NY State Senate Bill 2015-S4444C

Archive: Last Bill Status - In Senate Committee Rules 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2016	committed to rules
Feb 29, 2016	amended on third reading 4444c
Feb 08, 2016	advanced to third reading
Feb 02, 2016	2nd report cal.
Feb 01, 2016	1st report cal.88
Jan 06, 2016	referred to insurance
Jun 25, 2015	recommitted to rules ordered to third reading cal.1887
Jun 08, 2015	reported and committed to rules
Jun 01, 2015	print number 4444b
Jun 01, 2015	amend and recommit to insurance
May 27, 2015	print number 4444a
May 27, 2015	amend and recommit to insurance
Mar 20, 2015	referred to insurance

Votes

- Feb 1, 2016 - Insurance Committee Vote
  S4444C
  
  16
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Feb 1, 2016
      
      aye (16)
      
      Avella
      
      Breslin
      
      Carlucci
      
      Hamilton
      
      Kennedy
      
      Lanza
      
      Larkin
      
      Latimer
      
      Martins
      
      Murphy
      
      O'Mara
      
      Panepinto
      
      Parker
      
      Serino
      
      Seward
      
      Venditto
      
      aye wr (3)
      
      Golden
      
      LaValle
      
      Sanders Jr.

Bill Amendments

Original

C (Active)

2015-S4444 - Details

Current Committee:: Senate Rules
Law Section:: Insurance Law
Laws Affected:: Add Art 35 §§3501 - 3504, Ins L; amd §§311, 312, 312-a & 313, V & T L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S427
2019-2020: S3506

2015-S4444 - Summary

Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.

2015-S4444 - Sponsor Memo

                                BILL NUMBER:S4444

TITLE  OF BILL:  An act to amend the insurance law and the vehicle and
traffic law, in relation  to  enacting  the  "personal  motor  vehicle
sharing act"

PURPOSE:  The  purpose  of  this  legislation  is to provide insurance
coverage for vehicle owners and renters participating  in  a  personal
vehicle sharing program.

SUMMARY OF PROVISIONS:

Section 1 provides that this act shall be known as the "Personal Motor
Vehicle Sharing Act."

Section  2  creates  a  new  Article  35 in the Insurance Law entitled
Personal Motor Vehicle Sharing Programs. Section 3 amends the  vehicle
and  traffic  law  by  adding  a new paragraph (e) to subdivision 4 of
section 311

Section  4  amends  the  vehicle  and  traffic  law   by   renumbering
subdivisions  2,  3,  4, and 5 of section 312 as subdivisions 3, 4, 5,
and 6, and adding a new subdivision 2.

Section 5 amends subdivision 1 of section 312-a  of  the  vehicle  and
traffic law.

Section  6  amends  paragraphs (a) and (b) of subdivision 2 of section
313 of the vehicle and traffic law.

Section 7 provides that consent orders agreed to by the Department  of
Financial  Services  are  deemed  fulfilled  and  expired  as  of  the
effective date.

Section 8 is the effective date.

JUSTIFICATION: Public policy that nurtures the sharing economy can  be
an  important  catalyst  of  future  economic  development and growth.
Economic progress is often driven by  marshaling  available  resources
more  efficiently  rather  than  simply  creating  new  resources. And
history has taught us that when technological progress leads  to  more
efficient  production,  such  technologies will always have a positive
overall economic impact. Technologies and platforms  which  facilitate
better  use  of  assets  we  already  have will lead to growth that is
sustainable, and create value that is income equalizing.

Peer-to-peer marketplaces like those created by cars sharing  programs
add tremendous value to our existing asset base. Creating a widespread
car-sharing  or  ride-sharing  platform  can achieve the same goals as
building a new transportation network with  little  or  no  additional
physical   resource  utilization,  and  in  a  manner  that  lowers  a
population's average ecological footprint.

This bill would amend the law to provide the  necessary  authority  to
peer-to-peer car sharing companies to purchase group insurance for the
car  sharing  program  thereby  providing  insurance  coverage for the
vehicles enrolled in the program during the  periods  in  which  those


vehicles  are  being rented and in the control of the peer-to-peer car
sharing  program.  Furthermore,  this  bill  would  provide  for   the
necessary  insurance  coverage  and  motor vehicle oversight needed to
protect  both  consumers  and  vehicle owners so that peer-to-peer car
sharing companies may operate in the state of New York.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.

