Assembly Bill A10477

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

                                  10477

                          I N  A S S E M B L Y

                              May 27, 2016
                               ___________

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

AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
  relation to enacting the "personal motor vehicle sharing act"

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "personal motor vehicle sharing act".
  S  2.  The insurance law is amended by adding a new article 35 to read
as follows:
                               ARTICLE 35
                 PERSONAL MOTOR VEHICLE SHARING PROGRAMS
SECTION 3501. DEFINITIONS.
        3502. REQUIREMENTS FOR DOING BUSINESS.
        3503. LIABILITY PROVISIONS.
        3504. GROUP  INSURANCE  FOR  PERSONAL  MOTOR   VEHICLE   SHARING
                PROGRAMS.
  S  3501.  DEFINITIONS.  IN THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING DEFINITIONS:
  (A) "AUTHORIZED OPERATOR" MEANS A PERSON,  OTHER  THAN  THE  OWNER  OR
RENTER, WHO OPERATES A PERSONAL PASSENGER MOTOR VEHICLE DURING THE SHAR-
ING  PERIOD  AND  WHO  HAS  BEEN APPROVED BY THE PROGRAM TO OPERATE SUCH
PERSONAL PASSENGER MOTOR VEHICLE.
  (B) "COMMISSIONER" MEANS THE COMMISSIONER OF MOTOR VEHICLES.
  (C) "MOTOR VEHICLE" SHALL:
  (1) HAVE THE MEANING SET FORTH IN SECTION ONE HUNDRED  TWENTY-FIVE  OF
THE VEHICLE AND TRAFFIC LAW;
  (2) HAVE A GROSS WEIGHT RATING OF TEN THOUSAND POUNDS OR LESS; AND
  (3) NOT BE USED FOR THE COMMERCIAL DELIVERY OR TRANSPORTATION OF GOODS
OR MATERIALS.
  (D) "PERSONAL PASSENGER MOTOR VEHICLE" MEANS A MOTOR VEHICLE OWNED AND
REGISTERED IN THE STATE, AND INSURED OR 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

