Assembly Bill A8007B

2013-2014 Legislative Session

Relates to consumer motor vehicle rental programs

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 16, 2014	print number 8007b
Jun 16, 2014	amend (t) and recommit to insurance
May 13, 2014	print number 8007a
May 13, 2014	amend (t) and recommit to insurance
Jan 08, 2014	referred to insurance
Jun 14, 2013	referred to insurance

Bill Amendments

2013-A8007 - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§308, 1108, 2305, 3440 & 5103, add Art 81 §§8101 - 8109, §3455, Ins L; add §124, amd §§311, 370 & 388, V & T L; amd §396-z, Gen Bus L

2013-A8007 - Summary

Relates to consumer motor vehicle rental programs and businesses.

2013-A8007 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8007

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 14, 2013
                               ___________

Introduced by M. of A. HEVESI -- read once and referred to the Committee
  on Insurance

AN ACT to amend the insurance law, in relation to personal vehicle shar-
  ing programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new  section  3441
to read as follows:
  S  3441.  PERSONAL  VEHICLE SHARING PROGRAMS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE INSURED BY ITS OWNER PURSUANT TO  A  POLICY  OF  INSURANCE
SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS ARTI-
CLE  SHALL  BE  CLASSIFIED  AS  A  COMMERCIAL VEHICLE, FOR-HIRE VEHICLE,
PERMISSIVE USE VEHICLE, OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT  TO
BE  USED  FOR  PERSONAL  VEHICLE SHARING AS LONG AS ALL OF THE FOLLOWING
CIRCUMSTANCES APPLY:
  (1) THE PERSONAL VEHICLE SHARING IS CONDUCTED PURSUANT TO  A  PERSONAL
VEHICLE SHARING PROGRAM; AND
  (2) THE OWNER OF THE PRIVATE PASSENGER MOTOR VEHICLE DOES NOT KNOWING-
LY  PLACE  THE  VEHICLE  INTO  USE AS A COMMERCIAL VEHICLE BY A PERSONAL
VEHICLE SHARING USER WHILE ENGAGED IN PERSONAL VEHICLE SHARING.
  (B) FOR PURPOSES OF THIS SECTION:
  (1) "PERSONAL VEHICLE SHARING" MEANS  THE  USE  OF  PRIVATE  PASSENGER
MOTOR  VEHICLES BY PERSONS OTHER THAN THE VEHICLE'S OWNER, IN CONNECTION
WITH A PERSONAL VEHICLE SHARING PROGRAM.
  (2) "PERSONAL VEHICLE SHARING PROGRAM"  MEANS  A  PROGRAM  ENGAGED  IN
FACILITATING THE SHARING OF PRIVATE PASSENGER VEHICLES FOR NONCOMMERCIAL
USE.
  (3) "PRIVATE PASSENGER MOTOR VEHICLE" MEANS A VEHICLE THAT IS INSURED,
OR  IS SUBJECT TO BEING INSURED, UNDER A PRIVATE PASSENGER MOTOR VEHICLE
LIABILITY INSURANCE POLICY INSURING A SINGLE INDIVIDUAL, OR  INDIVIDUALS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11405-03-3

A. 8007                             2

RESIDING  IN  THE  SAME  HOUSEHOLD,  AS  THE NAMED INSURED, BUT DOES NOT
INCLUDE A VEHICLE WITH FEWER THAN FOUR WHEELS.
  (C) A PERSONAL VEHICLE SHARING PROGRAM SHALL, FOR EACH VEHICLE THAT IT
FACILITATES THE USE OF, DO ALL OF THE FOLLOWING:
  (1)  DURING  ALL TIMES THAT THE VEHICLE IS ENGAGED IN PERSONAL VEHICLE
SHARING, PROVIDE INSURANCE COVERAGES  FOR  THE  VEHICLE  AND  AUTHORIZED
OPERATOR  OF  THE  VEHICLE  THAT ARE, AT A MINIMUM, EQUAL TO THE MINIMUM
INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER  VEHICLES  AS  PROVIDED  BY
ARTICLE SIX OF THE VEHICLE AND TRAFFIC LAW AND ARTICLE FIFTY-ONE OF THIS
CHAPTER  AS  RESPECTS LIABILITY, UNINSURED, UNDERINSURED AND FIRST-PARTY
BENEFITS COVERAGES.
  (2) PROVIDE THE REGISTERED OWNER OF THE VEHICLE WITH SUITABLE PROOF OF
COMPLIANCE WITH THE INSURANCE  REQUIREMENTS  OF  THIS  SECTION  AND  THE
REQUIREMENTS  OF  ARTICLE SIX OF THE VEHICLE AND TRAFFIC LAW AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, A COPY OF WHICH SHALL BE  MAINTAINED  IN  THE
VEHICLE BY THE VEHICLE'S REGISTERED OWNER DURING ANY TIME WHEN THE VEHI-
CLE IS OPERATED BY ANY PERSON OTHER THAN THE VEHICLE'S OWNER PURSUANT TO
A PERSONAL VEHICLE SHARING PROGRAM.
  (3) NOT KNOWINGLY PERMIT THE VEHICLE TO BE OPERATED FOR COMMERCIAL USE
BY  A  PERSONAL  VEHICLE  SHARING USER WHILE ENGAGED IN PERSONAL VEHICLE
SHARING.
  (4) USE ONLY PRIVATE PASSENGER MOTOR VEHICLES.
  (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ANY PROVISION  IN  A
PRIVATE  PASSENGER MOTOR VEHICLE OWNER'S AUTOMOBILE INSURANCE POLICY, IN
THE EVENT OF A LOSS OR INJURY THAT OCCURS DURING ANY  TIME  PERIOD  WHEN
THE  VEHICLE  IS  UNDER THE OPERATION AND CONTROL OF A PERSON OTHER THAN
THE VEHICLE OWNER PURSUANT TO A PERSONAL  VEHICLE  SHARING  PROGRAM,  OR
OTHERWISE  UNDER  THE CONTROL OF A PERSONAL VEHICLE SHARING PROGRAM, THE
PERSONAL VEHICLE SHARING PROGRAM SHALL ASSUME ALL LIABILITY OF THE OWNER
AND SHALL BE CONSIDERED THE OWNER  OF  THE  VEHICLE  FOR  ALL  PURPOSES.
SECTION  THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW SHALL
NOT APPLY TO THE VEHICLE OWNER WHILE THE VEHICLE IS UNDER THE  OPERATION
AND  CONTROL  OF  A  PERSON  OTHER  THAN THE VEHICLE OWNER PURSUANT TO A
PERSONAL VEHICLE SHARING PROGRAM, OR OTHERWISE UNDER THE  CONTROL  OF  A
PERSONAL  VEHICLE  SHARING PROGRAM.  NOTHING IN THIS SECTION SHALL LIMIT
THE LIABILITY OF THE PERSONAL VEHICLE SHARING PROGRAM FOR  ITS  ACTS  OR
OMISSIONS THAT RESULT IN INJURY TO ANY PERSONS AS A RESULT OF THE USE OR
OPERATION  OF  A  MOTOR  VEHICLE  WHILE IN CUSTODY OF A PERSONAL VEHICLE
SHARING PROGRAM.
  (E) A PERSONAL VEHICLE SHARING PROGRAM SHALL  CONTINUE  TO  BE  LIABLE
PURSUANT  TO  SUBSECTION (D) OF THIS SECTION UNTIL BOTH OF THE FOLLOWING
OCCUR:
  (1) THE PRIVATE PASSENGER MOTOR VEHICLE  IS  RETURNED  TO  A  LOCATION
SPECIFIED  BY  THE  OWNER, OR DESIGNATED BY THE PERSONAL VEHICLE SHARING
PROGRAM.
  (2) THE EARLIEST OF ONE OF THE FOLLOWING OCCURS:
  (A) THE EXPIRATION OF THE TIME PERIOD ESTABLISHED FOR  THE  PARTICULAR
USE OF THE VEHICLE;
  (B)  THE INTENT TO TERMINATE THE PERSONAL VEHICLE SHARING USE IS VERI-
FIABLY COMMUNICATED TO THE PERSONAL VEHICLE SHARING PROGRAM; OR
  (C) THE VEHICLE'S OWNER TAKES POSSESSION AND CONTROL OF THE VEHICLE.
  (F) THE PERSONAL VEHICLE SHARING PROGRAM SHALL ASSUME LIABILITY FOR  A
CLAIM  IN WHICH A DISPUTE EXISTS AS TO WHO WAS IN CONTROL OF THE VEHICLE
WHEN THE LOSS OCCURRED GIVING RISE TO THE CLAIM, AND THE VEHICLE OWNER'S
PRIVATE PASSENGER MOTOR VEHICLE INSURER  SHALL  INDEMNIFY  THE  PERSONAL
VEHICLE SHARING PROGRAM TO THE EXTENT OF ITS OBLIGATION UNDER THE APPLI-

A. 8007                             3

CABLE INSURANCE POLICY, IF IT IS DETERMINED THAT THE VEHICLE'S OWNER WAS
IN CONTROL OF THE VEHICLE AT THE TIME OF THE LOSS.
  (G) IN THE EVENT THAT THE OWNER OF THE VEHICLE IS NAMED AS A DEFENDANT
IN A CIVIL ACTION FOR A LOSS OR INJURY THAT OCCURS DURING ANY TIME PERI-
OD WHEN THE VEHICLE IS UNDER THE OPERATION AND CONTROL OF A PERSON OTHER
THAN THE VEHICLE'S OWNER PURSUANT TO A PERSONAL VEHICLE SHARING PROGRAM,
OR  OTHERWISE  UNDER  THE CONTROL OF A PERSONAL VEHICLE SHARING PROGRAM,
THE PERSONAL VEHICLE SHARING PROGRAM SHALL HAVE THE DUTY TO  DEFEND  AND
INDEMNIFY  THE VEHICLE'S OWNER, SUBJECT TO THE PROVISIONS OF SUBSECTIONS
(D) AND (F) OF THIS SECTION.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ANY PROVISION  IN  A
VEHICLE  OWNER'S  AUTOMOBILE LIABILITY INSURANCE POLICY, WHILE A PRIVATE
PASSENGER MOTOR VEHICLE IS USED BY A PERSON OTHER THAN ITS OWNER  PURSU-
ANT  TO  PERSONAL VEHICLE SHARING FACILITATED THROUGH A PERSONAL VEHICLE
SHARING PROGRAM, ALL OF THE FOLLOWING SHALL APPLY:
  (1) THE INSURER OF THAT VEHICLE ON FILE WITH THE DEPARTMENT  OF  MOTOR
VEHICLES  MAY  EXCLUDE  ANY  AND  ALL COVERAGE FOR LIABILITY, UNINSURED,
UNDERINSURED AND FIRST-PARTY BENEFITS THAT  MAY  OTHERWISE  BE  AFFORDED
PURSUANT TO ITS POLICY.
  (2)  THE  PRIMARY  AND EXCESS INSURER OR INSURERS OF THE OWNERS OF THE
PRIVATE PASSENGER MOTOR VEHICLE  USED  IN  A  PERSONAL  VEHICLE  SHARING
PROGRAM SHALL HAVE THE RIGHT TO NOTIFY AN INSURED THAT IT HAS NO DUTY TO
DEFEND  OR  INDEMNIFY  ANY  PERSON OR ORGANIZATION FOR LIABILITY FOR ANY
LOSS THAT OCCURS DURING USE OF THE VEHICLE IN A PERSONAL VEHICLE SHARING
PROGRAM.
  (I) NO VEHICLE OWNER'S POLICY OF INSURANCE THAT IS SUBJECT TO  SECTION
THREE  THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  ARTICLE  SHALL BE
CANCELED, VOIDED, TERMINATED, RESCINDED, OR NOT RENEWED  SOLELY  ON  THE
BASIS  THAT  THE PRIVATE PASSENGER MOTOR VEHICLE HAS BEEN MADE AVAILABLE
FOR PERSONAL VEHICLE SHARING PURSUANT  TO  A  PERSONAL  VEHICLE  SHARING
PROGRAM THAT IS IN COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
  (J)  AN  INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS IN THE
STATE MAY ISSUE A POLICY OF LIABILITY INSURANCE TO  A  PERSONAL  VEHICLE
SHARING  PROGRAM  TO INSURE THE PERSONAL VEHICLE SHARING PROGRAM'S OBLI-
GATIONS AS DESCRIBED IN SUBSECTIONS (C), (D), (E), (F), (G) AND  (H)  OF
THIS  SECTION.  SUCH  POLICY SHALL PROVIDE PRIMARY LIABILITY, UNINSURED,
UNDERINSURED AND FIRST PARTY COVERAGE FOR THE  PRIVATE  PASSENGER  MOTOR
VEHICLE  AND  ITS  AUTHORIZED  OPERATORS  AND  OCCUPANTS  FOR CLAIMS AND
DAMAGES RESULTING FROM THE USE OR OPERATION OF THAT VEHICLE WHILE IT  IS
IN THE CUSTODY OF THE PERSONAL VEHICLE SHARING PROGRAM.
  (K)   AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED  IN
SUBSECTION (J) OF THIS SECTION SHALL ISSUE SUCH POLICY  IDENTIFYING  THE
PERSONAL  VEHICLE  SHARING PROGRAM AS THE NAMED INSURED. ANY SUCH POLICY
SHALL INCLUDE A PROVISION THAT PROVIDES COVERAGE, WITHOUT  PRIOR  NOTICE
TO  THE  INSURER,  FOR  ALL  PRIVATE PASSENGER MOTOR VEHICLES DURING ALL
TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR THE
NAMED INSURED, AND SHALL FURTHER INCLUDE A PROVISION THAT THE  VEHICLES'
OWNERS,  AUTHORIZED  OPERATORS  AND  OCCUPANTS  ARE INCLUDED AS INSUREDS
UNDER THE POLICY TO THE SAME EXTENT THAT THEY WOULD BE INSUREDS UNDER  A
PRIVATE PASSENGER MOTOR VEHICLE POLICY ISSUED PURSUANT TO SECTIONS THREE
THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE.
  (L)  A  POLICY  ISSUED  PURSUANT  TO  SUBSECTIONS  (J) AND (K) OF THIS
SECTION SHALL NOT BE CONSIDERED GROUP INSURANCE AND SHALL BE EXEMPT FROM
SECTION THREE THOUSAND FOUR HUNDRED THIRTY-FIVE AND ANY OTHER  PROVISION
OF THIS CHAPTER OR TITLE 11 OF THE NEW YORK STATE CODES, RULES AND REGU-

A. 8007                             4

LATIONS REGARDING GROUP INSURANCE REQUIREMENTS, PROVIDED THAT THE INSUR-
ER COMPLIES WITH THE PROVISIONS OF SUBSECTION (K) OF THIS SECTION.
  (M)  A  PERSONAL  VEHICLE SHARING PROGRAM MAY CONTRACTUALLY ASSUME THE
RISK OF PHYSICAL DAMAGE LOSS TO THE VEHICLE DURING  THE  TIME  THAT  THE
VEHICLE  IS  IN THE CUSTODY OF THE VEHICLE SHARING PROGRAM. THE TERMS OF
SUCH CONTRACTUAL ASSUMPTION MAY PROVIDE THAT THE VEHICLE SHARING PROGRAM
IS ASSUMING THE RISK OF PHYSICAL DAMAGE LOSS TO THE VEHICLE IN EXCESS OF
A SUM CERTAIN. SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE  LOSS  TO  THE
VEHICLE SHALL NOT BE DEEMED TO BE PHYSICAL DAMAGE INSURANCE.
  (N)  AN  INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS IN THE
STATE MAY ISSUE A POLICY OF PHYSICAL  DAMAGE  INSURANCE  TO  A  PERSONAL
VEHICLE  SHARING PROGRAM TO INSURE AGAINST PHYSICAL DAMAGE LOSS TO VEHI-
CLES WHILE THE VEHICLES ARE IN THE CUSTODY OF THE PERSONAL VEHICLE SHAR-
ING PROGRAM.   SUCH POLICY MAY PROVIDE  PRIMARY  COVERAGE  FOR  PHYSICAL
DAMAGE  LOSS  BY  EITHER COLLISION, COMPREHENSIVE OR BOTH TO THE VEHICLE
WHILE IT IS IN THE CUSTODY OF THE VEHICLE SHARING PROGRAM.
  (O)  AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED   IN
SUBSECTION  (N)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
PERSONAL VEHICLE SHARING PROGRAM AS THE NAMED INSURED. ANY  SUCH  POLICY
SHALL  INCLUDE A PROVISION THAT PROVIDES PRIMARY COVERAGE, WITHOUT PRIOR
NOTICE TO THE INSURER, FOR ALL PRIVATE PASSENGER MOTOR  VEHICLES  DURING
ALL TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR
THE  NAMED  INSURED,  AND MAY FURTHER INCLUDE A PROVISION THAT THE VEHI-
CLES' OWNERS ARE INCLUDED AS INSUREDS  UNDER  THE  POLICY  TO  THE  SAME
EXTENT THAT THEY WOULD BE INSUREDS UNDER A PRIVATE PASSENGER MOTOR VEHI-
CLE POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED TWELVE
OF THIS ARTICLE.
  (P)  A  POLICY  ISSUED  PURSUANT  TO  SUBSECTIONS  (N) AND (O) OF THIS
SECTION SHALL NOT BE CONSIDERED GROUP INSURANCE AND SHALL BE EXEMPT FROM
SECTION THREE THOUSAND FOUR HUNDRED THIRTY-FIVE AND ANY OTHER  PROVISION
OF THIS CHAPTER OR TITLE 11 OF THE NEW YORK STATE CODES, RULES REGARDING
GROUP  INSURANCE  REQUIREMENTS,  PROVIDED THAT THE INSURER COMPLIES WITH
THE PROVISIONS OF SUBSECTION (O) OF THIS SECTION.
  S 2. This act shall take effect immediately.

