senate Bill S1911

2013-2014 Legislative Session

Increases the minimum insurance coverage requirements for motor vehicles rented or leased in the state

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to transportation
Jan 09, 2013 referred to transportation

S1911 - Bill Details

See Assembly Version of this Bill:
A3435
Current Committee:
Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd ยงยง311, 312 & 345, V & T L
Versions Introduced in 2011-2012 Legislative Session:
S7597, A10000

S1911 - Bill Texts

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Increases the minimum insurance coverage requirements for motor vehicles rented or leased in the state.

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BILL NUMBER:S1911

TITLE OF BILL: An act to amend the vehicle and traffic law, in relation
to increasing the minimum insurance coverage requirements for motor
vehicles rented or leased in the state of New York

PURPOSE OR GENERAL IDEA OF BILL: Provides that all motor vehicles rent-
ed or lease in New York must be covered by an owners policy of liability
insurance with a minimum limit of $1 million for bodily injury or death,
and a minimum limit of $25,000 for vehicle damage.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 311 of the Vehicle and Traffic Law to include
in the definition of an "owners policy of liability insurance" a minimum
limit of $1 million dollars for bodily injury or death, for all rented
and leased vehicles.

Section 2 amends section 312 of the Vehicle and Traffic Law to require
the owners of rented and leased Vehicles to obtain the mandated insur-
ance, and to hold any owner who fails to do so liable for injuries
sustained as a result of the use of the rented or leased vehicles.

Section 3 amends section 345 of the Vehicle and Traffic Law to require
owners liability policies to cover both the owner and user of a vehicle
and imposes to a minimum limit of $1 million dollars for bodily injury
or death, for all rented and leased vehicles.

JUSTIFICATION: This bill would amend the vehicle and traffic law to
require the owners of rented or leased vehicles to obtain an owners
policy of liability insurance with a minimum limit of $1 million dollars
for bodily injury or death.

The large corporations that own most rented and leased vehicles in New
York benefit significantly from the use of the vehicles they own,
including substantial tax write-offs for depreciation. However, they are
currently under no obligation to bear responsibility for injuries caused
by their vehicles.

By making the owners of leased and rented vehicles responsible for
adequately insuring their own vehicles, this bill will protect other
road users injured by rented or leased vehicles. It will also provide an
incentive to the rental and leasing industry to properly vet the drivers
entrusted with their vehicles, helping to keep unsafe drivers off New
York's roads.

PRIOR LEGISLATIVE HISTORY: 2012 - Transportation

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the one hundred-eightieth
day after it shall have become law.

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

                                  1911

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  LIBOUS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN ACT to amend the vehicle and traffic law, in relation  to  increasing
  the  minimum insurance coverage requirements for motor vehicles rented
  or leased in the state of New York

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

  Section  1. Paragraph (a) of subdivision 4 of section 311 of the vehi-
cle and traffic law, as amended by chapter 305 of the laws of  1995,  is
amended to read as follows:
  (a) Affording coverage as defined in the minimum provisions prescribed
in  a  regulation  which  shall  be promulgated by the superintendent at
least ninety days prior to effective date of this act.  The  superinten-
dent  before  promulgating  such  regulations  or any amendment thereof,
shall consult with all insurers licensed to write  automobile  liability
insurance in this state and shall not prescribe minimum provisions which
fail  to  reflect the provisions of automobile liability insurance poli-
cies, other than motor vehicle liability policies as defined in  section
three  hundred  forty-five  of this chapter, issued within this state at
the date of such regulation or amendment thereof.  Nothing contained  in
such  regulation  or  in  this  article  shall prohibit any insurer from
affording coverage under an owner's policy of liability  insurance  more
liberal  than  that  required  by  said minimum provisions.   Every such
owner's policy of liability insurance shall provide insurance subject to
said regulation against loss from  the  liability  imposed  by  law  for
damages,  including  damages  for  care and loss of services, because of
bodily injury to or death of any person and injury to or destruction  of
property arising out of the ownership, maintenance, use, or operation of
a specific motor vehicle or motor vehicles within the state of New York,
or  elsewhere  in  the United States in North America or the Dominion of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05294-01-3