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

                                                           LBD15639-02-6

A. 10477                            2

NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
WHEELS.
  (E)  "PERSONAL MOTOR VEHICLE SHARING" MEANS THE USE OF PRIVATE PASSEN-
GER MOTOR VEHICLES  BY  PERSONS  OTHER  THAN  THE  VEHICLES'  OWNER,  IN
CONNECTION WITH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (F)  "PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM" OR "PROGRAM" MEANS A
PROGRAM ENGAGED IN FACILITATING THE SHARING OF PRIVATE  PASSENGER  MOTOR
VEHICLES.
  (G)  "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS A PERSON,
OTHER THAN A LIENHOLDER, HAVING THE PROPERTY IN OR TITLE TO THE PERSONAL
PASSENGER MOTOR VEHICLE.
  (H) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
PERSON,  OTHER  THAN THE PERSONAL MOTOR VEHICLE SHARING OWNER, WHO RENTS
THE PERSONAL MOTOR VEHICLE SHARING OWNER'S VEHICLE  THROUGH  A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM.
  (I)  "SHARING  PERIOD"  SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(C) OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
  (J) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
  (K)  "PERMISSIVE  USER" MEANS ANY PERSON USING OR OPERATING A PERSONAL
PASSENGER MOTOR VEHICLE WITH THE PERMISSION, EXPRESS OR  IMPLIED,  OF  A
RENTER  IN  ACCORDANCE  WITH  SECTION  THREE HUNDRED EIGHTY-EIGHT OF THE
VEHICLE AND TRAFFIC LAW.
  S 3502. REQUIREMENTS FOR DOING BUSINESS.  (A)  NO  PERSONAL  PASSENGER
MOTOR  VEHICLE INSURED SHALL BE CLASSIFIED AS A COMMERCIAL VEHICLE, FOR-
HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXICAB, LIVERY OR ANY OTHER  TYPE
OF VEHICLE OPERATED FOR COMMERCIAL USE SOLELY BECAUSE THE PERSONAL MOTOR
VEHICLE  SHARING  OWNER  ALLOWS IT TO BE USED FOR PERSONAL MOTOR VEHICLE
SHARING WHEN THE OWNER IS A PARTY TO A VALID CONTRACT  WITH  A  PERSONAL
MOTOR  VEHICLE  SHARING  PROGRAM, AND THE OWNER HAS NOT KNOWINGLY PLACED
THE PERSONAL PASSENGER MOTOR VEHICLE INTO USE AS A COMMERCIAL VEHICLE OR
AS A VEHICLE FOR HIRE BY A PERSONAL MOTOR VEHICLE SHARING  RENTER  WHILE
ENGAGED IN PERSONAL MOTOR VEHICLE SHARING.
  (B) A PROGRAM SHALL, FOR EACH PERSONAL PASSENGER MOTOR VEHICLE THAT IT
FACILITATES THE USE OF, DO ALL OF THE FOLLOWING:
  (1)  DURING  THE SHARING PERIOD FOR A PERSONAL PASSENGER MOTOR VEHICLE
ENGAGED IN PERSONAL  MOTOR  VEHICLE  SHARING,  PROCURE  GROUP  INSURANCE
COVERAGE  FOR  EACH VEHICLE AND AUTHORIZED OPERATOR OF THE VEHICLE. SUCH
INSURANCE SHALL, AT A MINIMUM, PROVIDE  FOR  EACH  VEHICLE  COVERAGE  AT
LEAST  EQUAL TO THE MINIMUM INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER
MOTOR VEHICLES AS PROVIDED BY SECTION THREE HUNDRED  FORTY-FIVE  OF  THE
VEHICLE  AND  TRAFFIC LAW, SUBSECTION (A) OF SECTION THREE THOUSAND FIVE
HUNDRED FOUR OF THIS ARTICLE, SECTION THREE THOUSAND FOUR HUNDRED TWENTY
OF THIS CHAPTER, ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH  OTHER  LAWS
OF  THE  STATE WITH RESPECT TO MANDATORY LIABILITY AND FIRST-PARTY BENE-
FITS COVERAGE, OR COVERAGE AS OTHERWISE REQUIRED UNDER THIS ARTICLE. THE
PROGRAM SHALL PROVIDE LIABILITY COVERAGE OF ONE MILLION  DOLLARS.    THE
PROGRAM  SHALL  ALSO  PROVIDE  PROPERTY  AND CASUALTY COVERAGE INCLUDING
COMPREHENSIVE  AND  COLLISION  PROTECTION,  AS  FURTHER   DESCRIBED   IN
SUBSECTION (D) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTI-
CLE;
  (2)  PROVIDE  THE  PERSONAL  MOTOR VEHICLE SHARING OWNER WITH PROOF OF
COMPLIANCE WITH THE INSURANCE  REQUIREMENTS  OF  THIS  SECTION  AND  THE
REQUIREMENTS   OF  SECTIONS  THREE  HUNDRED  ELEVEN  AND  THREE  HUNDRED
FORTY-FIVE OF THE VEHICLE AND TRAFFIC LAW AND ARTICLE FIFTY-ONE OF  THIS
CHAPTER  IN  SUCH  FORM  AS THE COMMISSIONER MAY PRESCRIBE OR APPROVE. A