2013-A8007A - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§308, 1108, 2305, 3440 & 5103, add Art 81 §§8101 - 8109, §3455, Ins L; add §124, amd §§311, 370 & 388, V & T L; amd §396-z, Gen Bus L

2013-A8007A - Summary

Relates to consumer motor vehicle rental programs and businesses.

2013-A8007A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8007--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 14, 2013
                               ___________

Introduced by M. of A. HEVESI -- read once and referred to the Committee
  on  Insurance  -- recommitted to the Committee on Insurance in accord-
  ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
  relation to personal vehicle sharing programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new  section  3441
to read as follows:
  S  3441.  PERSONAL  VEHICLE SHARING PROGRAMS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE AS DEFINED IN THIS SECTION INSURED BY ITS  OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OF THIS ARTICLE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL
BE CLASSIFIED AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE  USE
VEHICLE, TAXICAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED
FOR  PERSONAL  VEHICLE  SHARING  AS LONG AS ALL OF THE FOLLOWING CIRCUM-
STANCES APPLY:
  (1) THE PERSONAL VEHICLE SHARING IS COMPLIANT WITH A PERSONAL  VEHICLE
SHARING PROGRAM AS PROVIDED FOR IN THIS SECTION; AND
  (2) THE OWNER OF THE PRIVATE PASSENGER MOTOR VEHICLE DOES NOT KNOWING-
LY  PLACE  THE  VEHICLE INTO USE AS A COMMERCIAL VEHICLE OR AS A VEHICLE
FOR HIRE BY A PERSONAL VEHICLE SHARING RENTER AS DEFINED IN THIS SECTION
WHILE ENGAGED IN PERSONAL VEHICLE SHARING; AND
  (3) THE ANNUAL REVENUE RECEIVED BY THE VEHICLE'S REGISTERED OWNER THAT
WAS GENERATED BY THE PERSONAL VEHICLE SHARING DOES NOT EXCEED THE ANNUAL
EXPENSES OF OWNING AND OPERATING THE  VEHICLE,  INCLUDING  DEPRECIATION,
INTEREST,  LEASE PAYMENTS, MOTOR VEHICLE LOAN PAYMENTS, INSURANCE, MAIN-
TENANCE, PARKING, FUEL, CLEANING, AUTOMOBILE REPAIR AND COSTS ASSOCIATED
WITH PERSONAL VEHICLE SHARING, INCLUDING BUT NOT LIMITED TO THE  INSTAL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11405-04-4

A. 8007--A                          2

LATION,  OPERATION,  AND  MAINTENANCE OF COMPUTER HARDWARE AND SOFTWARE,
SIGNAGE IDENTIFYING THE VEHICLE AS A PERSONAL VEHICLE  SHARING  VEHICLE,
AND ANY FEES CHARGED BY THE PROGRAM.
  (B) FOR PURPOSES OF THIS SECTION THE FOLLOWING DEFINITIONS APPLY:
  (1)  "PERSONAL  VEHICLE  SHARING"  MEANS  THE USE OF PRIVATE PASSENGER
MOTOR VEHICLES BY PERSONS OTHER THAN THE VEHICLE'S OWNER, IN  CONNECTION
WITH A PERSONAL VEHICLE SHARING PROGRAM.
  (2)  "PERSONAL  VEHICLE  SHARING  PROGRAM"  MEANS A PROGRAM ENGAGED IN
FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES FOR NONCOM-
MERCIAL USE.
  (3) "PRIVATE PASSENGER MOTOR VEHICLE" MEANS:
  (A) A PRIVATE PASSENGER AUTO; OR
  (B) A PICKUP OR VAN THAT:
  (I) HAS A GROSS VEHICLE WEIGHT RATING OF TEN THOUSAND POUNDS OR  LESS;
AND
  (II)  IS  NOT  USED  FOR  THE COMMERCIAL DELIVERY OR TRANSPORTATION OF
GOODS AND MATERIALS.
  (C) A PRIVATE PASSENGER MOTOR VEHICLE UNDER THIS  DEFINITION  MUST  BE
INSURED, OR BE SUBJECT TO BEING INSURED, UNDER A PRIVATE PASSENGER MOTOR
VEHICLE  LIABILITY  INSURANCE  POLICY  INSURING  A SINGLE INDIVIDUAL, OR
INDIVIDUALS RESIDING IN THE SAME HOUSEHOLD, AS THE  NAMED  INSURED,  BUT
DOES NOT INCLUDE A VEHICLE WITH FEWER THAN FOUR WHEELS.
  (4)  "PERSONAL  VEHICLE SHARING RENTER" MEANS A PERSON, OTHER THAN THE
VEHICLE OWNER, WHO RENTS THE OWNER'S VEHICLE THROUGH A PERSONAL  VEHICLE
SHARING PROGRAM AS DEFINED IN THIS SECTION.
  (5)  "PROGRAM PROVIDER" MEANS THE PERSON OR ENTITY THAT IS RESPONSIBLE
FOR OPERATING THE PERSONAL VEHICLE SHARING PROGRAM.
  (C) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1) DURING ALL TIMES THAT THE VEHICLE IS ENGAGED IN  PERSONAL  VEHICLE
SHARING,  PROCURE  GROUP INSURANCE COVERAGE FOR EACH VEHICLE AND AUTHOR-
IZED OPERATOR OF THE  VEHICLE.  SUCH  INSURANCE  SHALL,  AT  A  MINIMUM,
PROVIDE  FOR  EACH VEHICLE COVERAGE AT LEAST EQUAL TO THE MINIMUM INSUR-
ANCE REQUIREMENTS FOR PRIVATE PASSENGER VEHICLES AS PROVIDED BY  SECTION
THREE  HUNDRED  ELEVEN OF THE VEHICLE AND TRAFFIC LAW, ARTICLE FIFTY-ONE
OF THIS CHAPTER AND SUCH OTHER NEW YORK STATE STATUTES WITH  RESPECT  TO
MANDATORY LIABILITY, UNINSURED, AND FIRST-PARTY BENEFITS COVERAGE AS MAY
BE  ENACTED  FROM  TIME  TO TIME. THE GROUP INSURANCE POLICY MAY PROVIDE
UNDERINSURED INSURANCE COVERAGE AT THE OPTION OF THE PROGRAM PROVIDER AS
INSURED OF THE GROUP POLICY. THE PROGRAM SHALL ALSO OFFER  COMPREHENSIVE
AND  COLLISION  PROTECTION,  AS FURTHER DESCRIBED IN SUBSECTIONS (M) AND
(N) OF THIS SECTION.
  (2) PROVIDE THE REGISTERED OWNER OF THE VEHICLE WITH SUITABLE PROOF OF
COMPLIANCE WITH THE INSURANCE  REQUIREMENTS  OF  THIS  SECTION  AND  THE
REQUIREMENTS  OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC
LAW AND ARTICLE FIFTY-ONE OF THIS CHAPTER, A  COPY  OF  WHICH  SHALL  BE
MAINTAINED  IN  THE VEHICLE BY THE VEHICLE'S REGISTERED OWNER DURING ANY
TIME WHEN THE VEHICLE IS OPERATED BY ANY PERSON OTHER THAN THE VEHICLE'S
OWNER PURSUANT TO A PERSONAL VEHICLE SHARING PROGRAM.
  (3) NOT KNOWINGLY PERMIT THE VEHICLE TO BE OPERATED FOR COMMERCIAL USE
OR AS A VEHICLE FOR HIRE BY A  PERSONAL  VEHICLE  SHARING  RENTER  WHILE
ENGAGED IN PERSONAL VEHICLE SHARING.
  (4)  PROVIDE  EACH  PERSONAL  VEHICLE  SHARING RENTER FOR EACH VEHICLE
RENTAL TRANSACTION UNDER THE PERSONAL VEHICLE  SHARING  PROGRAM  AT  THE
TIME OF EACH RENTAL:

A. 8007--A                          3

  (A)  DOCUMENTATION  ABLE  TO  BE  CARRIED  IN THE VEHICLE AT ALL TIMES
DURING THE RENTAL THAT THE INSURANCE COVERAGE REFERRED TO  IN  PARAGRAPH
ONE OF THIS SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B) PROVIDE MEANS VIA A TOLL FREE NUMBER, E-MAIL ADDRESS OR SUCH OTHER
MEANS  OF COMMUNICATION PURSUANT TO WHICH A LAW ENFORCEMENT POLICE OFFI-
CER, A REPRESENTATIVE OF THE DEPARTMENT OF MOTOR VEHICLES OR OTHER OFFI-
CER OF THIS STATE OR ANY POLITICAL SUBDIVISION THEREOF  MAY  CONFIRM  IN
REAL  TIME  THAT THE INSURANCE COVERAGE PROVIDED FOR IN PARAGRAPH ONE OF
THIS SUBSECTION, IS IN EFFECT.
  (5) SHALL COMPLY WITH THE REQUIREMENTS OF SUBDIVISION TWO  OF  SECTION
THREE HUNDRED TWELVE OF THE VEHICLE AND TRAFFIC LAW.
  (6)  REQUIRE  THAT  THE  VEHICLES USED IN THE PERSONAL VEHICLE SHARING
PROGRAM ARE LIMITED TO PRIVATE PASSENGER MOTOR VEHICLES  AS  DEFINED  IN
THIS SECTION.
  (7) FACILITATE THE INSTALLATION, OPERATION, AND MAINTENANCE OF ITS OWN
SIGNAGE AND COMPUTER HARDWARE AND SOFTWARE, IF AND WHEN REQUESTED BY THE
VEHICLE'S  REGISTERED  OWNER, TO THE EXTENT NECESSARY FOR THE VEHICLE TO
BE USED IN THE PROGRAM.
  (8) INDEMNIFY AND HOLD HARMLESS THE VEHICLE'S REGISTERED OWNER FOR THE
COST OF DAMAGE OR THEFT OF EQUIPMENT  INSTALLED  BY  THE  PROGRAM  UNDER
PARAGRAPH  SEVEN  OF  THIS  SUBSECTION  AND FOR ANY DAMAGE CAUSED TO THE
VEHICLE BY THE INSTALLATION, OPERATION OR MAINTENANCE OF SUCH EQUIPMENT.
  (9) COLLECT, MAINTAIN, AND MAKE AVAILABLE TO THE VEHICLE'S  REGISTERED
OWNER,  AND  THE  OWNER'S  PRIMARY  MOTOR VEHICLE LIABILITY INSURER, THE
OPERATOR'S PRIMARY AUTOMOBILE INSURER, EXCESS OR  UMBRELLA  INSURER  AND
ANY GOVERNMENT AGENCY AS REQUIRED BY LAW, AT THE COST OF THE PROGRAM THE
FOLLOWING WITHIN TEN BUSINESS DAYS OF A REQUEST:
  (A) VERIFIABLE RECORDS OF THE PROGRAM USE PERIOD FOR EACH VEHICLE. FOR
VEHICLES  WITH  AN  ELECTRONIC  TRACKING  DEVICE,  VERIFIABLE ELECTRONIC
RECORDS OF THE TIME, INITIAL AND FINAL LOCATIONS OF THE VEHICLE, AND (TO
THE EXTENT MILEAGE IS COLLECTED) MILES DRIVEN; AND
  (B) IN INSTANCES WHERE AN INSURANCE CLAIM HAS BEEN FILED, ANY AND  ALL
INFORMATION  RELEVANT  TO  THE CLAIM, INCLUDING PAYMENTS BY THE PROGRAM,
CONCERNING ACCIDENTS, DAMAGES AND INJURIES.
  (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ANY PROVISION  IN  A
PRIVATE  PASSENGER MOTOR VEHICLE OWNER'S AUTOMOBILE INSURANCE POLICY, IN
THE EVENT OF A LOSS OR INJURY THAT OCCURS DURING ANY  TIME  PERIOD  WHEN
THE  VEHICLE  IS  UNDER  THE OPERATION AND CONTROL OF A PERSONAL VEHICLE
SHARING RENTER AS DEFINED IN THIS SECTION OR OTHERWISE UNDER THE CONTROL
OF A PERSONAL VEHICLE SHARING PROGRAM, THE PROGRAM PROVIDER SHALL ASSUME
ALL LIABILITY UNDER SECTION THREE HUNDRED EIGHTY-EIGHT  OF  THE  VEHICLE
AND  TRAFFIC  LAW AND SUCH OTHER STATUTES THAT MAY IMPOSE LIABILITY UPON
AN OWNER OF A PRIVATE PASSENGER MOTOR VEHICLE AS IF THE PROGRAM PROVIDER
WERE THE OWNER OF THE VEHICLE.
  SECTION THREE HUNDRED EIGHTY-EIGHT OF  THE  VEHICLE  AND  TRAFFIC  LAW
SHALL  NOT  APPLY  TO  THE  VEHICLE OWNER WHILE THE VEHICLE IS UNDER THE
OPERATION AND CONTROL OF A PERSONAL VEHICLE SHARING RENTER OR  OTHERWISE
UNDER THE CONTROL OF A PERSONAL VEHICLE SHARING PROGRAM. NOTHING IN THIS
SECTION  LIMITS  THE  LIABILITY  OF THE PROGRAM PROVIDER FOR ITS ACTS OR
OMISSIONS THAT RESULT IN INJURY TO ANY PERSONS AS A RESULT OF THE USE OR
OPERATION OF A MOTOR VEHICLE WHILE IN  CUSTODY  OF  A  PERSONAL  VEHICLE
SHARING  PROGRAM.  HOWEVER NOTHING IN THIS SECTION LIMITS THE ABILITY OF
THE PROGRAM TO, BY CONTRACT, SEEK  INDEMNIFICATION  FROM  THE  VEHICLE'S
REGISTERED  OWNER  FOR  ANY  CLAIMS  PAID BY THE PROGRAM FOR ANY LOSS OR
INJURY RESULTING FROM FRAUD OR MATERIAL INTENTIONAL MISREPRESENTATION BY