S. 1911                             2

Canada, subject to a  limit,  exclusive  of  interest  and  costs,  with
respect to each such motor vehicle except a tow truck OR A MOTOR VEHICLE
WHICH  IS RENTED OR LEASED FROM A PERSON, ORGANIZATION OR BUSINESS REGU-
LARLY  ENGAGED  IN  THE BUSINESS OF RENTING OR LEASING MOTOR VEHICLES TO
THE GENERAL PUBLIC, of twenty-five thousand dollars  because  of  bodily
injuries to and fifty thousand dollars because of death of one person in
any  one  accident and, subject to said limit for one person, to a limit
of fifty thousand dollars because of bodily injury to  and  one  hundred
thousand  dollars  because  of  death  of two or more persons in any one
accident, and to a limit of ten thousand dollars because of injury to or
destruction of property of others in any one accident provided, however,
that such policy need not be for a period coterminous with the registra-
tion period of the vehicle insured. The limit, exclusive of interest and
costs, with respect to a tow truck shall be a combined single  limit  of
at  least  three  hundred  thousand  dollars because of bodily injury or
death to one or more persons or because  of  injury  or  destruction  of
property  of  others  in any one accident, and to a limit of twenty-five
thousand dollars because of damage to a vehicle in the care, custody and
control of the insured.   THE LIMIT, EXCLUSIVE OF  INTEREST  AND  COSTS,
WITH RESPECT TO A MOTOR VEHICLE WHICH IS RENTED OR LEASED FROM A PERSON,
ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
LIMIT  OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURY OR DEATH
TO ONE OR MORE PERSONS OR BECAUSE OF INJURY OR DESTRUCTION  OF  PROPERTY
OF  OTHERS  IN  ANY ONE ACCIDENT, AND TO A LIMIT OF TWENTY-FIVE THOUSAND
DOLLARS BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE, CUSTODY AND  CONTROL
OF  THE  INSURED.  Any  insurer authorized to issue an owner's policy of
liability insurance as provided for in this  article  may,  pending  the
issue  of  such a policy, make an agreement, to be known as a binder, or
may, in lieu of such a policy, issue a renewal endorsement  or  evidence
of  renewal  of  an existing policy; each of which shall be construed to
provide indemnity or protection in like manner and to the same extent as
such a policy. The provisions of this article shall apply to such  bind-
ers,  renewal  endorsements  or  evidences of renewal. Every such policy
issued insuring private passenger vehicles  and  every  renewal  policy,
renewal  endorsement,  or  other  evidence  of renewal issued shall have
attached thereto a rating information form which clearly  specifies  and
defines the rating classification assigned thereto, including any appli-
cable merit rating plan; and
  S 2. Section 312 of the vehicle and traffic law is amended by adding a
new subdivision 6 to read as follows:
  6. (A) NO MOTOR VEHICLE SHALL BE LEASED OR RENTED IN THIS STATE UNLESS
UPON  THE REGISTRATION OF THE LEASED OR RENTED MOTOR VEHICLE, THE APPLI-
CATION FOR SUCH REGISTRATION IS ACCOMPANIED BY PROOF OF FINANCIAL  SECU-
RITY  REQUIRED  BY  SECTION  THREE  HUNDRED ELEVEN OF THIS ARTICLE WHICH
SHALL BE EVIDENCED BY PROOF OF INSURANCE  OR  EVIDENCE  OF  A  FINANCIAL
SECURITY  BOND, A FINANCIAL SECURITY DEPOSIT OR QUALIFICATION AS A SELF-
INSURER UNDER SECTION THREE HUNDRED SIXTEEN OF THIS  ARTICLE;  PROVIDED,
THAT  IF  DIRECTED  BY  REGULATION  OF THE COMMISSIONER, UPON RENEWAL OF
REGISTRATION AN APPLICATION ACCOMPANIED BY A CERTIFICATE OF REGISTRATION
OR RENEWAL STUB IN FORCE IMMEDIATELY PRECEDING THE DATE  OF  APPLICATION
FOR  RENEWAL,  TOGETHER  WITH  A  STATEMENT  IN A FORM PRESCRIBED BY THE
COMMISSIONER CERTIFYING THAT THERE IS IN EFFECT PROOF OF FINANCIAL SECU-
RITY, SHALL MEET THE REQUIREMENTS OF THIS SECTION. UPON THE ISSUANCE  OR
RENEWAL  OF  A  PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY SUBJECT TO
THE PROVISIONS OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THE