A. 10477                            3

COPY OF SUCH PROOF SHALL BE MAINTAINED IN THE VEHICLE  BY  THE  PERSONAL
MOTOR VEHICLE SHARING OWNER DURING ANY TIME WHEN THE VEHICLE IS OPERATED
BY  THE RENTER OR AUTHORIZED OPERATOR PURSUANT TO A PERSONAL MOTOR VEHI-
CLE SHARING PROGRAM;
  (3)  SHALL NOT PERMIT THE VEHICLE TO BE OPERATED FOR COMMERCIAL USE OR
AS A VEHICLE FOR HIRE BY A PERSONAL  MOTOR  VEHICLE  SHARING  RENTER  OR
AUTHORIZED OPERATOR WHILE ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
  (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER AND AUTHORIZED OPERATOR
FOR  EACH  VEHICLE  RENTAL  TRANSACTION UNDER THE PERSONAL MOTOR VEHICLE
SHARING PROGRAM AT THE TIME OF EACH RENTAL:
  (A) ACCESS TO THE INSURANCE IDENTIFICATION CARD AS DEFINED IN SUBDIVI-
SION TEN OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC  LAW
APPLICABLE  TO  SUCH  PERSONAL  PASSENGER  MOTOR  VEHICLE AND SUCH OTHER
DOCUMENTATION TO BE CARRIED IN THE VEHICLE AT ALL TIMES DURING THE SHAR-
ING PERIOD, STATING IN SUCH FORM AS THE COMMISSIONER  MAY  PRESCRIBE  OR
APPROVE  THAT  INSURANCE  COVERAGE  REFERRED TO IN PARAGRAPH ONE OF THIS
SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B) MEANS OF COMMUNICATION, IN  SUCH  FORM  AS  THE  COMMISSIONER  MAY
PRESCRIBE OR APPROVE, BY WHICH A POLICE OFFICER, THE DEPARTMENT OF MOTOR
VEHICLES  OR  OTHER  OFFICER  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 MOTOR VEHICLE SHAR-
ING PROGRAM ARE LIMITED TO PERSONAL PASSENGER MOTOR VEHICLES;
  (7) FACILITATE THE INSTALLATION, OPERATION AND MAINTENANCE OF ITS  OWN
SIGNAGE  AND  COMPUTER HARDWARE AND SOFTWARE TO THE EXTENT NECESSARY FOR
THE PERSONAL PASSENGER MOTOR VEHICLE TO BE USED IN THE PROGRAM;
  (8) INDEMNIFY AND HOLD HARMLESS THE  PERSONAL  MOTOR  VEHICLE  SHARING
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  PERSONAL  PASSENGER  MOTOR VEHICLE BY THE INSTALLATION,
OPERATION OR MAINTENANCE OF SUCH EQUIPMENT;
  (9) COLLECT, MAINTAIN AND MAKE AVAILABLE TO THE PERSONAL MOTOR VEHICLE
SHARING OWNER, THE PERSONAL MOTOR VEHICLE SHARING OWNER'S PRIMARY  MOTOR
VEHICLE LIABILITY INSURER, THE RENTER'S AND AUTHORIZED OPERATOR'S PRIMA-
RY  AUTOMOBILE  INSURER IF APPLICABLE, ANY APPLICABLE EXCESS OR UMBRELLA
INSURER, AND THIRD PARTIES INVOLVED  IN  ACCIDENTS  WITH  A  RENTER,  IN
INSTANCES  WHERE  AN  INSURANCE  CLAIM HAS BEEN FILED WITH THE PROGRAM'S
GROUP INSURER, THE FOLLOWING INFORMATION PERTAINING TO  INCIDENTS  WHICH
OCCURRED DURING THE RENTER'S SHARING PERIOD:
  (A)  VERIFIABLE  RECORDS  OF  THE PROGRAM USE PERIOD FOR EACH PERSONAL
PASSENGER MOTOR VEHICLE, AND VERIFIABLE ELECTRONIC RECORDS OF THE  TIME,
INITIAL  AND FINAL LOCATIONS OF THE VEHICLE, AND MILES DRIVEN DURING THE
PROGRAM USE PERIOD IN WHICH SUCH INCIDENT OCCURRED;
  (B) ANY AND ALL INFORMATION RELEVANT TO THE CLAIM, INCLUDING  PAYMENTS
BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
  (C)  THE  PROGRAM  SHALL ALSO PROVIDE THE DEPARTMENT OF MOTOR VEHICLES
WITH A LIST OF THE PERSONAL PASSENGER MOTOR VEHICLES THAT PARTICIPATE IN
THE PROGRAM WHICH SHALL BE UPDATED BY THE PROGRAM EACH TIME A NEW  OWNER
BECOMES A PARTY TO A VALID CONTRACT WITH THE PROGRAM.
  (10)  ENSURE THAT THE PERSONAL MOTOR VEHICLE SHARING OWNER, RENTER AND
AUTHORIZED OPERATOR ARE GIVEN NOTICE PRIOR TO THE FIRST USE OR OPERATION
OF A MOTOR VEHICLE PURSUANT TO ENROLLMENT IN A  PERSONAL  MOTOR  VEHICLE
SHARING PROGRAM, THAT:

