Required Informational Statement on the Consequence of Driving While Under the Influence of Alcohol or Drugs **

STATE OF NEW YORK INSURANCE DEPARTMENT 160 WEST BROADWAY NEW YORK, NEW YORK 10013-3393 Circular Letter No. 10 (1997) April 30, 1997 TO: ALL AUTHORIZED PRIVATE PASSENGER AUTOMOBILE INSURERS IN NEW YORK STATE RE: REQUIRED INFORMATIONAL STATEMENT ON THE CONSEQUENCES OF DRIVING WIIlLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS Pursuant to Section 312(1) of the Vehicle and Traffic Law, upon issuance or renewal of a private passenger automobile insurance policy subject to Section 3425 ofthe Insurance Law, insurers are required to provide every insured with an informational statement, outlining the legal and financial consequences ofconvictions for operating a motor vehicle while under the influence ofalcohol or drugs. This statute also requires the Insurance Department to prepare and supply such an informational statement to insurers, after consultation with the Commissioner of Motor Vehicles. The most recent relevant changes were enacted by Chapter 196 ofthe Laws of 1996 which added a new Section 1192.,a to the Vehicle and Traffic Law. This new legislation specifically prohibits the operation of a motor vehicle by anyone under age 21 after consuming alcohol. A person under age 21 is deemed to have consumed alcohol if chemical testing registers a blood alcohol content (BAC) between .02% - .0'7°/4. Such person would then be subject to the appropriate penalty after a hearing by the Department of Motor Vehicles. However, this is not considered a criminal offense. Also, in Chapter 312 ofthe Laws of 1994, Section 1193(2)( e) of the Vehicle and Traffic Law was amended by adding a new subparagraph 7 which requires a court to suspend a driver's license at arraignment ifthe driver's BAC level was found to be .10% or more by chemical testing at the time ofarrest. Accordingly, Circular Letter No. 8 (1992) which previously addressed this subject is superseded by this Circular Letter, to which is attached a prescribed notice that updates the information on such penalties. Insurers must provide this informational statement to their insureds. To report suspected insurance fraud, call the NYS Insurance Department's Frauds Hotline at 888-FRAUD-NY -2­ The penalties reflected in this informational statement became effective for all violations on or after November 1, 1996. Companies should furnish this statement to all newly written insureds no later than July 1, 1997, and to all other insureds with the next renewal or billing notice sent to them on or after August 1, 1997. Insurers may revise the format ofthe statement to accommodate their internal operating systems and mailing procedures, but any variation in the text ofthe attached statement must be submitted to the Insurance Department for review. Such submission shall include a letter pointing out deviations from the attached statement. yours, ~le-_ Stewart Keir, CPCU, CFE, CIE Assistant Deputy Superintendent & Chief Property and Casualty Bureau page 1 of5 TO ALL OPERATORS OF MOTOR VEIDCLES IN NEW YORK STATE As your insurance company, we are required by law to advise you ofthe legal and financial consequences ofbeing convicted for operating a motor vehicle while under the influence ofalcohol or drugs. We strongly endorse the message conveyed by the law - that it doesn't pay to drink and drive. Alcohol or drug impairment is a major problem involving not only the impaired driver, but other innocent drivers and pedestrians. We are constantly reminded ofthe serious consequences ofdrinking and driving, yet property damage, injuries and deaths caused by alcohol or drug-impaired driving continue to be a major problem. In fact, studies (such as those published in "Fatality Facts 1995" by the Insurance Institute for Highway Safety) show that 36% offatally injured drivers had a blood alcohol content of.10% or more. New York State has recently passed laws requiring the court to suspend a driver's license, pending prosecution, for excessive blood