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A 5113

Relates to captive insurance for commuter vans, black cars, ambulettes and paratransit vehicles, and small school buses, pre-arranged for-hire vehicles, and accessible vehicles

2025 Regular Session Introduced by Khaleel Anderson and 21 co-sponsors

Allows eligible commuter van, black car, ambulette/paratransit, small school bus, pre-arranged for-hire and accessible vehicle operators to form or join captive insurance arrangeme

ORDERED TO THIRD READING RULES CAL.535
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WeVote Research Nonpartisan
Bill Summary · A 5113

Summary — A.5113 (Print 5113B)

Relates to captive insurance for commuter vans, black cars, ambulettes and paratransit vehicles, and small school buses, pre‑arranged for‑hire vehicles, and accessible vehicles

Purpose / Intent

A.5113 would make it possible for specified small to mid‑sized passenger transportation providers (including commuter van services, black‑car/livery operators, ambulette and paratransit providers, small school‑bus operators, pre‑arranged for‑hire vehicles and other accessible vehicle fleets) to participate in or form captive insurance arrangements. The stated policy aim is to expand affordable, stable insurance options for fleets that often face high liability and commercial insurance costs, by enabling risk‑pooling through captives.

Note: The legislative text was not provided here; this summary is based on the bill title, legislative history and the common structure of captive‑insurance measures. Consult the bill text for precise legal language.

Key provisions (anticipated / likely)

  • Authorizes formation or participation in captive insurance companies or risk‑retention/captive arrangements by eligible transportation providers listed in the title.
  • Defines eligible vehicle/fleet categories (commuter vans, black cars, ambulettes, paratransit, small school buses, pre‑arranged for‑hire and accessible vehicles).
  • Establishes regulatory framework and oversight (likely involving the New York State Department of Financial Services), including licensing, capital/surplus, reporting and solvency requirements for captives.
  • Permits multi‑employer or association‑owned captives so small operators can pool risks and access coverage otherwise unavailable or unaffordable in the commercial market.
  • May include consumer‑protection and safety‑compliance conditions (proof of coverage, claim handling standards, coordination with workers’ compensation and liability regimes).
  • Potential transitional or grandfathering provisions for existing providers (if included in the final text).

Who would be affected

  • Primary: Operators and owners of commuter vans, black cars/livery services, ambulettes, paratransit providers, small school‑bus companies, pre‑arranged for‑hire vehicle services and providers of wheelchair‑accessible vehicles.
  • Secondary: Passengers, local school districts or agencies contracting small buses, insurers and reinsurance markets, and the Department of Financial Services (regulatory oversight).
  • Potential fiscal/market effects: could reduce premiums for eligible fleets, increase availability of coverage, and shift some risk into captive vehicles subject to regulatory standards.

Procedural status & timeline

  • Introduced: February 12, 2025 (referred to Insurance Committee)
  • 2025‑03‑19: Printed as A.5113A (amended and recommitted to Insurance)
  • 2025‑05‑23: Amendment restoring to original print (A.5113)
  • 2025‑05‑28: Reported and referred to Ways and Means
  • 2025‑06‑05: Amended (T) and recommitted to Ways and Means; printed as A.5113B
  • Current status (as of latest action): Print number 5113B; in Ways and Means following amendments

Sponsors / Support

  • Primary sponsor: Assemblymember Khaleel Anderson
  • Multiple cosponsors including Sarahana Shrestha, Grace Lee, Marcela Mitaynes, Alicia Hyndman, Monique Chandler‑Waterman, Chris Burdick, William Colton, Rebecca Seawright, and others (full list above).

Related legislation

  • Senate companion: S.4809
  • Prior‑session related bills: A.9099, A.5294

Potential impacts / considerations

  • Positive: may lower insurance costs and improve coverage availability for small fleet operators; could improve continuity of service for Medicaid/non‑emergency medical transportation and school transportation.
  • Risks/concerns: requires robust regulatory oversight to ensure captives maintain solvency and protect third‑party claimants; potential impacts on the commercial insurance market and state financial exposure should be assessed.
  • Fiscal effect: not provided in available materials — final fiscal notes and DFS analysis should be consulted.

For precise legal requirements, eligibility criteria, and regulatory obligations, review the full text of A.5113B and related Department of Financial Services guidance once available.

Compiled from official sources — confirm details with the bill’s official record.

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