A. 10477                            4

  (A)  DURING  THE  SHARING  PERIOD,  THE PERSONAL MOTOR VEHICLE SHARING
OWNER'S INSURER MAY EXCLUDE ANY AND ALL COVERAGE AFFORDED TO ITS  POLICY
AND  THE  PERSONAL  MOTOR VEHICLE SHARING OWNER'S INSURER SHALL HAVE THE
RIGHT TO NOTIFY AN INSURED THAT IT SHALL  HAVE  NO  DUTY  TO  DEFEND  OR
INDEMNIFY  ANY  PERSON  OR  ORGANIZATION FOR LIABILITY FOR ANY LOSS THAT
OCCURS DURING THE SHARING PERIOD; AND
  (B) THE GROUP POLICY AND PHYSICAL DAMAGE  COVERAGE  CONTRACT  MAY  NOT
PROVIDE COVERAGE OUTSIDE OF THE SHARING PERIOD.
  (11)  SHALL  NOT  CHARGE FEES ASSOCIATED WITH A CLAIM ABOVE AND BEYOND
THE DEDUCTIBLE AS REQUIRED IN THE GROUP POLICY.
  S 3503. LIABILITY PROVISIONS. (A) NOTWITHSTANDING ANY OTHER  PROVISION
OF  LAW  OR  ANY  PROVISION  IN A PERSONAL MOTOR VEHICLE SHARING OWNER'S
AUTOMOBILE INSURANCE POLICY, IN THE EVENT  OF  A  LOSS  OR  INJURY  THAT
OCCURS  DURING  THE SHARING PERIOD, AS DEFINED IN THIS SECTION, OR WHILE
THE PERSONAL PASSENGER MOTOR VEHICLE IS OTHERWISE UNDER THE CONTROL OF A
PERSONAL MOTOR VEHICLE SHARING PROGRAM,  THE  PROGRAM  IS  LIABLE.  THIS
LIABILITY  WILL  EXTEND  TO  ALL  PERMISSIVE USERS OF THE SHARED VEHICLE
DURING THE SHARING PERIOD.
  (B) SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC  LAW
SHALL  APPLY  TO  THE  VEHICLE'S  OWNER  WHILE  THE VEHICLE IS UNDER THE
POSSESSION AND CONTROL OF A PERSONAL MOTOR  VEHICLE  SHARING  RENTER  OR
OTHERWISE UNDER THE CONTROL OF A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
NOTHING IN THIS SECTION SHALL LIMIT THE LIABILITY OF THE PROGRAM FOR ITS
ACTS  OR OMISSIONS, OR LIMIT THE LIABILITY OF THE PERSONAL MOTOR VEHICLE
SHARING RENTER FOR THE RENTER'S 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 MOTOR VEHICLE SHARING PROGRAM. NOTHING IN
THIS SECTION SHALL LIMIT THE ABILITY OF THE PERSONAL MOTOR VEHICLE SHAR-