A. 8007--A                          4

THE VEHICLE'S  REGISTERED  OWNER,  PROVIDED  THAT  THE  VEHICLE  SHARING
PROGRAM DISCLOSES IN THE CONTRACT THAT:
  (I)  THE  PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN THESE CIRCUM-
STANCES; AND
  (II) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT  PROVIDE  DEFENSE
OR  INDEMNIFICATION FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATE-
RIAL INTENTIONAL MISREPRESENTATION.
  (E) A PROGRAM  PROVIDER  SHALL  CONTINUE  TO  BE  LIABLE  PURSUANT  TO
SUBSECTION (D) OF THIS SECTION UNTIL BOTH OF THE FOLLOWING OCCUR:
  (1)  THE  PRIVATE  PASSENGER  MOTOR  VEHICLE IS RETURNED TO A LOCATION
SPECIFIED BY THE OWNER, OR DESIGNATED BY THE  PERSONAL  VEHICLE  SHARING
PROGRAM; AND
  (2) THE EARLIEST OF ONE OF THE FOLLOWING OCCURS:
  (A)  THE  EXPIRATION OF THE TIME PERIOD ESTABLISHED FOR THE PARTICULAR
USE OF THE VEHICLE;
  (B) THE INTENT TO TERMINATE THE PERSONAL VEHICLE SHARING USE IS  VERI-
FIABLY COMMUNICATED TO THE PROGRAM PROVIDER; OR
  (C) THE VEHICLE'S OWNER TAKES POSSESSION AND CONTROL OF THE VEHICLE.
  (F) THE INSURER OR INSURERS PROVIDING GROUP LIABILITY INSURANCE TO THE
PERSONAL  VEHICLE  SHARING  PROGRAM  PURSUANT  TO SUBSECTION (J) OF THIS
SECTION AND GROUP PHYSICAL DAMAGE  INSURANCE  TO  THE  PERSONAL  VEHICLE
SHARING  PROGRAM PURSUANT TO SUBSECTION (M) OF THIS SECTION SHALL ASSUME
LIABILITY FOR A CLAIM IN WHICH A DISPUTE EXISTS  REGARDING  WHO  WAS  IN
CONTROL  OF THE VEHICLE WHEN THE LOSS OCCURRED GIVING RISE TO THE CLAIM,
AND THE VEHICLE OWNER'S PRIVATE PASSENGER MOTOR  VEHICLE  INSURER  SHALL
INDEMNIFY THE PERSONAL VEHICLE SHARING PROGRAM'S GROUP INSURER OR INSUR-
ERS TO THE EXTENT OF ITS OBLIGATION UNDER THE APPLICABLE INSURANCE POLI-
CY,  IF  IT IS DETERMINED THAT THE VEHICLE'S OWNER WAS IN CONTROL OF THE
VEHICLE AT THE TIME OF THE LOSS. THE PROGRAM MUST NOTIFY THE  REGISTERED
OWNER'S  INSURER OF ANY SUCH DISPUTE WITHIN TWENTY-FIVE BUSINESS DAYS OF
BECOMING AWARE THAT SUCH A DISPUTE MAY EXIST.
  (G) IN THE EVENT THAT THE OWNER OF THE VEHICLE OR ITS INSURER IS NAMED
AS A DEFENDANT IN A CIVIL ACTION FOR A LOSS OR INJURY THAT OCCURS DURING
ANY TIME PERIOD WHEN THE VEHICLE IS UNDER THE OPERATION AND CONTROL OF A
PERSON OTHER THAN THE VEHICLE'S OWNER PURSUANT  TO  A  PERSONAL  VEHICLE
SHARING  PROGRAM,  OR  OTHERWISE UNDER THE CONTROL OF A PERSONAL VEHICLE
SHARING PROGRAM, THE PERSONAL VEHICLE SHARING PROGRAM'S GROUP  LIABILITY
INSURANCE  INSURER  UNDER  SUBSECTION (J) OF THIS SECTION SHALL HAVE THE
DUTY TO DEFEND AND INDEMNIFY THE VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER, SUBJECT TO THE PROVISIONS OF SUBSECTIONS (D) AND  (F)  OF  THIS
SECTION.
  (H)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, WHILE
A PRIVATE PASSENGER MOTOR VEHICLE IS USED BY A  PERSON  OTHER  THAN  ITS
OWNER,  PURSUANT  TO  PERSONAL  VEHICLE  SHARING  FACILITATED  THROUGH A
PERSONAL VEHICLE SHARING PROGRAM, ALL OF THE FOLLOWING SHALL APPLY:
  (1) THE INSURER OF THAT VEHICLE ON FILE WITH THE DEPARTMENT  OF  MOTOR
VEHICLES  MAY  EXCLUDE  ANY  AND  ALL COVERAGE FOR LIABILITY, UNINSURED,
UNDERINSURED,  COLLISION  PHYSICAL  DAMAGE  AND  COMPREHENSIVE  PHYSICAL
DAMAGE  BENEFITS AND FIRST-PARTY BENEFITS THAT MAY OTHERWISE BE AFFORDED
PURSUANT TO ITS POLICY.
  (2) THE PRIMARY AND EXCESS INSURER OR INSURERS OF THE  OWNERS  OF  THE
PRIVATE  PASSENGER  MOTOR  VEHICLE  USED  IN  A PERSONAL VEHICLE SHARING
PROGRAM SHALL HAVE THE RIGHT TO NOTIFY AN INSURED THAT IT HAS NO DUTY TO
DEFEND OR INDEMNIFY ANY PERSON OR ORGANIZATION  FOR  LIABILITY  FOR  ANY
LOSS  THAT  OCCURS DURING THE RENTAL PERIOD OF THE VEHICLE IN A PERSONAL
VEHICLE SHARING PROGRAM.

A. 8007--A                          5

  (I) NO VEHICLE OWNER'S POLICY OF INSURANCE THAT IS SUBJECT TO  SECTION
THREE  THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  ARTICLE  SHALL BE
CANCELED, VOIDED, TERMINATED, RESCINDED, OR NON-RENEWED, SOLELY  ON  THE
BASIS  THAT  THE PRIVATE PASSENGER MOTOR VEHICLE HAS BEEN MADE AVAILABLE
FOR  PERSONAL  VEHICLE  SHARING  PURSUANT  TO A PERSONAL VEHICLE SHARING
PROGRAM THAT IS IN COMPLIANCE  WITH  THE  PROVISIONS  OF  THIS  SECTION.
PROVIDED, HOWEVER THAT:
  (1)  AN INSURER MAY REFUSE TO ENROLL A VEHICLE IN A USAGE-BASED INSUR-
ANCE PROGRAM (WHERE SUCH USAGE-BASED INSURANCE PROGRAM CONTINUALLY MONI-
TORS USAGE ELECTRONICALLY  TO  DETERMINE  ACCELERATION,  BRAKING,  MILES
DRIVEN AND OTHER INDICIA OF DRIVING BEHAVIOR) IF THAT VEHICLE IS USED IN
A PROGRAM; AND
  (2) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED  IN  THE  PROGRAM IF THAT VEHICLE IS ENROLLED IN SUCH A USAGE-BASED
INSURANCE PROGRAM. THE INSURER MUST IMMEDIATELY OFFER THE INSURED A  NEW
POLICY  WITH  THE  SAME  COVERAGES  AND  PRE-EXISTING RATES, BUT WITHOUT
ENROLLMENT IN THE USAGE-BASED INSURANCE PROGRAM.
  (J) AN INSURER WHICH IS AUTHORIZED TO DO BUSINESS IN THE STATE OF  NEW
YORK MAY ISSUE A GROUP POLICY OF LIABILITY INSURANCE TO A PERSONAL VEHI-
CLE  SHARING  PROGRAM TO INSURE THE PERSONAL VEHICLE SHARING PROGRAM AND
ITS PARTICIPANTS AS DESCRIBED IN SUBSECTIONS (C), (D), (E), (F), (G) AND
(H) OF THIS SECTION. SUCH POLICY SHALL PROVIDE LIABILITY, UNINSURED, AND
FIRST PARTY COVERAGE, AND IF ELECTED BY THE PROGRAM  PROVIDER,  UNDERIN-
SURED  COVERAGE, FOR THE PRIVATE PASSENGER MOTOR VEHICLE AND ITS AUTHOR-
IZED OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING  FROM  THE
USE  OR  OPERATION  OF  THAT  VEHICLE  WHILE IT IS IN THE CUSTODY OF THE
PERSONAL VEHICLE SHARING PROGRAM. SUCH  POLICY  SHALL  BE  PRIMARY  WITH
RESPECT TO ANY OTHER INSURANCE AVAILABLE TO THE OWNER OF THE MOTOR VEHI-
CLE  AND  SHALL  BE  EXCESS  OVER  ANY  OTHER INSURANCE AVAILABLE TO THE
PERSONAL VEHICLE SHARING RENTER. SUCH INSURER SHALL ALSO COMPLY WITH THE
PROVISIONS OF SECTION THREE HUNDRED TWELVE-A AND THREE HUNDRED  THIRTEEN
OF  THE VEHICLE AND TRAFFIC LAW. FOR PURPOSES OF GROUP INSURANCE WRITTEN
UNDER THIS SECTION ONLY, THE RATES CHARGED BY THE AUTHORIZED INSURER FOR
GROUP LIABILITY INSURANCE AS PROVIDED FOR IN THIS SECTION SHALL BE FILED
WITH THE DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (K)  AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED   IN
SUBSECTION  (J)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
PERSONAL VEHICLE SHARING PROGRAM AS THE NAMED INSURED. ANY  SUCH  POLICY
SHALL  INCLUDE  A PROVISION THAT PROVIDES COVERAGE, WITHOUT PRIOR NOTICE
TO THE INSURER, FOR ALL PRIVATE  PASSENGER  MOTOR  VEHICLES  DURING  ALL
TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR THE
NAMED  INSURED, AND SHALL FURTHER INCLUDE A PROVISION THAT THE VEHICLES'
OWNERS, AUTHORIZED OPERATORS AND  OCCUPANTS  ARE  INCLUDED  AS  INSUREDS
UNDER  THE POLICY TO THE SAME EXTENT THAT THEY WOULD BE INSUREDS UNDER A
PRIVATE PASSENGER MOTOR VEHICLE POLICY ISSUED PURSUANT TO SECTIONS THREE
THOUSAND FOUR HUNDRED TWENTY-FIVE OF  THIS  ARTICLE  AND  SECTION  THREE
HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
  (L)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (J) AND (K) OF THIS
SECTION MAY ONLY BE ISSUED IN ACCORDANCE WITH  THE  PROVISIONS  OF  THIS
SECTION.
  (M)  A  PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK OF PHYSICAL
DAMAGE LOSS TO PRIVATE PASSENGER MOTOR VEHICLES DURING THE TIME THAT THE
VEHICLES ARE IN THE CUSTODY OF THE PERSONAL VEHICLE SHARING PROGRAM. THE
TERMS OF SUCH  CONTRACTUAL  ASSUMPTION  MAY  PROVIDE  THAT  THE  PROGRAM
PROVIDER  IS ASSUMING THE RISK OF PHYSICAL DAMAGE LOSS TO THE VEHICLE IN
EXCESS OF A SUM CERTAIN. SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS

A. 8007--A                          6

TO THE VEHICLE SHALL NOT BE DEEMED TO BE PHYSICAL  DAMAGE  INSURANCE.  A
PROGRAM  PROVIDER  SHALL  ONLY BE PERMITTED TO ASSUME RESPONSIBILITY FOR
POTENTIAL PHYSICAL DAMAGE TO PARTICIPATING VEHICLES AS PROVIDED  FOR  IN
THIS PARAGRAPH UPON SATISFACTION OF CERTAIN STANDARDS TO BE DEVELOPED BY
THE  SUPERINTENDENT  PURSUANT  TO  REGULATION.  SUCH  REGULATIONS  SHALL
ADDRESS THE FINANCIAL RESPONSIBILITY OF THE PROGRAM  PROVIDER  TO  COVER
THE COST OF THE PHYSICAL DAMAGE, AND SHALL ESTABLISH STANDARDS REGARDING
THE PROGRAM PROVIDER'S RESPONSE TO VEHICLE OWNERS REGARDING ANY PHYSICAL
DAMAGE  TO  THEIR  VEHICLES WHILE IN THE CUSTODY OF THE PERSONAL VEHICLE
SHARING PROGRAM.
  (N) AN INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS  IN  THE
STATE  OF NEW YORK MAY ISSUE A GROUP POLICY OF PHYSICAL DAMAGE INSURANCE
TO A PERSONAL VEHICLE SHARING PROGRAM  AND  TO  THE  OWNERS  OF  PRIVATE
PASSENGER MOTOR VEHICLES PARTICIPATING IN THAT PROGRAM TO INSURE AGAINST
PHYSICAL  DAMAGE  LOSS TO VEHICLES WHILE THE VEHICLES ARE IN THE CUSTODY
OF THE PERSONAL VEHICLE SHARING  PROGRAM  OR  PERSONAL  VEHICLE  SHARING
RENTER.  SUCH  POLICY  MAY  PROVIDE PRIMARY COVERAGE FOR PHYSICAL DAMAGE
LOSS BY EITHER COLLISION, COMPREHENSIVE OR BOTH TO THE VEHICLE WHILE  IT
IS  IN  THE CUSTODY OF THE VEHICLE SHARING PROGRAM OR A PERSONAL VEHICLE
SHARING RENTER.
  (O) IF THE GROUP COVERAGE PROVIDED  FOR  IN  SUBSECTION  (N)  OF  THIS
SECTION  IS PLACED WITH AN ELIGIBLE EXCESS LINE INSURER, COMPLIANCE WITH
THE EXCESS  LINE  STATUTES  AND  REGULATIONS  OF  THIS  STATE  SHALL  BE
PERFORMED  WITH  RESPECT TO THE GROUP AS A WHOLE AND NOT WITH RESPECT TO
INDIVIDUAL GROUP MEMBERS.
  (P) AN INSURER WHICH ISSUES A  GROUP  INSURANCE  POLICY  DESCRIBED  IN
SUBSECTION  (N)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
PERSONAL VEHICLE SHARING PROGRAM AS THE NAMED INSURED. ANY  SUCH  POLICY
SHALL  INCLUDE A PROVISION THAT PROVIDES PRIMARY COVERAGE, WITHOUT PRIOR
NOTICE TO THE INSURER, FOR ALL PRIVATE PASSENGER MOTOR  VEHICLES  DURING
ALL TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR
THE  NAMED  INSURED,  AND  SHALL FURTHER INCLUDE A PROVISION THAT CLAIMS
WILL BE ADJUSTED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED  TWELVE
OF THIS ARTICLE.
  (Q)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (N), (O) AND (P) OF
THIS SECTION MAY ONLY BE ISSUED IN ACCORDANCE  WITH  THE  PROVISIONS  OF
THIS SECTION.
  S  2.  Subdivision  4 of section 311 of the vehicle and traffic law is
amended by adding a new paragraph (e) to read as follows:
  (E) IN THE CASE OF A PRIVATE PASSENGER MOTOR  VEHICLE  AS  DEFINED  IN
SECTION  THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE INSURANCE LAW THAT
IS USED IN CONNECTION WITH A PERSONAL VEHICLE SHARING PROGRAM AS DEFINED
IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH IN  PARAGRAPH  (A)
OF  THIS  SUBDIVISION  SHALL  BE  MET BY A GROUP INSURANCE POLICY ISSUED
PURSUANT TO SECTION THIRTY-FOUR HUNDRED FORTY-ONE OF THE  INSURANCE  LAW
TO  A  PROGRAM  PROVIDER  AND TO THE PERSONAL VEHICLE SHARING RENTERS OF
THAT PROGRAM FOR ANY TIME THAT THE VEHICLE IS BEING USED  IN  CONNECTION
WITH THE PERSONAL VEHICLE SHARING PROGRAM.
  S  3.  Subdivisions  2,  3,  4 and 5 of section 312 of the vehicle and
traffic law are renumbered subdivisions 3, 4, 5 and 6 and a new subdivi-
sion 2 is added to read as follows:
  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A PERSONAL VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION  THREE  THOU-
SAND  FOUR  HUNDRED FORTY-ONE OF THE INSURANCE LAW, THE PROGRAM PROVIDER
SHALL PROVIDE THE COMMISSIONER WITH PROOF OF FINANCIAL SECURITY  IN  THE
FORM  OF  A GROUP INSURANCE POLICY COVERING ITSELF AND THE OWNERS OF ALL

A. 8007--A                          7

NEW YORK REGISTERED PRIVATE PASSENGER MOTOR VEHICLES THAT PARTICIPATE IN
THE PROGRAM AS INSURED GROUP MEMBERS, COVERING THOSE VEHICLES WHILE THEY
ARE BEING USED IN CONJUNCTION WITH THAT PROGRAM. SUCH PROOF SHALL NOT BE
USED  IN  CONNECTION  WITH  THE REGISTRATION OF THE VEHICLES AND NO SUCH
VEHICLE SHALL BE REGISTERED UNLESS THE OWNER OF THE  VEHICLE  SEPARATELY
COMPLIES WITH SUBDIVISION ONE OF THIS SECTION.
  S 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as
amended  by  chapter  781  of  the  laws  of 1983, is amended to read as
follows:
  1. Upon issuance of an owner's policy of liability insurance, A  GROUP
LIABILITY  INSURANCE  POLICY  ISSUED TO A PROGRAM PROVIDER OF A PERSONAL
VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR  HUNDRED
FORTY-ONE  OF  THE INSURANCE LAW or other financial security required by
this chapter, an insurer shall issue proof of  insurance  in  accordance
with  the  regulations promulgated by the commissioner pursuant to para-
graph (b) of subdivision two of section three hundred thirteen  of  this
article.
  S  5.  Paragraphs  (a)  and (b) of subdivision 2 of section 313 of the
vehicle and traffic law, as amended by chapter 509 of the laws of  1998,
are amended to read as follows:
  (a)  Upon the termination of an owner's policy of liability insurance,
OR A GROUP LIABILITY INSURANCE POLICY ISSUED TO A PROGRAM PROVIDER OF  A
PERSONAL VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR
HUNDRED  FORTY-ONE  OF THE INSURANCE LAW other than an owner's policy of
liability insurance for a motorcycle, at the request of the  insured  or
by  cancellation  by  the  insurer,  the  insurer shall file a notice of
termination with reference to such policy, as  opposed  to  any  insured
vehicle  or  vehicles under such policy, with the commissioner not later
than thirty days following the effective date of  such  cancellation  or
other  termination, in accordance with the regulations required by para-
graph (c) of this subdivision. An insurer shall not  file  a  notice  of
termination  with  the  commissioner except as required by this subdivi-
sion.
  (b) Upon the issuance of an owner's policy of liability insurance,  OR
A  GROUP  LIABILITY  INSURANCE  POLICY ISSUED TO A PROGRAM PROVIDER OF A
PERSONAL VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THE INSURANCE LAW the insurer shall file  a  notice
or confirmation of issuance with reference to such policy not later than
fourteen  days  following  the  effective date of such issuance, and not
later than seven days following the effective date for  policies  issued
after  January  first,  two  thousand  one, in accordance with the regu-
lations required by paragraph (c) of this subdivision.
  S 6. This act shall take effect immediately.

