NY A03648

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

Permits injured persons covered under rescinded policies to recover under their own insurance policy or, if uninsured, through the Motor Vehicle Accident Indemnification Corporation, provided they did not participate in fraudulent activity.

Expands coverage definitions to include vehicles involved in staged accidents (excluding perpetrators) as eligible for uninsured/underinsured motorist claims and Motor Vehicle Accident Indemnification Corporation benefits.

Modifies notice requirements and coverage provisions in Vehicle and Traffic Law and Insurance Law to account for rescinded or cancelled policies and staged accident scenarios.

Takes effect 270 days after becoming law.