ING  PROGRAM  TO,  BY  CONTRACT, SEEK INDEMNIFICATION FROM THE VEHICLE'S
REGISTERED OWNER FOR ANY CLAIMS PAID BY THE PERSONAL MOTOR VEHICLE SHAR-
ING PROGRAM FOR ANY LOSS OR INJURY  RESULTING  FROM  FRAUD  OR  MATERIAL
INTENTIONAL  MISREPRESENTATION  BY  THE  PERSONAL  MOTOR VEHICLE SHARING
OWNER,  PROVIDED  THAT  THE  PERSONAL  MOTOR  VEHICLE  SHARING   PROGRAM
DISCLOSES IN THE CONTRACT THAT:
  (1)  THE  PERSONAL  MOTOR  VEHICLE SHARING PROGRAM IS ENTITLED TO SEEK
INDEMNIFICATION IN THESE CIRCUMSTANCES; AND
  (2) THE PERSONAL MOTOR VEHICLE SHARING OWNER'S  INSURANCE  POLICY  MAY
NOT  PROVIDE DEFENSE OR INDEMNIFICATION FOR ANY LOSS OR INJURY RESULTING
FROM FRAUD OR MATERIAL INTENTIONAL MISREPRESENTATION. FOR  THE  PURPOSES
OF  THIS  SECTION  A VEHICLE OWNER'S PARTICIPATION IN THE PERSONAL MOTOR
VEHICLE SHARING PROGRAM WILL  NOT  CONSTITUTE  A  FRAUD  OR  A  MATERIAL
MISREPRESENTATION.
  (C) A PROGRAM'S GROUP POLICY SHALL PROVIDE COVERAGE DURING THE SHARING
PERIOD AS RECORDED IN THE PROGRAM'S RECORDS FOR A PERSONAL MOTOR VEHICLE
SHARING  OWNER'S  MOTOR  VEHICLE REGISTERED IN THIS STATE, FROM WHEN THE
RENTER TAKES POSSESSION AND CONTROL  OF  THE  SHARED  VEHICLE,  OR  WHEN
OTHERWISE UNDER THE CONTROL OF THE PROGRAM AND THE PROGRAM SHALL CONTIN-
UE  TO  BE  LIABLE PURSUANT TO THIS SECTION UNTIL THE PERSONAL PASSENGER
MOTOR VEHICLE IS RETURNED TO A LOCATION AGREED TO BY THE PERSONAL  MOTOR
VEHICLE  SHARING  OWNER  AND  RENTER,  OR DESIGNATED BY THE PROGRAM. THE
SHARED VEHICLE WILL BE DEEMED TO BE IN CONTROL BY THE PROGRAM UNTIL  THE
VEHICLE  HAS  BEEN RETURNED TO THE AGREED UPON LOCATION, IRRESPECTIVE OF
ANY TEMPORAL RESERVATION PERIOD.
  (D) THE INSURER OR INSURERS PROVIDING GROUP LIABILITY INSURANCE TO THE
PERSONAL MOTOR VEHICLE SHARING PROGRAM PURSUANT  TO  SUBSECTION  (A)  OF
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE AND GROUP PHYS-