2013-A8007B (ACTIVE) - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§308, 1108, 2305, 3440 & 5103, add Art 81 §§8101 - 8109, §3455, Ins L; add §124, amd §§311, 370 & 388, V & T L; amd §396-z, Gen Bus L

2013-A8007B (ACTIVE) - Summary

Relates to consumer motor vehicle rental programs and businesses.

2013-A8007B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8007--B

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 14, 2013
                               ___________

Introduced by M. of A. HEVESI -- read once and referred to the Committee
  on  Insurance  -- recommitted to the Committee on Insurance in accord-
  ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- again reported from said  committee  with  amendments,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the insurance law, the vehicle and traffic law and the
  general business law, in relation to  consumer  motor  vehicle  rental
  programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subsection (a) of section 308 of the  insur-
ance  law,  as amended by chapter 499 of the laws of 2009, is amended to
read as follows:
  (1) The superintendent may also  address  to  any  health  maintenance
organization,  life settlement provider, life settlement intermediary or
its officers, CONSUMER MOTOR VEHICLE RENTAL  PROGRAM  ADMINISTRATOR,  or
any  authorized insurer or rate service organization, or officers there-
of, any inquiry in relation to its  transactions  or  condition  or  any
matter  connected  therewith.  Every  corporation or person so addressed
shall reply in writing to such inquiry promptly and truthfully, and such
reply shall be, if required by the superintendent,  subscribed  by  such
individual,  or  by  such  officer  or officers of a corporation, as the
superintendent shall designate, and affirmed by them as true  under  the
penalties of perjury.
  S  2.  The insurance law is amended by adding a new article 81 to read
as follows:
                               ARTICLE 81
                 CONSUMER MOTOR VEHICLE RENTAL PROGRAMS
SECTION 8101. DEFINITIONS.
        8102. REGISTRATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11405-06-4

A. 8007--B                          2

        8103. REQUIREMENTS FOR DOING BUSINESS.
        8104. REVOCATION  OR  SUSPENSION OF REGISTRATION AND CERTIFICATE
                OF AUTHORITY.
        8105. SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE.
        8106. STOP-LOSS INSURANCE.
        8107. RECORDKEEPING.
        8108. PENALTIES.
        8109. REGULATIONS.
  S 8101. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "CONSUMER  MOTOR  VEHICLE  RENTAL  PROGRAM"  OR "PROGRAM" MEANS A
PROGRAM THAT FACILITATES THE USE OR OPERATION OF A MOTOR  VEHICLE  WHERE
THE VEHICLE IS RENTED TO A RENTER WITHOUT A DRIVER.
  (B) "CONSUMER MOTOR VEHICLE RENTAL PROGRAM ADMINISTRATOR" OR "ADMINIS-
TRATOR" MEANS A PERSON OR OTHER ENTITY THAT ADMINISTERS A CONSUMER MOTOR
VEHICLE RENTAL PROGRAM.
  (C) "FINANCIAL RESPONSIBILITY COVERAGE" MEANS COVERAGE IN SATISFACTION
OF  THE  FINANCIAL  RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION
FOUR OF SECTION THREE HUNDRED ELEVEN OF THE  VEHICLE  AND  TRAFFIC  LAW,
SECTION  THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER, AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED  THEREUNDER,  AND
SUCH  OTHER  REQUIREMENTS  THAT MAY APPLY FOR THE PURPOSES OF SATISFYING
THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT  TO  THE  USE  OR
OPERATION OF THE MOTOR VEHICLE.
  (D)  "GROUP INSURER" MEANS THE INSURER THAT HAS ISSUED THE GROUP POLI-
CY.
  (E) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS CHAPTER.
  (F)  "INSURANCE  IDENTIFICATION CARD" SHALL HAVE THE MEANING SET FORTH
IN SUBDIVISION TEN OF SECTION THREE HUNDRED ELEVEN OF  THE  VEHICLE  AND
TRAFFIC LAW.
  (G)  "MOTOR  VEHICLE" OR "VEHICLE" SHALL HAVE THE MEANING SET FORTH IN
SUBDIVISION TWO OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAF-
FIC LAW.
  (H) "OPTIONAL VEHICLE PROTECTION" SHALL HAVE THE MEANING SET FORTH  IN
PARAGRAPH  (D)  OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-SIX-Z
OF THE GENERAL BUSINESS LAW.
  (I) "OWNER" MEANS A PERSON, OTHER THAN A LIEN HOLDER, HAVING THE PROP-
ERTY IN OR TITLE TO A MOTOR VEHICLE AND SHALL INCLUDE A PERSON  ENTITLED
TO  THE  USE  AND  POSSESSION  OF  A MOTOR VEHICLE SUBJECT TO A SECURITY
INTEREST IN ANOTHER PERSON, AND ALSO SHALL INCLUDE ANY LESSEE OR  BAILEE
OF  A  MOTOR  VEHICLE HAVING THE EXCLUSIVE USE THEREOF, UNDER A LEASE OR
OTHERWISE, FOR A PERIOD GREATER THAN THIRTY DAYS.
  (J) "RENTER" MEANS A PERSON WHO RENTS A MOTOR VEHICLE  FROM  AN  OWNER
THROUGH A CONSUMER MOTOR VEHICLE RENTAL PROGRAM.
  S  8102.  REGISTRATION.  (A)  NO  PERSON SHALL ACT AS A CONSUMER MOTOR
VEHICLE RENTAL PROGRAM ADMINISTRATOR IN THIS STATE WITHOUT HAVING  FIRST
OBTAINED AN APPROVAL OF A REGISTRATION TO DO SO FROM THE SUPERINTENDENT.
THE APPLICATION FOR APPROVAL OF REGISTRATION SHALL CONTAIN THE FOLLOWING
INFORMATION:
  (1) THE ADDRESS OF THE PRINCIPAL OFFICE OF THE ADMINISTRATOR;
  (2)  THE  NAME AND ADDRESS OF THE ADMINISTRATOR'S AGENT FOR SERVICE OF
PROCESS IN THIS STATE, IF OTHER THAN THE ADMINISTRATOR;
  (3) THE IDENTITIES OF THE ADMINISTRATOR'S PRINCIPAL OFFICER  OR  OFFI-
CERS  DIRECTLY RESPONSIBLE FOR THE ADMINISTRATOR'S PROGRAM, AND, IF MORE
THAN FIFTY PERCENT OF THE ADMINISTRATOR'S REVENUE IS  DERIVED  FROM  THE

A. 8007--B                          3

PROGRAM,  THEN  THE  IDENTITIES OF THE ADMINISTRATOR'S DIRECTORS AND ANY
PERSON WHO CONTROLS THE ADMINISTRATOR; AND
  (4) SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE.
  (B)  THE REGISTRATION APPLICATION SHALL BE ACCOMPANIED BY A FEE OF ONE
THOUSAND DOLLARS FOR EACH YEAR OR FRACTION OF A YEAR IN WHICH THE REGIS-
TRATION SHALL BE IN EFFECT.
  (C) (1) EVERY ADMINISTRATOR'S REGISTRATION  ISSUED  PURSUANT  TO  THIS
SECTION  SHALL  BE  FOR  A TERM EXPIRING ON APRIL FIRST OF EVEN-NUMBERED
YEARS. EVERY SUCH REGISTRATION MAY BE RENEWED FOR THE ENSUING PERIOD  OF
TWENTY-FOUR  MONTHS UPON THE FILING OF AN APPLICATION IN CONFORMITY WITH
THIS SECTION.
  (2) AN APPLICATION FOR A RENEWAL REGISTRATION SHALL BE FILED WITH  THE
SUPERINTENDENT  NOT LESS THAN SIXTY DAYS PRIOR TO THE DATE THE REGISTRA-
TION EXPIRES OR THE ADMINISTRATOR SHALL BE REQUIRED TO PAY, IN  ADDITION
TO THE FEE REQUIRED IN SUBSECTION (B) OF THIS SECTION, A FURTHER FEE FOR
LATE FILING OF TWO HUNDRED FIFTY DOLLARS.
  (3) IF AN APPLICATION FOR A RENEWAL REGISTRATION SHALL HAVE BEEN FILED
WITH THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH REGISTRATION, THEN
THE  REGISTRATION  SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT  OF  THE  RENEWAL
REGISTRATION  APPLIED  FOR  OR  UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL REGISTRATION AND  GIVEN  NOTICE
OF SUCH REFUSAL TO THE ADMINISTRATOR.
  (4) BEFORE REFUSING TO RENEW ANY SUCH REGISTRATION, THE SUPERINTENDENT
SHALL  NOTIFY  THE ADMINISTRATOR OF THE SUPERINTENDENT'S INTENTION TO DO
SO AND SHALL GIVE THE ADMINISTRATOR A HEARING.
  (D) THE SUPERINTENDENT MAY REFUSE TO ISSUE OR RENEW  ANY  REGISTRATION
IF, IN THE SUPERINTENDENT'S JUDGMENT, THE ADMINISTRATOR IS NOT TRUSTWOR-
THY  OR COMPETENT TO ACT AS ADMINISTRATOR, HAS GIVEN CAUSE FOR THE REVO-
CATION OR SUSPENSION OF SUCH A REGISTRATION, OR  HAS  FAILED  TO  COMPLY
WITH ANY PREREQUISITE FOR THE ISSUANCE OF SUCH REGISTRATION, OR IF ISSU-
ING  THE  REGISTRATION  WOULD  BE  DETRIMENTAL TO THE HEALTH, SAFETY, OR
WELFARE OF THE PUBLIC.
  (E) AN ADMINISTRATOR SHALL KEEP CURRENT THE INFORMATION REQUIRED TO BE
DISCLOSED IN ITS REGISTRATION UNDER THIS SECTION BY REPORTING ANY  MATE-
RIAL CHANGE OR ADDITION WITHIN THIRTY DAYS AFTER THE END OF THE MONTH IN
WHICH THE ADMINISTRATOR LEARNS OF SUCH CHANGE OR ADDITION.
  (F)  THE  SUPERINTENDENT MAY CONDUCT INVESTIGATIONS OR EXAMINATIONS OF
ADMINISTRATORS TO ENFORCE THE PROVISIONS OF  THIS  ARTICLE  AND  PROTECT
OWNERS  AND RENTERS IN THIS STATE. UPON THE SUPERINTENDENT'S REQUEST, AN
ADMINISTRATOR SHALL MAKE ALL ACCOUNTS, BOOKS, AND RECORDS CONCERNING THE
PROGRAM AVAILABLE TO THE SUPERINTENDENT.
  S 8103. REQUIREMENTS FOR DOING BUSINESS. (A)  AN  ADMINISTRATOR  SHALL
OBTAIN A GROUP POLICY FROM AN AUTHORIZED INSURER. THE GROUP POLICY SHALL
PROVIDE  FINANCIAL RESPONSIBILITY COVERAGE FOR EACH MOTOR VEHICLE IN THE
PROGRAM.
  (B) (1) A GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED  UNDER
THE LAW, WITH REGARD TO FINANCIAL RESPONSIBILITY COVERAGE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY  INJURY  PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER;
  (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE  PURSUANT  TO  SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND

A. 8007--B                          4

  (D)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
OF THIS CHAPTER.
  (2)  FOR  THE  PURPOSES  OF  THIS  ARTICLE, THE ADMINISTRATOR SHALL BE
DEEMED TO BE THE INSURED UNDER PARAGRAPH TWO OF SUBSECTION (F) AND UNDER
SUBSECTION (G) OF SECTION THREE THOUSAND FOUR  HUNDRED  TWENTY  OF  THIS
CHAPTER.
  (C) A GROUP POLICY SHALL PROVIDE COVERAGE FOR AN OWNER'S MOTOR VEHICLE
REGISTERED OR REQUIRED TO BE REGISTERED IN THIS STATE STARTING THE LATER
OF  ONE  HALF HOUR BEFORE THE SCHEDULED RESERVATION START TIME DESCRIBED
IN THE ADMINISTRATOR'S RECORDS OR WHEN  A  RENTER  TAKES  POSSESSION  OR
CONTROL OF THE MOTOR VEHICLE AND UNTIL:
  (1) THE MOTOR VEHICLE IS RETURNED TO A LOCATION SPECIFIED BY THE OWNER
OR ADMINISTRATOR; AND THE EARLIEST OF:
  (2)  (A)  THE  TIME  PERIOD  ESTABLISHED  FOR THE MOTOR VEHICLE RENTAL
EXPIRES;
  (B) THE INTENT TO TERMINATE RENTING  THE  MOTOR  VEHICLE  THROUGH  THE
PROGRAM IS VERIFIABLY COMMUNICATED TO THE ADMINISTRATOR; OR
  (C) THE OWNER TAKES POSSESSION OR CONTROL OF THE MOTOR VEHICLE.
  (D)  A GROUP POLICY SHALL PROVIDE COVERAGE WHEN A DISPUTE EXISTS AS TO
WHETHER THE RENTER WAS IN POSSESSION OR CONTROL OF A MOTOR VEHICLE  WHEN
THE  LOSS, DAMAGE, OR INJURY OCCURRED. AN ADMINISTRATOR SHALL NOTIFY THE
OWNER'S INSURERS OF ANY SUCH DISPUTE WITHIN TEN BUSINESS DAYS OF  BECOM-
ING  AWARE  THAT  THAT  SUCH  A  DISPUTE MAY EXIST. WHEN THERE IS SUCH A
DISPUTE, THE GROUP INSURER LIABLE FOR THE PAYMENT OF  BENEFITS  UNDER  A
GROUP  POLICY  SHALL  HAVE THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE
OWNER'S INSURERS TO THE EXTENT THAT THE OWNER WOULD HAVE BEEN LIABLE  TO
PAY DAMAGES IN AN ACTION AT LAW.
  (E) (1) AN INSURER SHALL DELIVER A GROUP POLICY TO AN ADMINISTRATOR NO
LATER  THAN  FIFTEEN  DAYS  AFTER THE POLICY'S EFFECTIVE DATE; PROVIDED,
HOWEVER, THAT IF THE INSURER DOES NOT DELIVER THE GROUP  POLICY  TO  THE
ADMINISTRATOR  PRIOR  TO  THE  POLICY'S EFFECTIVE DATE, THEN THE INSURER
SHALL PROVIDE EVIDENCE OF INSURANCE  TO  THE  ADMINISTRATOR  BEFORE  THE
POLICY'S EFFECTIVE DATE.
  (2) THE ADMINISTRATOR SHALL SUBMIT TO THE SUPERINTENDENT A COPY OF THE
GROUP  POLICY  THAT  PROVIDES  FINANCIAL  RESPONSIBILITY COVERAGE BEFORE
ALLOWING ANY OWNERS TO RENT OUT ANY VEHICLES REGISTERED OR  REQUIRED  TO
BE  REGISTERED  IN  THIS STATE, AND SHALL SUBMIT TO THE SUPERINTENDENT A
COPY OF  THE  GROUP  POLICY  THAT  PROVIDES  COVERAGE  AS  DESCRIBED  IN
SUBSECTION  (B)  OF  THIS  SECTION  BEFORE  THE POLICY'S EFFECTIVE DATE;
PROVIDED, HOWEVER, THAT IF THE INSURER HAS NOT DELIVERED THE GROUP POLI-
CY TO THE ADMINISTRATOR PRIOR TO  SUCH  DATES,  THEN  THE  ADMINISTRATOR
SHALL  SUBMIT  THE  EVIDENCE  OF  INSURANCE  THE INSURER PROVIDED TO THE
ADMINISTRATOR PURSUANT TO PARAGRAPH ONE OF  THIS  SUBSECTION  AND  SHALL
SUBMIT  A  COPY OF THE GROUP POLICY WITHIN FIVE DAYS AFTER RECEIVING THE
POLICY FROM THE INSURER.
  (3) THE ADMINISTRATOR SHALL SUBMIT ANY CHANGE TO A GROUP POLICY WITHIN
FIFTEEN DAYS OF THE CHANGE.
  (F) IF THE GROUP  INSURER  OR  ADMINISTRATOR  NONRENEWS,  CANCELS,  OR
OTHERWISE  TERMINATES  FINANCIAL RESPONSIBILITY COVERAGE UNDER THE GROUP
POLICY, THEN THE ADMINISTRATOR SHALL:
  (1) AT LEAST FIFTEEN DAYS PRIOR TO THE  NONRENEWAL,  CANCELLATION,  OR
TERMINATION,  MAIL  OR DELIVER WRITTEN NOTICE TO EACH OWNER ADVISING THE
OWNER OF NONRENEWAL OR TERMINATION OF THE GROUP POLICY AND THE EFFECTIVE
DATE OF NONRENEWAL, CANCELLATION, OR TERMINATION; AND

