NY S01471

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 nonexistence, unauthorized use of a bank account, or unauthorized use of a credit card.

Entitles injured persons who would have been covered under a canceled policy to recover under their own insurance policy or, if uninsured, under the Motor Vehicle Accident Indemnification Corporation, provided they did not participate in fraud.

Prohibits the Motor Vehicle Accident Indemnification Corporation from subrogating claims against insurers that rescind or cancel policies under these circumstances.

Extends coverage under uninsured/underinsured motorist provisions to include vehicles with rescinded or cancelled policies and vehicles involved in accidents staged to defraud insurers (except those owned or operated by the perpetrators of the staged accident).

Modifies the definition of excluded coverage scenarios under no-fault insurance to include accidents staged to defraud insurers and clarifies that innocent participants in such accidents are not excluded from coverage.