A. 10477                            5

ICAL  DAMAGE  INSURANCE  TO  THE  PERSONAL MOTOR VEHICLE SHARING PROGRAM
PURSUANT TO SUBSECTION (D) OF SECTION THREE THOUSAND FIVE  HUNDRED  FOUR
OF  THIS  ARTICLE  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 PERSONAL MOTOR VEHICLE  SHAR-
ING  OWNER'S PRIVATE PASSENGER MOTOR VEHICLE INSURER SHALL INDEMNIFY THE
PERSONAL MOTOR VEHICLE SHARING PROGRAM'S GROUP INSURER  OR  INSURERS  TO
THE  EXTENT  OF ITS OBLIGATION UNDER THE APPLICABLE INSURANCE POLICY, IF
IT IS DETERMINED THAT THE PERSONAL MOTOR VEHICLE SHARING  OWNER  WAS  IN
CONTROL  OF  THE  VEHICLE  AT THE TIME OF THE LOSS. SUCH A DISPUTE AS TO
CONTROL SHALL BE ADJUDICATED PURSUANT TO SUBSECTION (B) OF SECTION  FIVE
THOUSAND  ONE  HUNDRED  FIVE OF THIS CHAPTER. THE PERSONAL MOTOR VEHICLE
SHARING PROGRAM SHALL NOTIFY THE PERSONAL MOTOR VEHICLE SHARING  OWNER'S
PRIVATE  INSURER  OF  ANY  SUCH  DISPUTE WITHIN FIFTEEN BUSINESS DAYS OF
BECOMING AWARE THAT SUCH A DISPUTE EXISTS.
  (E) IN THE EVENT THAT A PERSONAL MOTOR  VEHICLE  SHARING  OWNER  OR  A
PERSONAL  MOTOR  VEHICLE SHARING OWNER'S INSURER IS NAMED AS A DEFENDANT
IN A CIVIL ACTION FOR A LOSS OR INJURY THAT OCCURS DURING ANY TIME WITH-
IN THE SHARING PERIOD, OR OTHERWISE UNDER  THE  CONTROL  OF  A  PERSONAL
MOTOR  VEHICLE  SHARING  PROGRAM,  THE  PERSONAL  MOTOR  VEHICLE SHARING
PROGRAM'S GROUP LIABILITY INSURANCE  INSURER  UNDER  SUBSECTION  (A)  OF
SECTION  THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE SHALL HAVE THE
DUTY TO DEFEND AND INDEMNIFY THE PERSONAL MOTOR  VEHICLE  SHARING  OWNER
AND  THE  PERSONAL MOTOR VEHICLE SHARING OWNER'S INSURER, SUBJECT TO THE
PROVISIONS OF SUBSECTIONS (B) AND (D)  OF  THIS  SECTION.  THE  PERSONAL
MOTOR  VEHICLE SHARING PROGRAM SHALL NOTIFY THE PERSONAL PASSENGER MOTOR
VEHICLE'S PRIVATE OWNER AND HIS OR HER PRIVATE INSURANCE OF THE  PROGRAM
INSURER'S DUTY TO DEFEND AND INDEMNIFY WITHIN FIFTEEN DAYS OF THE DUTY.
  (F) NO PERSONAL MOTOR VEHICLE SHARING OWNER'S POLICY OF INSURANCE THAT
IS  SUBJECT  TO  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS
CHAPTER SHALL BE CANCELLED, VOIDED, TERMINATED,  RESCINDED,  OR  NON-RE-
NEWED, SOLELY ON THE BASIS THAT THE PERSONAL 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.  FOR  THE  PURPOSES  OF THIS SECTION PARTICIPATION IN THE
PERSONAL MOTOR VEHICLE SHARING PROGRAM SHALL  NOT  CONSTITUTE  FRAUD  OR
MISREPRESENTATION  BY  THE  VEHICLE  OWNER.  PROVIDED,  HOWEVER THAT THE
PROVISIONS OF THIS SUBSECTION SHALL  NOT  PERTAIN  TO  CANCELLATIONS  IN
ACCORDANCE  WITH THE PROVISIONS OF SUBSECTION (F) OF SECTION THREE THOU-
SAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER.
  S 3504. GROUP INSURANCE FOR PERSONAL MOTOR VEHICLE  SHARING  PROGRAMS.
(A)  AN  INSURER  WHICH  IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS IN THE
STATE MAY ISSUE, OR ISSUE FOR DELIVERY IN THIS STATE, A GROUP POLICY  OF
LIABILITY  AND PROPERTY AND CASUALTY INSURANCE TO A PERSONAL MOTOR VEHI-
CLE SHARING  PROGRAM  TO  INSURE  THE  PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM,  RENTERS,  AUTHORIZED  OPERATORS  AND OCCUPANTS OF THE PERSONAL
PASSENGER MOTOR VEHICLE, AS WELL AS  THE  PROGRAM'S  AGENTS,  EMPLOYEES,
DIRECTORS, OFFICERS AND ASSIGNS; AND
  (1)  SUCH  GROUP POLICY SHALL PROVIDE FIRST PARTY COVERAGE, LIABILITY,
PROPERTY, COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED  MOTORIST
COVERAGE  FOR  THE  PERSONAL  PASSENGER  MOTOR  VEHICLE AND ITS RENTERS,
AUTHORIZED OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING FROM
THE USE OR OPERATION OF THAT VEHICLE DURING THE SHARING PERIOD;
  (2) SUCH GROUP POLICY SHALL BE  PRIMARY  WITH  RESPECT  TO  ANY  OTHER
INSURANCE  AVAILABLE  TO  THE  PERSONAL  MOTOR VEHICLE SHARING OWNER AND