A. 8007--B                          5

  (2) CEASE OPERATING THE PROGRAM IN THIS STATE WITH  RESPECT  TO  MOTOR
VEHICLES  REGISTERED  OR  REQUIRED  TO BE REGISTERED IN THIS STATE UNTIL
SUCH TIME AS THE ADMINISTRATOR OBTAINS SUCH COVERAGE UNDER A GROUP POLI-
CY.
  (G) AN ADMINISTRATOR SHALL:
  (1)  OBTAIN  A  RENTER'S  CONSENT  TO  THE  ADMINISTRATOR CHECKING THE
RENTER'S DRIVER'S LICENSE STATUS AND VERIFY, PRIOR TO A  RENTER'S  FIRST
RENTAL,  THAT THE RENTER PARTICIPATING IN A PROGRAM HAS A VALID DRIVER'S
LICENSE THAT IS APPROPRIATE FOR THE VEHICLE BEING RENTED,  AND  THAT  IF
ONE  YEAR HAS ELAPSED SINCE THE RENTER'S LAST LICENSE VERIFICATION, THEN
VERIFY AGAIN THE VALIDITY OF THE RENTER'S DRIVER'S LICENSE PRIOR TO  THE
RENTER'S NEXT RENTAL THROUGH THE PROGRAM;
  (2) PROVIDE EVERY OWNER PARTICIPATING IN THE PROGRAM WITH AN INSURANCE
IDENTIFICATION CARD, WHICH SHALL BE MAINTAINED IN THE MOTOR VEHICLE WHEN
THE MOTOR VEHICLE IS BEING RENTED UNDER THE PROGRAM;
  (3) FACILITATE THE INSTALLATION, OPERATION, AND MAINTENANCE OF SIGNAGE
IDENTIFYING THE MOTOR VEHICLE AS PARTICIPATING IN A PROGRAM AND COMPUTER
HARDWARE  AND  SOFTWARE TO THE EXTENT NECESSARY FOR THE MOTOR VEHICLE TO
BE USED OR OPERATED AS PART OF THE PROGRAM IF THE ADMINISTRATOR REQUIRES
THE INSTALLATION, OPERATION, OR MAINTENANCE  OF  THE  FOREGOING  AND  IF
REQUESTED  BY  THE  OWNER,  AND INDEMNIFY AND HOLD HARMLESS AN OWNER FOR
LOSS OF OR DAMAGE TO INSTALLED SIGNAGE OR COMPUTER HARDWARE OR  SOFTWARE
OR  FOR  ANY  DAMAGE  SUSTAINED  BY THE MOTOR VEHICLE AS A RESULT OF THE
INSTALLATION, MAINTENANCE, OR OPERATION OF SIGNAGE OR COMPUTER  HARDWARE
OR SOFTWARE;
  (4) COLLECT, MAINTAIN, AND MAKE AVAILABLE TO THE OWNER, OWNER'S INSUR-
ERS,  RENTER,  RENTER'S  INSURERS,  AND  THE SUPERINTENDENT OR ANY OTHER
GOVERNMENTAL AGENCY AS REQUIRED BY LAW,  WITHIN  TEN  BUSINESS  DAYS  OF
RECEIPT  OF  A REQUEST, THE FOLLOWING INFORMATION AT THE ADMINISTRATOR'S
COST, PROVIDED THAT THE RENTER AND RENTER'S INSURERS SHALL  BE  ENTITLED
ONLY TO RECORDS PERTAINING TO THE RENTER'S USE OR OPERATION OF A SPECIF-
IC  MOTOR  VEHICLE  AND THE OWNER AND OWNER'S INSURERS SHALL BE ENTITLED
ONLY TO RECORDS PERTAINING TO THE PARTICIPATION  OF  THE  OWNER'S  MOTOR
VEHICLE IN THE PROGRAM:
  (A) RECORDS DEMONSTRATING THE PERIOD OR PERIODS DURING WHICH THE MOTOR
VEHICLE WAS USED OR OPERATED PURSUANT TO THE PROGRAM, PROVIDED THAT WITH
REGARD  TO  A  MOTOR  VEHICLE  WITH  AN  ELECTRONIC TRACKING DEVICE, THE
RECORDS SHALL INCLUDE THE DATES AND TIMES DURING WHICH THE MOTOR VEHICLE
WAS USED OR OPERATED PURSUANT TO THE  PROGRAM,  THE  INITIAL  AND  FINAL
LOCATIONS  OF THE MOTOR VEHICLE, AND TO THE EXTENT COLLECTED, THE NUMBER
OF MILES DRIVEN; AND
  (B) WHERE AN INSURANCE CLAIM HAS BEEN SUBMITTED TO A GROUP INSURER  OR
TO  THE  ADMINISTRATOR UNDER A SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE
INSURANCE CONTRACT, ANY AND ALL INFORMATION, INCLUDING PAYMENTS MADE  BY
THE  GROUP  INSURER  OR ADMINISTRATOR, CONCERNING ACCIDENTS, DAMAGES, OR
INJURIES ARISING OUT OF THE OWNER'S OR  RENTER'S  PARTICIPATION  IN  THE
PROGRAM;
  (5) PRIOR TO THE FIRST USE OR OPERATION OF A MOTOR VEHICLE PURSUANT TO
A PROGRAM, PROVIDE AN OWNER OR A RENTER, AS APPLICABLE, WITH A CLEAR AND
CONSPICUOUS WRITTEN NOTICE:
  (A) THAT THE OWNER SHALL INFORM HIS OR HER INSURERS THAT HE OR SHE HAS
ENROLLED IN A PROGRAM;
  (B)  THAT  THE  OWNER'S  INSURERS  MAY  NOT HAVE ANY DUTY TO DEFEND OR
INDEMNIFY ANY PERSON FOR LIABILITY FOR ANY LOSS, DAMAGE, OR INJURY  THAT
OCCURS DURING THE USE OR OPERATION OF THE MOTOR VEHICLE UNDER A PROGRAM;

A. 8007--B                          6

  (C) THAT THE OWNER OR RENTER MAY HAVE LIABILITY FOR CLAIMS THAT EXCEED
THE  LIMITS OF THE GROUP POLICY OR FOR CLAIMS THAT ARE NOT COVERED UNDER
THE GROUP POLICY;
  (D) THAT THE GROUP POLICY OR SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE
INSURANCE CONTRACT MAY NOT PROVIDE COVERAGE IF A RENTER USES OR OPERATES
A MOTOR VEHICLE OUTSIDE THE RENTAL PERIOD;
  (E)  THAT  IF  A MOTOR VEHICLE IS A FINANCED OR LEASED VEHICLE AND THE
FINANCE OR LEASE AGREEMENT PROHIBITS THE  OWNER  FROM  RENTING  OUT  THE
MOTOR  VEHICLE  UNDER  A PROGRAM, THEN THE OWNER MAY NOT RENT OUT SUCH A
VEHICLE THROUGH THE PROGRAM;
  (F) IF THE GROUP POLICY DOES NOT PROVIDE MOTOR VEHICLE PHYSICAL DAMAGE
COVERAGE AND THE ADMINISTRATOR DOES NOT PROVIDE SELF-FUNDED MOTOR  VEHI-
CLE PHYSICAL DAMAGE INSURANCE PURSUANT TO SECTION EIGHT THOUSAND FIVE OF
THIS ARTICLE, THAT THE GROUP POLICY DOES NOT PROVIDE MOTOR VEHICLE PHYS-
ICAL  DAMAGE  COVERAGE  AND THE OWNER'S INSURER MAY NOT PROVIDE COVERAGE
FOR LOSS OF OR DAMAGE TO THE MOTOR VEHICLE THAT OCCURS WHILE  THE  MOTOR
VEHICLE IS BEING RENTED OUT THROUGH THE PROGRAM; AND
  (G)  PROVIDING  SUCH  OTHER  INFORMATION  AS  THE  SUPERINTENDENT  MAY
PRESCRIBE BY REGULATION; AND
  (6) MONITOR THAT THE OWNER IS RENTING OUT THE  VEHICLE  IN  ACCORDANCE
WITH  PARAGRAPH  TWO  OF SUBSECTION (H) OF THIS SECTION AND SHALL MAKE A
REASONABLE INQUIRY INTO WHETHER RENTERS AND OWNERS ARE ACTING IN COMPLI-
ANCE WITH PARAGRAPH ONE OF SUBSECTION (H)  OF  THIS  SECTION  AND  SHALL
PROMPTLY  REMOVE ANY OWNER OR RENTER FROM THE PROGRAM IF THE ADMINISTRA-
TOR KNOWS OR HAS INFORMATION SUFFICIENT TO FORM A REASONABLE BELIEF THAT
SUCH OWNER OR RENTER IS NOT IN COMPLIANCE WITH SUBSECTION  (H)  OF  THIS
SECTION, AS APPLICABLE.
  (H)  (1) NO OWNER SHALL BE ENGAGED IN THE BUSINESS OF RENTING OR LEAS-
ING MOTOR VEHICLES THROUGH A PROGRAM AND NO OWNER OR RENTER SHALL  CARRY
OR  TRANSPORT  PASSENGERS OR PROPERTY FOR HIRE IN A MOTOR VEHICLE RENTED
DURING A RENTAL PERIOD UNDER A PROGRAM. A MOTOR VEHICLE WITH  COMMERCIAL
OR  LIVERY  LICENSE PLATES, A BUS AS DEFINED IN SECTION ONE HUNDRED FOUR
OF THE VEHICLE AND TRAFFIC LAW, AND ANY MOTOR VEHICLE WEIGHING MORE THAN
SIX THOUSAND FIVE HUNDRED POUNDS UNLOADED SHALL NOT BE RENTED THROUGH  A
PROGRAM.
  (2)  FOR  PURPOSES OF THIS SECTION, AN OWNER SHALL NOT BE DEEMED TO BE
ENGAGED IN THE BUSINESS OF RENTING OR LEASING MOTOR VEHICLES  THROUGH  A
PROGRAM PROVIDED THAT:
  (A) THE OWNER IS AN INDIVIDUAL;
  (B) EACH RENTAL PERIOD DOES NOT EXCEED THIRTY DAYS;
  (C)  THE  OWNER  DOES  NOT  HAVE  MORE THAN FOUR MOTOR VEHICLES IN THE
PROGRAM AT ANY ONE TIME; AND
  (D) THE OWNER DOES NOT RENT A MOTOR VEHICLE  TO  A  RENTER  THROUGH  A
PROGRAM  FOR MORE THAN FOUR THOUSAND THREE HUNDRED HOURS IN ONE CALENDAR
YEAR.
  (I) AN AUTHORIZED DRIVER UNDER A PROGRAM SHALL BE:
  (1) THE RENTER, IF A LICENSED DRIVER;
  (2) THE RENTER'S SPOUSE, IF A LICENSED DRIVER AND MEETS THE  ELIGIBIL-
ITY REQUIREMENTS OF THE PROGRAM;
  (3) ANY PERSON WHO OPERATES THE VEHICLE DURING THE PERIOD SPECIFIED IN
SUBSECTION  (C)  OF THIS SECTION IN AN EMERGENCY SITUATION WHEN IT WOULD
BE HAZARDOUS TO THE HEALTH AND SAFETY OF THE RENTER  OR  THE  PEOPLE  OF
THIS STATE FOR THE RENTER TO OPERATE THE VEHICLE; OR
  (4)  ANY LICENSED DRIVER WHO MEETS THE ELIGIBILITY REQUIREMENTS OF THE
PROGRAM AND WHO OPERATES THE MOTOR VEHICLE DURING THE  PERIOD  SPECIFIED
IN SUBSECTION (C) OF THIS SECTION WITH THE OWNER'S PERMISSION.

A. 8007--B                          7

  (J)  PRIOR  TO THE FIRST RENTAL OF A MOTOR VEHICLE UNDER A PROGRAM, AN
OWNER SHALL INFORM HIS OR HER INSURERS THAT HE OR SHE  IS  PARTICIPATING
IN A PROGRAM.
  (K)  NEITHER  THE  ADMINISTRATOR  NOR  THE  OWNER  SHALL ENTER INTO AN
OPTIONAL VEHICLE PROTECTION AGREEMENT WITH THE RENTER.
  (L) AN OWNER'S INSURERS, INCLUDING THE INSURER THAT ISSUED THE  INSUR-
ANCE POLICY USED TO REGISTER THE MOTOR VEHICLE:
  (1)  SHALL  NOT  RATE THE OWNER'S VEHICLE AS BUSINESS USE SOLELY BASED
UPON ITS USAGE IN THE PROGRAM IF THE MOTOR VEHICLE IS USED IN ACCORDANCE
WITH PARAGRAPH TWO OF SUBSECTION (H) OF  THIS  SECTION,  AND  SHALL  NOT
CANCEL  OR  NONRENEW  THE OWNER'S INSURANCE POLICY ON THE BASIS THAT THE
MOTOR VEHICLE HAS  BEEN  MADE  AVAILABLE  PURSUANT  TO  A  PROGRAM  THAT
COMPLIES WITH THIS ARTICLE; AND
  (2)  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, MAY EXCLUDE COVERAGE
UNDER A POLICY THAT PROVIDES FINANCIAL RESPONSIBILITY COVERAGE WHILE THE
MOTOR VEHICLE IS UNDER THE OPERATION OR CONTROL OF A RENTER PURSUANT  TO
A  PROGRAM,  PROVIDED  THAT  THE  ADMINISTRATOR'S  GROUP POLICY PROVIDES
COVERAGE TO THE OWNER IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
  (M) ADVERTISEMENTS OR OTHER PUBLIC ANNOUNCEMENTS FOR A  PROGRAM  SHALL
BE TRUTHFUL AND NOT MISLEADING IN FACT OR IN IMPLICATION. THE FORMAT AND
CONTENT  OF  AN ADVERTISEMENT OR OTHER PUBLIC ANNOUNCEMENT FOR A PROGRAM
SHALL BE SUFFICIENTLY COMPLETE AND  CLEAR  TO  AVOID  DECEPTION  OR  THE
CAPACITY OR TENDENCY TO MISLEAD OR DECEIVE.
  S  8104.  REVOCATION  OR SUSPENSION OF REGISTRATION AND CERTIFICATE OF
AUTHORITY. (A) THE SUPERINTENDENT MAY REFUSE TO RENEW,  REVOKE,  OR  MAY
SUSPEND  FOR A PERIOD THE SUPERINTENDENT DETERMINES, THE REGISTRATION OR
CERTIFICATE OF AUTHORITY OF ANY ADMINISTRATOR IF, AFTER NOTICE AND HEAR-
ING, THE SUPERINTENDENT DETERMINES THAT SUCH ACTION  WOULD  PROMOTE  THE
HEALTH,  SAFETY,  OR  WELFARE OF THE PUBLIC OR THAT THE ADMINISTRATOR OR
ANY PERSON WHO CONTROLS THE ADMINISTRATOR HAS:
  (1) VIOLATED ANY PROVISION OF THIS CHAPTER TO WHICH THE  ADMINISTRATOR
IS SUBJECT, OR VIOLATED ANY REGULATION, SUBPOENA, OR ORDER OF THE SUPER-
INTENDENT  OR OF ANOTHER STATE'S INSURANCE COMMISSIONER OR PROGRAM REGU-
LATOR, OR ANY OTHER LAW IN THE COURSE OF THE ADMINISTRATOR'S DEALINGS IN
SUCH CAPACITY;
  (2) PROVIDED MATERIALLY INCORRECT, MATERIALLY  MISLEADING,  MATERIALLY
INCOMPLETE,  OR  MATERIALLY  UNTRUE  INFORMATION  IN THE REGISTRATION OR
CERTIFICATE OF AUTHORITY APPLICATION OR RENEWAL APPLICATION;
  (3) (A) USED FRAUDULENT, COERCIVE, OR DISHONEST PRACTICES;
  (B) DEMONSTRATED INCOMPETENCE;
  (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
  (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
IN THIS STATE OR ELSEWHERE;
  (4) IMPROPERLY WITHHELD, MISAPPROPRIATED, OR CONVERTED ANY  MONIES  OR
PROPERTIES  RECEIVED  IN  THE  COURSE OF BUSINESS IN THIS STATE OR ELSE-
WHERE;
  (5) BEEN CONVICTED OF A FELONY, OR HAS BEEN GUILTY  OF  FRAUDULENT  OR
DISHONEST PRACTICES OR OTHER MISCONDUCT OR MALFEASANCE;
  (6) HAD A REGISTRATION OR CERTIFICATE OF AUTHORITY, OR ITS EQUIVALENT,
DENIED, SUSPENDED, OR REVOKED IN ANY OTHER STATE, PROVINCE, DISTRICT, OR
TERRITORY; OR
  (7)  CEASED TO MEET THE REQUIREMENTS FOR REGISTRATION OR CERTIFICATION
UNDER THIS ARTICLE.
  (B) BEFORE REVOKING OR SUSPENDING THE REGISTRATION OR  CERTIFICATE  OF
AUTHORITY  OF ANY ADMINISTRATOR, THE SUPERINTENDENT SHALL GIVE NOTICE TO
THE ADMINISTRATOR AND ANY PRINCIPAL OFFICER THEREOF, AND SHALL HOLD,  OR

