NY A05294

Directs the superintendent of insurance to establish and implement a captive insurance program for commuter vans with 9-24 passenger seating capacity engaged in for-hire transportation.

Requires participating insurance companies to maintain minimum coverage of $500,000 combined single limits, $50,000 personal injury protection, and $25,000/$50,000 uninsured motorist coverage, with no-fault insurance following workers' compensation medical guidelines.

Establishes a commuter van trust fund in the state comptroller's custody containing $11.25 million from the 2023 budget's Commuter Van Stabilization Pilot Program, to be expended only for losses exceeding $250,000.

Mandates Empire State Development authorize at least three insurance companies to participate, with a 30-day bidding window, and sets a graduated loss-sharing structure where insurers cover 20% of excess claims in year one (increasing 10% annually) while the trust fund covers 80% (declining 10% annually).

Requires actuarial review of claims activity after five years to determine whether fund balances should be reduced or remaining moneys returned to the state general fund based on market stabilization.