A. 10477                            6

SHALL BE PRIMARY OVER ANY OTHER  INSURANCE  AVAILABLE  TO  THE  PERSONAL
MOTOR VEHICLE SHARING RENTER;
  (3)  SUCH  INSURER  SHALL COMPLY WITH THE PROVISIONS OF SECTIONS THREE
HUNDRED TWELVE-A AND THREE HUNDRED THIRTEEN OF THE VEHICLE  AND  TRAFFIC
LAW; AND
  (4)  FOR  THE  PURPOSES  OF GROUP INSURANCE WRITTEN UNDER THIS SECTION
ONLY, THE RATES CHARGED BY THE INSURER FOR GROUP LIABILITY INSURANCE  AS
PROVIDED  FOR  IN  THIS  SECTION  SHALL  BE SUBJECT TO PRIOR APPROVAL IN
ACCORDANCE WITH SUBSECTION (B) OF SECTION  TWO  THOUSAND  THREE  HUNDRED
FIVE OF THIS CHAPTER.
  (B)   AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED  IN
SUBSECTION (A) OF THIS SECTION SHALL ISSUE SUCH POLICY  IDENTIFYING  THE
PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM AS THE NAMED INSURED; AND ANY
SUCH GROUP POLICY SHALL INCLUDE  A  PROVISION  THAT  PROVIDES  COVERAGE,
WITHOUT  PRIOR  NOTICE  TO THE INSURER, FOR ALL PERSONAL PASSENGER MOTOR
VEHICLES DURING THE SHARING PERIOD AND SUCH POLICY SHALL FURTHER INCLUDE
A PROVISION THAT SUCH VEHICLES' RENTERS, AUTHORIZED OPERATORS AND  OCCU-
PANTS  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  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF
THIS CHAPTER AND SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC
LAW.
  (C) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (A) AND (B) OF  THIS
SECTION  SHALL  ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF THIS
ARTICLE.
  (D) AN INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS  IN  THE
STATE  MAY  ISSUE  A  GROUP  POLICY  OF  PHYSICAL  DAMAGE INSURANCE TO A
PERSONAL MOTOR VEHICLE SHARING PROGRAM TO INSURE AGAINST PHYSICAL DAMAGE
OR LOSS TO PERSONAL PASSENGER MOTOR VEHICLES WHILE SUCH VEHICLES ARE  IN
THE  CUSTODY  OF  THE  PERSONAL  MOTOR VEHICLE SHARING PROGRAM, PERSONAL
MOTOR VEHICLE SHARING RENTER OR AUTHORIZED OPERATOR. SUCH  GROUP  POLICY
SHALL  PROVIDE  PRIMARY  COVERAGE  FOR PHYSICAL DAMAGE OR LOSS EITHER BY
COLLISION, COMPREHENSIVE, OR BOTH, TO THE PERSONAL PASSENGER MOTOR VEHI-
CLE WHILE IT IS IN THE CUSTODY OF THE  PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM, A PERSONAL MOTOR VEHICLE SHARING RENTER OR AUTHORIZED OPERATOR.
  (E)  AN  INSURER  WHICH  ISSUES  A GROUP INSURANCE POLICY DESCRIBED IN
SUBSECTION (D) OF THIS SECTION SHALL ISSUE SUCH POLICY  IDENTIFYING  THE
PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM AS THE NAMED INSURED, AND ANY
SUCH POLICY SHALL INCLUDE A PROVISION THAT  PROVIDES  PRIMARY  COVERAGE,
WITHOUT  PRIOR  NOTICE  TO THE INSURER, FOR ALL PERSONAL PASSENGER MOTOR
VEHICLES  DURING  THE  SHARING  PERIOD,  AND  SHALL  FURTHER  INCLUDE  A
PROVISION  THAT  CLAIMS WILL BE ADJUSTED PURSUANT TO SECTION THREE THOU-
SAND FOUR HUNDRED TWELVE OF THIS CHAPTER, AND IT SHALL  FURTHER  INCLUDE
PHYSICAL  DAMAGE  COVERAGE  FOR  DAMAGE  OR LOSS TO THE OWNER'S PERSONAL
PASSENGER MOTOR VEHICLE INCURRED DURING THE SHARING PERIOD AT A LEVEL NO
LESS THAN THAT OF THIRD PARTY PHYSICAL DAMAGE COVERAGE.
  (F) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (D) AND (E) OF  THIS
SECTION  SHALL  ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION.
  (G) A GROUP POLICY SHALL NOT HAVE ANY DEDUCTIBLE  OR  ASSOCIATED  FEES
EXCEEDING FIVE HUNDRED DOLLARS.
  S  3.  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 PERSONAL PASSENGER MOTOR VEHICLE THAT IS USED  IN
CONNECTION WITH A PERSONAL MOTOR VEHICLE SHARING PROGRAM, A GROUP INSUR-
ANCE  POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED FOUR