A. 8007--B                          8

CAUSE  TO  BE HELD, A HEARING NOT LESS THAN TEN DAYS AFTER THE GIVING OF
SUCH NOTICE.
  (C)  IF  AN  APPLICANT'S  REGISTRATION  OR CERTIFICATE OF AUTHORITY IS
REVOKED OR SUSPENDED BY  THE  SUPERINTENDENT,  THEN  THE  SUPERINTENDENT
SHALL FORTHWITH GIVE NOTICE TO THE ADMINISTRATOR AND ANY PRINCIPAL OFFI-
CER  THEREOF,  AND THE ADMINISTRATOR SHALL NOTIFY ALL OWNERS AND RENTERS
OF THAT DECISION IN SUCH FORM  AND  MANNER  AS  THE  SUPERINTENDENT  MAY
PRESCRIBE,  BUT  NOT  LATER THAN TEN DAYS AFTER RECEIPT OF NOTICE OF THE
SUPERINTENDENT'S DECISION REQUIRING SUSPENSION OR REVOCATION.
  (D) IF THE SUPERINTENDENT REVOKES A REGISTRATION, THEN THE SUPERINTEN-
DENT ALSO SHALL REVOKE ANY CERTIFICATE OF AUTHORITY.
  (E) NO ADMINISTRATOR WHOSE REGISTRATION OR  CERTIFICATE  OF  AUTHORITY
HAS  BEEN REVOKED SHALL BE ENTITLED TO OBTAIN ANY REGISTRATION, LICENSE,
OR CERTIFICATION UNDER THE PROVISIONS OF THIS CHAPTER FOR  A  PERIOD  OF
TWO  YEARS  AFTER  SUCH REVOCATION, OR, IF SUCH REVOCATION BE JUDICIALLY
REVIEWED, FOR TWO YEARS AFTER THE FINAL DETERMINATION THEREOF  AFFIRMING
THE  ACTION  OF  THE  SUPERINTENDENT  IN  REVOKING  SUCH REGISTRATION OR
CERTIFICATE OF AUTHORITY.
  (F) AN ADMINISTRATOR SUBJECT TO  THIS  SECTION  SHALL  REPORT  TO  THE
SUPERINTENDENT ANY ADMINISTRATIVE ACTION TAKEN AGAINST THE ADMINISTRATOR
OR  ANY  PRINCIPAL OFFICER THEREOF IN ANOTHER JURISDICTION OR BY ANOTHER
GOVERNMENTAL AGENCY IN THIS STATE WITHIN THIRTY DAYS OF THE FINAL DISPO-
SITION OF THE MATTER. THIS REPORT SHALL INCLUDE A  COPY  OF  THE  ORDER,
CONSENT TO ORDER, OR OTHER RELEVANT LEGAL DOCUMENTS.
  (G) WITHIN THIRTY DAYS OF THE INITIAL PRETRIAL HEARING DATE, AN ADMIN-
ISTRATOR  SUBJECT TO THIS ARTICLE SHALL REPORT TO THE SUPERINTENDENT ANY
CRIMINAL PROSECUTION OF THE ADMINISTRATOR OR ANY PRINCIPAL OFFICER THER-
EOF TAKEN IN ANY JURISDICTION. THE REPORT SHALL INCLUDE A  COPY  OF  THE
INITIAL  COMPLAINT  FILED, THE ORDER RESULTING FROM THE HEARING, AND ANY
OTHER RELEVANT LEGAL DOCUMENTS.
  S 8105. SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE.  (A)  THE
SUPERINTENDENT  MAY ISSUE A CERTIFICATE OF AUTHORITY TO AN ADMINISTRATOR
TO PROVIDE TO OWNERS AND  RENTERS  SELF-FUNDED  MOTOR  VEHICLE  PHYSICAL
DAMAGE  INSURANCE, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, IF
THE ADMINISTRATOR:
  (1) IS IN COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE; AND
  (2) DEMONSTRATES TO THE SUPERINTENDENT THAT THE MOTOR VEHICLE PHYSICAL
DAMAGE INSURANCE IS UNAVAILABLE FROM AN AUTHORIZED INSURER OR UNAFFORDA-
BLE IN THIS STATE, OR THAT IT WOULD BE IN  THE  BEST  INTERESTS  OF  THE
PUBLIC FOR THE ADMINISTRATOR TO PROVIDE SUCH COVERAGE.
  (B)  AN  ADMINISTRATOR GRANTED A CERTIFICATE OF AUTHORITY SHALL COMPLY
WITH, IN THE SAME MANNER AS AN AUTHORIZED INSURER, AND SHALL BE  TREATED
AS  SUCH  FOR  THE  PURPOSES OF ARTICLES ONE, THREE, FOUR, TWENTY-THREE,
TWENTY-FOUR,  TWENTY-SIX,  TWENTY-EIGHT,  THIRTY-ONE,  THIRTY-FOUR,  AND
SEVENTY-FOUR  OF THIS CHAPTER, AND SUCH OTHER PROVISIONS THAT THE SUPER-
INTENDENT BY REGULATION DEEMS NECESSARY FOR THE PROTECTION OF THE PEOPLE
OF THIS STATE. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS  TO  MODIFY
THE  REQUIREMENTS  APPLICABLE  TO  AN ADMINISTRATOR AS SET FORTH IN THIS
SUBSECTION, SUBJECT TO SUCH LIMITATIONS AS THE SUPERINTENDENT SHALL DEEM
NECESSARY OR APPROPRIATE.
  (C) AN ADMINISTRATOR SHALL DEPOSIT ONE HUNDRED THOUSAND  DOLLARS  WITH
THE  SUPERINTENDENT,  WHICH SHALL BE MAINTAINED BY THE SUPERINTENDENT IN
ACCORDANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  THREE  HUNDRED
FOURTEEN  OF THIS CHAPTER. THE DEPOSIT SHALL BE GOVERNED BY SECTIONS ONE
THOUSAND THREE HUNDRED SIXTEEN, ONE THOUSAND  THREE  HUNDRED  SEVENTEEN,
ONE  THOUSAND  THREE  HUNDRED EIGHTEEN, ONE THOUSAND THREE HUNDRED NINE-

A. 8007--B                          9

TEEN, AND ONE THOUSAND THREE HUNDRED TWENTY OF THIS CHAPTER,  AS  APPRO-
PRIATE.
  (D)  (1)  AN ADMINISTRATOR MAY PROVIDE SELF-FUNDED MOTOR VEHICLE PHYS-
ICAL DAMAGE INSURANCE PROVIDED THAT  THE  INSURANCE  COVERS  ALL  OWNERS
UNDER  THE PROGRAM WHO MAINTAIN INDIVIDUAL MOTOR VEHICLE PHYSICAL DAMAGE
INSURANCE POLICIES. THE INSURANCE SHALL NOT BE SUBJECT TO SUBSECTION (K)
OF SECTION THREE THOUSAND FOUR HUNDRED ELEVEN OF THIS CHAPTER BUT  SHALL
PROVIDE  FOR  A DEDUCTIBLE ACCEPTABLE TO THE SUPERINTENDENT. THE COST OF
PROVIDING THE COVERAGE SHALL BE TREATED AS PREMIUM FOR PURPOSES OF ARTI-
CLE TWENTY-THREE OF THIS CHAPTER AND THE  ADMINISTRATOR  SHALL  MAINTAIN
RECORDS IDENTIFYING SUCH AMOUNT.
  (2)  AN ADMINISTRATOR ALSO MAY SELL OPTIONAL SELF-FUNDED MOTOR VEHICLE
PHYSICAL DAMAGE INSURANCE TO A  RENTER  FOR  A  SEPARATELY  IDENTIFIABLE
AMOUNT  ON  A  PER  RENTAL  BASIS. THE INSURANCE SHALL NOT BE SUBJECT TO
SUBSECTION (K) OF SECTION THREE THOUSAND FOUR  HUNDRED  ELEVEN  OF  THIS
CHAPTER  BUT THE ADMINISTRATOR MAY OFFER THE COVERAGE TO THE RENTER WITH
A DEDUCTIBLE OR CHOICE OF DEDUCTIBLES ACCEPTABLE TO THE  SUPERINTENDENT.
THE  ADMINISTRATOR  SHALL PROVIDE A CLEAR AND CONSPICUOUS WRITTEN NOTICE
TO THE RENTER THAT THE COVERAGE MAY DUPLICATE COVERAGE ALREADY  PROVIDED
BY A RENTER'S INSURER.
  (3) AN ADMINISTRATOR SHALL DELIVER TO AN OWNER AND RENTER, AS APPLICA-
BLE, EVIDENCE OF MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE THAT SETS FORTH
ALL  BENEFITS AND TERMS AND CONDITIONS.  THE ADMINISTRATOR SHALL DELIVER
EVIDENCE OF INSURANCE PRIOR TO THE MOTOR VEHICLE PHYSICAL DAMAGE  INSUR-
ANCE CONTRACT'S EFFECTIVE DATE.
  (4)  A  SELF-FUNDED  MOTOR  VEHICLE PHYSICAL DAMAGE INSURANCE CONTRACT
SHALL  BE  SUBJECT  TO  SUBSECTIONS  (C),  (D),  AND  PARAGRAPH  ONE  OF
SUBSECTION (F) OF SECTION EIGHT THOUSAND ONE HUNDRED THREE OF THIS ARTI-
CLE IN THE SAME MANNER AS A GROUP POLICY.
  (E)  THE  SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE MAY ONLY
PROVIDE COVERAGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF
SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER  WITH  RESPECT
TO MOTOR VEHICLES.
  (F)  (1)  (A) AN ADMINISTRATOR SHALL MAINTAIN A FUNDED RESERVE ACCOUNT
FOR PAYMENT OF CLAIMS UNDER A SELF-FUNDED MOTOR VEHICLE PHYSICAL  DAMAGE
INSURANCE  CONTRACT  AND EXPENSES THEREON REPORTED BUT NOT YET PAID, AND
CLAIMS AND EXPENSES THEREON INCURRED BUT NOT YET REPORTED,  WHICH  SHALL
NOT  BE LESS THAN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF THE ADMINIS-
TRATOR'S EXPECTED INCURRED CLAIMS AND EXPENSES THEREON FOR  THE  CURRENT
CONTRACT  YEAR,  OR SUCH OTHER AMOUNT THAT THE SUPERINTENDENT DETERMINES
TO BE NECESSARY OR APPROPRIATE.  THE ADMINISTRATOR MAY MAINTAIN A SINGLE
FUNDED RESERVE ACCOUNT FOR CONTRACTS ISSUED TO OWNERS AND RENTERS. IF AT
ANY TIME THE FUNDED RESERVE ACCOUNT FALLS  BELOW  THE  REQUIRED  MINIMUM
AMOUNT,  THEN  THE ADMINISTRATOR SHALL NOTIFY THE SUPERINTENDENT OF SUCH
DEFICIENCY WITHIN ONE BUSINESS DAY AFTER THE ADMINISTRATOR DISCOVERS THE
DEFICIENCY. THE ADMINISTRATOR SHALL  CURE  THE  DEFICIENCY  WITHIN  FIVE
BUSINESS DAYS.
  (B)  THE  ASSETS CONSTITUTING THE FUNDED RESERVE ACCOUNT SHALL CONSIST
SOLELY OF CERTIFICATES OF DEPOSIT ISSUED BY A  UNITED  STATES  BANK  AND
PAYABLE  IN  UNITED  STATES  LEGAL  TENDER,  OR  SECURITIES REPRESENTING
INVESTMENTS OF THE TYPES SPECIFIED IN PARAGRAPHS ONE,  TWO,  THREE,  AND
EIGHT  OF  SUBSECTION  (A)  OF SECTION ONE THOUSAND FOUR HUNDRED FOUR OF
THIS CHAPTER, OR AS OTHERWISE EXPRESSLY PERMITTED BY THE SUPERINTENDENT.
ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEYS DEPOSITED  OR
INVESTED SHALL ACCRUE TO AND BECOME PART OF THE FUNDED RESERVE ACCOUNT.

A. 8007--B                         10

  (C)  THE  REQUIREMENT  FOR FUNDING THE FUNDED RESERVE ACCOUNT SHALL BE
CALCULATED USING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
  (2)  AN ADMINISTRATOR MAY PROVIDE ONE OF THE FOLLOWING IN SATISFACTION
OF ANY AMOUNTS ABOVE FIVE HUNDRED THOUSAND DOLLARS THAT THE  ADMINISTRA-
TOR WOULD BE REQUIRED TO MAINTAIN IN THE FUNDED RESERVE ACCOUNT PURSUANT
TO  PARAGRAPH ONE OF THIS SUBSECTION, UPON THE SUPERINTENDENT'S APPROVAL
AND IF IN A FORM ACCEPTABLE TO THE SUPERINTENDENT:
  (A) A SURETY BOND ISSUED BY AN INSURER AUTHORIZED  IN  THIS  STATE  TO
WRITE FIDELITY AND SURETY INSURANCE;
  (B)  A  LETTER OF CREDIT ISSUED BY A QUALIFIED UNITED STATES FINANCIAL
INSTITUTION;
  (C) EVIDENCE THAT THE ADMINISTRATOR MAINTAINS A NET  WORTH  OR  STOCK-
HOLDERS' EQUITY OF AT LEAST ONE HUNDRED MILLION DOLLARS; OR
  (D)  A STOP-LOSS MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE POLICY ISSUED
BY AN INSURER AUTHORIZED TO WRITE MOTOR VEHICLE PHYSICAL  DAMAGE  INSUR-
ANCE IN THIS STATE IN ACCORDANCE WITH SECTION EIGHT THOUSAND ONE HUNDRED
SIX OF THIS ARTICLE.
  (G)  WITHIN ONE HUNDRED TWENTY DAYS OF THE CLOSE OF AN ADMINISTRATOR'S
FISCAL YEAR, THE ADMINISTRATOR SHALL  FILE  WITH  THE  SUPERINTENDENT  A
REPORT THAT SHOWS HOW THE ADMINISTRATOR MEETS THE FUNDED RESERVE ACCOUNT
REQUIREMENT  SET  FORTH IN SUBSECTION (F) OF THIS SECTION, INCLUDING THE
AMOUNTS REPORTED, THE  METHOD  USED  TO  CALCULATE  THE  FUNDED  RESERVE
ACCOUNT  REQUIREMENT,  THE  CHANGE IN THE RESERVES FROM THE BEGINNING OF
THE ADMINISTRATOR'S FISCAL YEAR TO THE END OF THE ADMINISTRATOR'S FISCAL
YEAR, AND THE ASSETS COMPRISING THE FUNDED RESERVE ACCOUNT.
  (H) AN ADMINISTRATOR SHALL USE AN  INDEPENDENT  ADJUSTER  LICENSED  IN
THIS  STATE  TO  INVESTIGATE  AND  ADJUST THE CLAIMS SUBMITTED UNDER THE
SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE CONTRACT.
  (I) IN ANY CASE IN WHICH AN ADMINISTRATOR DETERMINES THAT THERE  IS  A
REASON  TO  BELIEVE  THAT  THE SELF-FUNDED MOTOR VEHICLE PHYSICAL DAMAGE
INSURANCE CONTRACT WILL TERMINATE, THE ADMINISTRATOR SHALL SO INFORM THE
SUPERINTENDENT AT LEAST SIXTY DAYS PRIOR THERETO, AND SHALL FILE A SWORN
STATEMENT WITH THE SUPERINTENDENT  CONCERNING  ALL  CURRENT  AND  FUTURE
LIABILITIES  UNDER  ITS  DISCONTINUED  CONTRACT.  THE ADMINISTRATOR ALSO
SHALL SUBMIT A PLAN WITH THE  SUPERINTENDENT  FOR  THE  SUPERINTENDENT'S
APPROVAL FOR WINDING UP THE LIABILITIES IN AN ORDERLY MANNER DESIGNED TO
RESULT IN TIMELY PAYMENT OF ALL BENEFITS, IN SUCH FORM AND MANNER AS THE
SUPERINTENDENT MAY PRESCRIBE.
  S 8106. STOP-LOSS INSURANCE. (A) AN INSURER AUTHORIZED TO DO THE BUSI-
NESS  OF  MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE IN THIS STATE SHALL BE
AUTHORIZED TO ISSUE STOP-LOSS INSURANCE AS PROVIDED IN THIS SECTION.
  (B) "STOP-LOSS INSURANCE" MEANS AN INSURANCE POLICY WHEREBY THE INSUR-
ER AGREES TO  PAY  CLAIMS  OR  INDEMNIFY  AN  ADMINISTRATOR  FOR  LOSSES
INCURRED  UNDER  A  SELF-FUNDED  MOTOR VEHICLE PHYSICAL DAMAGE INSURANCE
CONTRACT ISSUED PURSUANT TO SECTION EIGHT THOUSAND ONE HUNDRED  FIVE  OF
THIS ARTICLE.
  (C)  A  STOP-LOSS INSURANCE POLICY SHALL PROVIDE THAT, UPON FAILURE OF
THE ADMINISTRATOR TO PERFORM UNDER THE SELF-FUNDED MOTOR  VEHICLE  PHYS-
ICAL  DAMAGE  INSURANCE  CONTRACT, THE INSURER THAT ISSUED THE STOP-LOSS
POLICY SHALL PAY ON BEHALF OF THE ADMINISTRATOR ANY SUMS THAT THE ADMIN-
ISTRATOR IS LEGALLY OBLIGATED TO PAY UNDER THE SELF-FUNDED MOTOR VEHICLE
PHYSICAL DAMAGE INSURANCE CONTRACT.
  (D) A STOP-LOSS INSURANCE POLICY AND RATES SHALL  BE  FILED  WITH  THE
SUPERINTENDENT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE TWENTY-THREE
OF  THIS CHAPTER. THE SUPERINTENDENT MAY PROMULGATE SUCH RULES AND REGU-
LATIONS THAT THE SUPERINTENDENT DEEMS NECESSARY OR DESIRABLE  TO  ESTAB-