alcohol content at the time ofarrest. Also, New York State has specifically imposed penalties for persons under the age of21 who operate a motor vehicle after consuming alcohol. Please familiarize yourself, and anyone else who operates your vehicle, with this important information. Please remember: Ifyou drink, don't drive! BASIC PENALTIES. DEGREE OF IMPAIRMENT AND INSURANCE PENALTIES When your license is revoked by the Department ofMotor Vehicles, you will be required to pay a $50 fee at the time ofre-application, unless you participate in the New York State Alcohol and Drug Rehabilitation Program, known as the Drinking Driver Program. This fee is non-refundable even ifyour application is denied, and is in addition to any fines imposed by the courts. Ifyou have been drinking or taking drugs and cause a death or serious injury as a result of a traffic accident, you may face felony charges ofvehicular manslaughter or vehicular assault. Conviction ofsuch a charge could result in a $15,000 fine and/or up to fifteen years in prison. Ifyou attend the Drinking Driver Program, you must pay an administrative fee of$75 and a course tuition fee of$175. In addition, ifyou are required to obtain an evaluation and/or treatment for alcohol-related problems, you must also pay for these additional services. Ifyou drive while your license is suspended or revoked for DWI (Driving While Intoxicated), DW AI (Driving While Ability Impaired), or for refusing a chemical test, you face a mandatozy jail term of 7 to 180 days or probation, and a mandatozy fine of$500-$1000. Ifyou are under the age of21 and deemed to have consumed alcohol (.02%-.07% blood alcohol content) while operating a motor vehicle, your license will be suspended for six months page 2 of5 for a first time offense. If you have two such offenses, your license will be revoked for a period ofone year or until you reach the age of21, whichever is greater. Ifyou are convicted ofan alcohol-related offense outside ofNew York State, your license will be revoked in New York State for a minimum period of ninety (90) days. This is in addition to any fines and/or jail sentences imposed by a court in the state in which the incident occurred, or any action against your driving privilege in that state. HOW MANY DRINKS MAKE YOU LEGALLY INTOXICATED? In New York State, in addition to the common law offense ofdriving while intoxicated, there is an equivalent offense ifyou operate a motor vehicle with a blood alcohol content (BAC) of .10% or more. You may be convicted ofthis offense whether or not you are intoxicated or impaired. New York State also prohibits the operation ofa motor vehicle while impaired by alcohol (DWAI). A BAC result ofmore than .05% but less than .10% is evidence ofimpairment but is not required to prove impairment. Any amount ofdrinking will affect your judgment and coordination. The degree of impairment depends on four basic factors: (a) how much you drink; (b) how long you drink; (c) eating before or during drinking, as food slows absorption ofalcohol; and (d) your body weight. A 12-ounce can ofbeer, 5-ounce glass ofwine, or a shot of 86-proofliquor all contain the same amount ofalcohol. Your body metabolizes about one drink each hour. Only time will truly sober you up, not coffee, a walk, or a cold shower. Therefore, ifyou consume more than one drink per hour, the likelihood is that you are at least DWAI ifyou weigh around 110 pounds and had 2 drinks, or DWAI ifyou had 3 drinks and weigh 170 pounds or more. As a rule ofthumb for an average 140-160 pound person, BAC level rises .02% per hour per drink. As an example, a 140-pound person who consumes 5 drinks in a two-hour period will have a .08% BAC (deducting .02% for the passage oftime). Even ifno more alcohol is consumed, that individual may not safely drive for at least 4 hours. Remember, mix elevation in BAC will impair your judgment and coordination. ALCOHOL/DRUG-RELATED CONVICTIONS AND YOUR AUTOMOBILE INSURANCE POLICY Suspension or revocation of your driver's license ( or the driver's