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OF THE INSURANCE LAW ON SUCH VEHICLE AND TO THE RENTERS  AND  AUTHORIZED
OPERATORS  OF SUCH VEHICLES SHALL BE VALID FOR ANY TIME THAT THE VEHICLE
IS BEING USED IN CONNECTION WITH SUCH  PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERMS "PERSONAL PASSEN-
GER  MOTOR  VEHICLE"  AND "PERSONAL MOTOR VEHICLE SHARING PROGRAM" SHALL
HAVE THE SAME MEANING AS SUCH TERMS ARE DEFINED BY SECTION  THREE  THOU-
SAND FIVE HUNDRED ONE OF THE INSURANCE LAW.
  S 4. Section 312 of the vehicle and traffic law is amended by adding a
new subdivision 1-a to read as follows:
  1-A.  IN  THE  CASE OF FINANCIAL SECURITY PROCURED BY A PERSONAL MOTOR
VEHICLE SHARING PROGRAM AS SET FORTH  IN  SECTION  THREE  THOUSAND  FIVE
HUNDRED FOUR OF THE INSURANCE LAW, THE PROGRAM SHALL PROVIDE THE COMMIS-
SIONER WITH PROOF OF FINANCIAL SECURITY IN THE FORM OF A GROUP INSURANCE
POLICY  COVERING  ITSELF AND THE OWNERS OF ALL MOTOR VEHICLES REGISTERED
IN THIS STATE THAT PARTICIPATE IN THE PROGRAM AS INSURED GROUP  MEMBERS,
COVERING  THOSE  VEHICLES  WHILE THEY ARE BEING USED IN CONJUNCTION WITH
THAT PROGRAM. NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED  IN  THIS
SUBDIVISION SHALL BE DEEMED TO SUPERSEDE THE REQUIREMENTS OF SUBDIVISION
ONE OF THIS SECTION.
  S 5. 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 PERSONAL MOTOR VEHICLE SHARING
PROGRAM PURSUANT TO SECTION THREE THOUSAND  FIVE  HUNDRED  FOUR  OF  THE
INSURANCE  LAW  or other financial security required by this chapter, an
insurer shall issue proof of insurance  in  accordance  with  the  regu-
lations  promulgated  by  the  commissioner pursuant to paragraph (b) of
subdivision two of section three hundred thirteen of this article.
  S 6. 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 PERSONAL MOTOR VEHICLE
SHARING  PROGRAM PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED FOUR 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  refer-
ence 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 accord-
ance with the regulations required by paragraph (c) of this subdivision.
An insurer shall not file a notice of termination with the  commissioner
except as required by this subdivision.
  (b) Upon the issuance of an owner's policy of liability insurance OR A
GROUP  LIABILITY  INSURANCE  POLICY  ISSUED  TO A PERSONAL MOTOR VEHICLE
SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED FOUR  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 regulations required by
paragraph (c) of this subdivision.
  S 7. Consent orders. All consent orders agreed to by the department of
financial services, concerning allegations of unauthorized and/or unlaw-
ful operation of a car sharing program in the state  of  New  York,  and

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involving incidents which allegedly occurred prior to the effective date
of  this act, shall be deemed, satisfied, expired, discontinued and non-
renewable by all parties, on and after the effective date of this act.
  S 8. This act shall take effect immediately.