S. 1911                             3

INSURANCE LAW, THE INSURANCE COMPANY SHALL PROVIDE THE INSURED  WITH  AN
INFORMATIONAL  STATEMENT  OUTLINING THE LEGAL AND FINANCIAL CONSEQUENCES
OF CONVICTIONS UNDER SECTION ELEVEN HUNDRED NINETY-TWO OF THIS  CHAPTER,
PERTAINING  TO  OPERATING  A  MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF
ALCOHOL OR DRUGS. SUCH INFORMATION SHALL BE SUPPLIED TO THE  COMPANY  BY
THE  STATE  DEPARTMENT  OF  FINANCIAL  SERVICES IN CONSULTATION WITH THE
COMMISSIONER.
  (B) THE OWNER AND REGISTRANT IF THE REGISTRANT IS DIFFERENT  FROM  THE
OWNER  OF  SUCH  LEASED  OR RENTED MOTOR VEHICLE SHALL MAINTAIN PROOF OF
FINANCIAL SECURITY CONTINUOUSLY THROUGHOUT THE REGISTRATION  PERIOD  AND
HIS  FAILURE TO PRODUCE PROOF OF FINANCIAL SECURITY WHEN REQUESTED TO DO
SO UPON DEMAND OF A MAGISTRATE, MOTOR VEHICLE INSPECTOR, PEACE  OFFICER,
ACTING  PURSUANT  TO  HIS  SPECIAL DUTIES, OR POLICE OFFICER, WHILE SUCH
VEHICLE IS BEING OPERATED UPON THE PUBLIC HIGHWAY, SHALL BE  PRESUMPTIVE
EVIDENCE OF OPERATING A MOTOR VEHICLE WITHOUT PROOF OF FINANCIAL SECURI-
TY.  UPON THE PRODUCTION OF PROOF OF FINANCIAL SECURITY SUCH PRESUMPTION
IS REMOVED. PRODUCTION OF PROOF OF FINANCIAL SECURITY  MAY  BE  MADE  BY
MAILING  SUCH  PROOF TO THE COURT HAVING JURISDICTION IN THE MATTER, AND
ANY  NECESSARY  RESPONSE  BY  SUCH  COURT  OR  ACKNOWLEDGEMENT  OF   THE
PRODUCTION  OF  SUCH PROOF MAY ALSO BE MADE BY MAIL. WHEN INSURANCE WITH
RESPECT TO ANY MOTOR VEHICLE, OTHER THAN A MOTORCYCLE, IS TERMINATED THE
OWNER SHALL  SURRENDER  FORTHWITH  THEIR  REGISTRATION  CERTIFICATE  AND
NUMBER  PLATES OF THE VEHICLE TO THE COMMISSIONER UNLESS PROOF OF FINAN-
CIAL SECURITY OTHERWISE IS MAINTAINED IN COMPLIANCE WITH THIS ARTICLE.
  (C) THE OWNER OF ANY LEASED OR RENTED VEHICLE THAT FAILS  TO  MAINTAIN
THE  PROOF  OF  FINANCIAL SECURITY REQUIRED ABOVE MAY BE HELD PERSONALLY
LIABLE FOR ANY JUDGMENT ENTERED AGAINST ANY DRIVER AND/OR REGISTRANT  OF
THE  LEASED  OR  RENTED  VEHICLE  FOR  DAMAGES  SUSTAINED AS A RESULT OF
PERSONAL INJURY, WRONGFUL DEATH AND/OR PROPERTY  DAMAGE  SUFFERED  AS  A
RESULT OF THE USE AND OPERATION OF THE LEASED OR RENTED VEHICLE.
  S  3. Paragraph 3 of subdivision (b) of section 345 of the vehicle and
traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
to read as follows:
  (3)  Shall  insure  the  insured,  THE VEHICLE OPERATOR, or such other
person against loss from the  liability  imposed  by  law  for  damages,
including damages for care and loss of services because of bodily injury
to or death of any person and injury to or destruction of property aris-
ing  out  of the ownership, maintenance, use, or operation of such motor
vehicle or motor vehicles within the state of New York, or elsewhere  in
the United States in North America or the Dominion of Canada, subject to
a limit, exclusive of interest and cost, with respect to each such motor
vehicle, except a tow truck OR A MOTOR VEHICLE WHICH IS RENTED OR LEASED
FROM  A  PERSON, ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSI-
NESS OF RENTING OR LEASING MOTOR VEHICLES  TO  THE  GENERAL  PUBLIC,  of
twenty-five  thousand dollars because of bodily injury to or fifty thou-
sand dollars because of death of one person in  any  one  accident  and,
subject  to  said  limit  for  one  person, to a limit of fifty thousand
dollars because of bodily injury to  or  one  hundred  thousand  dollars
because  of  death  of two or more persons in any one accident, and to a
limit of ten thousand dollars because of injury  to  or  destruction  of
property of others in any one accident. The limit, exclusive of interest
and  costs, with respect to a tow truck shall be a combined single limit
of three hundred thousand dollars because of bodily injury [of] OR death
to one or more persons or because of injury or destruction  of  property
of  others  in  any one accident, and to a limit of twenty-five thousand
dollars because of damage to a vehicle in the care, custody and  control

S. 1911                             4

of  the  insured.    THE  LIMIT,  EXCLUSIVE  OF INTEREST AND COSTS, WITH
RESPECT TO A MOTOR VEHICLE WHICH IS RENTED  OR  LEASED  FROM  A  PERSON,
ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
LIMIT  OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURY OR DEATH
TO ONE OR MORE PERSONS OR BECAUSE OF INJURY OR DESTRUCTION  OF  PROPERTY
OF  OTHERS  IN  ANY ONE ACCIDENT, AND TO A LIMIT OF TWENTY-FIVE THOUSAND
DOLLARS BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE, CUSTODY AND  CONTROL
OF THE INSURED.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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