license ofany person who normally operates an automobile insured under your policy) is just cause for your insurance company to cancel your automobile insurance policy. page 3 of5 A conviction ofdriving while impaired or intoxicated through the use ofalcohol or drugs will probably result in non-renewal of your insurance policy, and in your inability to obtain insurance with another company in the voluntary market. You will then find yourself relegated to the New York Automobile Insurance Plan (Assigned Risk Plan), at a substantially higher cost. Currently, under the Assigned Risk Plan, a conviction ofoperating a motor vehicle while intoxicated or impaired by the use ofalcohol or drugs will result in a 7S% surcharge, increasin1 your automobile insurance premiums for three years. Most automobile insurance companies will also surcharge your premiums substantially for any convictions ofoperating a motor vehicle while under the influence ofalcohol or drugs. NO-FAULT EXCLUSIONS Still another reason for not driving in an intoxicated or impaired condition due to drinking or drugs, is that No-Fault benefits will not be available to you ifyou are injured as a result. Any basic economic loss (medical expenses, wage loss, other necessary expenses, death benefit) attributable to your own bodily injury would be outside ofthe No-Fault system. Ifyou permit a non-DWI or non-DWAI person to drive your vehicle for you, then full No-Fault benefits will be available to you and all occupants ofyour vehicle in case ofan accident. Here, then, are the sobering facts: FINES AND IMPRISONMENT PENALTIES FOR ALCOHOL/DRUG-RELATED DRIVING OFFENSES AS OF NOVEMBER 1, 1996 According to the New York State Vehicle and Traffic Law, the following penalties will be imposed for the noted violations: DRIVING WlilLE INTOXICATED (DWI) - All Vehicles VIO.LATION MANDATORY FINE MAXIMUM JAIL TERM MANDATORY ACTION AGAINST LICENSE First violation $500-$1000 I Year (Misdemeanor) - Revoked at least 6 months - IfCDL•, I year revocation - I year CDL disqualification Two or more violations in 10 years $1000-$5000 4 Years (Felony) -Revoked at least I year - Permanent CDL disqualification *Commercial Driver's License page4 ofS DRIVING WHILE ABILITY IMP AIRED (DW Al) - Private Passenger Vehicle VIOLATION MANDATORY FINE MAXIMUM JAIL TERM MANDATORY ACTION AGAINST LICENSE First violation $300-$500 15 Days (Traffic Infraction) -Suspended 90 days - IfCDL, l year revocation - 1 year CDL disqualification Violations within 5 years of any convictions for DWI or DWAI $500-$750 30 Days (Traffic Infraction) - Revoked at least 6 months - Permanent CDL disqualification Violations within 10 years ofany two or more convictions for DWI or DWAI $750-$1500 180 Days (Misdemeanor) -Revoked at least 6 months if current violation occurred within 10 years ofthe previous conviction - Permanent CDL disqualification COMMERCIAL MOTOR VEIDCLE VIOLATION MANDATORY FINE MAXIMUM JAIL MANDATORY TERM ACTION AGAINST LICENSE Per se - Level 1 $300-$500 15 Days - 1 yearCDL (.04% - .07% BAC) (Traffic Infraction) disqualification -1 year CDL revocation Per se - Level II $500-$1500 180 Days -1 yearCDL (more than .07% but (misdemeanor) disqualification less than .10%BAC) - 1 year revocation OPERATING A MOTOR VEIDCLE UNDER THE AGE OF 21 AFTER CONSUMING ALCOHOL - Private Passenger Vehicle VIOLATION MANDATORY FINE MAXIMUM JAIL MANDATORY TERM ACTION AGAINST LICENSE First violation $125 NIA - Suspended 6 months Two or more violations $125 NIA - 1 year revocation or until the person reaches age 21, whichever is greater page 5 of5 CHEMICAL TEST REFUSAL VIOLATION MANDATORY FINE MANDATORY ACTION AGAINST LICENSE First refusal $300 - revoked at least 6 months - ifunder the age of21, 1 year revocation - ifcommercial motor vehicle, 1 year revocation Refusal with prior alcohol-related incident within the past five years $750 - revoked at least 1 year Penalties (including fines and jail terms) may be higher for multiple offenses and for violations while transporting certain types ofpassengers or material.