraudulent intent.

Takes effect 270 days after becoming law.