A. 8007--B                         11

LISH  FINANCIAL  REQUIREMENTS  AND STANDARDS FOR THE FORM AND CONTENT OF
STOP-LOSS INSURANCE POLICIES.
  S  8107. RECORDKEEPING. AN ADMINISTRATOR SHALL MAINTAIN ITS RECORDS IN
ACCORDANCE WITH REGULATIONS PROMULGATED BY THE SUPERINTENDENT.
  S 8108. PENALTIES. IF THE SUPERINTENDENT DETERMINES AFTER  NOTICE  AND
HEARING  THAT  A  PERSON  HAS  WILLFULLY VIOLATED THE PROVISIONS OF THIS
ARTICLE OR ANY REGULATION PROMULGATED THEREUNDER, THEN, IN  ADDITION  TO
SUSPENSION, REVOCATION, OR ANY OTHER PENALTY PROVIDED BY LAW, THE SUPER-
INTENDENT  MAY  ORDER  THE  PERSON  TO PAY TO THE PEOPLE OF THIS STATE A
PENALTY IN A SUM NOT  EXCEEDING  ONE  THOUSAND  DOLLARS  FOR  THE  FIRST
VIOLATION  AND  TWO  THOUSAND  FIVE  HUNDRED DOLLARS FOR EACH SUBSEQUENT
VIOLATION. THE SUPERINTENDENT ALSO MAY ORDER THE PERSON TO MAKE RESTITU-
TION ON BEHALF OF PERSONS AGGRIEVED BY A VIOLATION OF  THIS  ARTICLE  OR
REGULATIONS PROMULGATED THEREUNDER.
  S  8109. REGULATIONS. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS AS
THE  SUPERINTENDENT  DEEMS  NECESSARY  OR  DESIRABLE  TO  IMPLEMENT  THE
PROVISIONS OF THIS ARTICLE.
  S  3.  Section  1108  of  the insurance law is amended by adding a new
subsection (n) to read as follows:
  (N) A CONSUMER MOTOR VEHICLE RENTAL PROGRAM ADMINISTRATOR, AS  DEFINED
IN  SUBSECTION  (A)  OF  SECTION  EIGHT THOUSAND ONE HUNDRED ONE OF THIS
CHAPTER, THAT HAS A CERTIFICATE OF  AUTHORITY  FROM  THE  SUPERINTENDENT
AUTHORIZING THE ADMINISTRATOR TO PROVIDE SELF-FUNDED MOTOR VEHICLE PHYS-
ICAL  DAMAGE  INSURANCE  AND  COMPLIES  WITH THE REQUIREMENTS OF ARTICLE
EIGHTY-ONE OF THIS CHAPTER, TO THE EXTENT THEREIN STATED.
  S 4. Paragraph 13 of subsection (b) of section 2305 of  the  insurance
law,  as  amended by chapter 136 of the laws of 2008, is amended to read
as follows:
  (13) Private passenger automobile insurance, INCLUDING A GROUP  POLICY
ISSUED  PURSUANT  TO  SECTION  THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF
THIS CHAPTER, except as provided in section two thousand  three  hundred
fifty of this article.
  S  5.  Subsection (b) of section 3440 of the insurance law, as amended
by chapter 66 of the laws of 1989, is amended to read as follows:
  (b) Subject to subsection (d) of this  section,  every  motor  vehicle
liability  insurance  policy [which] THAT insures less than five private
passenger motor vehicles registered in this state shall by  endorsement,
provide coverage for the obligation of the insured for actual damage to,
or loss of, vehicles (including loss of use) rented by an insured in the
United  States, its territories or possessions and Canada under a rental
agreement with a term of thirty continuous days or less,  regardless  of
where  within  those areas such rental vehicle is registered, rented, or
operated, subject to such maximum coverage  limitations  as  the  super-
intendent  may by regulation prescribe or any other applicable limits in
the policy, whichever is higher. The term "rental vehicle" shall be used
as defined in section one hundred  thirty-seven-a  of  the  vehicle  and
traffic  law,  if a private passenger motor vehicle and not used for the
transportation of persons or property for  hire,  AND  SHALL  INCLUDE  A
MOTOR  VEHICLE  RENTED  UNDER  A  CONSUMER  MOTOR VEHICLE RENTAL PROGRAM
PURSUANT TO ARTICLE EIGHTY-ONE OF THIS CHAPTER.
  S 6. The insurance law is amended by adding a new section 3455 to read
as follows:
  S 3455. GROUP INSURANCE  POLICY  FOR  CONSUMER  MOTOR  VEHICLE  RENTAL
PROGRAM.  (A)  FOR  PURPOSES  OF THIS SECTION, THE FOLLOWING DEFINITIONS
SHALL APPLY:

A. 8007--B                         12

  (1) "CONSUMER MOTOR VEHICLE  RENTAL  PROGRAM"  OR  "PROGRAM"  MEANS  A
PROGRAM  THAT  FACILITATES THE USE OR OPERATION OF A MOTOR VEHICLE WHERE
THE VEHICLE IS RENTED TO A RENTER WITHOUT A DRIVER.
  (2) "CONSUMER MOTOR VEHICLE RENTAL PROGRAM ADMINISTRATOR" OR "ADMINIS-
TRATOR" MEANS A PERSON OR OTHER ENTITY THAT ADMINISTERS A CONSUMER MOTOR
VEHICLE RENTAL PROGRAM.
  (3) "FINANCIAL RESPONSIBILITY COVERAGE" MEANS COVERAGE IN SATISFACTION
OF  THE  FINANCIAL  RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION
FOUR OF SECTION THREE HUNDRED ELEVEN OF THE  VEHICLE  AND  TRAFFIC  LAW,
SECTION  THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER, AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED  THEREUNDER,  AND
SUCH  OTHER  REQUIREMENTS  THAT MAY APPLY FOR THE PURPOSES OF SATISFYING
THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT  TO  THE  USE  OR
OPERATION OF THE MOTOR VEHICLE.
  (4) "GROUP POLICYHOLDER" MEANS A CONSUMER MOTOR VEHICLE RENTAL PROGRAM
ADMINISTRATOR.
  (5)  "GROUP  POLICY MEMBER" MEANS AN OWNER PARTICIPATING IN A CONSUMER
MOTOR VEHICLE RENTAL PROGRAM.
  (6) "MOTOR VEHICLE" OR "VEHICLE" SHALL HAVE THE MEANING SET  FORTH  IN
SUBSECTION  (G)  OF SECTION EIGHT THOUSAND ONE HUNDRED ONE OF THIS CHAP-
TER.
  (7) "OWNER" MEANS A PERSON, OTHER THAN A LIEN HOLDER, HAVING THE PROP-
ERTY IN OR TITLE TO A MOTOR VEHICLE AND SHALL INCLUDE A PERSON  ENTITLED
TO  THE  USE  AND  POSSESSION  OF  A MOTOR VEHICLE SUBJECT TO A SECURITY
INTEREST IN ANOTHER PERSON, AND ALSO SHALL INCLUDE ANY LESSEE OR  BAILEE
OF  A  MOTOR  VEHICLE HAVING THE EXCLUSIVE USE THEREOF, UNDER A LEASE OR
OTHERWISE, FOR A PERIOD GREATER THAN THIRTY DAYS.
  (B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE  A  GROUP
POLICY  TO  AN  ADMINISTRATOR AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE
WITH THE PROVISIONS OF THIS SECTION.
  (C) (1) A GROUP POLICY SHALL PROVIDE COVERAGE  FOR  AN  OWNER'S  MOTOR
VEHICLE REGISTERED OR REQUIRED TO BE REGISTERED IN THIS STATE DURING THE
PERIOD SPECIFIED IN SUBSECTION (C) OF SECTION EIGHT THOUSAND ONE HUNDRED
THREE  OF THIS CHAPTER. A GROUP POLICY SHALL PROVIDE FINANCIAL RESPONSI-
BILITY COVERAGE FOR EACH MOTOR VEHICLE.
  (2) A GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED  UNDER
THE LAW, WITH REGARD TO FINANCIAL RESPONSIBILITY COVERAGE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY  INJURY  PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER;
  (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE  PURSUANT  TO  SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
  (D)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
OF THIS CHAPTER.
  (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
SUBSECTION MAY BE PROVIDED IN ONE GROUP  POLICY  OR  IN  SEPARATE  GROUP
POLICIES.
  (4) A GROUP POLICY, INCLUDING CERTIFICATES, SHALL BE ISSUED ONLY BY AN
INSURER  AUTHORIZED  TO  WRITE SUCH KINDS OF INSURANCE IN THIS STATE AND
SHALL NOT BE ELIGIBLE FOR PLACEMENT BY AN EXCESS  LINE  BROKER  LICENSED
PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
  (D)  THE  PREMIUM FOR THE GROUP POLICY, INCLUDING CERTIFICATES, MAY BE
PAID BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED:

A. 8007--B                         13

  (1) WHOLLY BY THE GROUP POLICYHOLDER;
  (2) WHOLLY BY THE GROUP POLICY MEMBERS; OR
  (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP POLICY MEMBERS.
  (E)  THE  INSURER  SHALL NOT ISSUE A GROUP POLICY UNLESS IT REASONABLY
EXPECTS TO INSURE AT LEAST ONE HUNDRED OWNERS WITHIN SIX MONTHS  OF  THE
FIRST  RENTAL PERIOD COVERED UNDER THE GROUP POLICY, EXCEPT THAT IF PART
OF THE PREMIUM IS TO BE DERIVED FROM FUNDS  TO  BE  CONTRIBUTED  BY  THE
GROUP  POLICY MEMBERS SPECIFICALLY FOR THEIR INSURANCE, THEN THE INSURER
SHALL NOT ISSUE A GROUP POLICY UNLESS IT REASONABLY EXPECTS TO INSURE AT
LEAST TWO HUNDRED OWNERS WITHIN SIX MONTHS OF THE  FIRST  RENTAL  PERIOD
COVERED UNDER THE GROUP POLICY.
  (F)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
  (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
  (B) BE RETAINED BY THE GROUP POLICYHOLDER.
  (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETROSPEC-
TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
SUBSECTION SHALL BE:
  (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP POLICY MEMBERS, OR BOTH; OR
  (B) PAID OR REFUNDED TO THOSE GROUP POLICY MEMBERS INSURED ON THE DATE
THE  PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED
BY THE GROUP POLICYHOLDER, OR ON THE DATE  OF  MAILING,  IF  DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OR REFUND TO THE GROUP POLICY MEMBERS;
  (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THEN
THE INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT
OR  REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE;
AND
  (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT  OR  REFUND,
THEN  THE  INSURER  SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE
METHOD PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS  SUBSECTION,  IF  A
DIVIDEND  ACCRUES UPON TERMINATION OF COVERAGE UNDER A GROUP POLICY, THE
PREMIUM FOR WHICH WAS PAID OUT OF  FUNDS  CONTRIBUTED  BY  GROUP  POLICY
MEMBERS  SPECIFICALLY  FOR THE COVERAGE, THEN THE DIVIDEND SHALL BE PAID
OR REFUNDED BY THE  GROUP  POLICYHOLDER  TO  THE  GROUP  POLICY  MEMBERS
INSURED  ON  THE DATE THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICY-
HOLDER NET OF REASONABLE EXPENSES INCURRED BY THE GROUP POLICYHOLDER  IN
PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP POLICY MEMBERS.
  (4)  FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
AN INSURER TO A GROUP POLICYHOLDER OF EXCESS PREMIUMS PAID BY THAT GROUP
POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERIENCE, INCLUDING RETROSPEC-
TIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM REFUNDS. THE  TERM  "DIVI-
DEND"  DOES NOT INCLUDE REIMBURSEMENTS OR FEES RECEIVED BY A GROUP POLI-
CYHOLDER IN CONNECTION WITH THE OPERATION OR ADMINISTRATION OF  A  GROUP
POLICY,  INCLUDING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR  SERVICES
PROVIDED BY THE GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
  (G) THE INSURER MUST TREAT IN LIKE MANNER ALL  ELIGIBLE  GROUP  POLICY
MEMBERS OF THE SAME CLASS AND STATUS.
  (H)  (1)  THE INSURER SHALL BE RESPONSIBLE FOR THE MAILING OR DELIVERY
OF A CERTIFICATE OF INSURANCE TO EACH  GROUP  POLICY  MEMBER,  PROVIDED,
HOWEVER,  THAT  THE  INSURER MAY DELEGATE THE MAILING OR DELIVERY TO THE

A. 8007--B                         14

ADMINISTRATOR. THE INSURER ALSO SHALL  BE  RESPONSIBLE  FOR  MAILING  OR
DELIVERY  TO  EACH  GROUP POLICY MEMBER AN AMENDED CERTIFICATE OF INSUR-
ANCE, OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A  CHANGE  OF
LIMITS;  CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMINATION
OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE GROUP POLICY OR CERTIF-
ICATE.
  (2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS  AND
CONDITIONS  OF  COVERAGE AFFORDED TO THE GROUP POLICY MEMBER, UNLESS THE
GROUP POLICY IS INCORPORATED BY REFERENCE AND A COPY OF THE GROUP POLICY
ACCOMPANIES THE CERTIFICATE.
  (3) IF COVERAGE AFFORDED TO THE GROUP POLICY MEMBER IS  IN  EXCESS  OF
OTHER  APPLICABLE INSURANCE COVERAGE, THEN THE CERTIFICATE SHALL CONTAIN
A NOTICE ADVISING THE GROUP POLICY MEMBER THAT IF THE MEMBER  HAS  OTHER
INSURANCE  COVERAGE,  SPECIFIED COVERAGES UNDER THE GROUP POLICY WILL BE
EXCESS OVER THE OTHER INSURANCE.
  (I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS  OF  SECTION
TWO  THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN INSURANCE AGENT OR INSURANCE BROKER, IN ANY  ADVERTISEMENT,  SIGN,
PAMPHLET,  CIRCULAR,  CARD,  OR  OTHER  PUBLIC ANNOUNCEMENT REFERRING TO
COVERAGE UNDER A GROUP POLICY OR CERTIFICATE.
  (J) EXCEPT AS PROVIDED IN SUBSECTION (K)  OF  THIS  SECTION,  A  GROUP
POLICY  OR  CERTIFICATE  SHALL  NOT BE SUBJECT TO SECTION THREE THOUSAND
FOUR HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED  TWENTY-
SIX OF THIS ARTICLE.
  (K)  (1)  AN INSURER MAY TERMINATE A GROUP POLICY ONLY IF CANCELLATION
IS BASED ON ONE OR MORE OF THE REASONS SET FORTH  IN  SUBPARAGRAPHS  (A)
THROUGH  (D)  OR  (F)  THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS  ARTICLE,  OR  IF
THE  SUPERINTENDENT SUSPENDS OR REVOKES THE ADMINISTRATOR'S REGISTRATION
FOR SIXTY OR MORE DAYS.
  (2) AN INSURER MAY TERMINATE AN INDIVIDUAL CERTIFICATE ONLY IF CANCEL-
LATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPARAGRAPHS
(B) OR (C) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE  THOUSAND
FOUR  HUNDRED  TWENTY-FIVE OF THIS ARTICLE, PROVIDED, HOWEVER THAT WHERE
THE PREMIUM IS DERIVED WHOLLY OR PARTIALLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER ALSO MAY CANCEL  THE  INDIVIDUAL  CERTIF-
ICATE  IF  CANCELLATION IS BASED ON THE REASON SET FORTH IN SUBPARAGRAPH
(A) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION  THREE  THOUSAND  FOUR
HUNDRED TWENTY-FIVE OF THIS ARTICLE.
  (3)  IF  AN  INSURER  TERMINATES AN INDIVIDUAL CERTIFICATE PURSUANT TO
PARAGRAPH TWO OF THIS SUBSECTION, THEN  THE  INSURER  SHALL  NOTIFY  THE
GROUP  POLICYHOLDER IN WRITING THAT THE INSURER HAS TERMINATED THE INDI-
VIDUAL CERTIFICATE AND THE GROUP POLICYHOLDER SHALL, WITHIN FIVE DAYS OF
RECEIPT OF NOTICE FROM THE INSURER, REMOVE THE GROUP POLICY MEMBER  FROM
THE PROGRAM.
  (4) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIF-
ICATES,  SHALL  NOT BECOME EFFECTIVE UNTIL TWENTY DAYS AFTER THE INSURER
MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO  THE  GROUP  POLICY-
HOLDER  AT  THE MAILING ADDRESS SHOWN IN THE POLICY, EXCEPT FIFTEEN DAYS
WRITTEN NOTICE  SHALL  BE  SUFFICIENT  WHERE  THE  CANCELLATION  IS  FOR
NON-PAYMENT OF PREMIUM.
  (L)  CANCELLATION  BY THE GROUP POLICYHOLDER. A GROUP POLICYHOLDER MAY
CANCEL A GROUP POLICY FOR ANY REASON UPON TWENTY DAYS WRITTEN NOTICE  TO
THE INSURER AND EACH GROUP POLICY MEMBER.
  (M) CANCELLATION BY THE GROUP POLICY MEMBER. A GROUP POLICY MEMBER MAY
CANCEL  OPTIONAL  COVERAGE  UPON PROVIDING NOTICE TO THE INSURER AND THE

A. 8007--B                         15

GROUP POLICYHOLDER. FOR  THE  PURPOSES  OF  THIS  SUBSECTION,  "OPTIONAL
COVERAGE"  MEANS  COVERAGE  OTHER THAN FINANCIAL RESPONSIBILITY COVERAGE
THAT AN INDIVIDUAL GROUP POLICY MEMBER PURCHASES ON AN OPTIONAL BASIS.
  (N) (1) A GROUP POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED
FOR  A  ONE-YEAR  POLICY  PERIOD  UNLESS THE GROUP POLICY PROVIDES FOR A
LONGER POLICY PERIOD.
  (2) A GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE  GROUP  POLICY
AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS THE INSURER MAILS OR DELIVERS
TO THE GROUP POLICYHOLDER WRITTEN NOTICE OF NONRENEWAL,  OR  CONDITIONAL
RENEWAL,  AT  LEAST FORTY-FIVE BUT NOT MORE THAN SIXTY DAYS PRIOR TO THE
EXPIRATION DATE SPECIFIED IN THE POLICY OR, IF  NO  DATE  IS  SPECIFIED,
THEN THE NEXT ANNIVERSARY DATE OF THE POLICY.
  (O)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
FROM AN INSURER SHALL SET FORTH  THE  SPECIFIC  REASON  OR  REASONS  FOR
CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL.
  (P)  TERMINATION  FROM  THE  GROUP  SHALL  TERMINATE  THE GROUP POLICY
MEMBER'S COVERAGE EXCEPT AS PROVIDED IN SUBSECTION (Q) OF THIS SECTION.
  (Q) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,  OR
CONDITIONAL  RENEWAL  OF  THE  GROUP  POLICY,  OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER, OR  BY  THE  GROUP  POLICY
MEMBER  IN  REGARD  TO  THE  GROUP POLICY MEMBER'S CERTIFICATE, COVERAGE
ATTACHES PURSUANT TO THE TERMS OF A  GROUP  POLICY,  THEN  THE  COVERAGE
SHALL BE EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE
PROVIDED  IN THE GROUP POLICY NOTWITHSTANDING THE CANCELLATION, NONRENE-
WAL, OR CONDITIONAL NONRENEWAL OF THE GROUP POLICY.
  (R) RATES AND FORMS FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN THIS STATE PURSUANT TO THIS SECTION SHALL BE FILED  WITH  THE  SUPER-
INTENDENT  IN  ACCORDANCE WITH THE PROVISIONS OF ARTICLE TWENTY-THREE OF
THIS CHAPTER.
  S 7. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
  (4) IS INJURED WHILE THE MOTOR  VEHICLE  IS  UNDER  THE  OPERATION  OR
CONTROL  OF A RENTER PURSUANT TO A CONSUMER MOTOR VEHICLE RENTAL PROGRAM
OPERATING PURSUANT TO ARTICLE EIGHTY-ONE OF THIS CHAPTER, PROVIDED  THAT
THE  CONSUMER  MOTOR VEHICLE RENTAL PROGRAM ADMINISTRATOR'S GROUP POLICY
PROVIDES COVERAGE TO THE OWNER IN ACCORDANCE WITH SECTION THREE THOUSAND
FOUR HUNDRED FIFTY-FIVE OF THIS CHAPTER.
  S 8. The vehicle and traffic law is amended by adding  a  new  section
124 to read as follows:
  S  124.  CONSUMER MOTOR VEHICLE RENTAL PROGRAM. A PROGRAM THAT FACILI-
TATES THE USE OR OPERATION OF A MOTOR VEHICLE WHERE THE VEHICLE IS RENT-
ED TO A RENTER WITHOUT A DRIVER.
  S 9. Subdivision 4 of section 311 of the vehicle and  traffic  law  is
amended by adding a new paragraph (e) to read as follows:
  (E) IN THE CASE OF A VEHICLE RENTED PURSUANT TO A CONSUMER MOTOR VEHI-
CLE  RENTAL  PROGRAM, A GROUP INSURANCE POLICY ISSUED BY AN INSURER DULY
AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE, PURSUANT TO SECTION THREE
THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE  INSURANCE  LAW,  THAT  PROVIDES
COVERAGE  IN  SATISFACTION  OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS
SET FORTH IN THIS SUBDIVISION, WHEN THE VEHICLE IS BEING RENTED PURSUANT
TO THE CONSUMER MOTOR VEHICLE RENTAL PROGRAM.
  S 10. Section 311 of the vehicle and traffic law is amended by  adding
a new subdivision 11 to read as follows:
  11.  THE TERM "INSURED" SHALL MEAN THE FIRST NAMED INSURED, EXCEPT THE
TERM SHALL MEAN THE GROUP POLICYHOLDER WITH REGARD TO A GROUP  INSURANCE

A. 8007--B                         16

POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE
OF THE INSURANCE LAW.
  S  11. Subdivision 3 of section 370 of the vehicle and traffic law, as
amended by chapter 232 of the laws  of  2001,  is  amended  to  read  as
follows:
  3.  [A] (A) EXCEPT AS PROVIDED IN PARAGRAPH (E) OF THIS SUBDIVISION, A
person, firm, association or corporation  engaged  in  the  business  of
renting  or leasing rental vehicles to be operated upon the public high-
ways for carrying passengers shall be subject to the provisions of  this
section  in  the  same  manner and to the same extent as if such person,
firm, association or corporation were actually engaged in  the  business
of carrying or transporting passengers for hire.
  (B) Notwithstanding the provisions of subdivision one of this section,
a  person,  firm,  association or corporation engaged in the business of
renting or leasing motor vehicles, having registered in this state  more
than  twenty-five  motor  vehicles  subject  to  the  provisions of this
section and who qualifies as hereinafter provided, may  file  a  certif-
icate  of  self-insurance.  The  commissioner  of  motor vehicles in his
discretion may, upon the application of such a person, firm, association
or corporation issue a certificate of self-insurance when he is  reason-
ably  satisfied  that  such  person is possessed and will continue to be
possessed of financial ability to respond to judgments obtained  against
such person, arising out of the ownership, maintenance, use or operation
of  any  such  person's  motor vehicle. Upon due notice and hearing, the
commissioner may, in his discretion and upon reasonable grounds,  cancel
a certificate of self-insurance.
  (C)  As a condition to the issuance of a certificate of self-insurance
under this subdivision the registrant shall pay annually in addition  to
any  other fee prescribed by this chapter, a fee of one dollar and fifty
cents for each motor vehicle registered in his name  and  the  aggregate
amount  of  such  fees  shall  be applied in reduction of the assessment
levied pursuant to section three hundred seventeen.
  (D) As a further condition to the issuance of a certificate  of  self-
insurance,  the  registrant  shall pay annually in addition to any other
fee prescribed by this chapter, an amount per vehicle to  be  determined
by  the  Motor  Vehicle Accident Indemnification Corporation pursuant to
section five thousand two hundred seven of the  insurance  law  and  the
aggregate  amount  of such fees shall be transmitted by the commissioner
to the Motor  Vehicle  Accident  Indemnification  Corporation  continued
pursuant to section five thousand two hundred three of the insurance law
to  be  applied  in  reduction of assessments levied by said corporation
pursuant to section five thousand two hundred  seven  of  the  insurance
law.
  (E)  THIS  SECTION  SHALL NOT APPLY TO A CONSUMER MOTOR VEHICLE RENTAL
PROGRAM ADMINISTRATOR OR AN OWNER UNDER A CONSUMER MOTOR VEHICLE  RENTAL
PROGRAM  REGISTERED WITH THE SUPERINTENDENT OF FINANCIAL SERVICES PURSU-
ANT TO ARTICLE EIGHTY-ONE OF THE INSURANCE LAW PROVIDED THAT:
  (A) THE OWNER IS AN INDIVIDUAL;
  (B) EACH RENTAL PERIOD DOES NOT EXCEED THIRTY DAYS;
  (C) THE OWNER DOES NOT HAVE MORE THAN FOUR MOTOR VEHICLES IN  CONSUMER
MOTOR VEHICLE RENTAL PROGRAMS AT ANY ONE TIME;
  (D)  THE  OWNER  DOES  NOT  RENT MOTOR VEHICLES THROUGH CONSUMER MOTOR
VEHICLE RENTAL PROGRAMS FOR MORE THAN FOUR THOUSAND THREE HUNDRED  HOURS
IN ONE CALENDAR YEAR; AND
  (E)  THE  OWNER  IS  NOT  OTHERWISE  SUBJECT TO THE PROVISIONS OF THIS
SECTION.

A. 8007--B                         17

  S 12. Section 388 of the vehicle and traffic law is amended by  adding
a new subdivision 5 to read as follows:
  5.  (A)  NOTWITHSTANDING  ANY PROVISION OF THIS SECTION, AN OWNER OF A
MOTOR VEHICLE THAT RENTS  (INCLUDING  UNDER  A  CONSUMER  MOTOR  VEHICLE
RENTAL  PROGRAM)  OR  LEASES THE VEHICLE TO A PERSON (OR AN AFFILIATE OF
THE OWNER) SHALL NOT BE LIABLE FOR HARM  TO  PERSONS  OR  PROPERTY  THAT
RESULTS  OR ARISES OUT OF THE USE, OPERATION, OR POSSESSION OF THE VEHI-
CLE DURING THE PERIOD OF THE RENTAL OR LEASE, IF:
  (1) THE OWNER (OR AN AFFILIATE OF THE OWNER) IS ENGAGED IN  THE  TRADE
OR  BUSINESS  OF RENTING OR LEASING MOTOR VEHICLES, OR PARTICIPATES IN A
CONSUMER MOTOR VEHICLE RENTAL PROGRAM; AND
  (2) THERE IS NO NEGLIGENCE OR CRIMINAL WRONGDOING ON THE PART  OF  THE
OWNER (OR AN AFFILIATE OF THE OWNER).
  (B)  IN  THIS  SUBDIVISION,  THE TERM "AFFILIATE" MEANS A PERSON OTHER
THAN THE OWNER WHO DIRECTLY OR INDIRECTLY CONTROLS, IS CONTROLLED BY, OR
IS UNDER COMMON CONTROL WITH, THE OWNER. IN THE PRECEDING SENTENCE,  THE
TERM  "CONTROL" MEANS THE POWER TO DIRECT THE MANAGEMENT AND POLICIES OF
A PERSON WHETHER THROUGH OWNERSHIP OF VOTING SECURITIES OR OTHERWISE.
  S 13. Paragraph (c) of subdivision 1 of section 396-z of  the  general
business  law, as amended by chapter 731 of the laws of 2006, is amended
to read as follows:
  (c) "Rental vehicle company" means any person or organization, or  any
subsidiary  or  affiliate,  including  a  franchisee, in the business of
providing rental vehicles to the public from locations  in  this  state,
BUT  SHALL  NOT INCLUDE A CONSUMER MOTOR VEHICLE RENTAL PROGRAM ADMINIS-
TRATOR OR AN OWNER UNDER A CONSUMER MOTOR VEHICLE RENTAL PROGRAM  REGIS-
TERED  WITH THE SUPERINTENDENT OF FINANCIAL SERVICES PURSUANT TO ARTICLE
EIGHTY-ONE OF THE INSURANCE LAW PROVIDED THAT:
  (A) THE OWNER IS AN INDIVIDUAL;
  (B) EACH RENTAL PERIOD DOES NOT EXCEED THIRTY DAYS;
  (C) THE OWNER DOES NOT HAVE MORE THAN FOUR MOTOR VEHICLES IN  CONSUMER
MOTOR VEHICLE RENTAL PROGRAMS AT ANY ONE TIME;
  (D)  THE  OWNER  DOES  NOT  RENT MOTOR VEHICLES THROUGH CONSUMER MOTOR
VEHICLE RENTAL PROGRAMS FOR MORE THAN FOUR THOUSAND THREE HUNDRED  HOURS
IN ONE CALENDAR YEAR; AND
  (E)  THE  OWNER  IS  NOT  OTHERWISE  SUBJECT TO THE PROVISIONS OF THIS
SECTION.
  S 14. Paragraph (c) of subdivision 1 of section 396-z of  the  general
business  law, as amended by chapter 656 of the laws of 2002, is amended
to read as follows:
  (c) "Rental vehicle company" means any person or organization, or  any
subsidiary  or  affiliate,  including  a  franchisee, in the business of
providing rental vehicles to the public from locations  in  this  state,
BUT  SHALL  NOT INCLUDE A CONSUMER MOTOR VEHICLE RENTAL PROGRAM ADMINIS-
TRATOR OR AN OWNER UNDER A CONSUMER MOTOR VEHICLE RENTAL PROGRAM  REGIS-
TERED  WITH THE SUPERINTENDENT OF FINANCIAL SERVICES PURSUANT TO ARTICLE
EIGHTY-ONE OF THE INSURANCE LAW PROVIDED THAT:
  (A) THE OWNER IS AN INDIVIDUAL;
  (B) EACH RENTAL PERIOD DOES NOT EXCEED THIRTY DAYS;
  (C) THE OWNER DOES NOT HAVE MORE THAN FOUR MOTOR VEHICLES IN  CONSUMER
MOTOR VEHICLE RENTAL PROGRAMS AT ANY ONE TIME;
  (D)  THE  OWNER  DOES  NOT  RENT MOTOR VEHICLES THROUGH CONSUMER MOTOR
VEHICLE RENTAL PROGRAMS FOR MORE THAN FOUR THOUSAND THREE HUNDRED  HOURS
IN ONE CALENDAR YEAR; AND
  (E)  THE  OWNER  IS  NOT  OTHERWISE  SUBJECT TO THE PROVISIONS OF THIS
SECTION.

A. 8007--B                         18

  S 15. This act shall take effect on  the  one  hundred  twentieth  day
after  it  shall  have  become  a law, provided, however, that effective
immediately, the addition, amendment, or repeal of  any  rule  or  regu-
lation  necessary  for  the  implementation of this act on its effective
date  is  authorized  and directed to be made and completed on or before
such effective date; provided, however the amendments to  paragraph  (c)
of  subdivision one of section 396-z of the general business law made by
section thirteen of this act shall be  subject  to  the  expiration  and
reversion  of  such  subdivision pursuant to section 4 of chapter 656 of
the laws of 2002, as amended, when upon  such  date  the  provisions  of
section fourteen of this act shall take effect.

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