2015-S4444 - Bill Text download pdf

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

                                  4444

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 20, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed 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) "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.
  (B) "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
NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
WHEELS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09888-03-5

S. 4444                             2

  (C)  "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.
  (D)  "PERSONAL  MOTOR VEHICLE SHARING PROGRAM" MEANS A PROGRAM ENGAGED
IN FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES.
  (E) "PERSONAL MOTOR VEHICLE  SHARING  PROGRAM  PROVIDER"  OR  "PROGRAM
PROVIDER"  MEANS  THE PERSON OR ENTITY THAT IS RESPONSIBLE FOR OPERATING
OR ADMINISTERING THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (F) "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS THE REGIS-
TERED OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE.
  (G) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
PERSON,  OTHER  THAN  THE  VEHICLE  OWNER, WHO RENTS THE OWNER'S VEHICLE
THROUGH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (H) "RENTAL PERIOD" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION (C)
OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
  (I) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
  S  3502.  REQUIREMENTS  FOR  DOING  BUSINESS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE INSURED OR SUBJECT TO BEING INSURED BY ITS OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL  BE  CLASSIFIED
AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXI-
CAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED FOR PERSONAL
MOTOR  VEHICLE  SHARING  AS  LONG  AS ALL OF THE FOLLOWING CIRCUMSTANCES
APPLY:
  (1) THE PERSONAL MOTOR VEHICLE SHARING IS COMPLIANT  WITH  A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM AS PROVIDED FOR IN THIS ARTICLE;
  (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 MOTOR VEHICLE SHARING  RENTER  WHILE  ENGAGED  IN
PERSONAL MOTOR VEHICLE SHARING; AND
  (3)  THE  AMOUNT  OF  PERSONAL  PASSENGER  MOTOR VEHICLES AN OWNER MAY
ENROLL IN THE PROGRAM SHALL BE LIMITED TO TWO  MOTOR  VEHICLES  FOR  THE
NAMED PRIMARY POLICY HOLDER OF A PRIVATE PASSENGER MOTOR VEHICLE LIABIL-
ITY  INSURANCE  POLICY,  AND  ONE VEHICLE FOR EACH ADDITIONAL INDIVIDUAL
NAMED ON THE PRIVATE PASSENGER MOTOR VEHICLE LIABILITY INSURANCE POLICY.
  (B) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1) DURING THE RENTAL PERIOD FOR A 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 INSUR-
ANCE 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 ARTI-
CLE, ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH OTHER LAWS OF THE  STATE
WITH  RESPECT  TO  MANDATORY  LIABILITY, UNINSURED AND UNDERINSURED, AND
FIRST-PARTY BENEFITS COVERAGE AS MAY BE ENACTED FROM TIME TO  TIME.  THE
PROGRAM  SHALL  ALSO  OFFER  PROPERTY  AND  CASUALTY  COVERAGE INCLUDING
COMPREHENSIVE  AND  COLLISION  PROTECTION,  AS  FURTHER   DESCRIBED   IN
SUBSECTIONS  (D)  AND (E) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR OF
THIS ARTICLE;
  (2) PROVIDE THE REGISTERED OWNER OF THE MOTOR  VEHICLE  WITH  SUITABLE
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

S. 4444                             3

CHAPTER, A COPY OF WHICH SHALL BE MAINTAINED IN THE VEHICLE BY THE VEHI-
CLE'S REGISTERED OWNER DURING ANY TIME WHEN THE VEHICLE IS  OPERATED  BY
THE  RENTER, OR PERSON OTHER THAN THE OWNER PURSUANT TO A PERSONAL MOTOR
VEHICLE SHARING PROGRAM;
  (3) NOT KNOWINGLY PERMIT THE VEHICLE TO BE OPERATED FOR COMMERCIAL USE
OR  AS  A  VEHICLE  FOR  HIRE BY A PERSONAL MOTOR VEHICLE SHARING RENTER
WHILE ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
  (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER FOR EACH VEHICLE RENTAL
TRANSACTION UNDER THE PERSONAL MOTOR VEHICLE SHARING PROGRAM AT THE TIME
OF EACH RENTAL:
  (A) AN INSURANCE IDENTIFICATION CARD AS DEFINED IN  PARAGRAPH  TEN  OF
SECTION  THREE  HUNDRED  ELEVEN OF THE VEHICLE AND TRAFFIC LAW, OR OTHER
DOCUMENTATION ABLE TO BE CARRIED IN THE VEHICLE AT ALL TIMES DURING  THE
RENTAL  THAT  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, EMAIL 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 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 VEHICLE TO BE USED IN THE PROGRAM;
  (8)  INDEMNIFY  AND  HOLD HARMLESS THE VEHICLE'S OWNER FOR THE COST OF
DAMAGE OR THEFT OF EQUIPMENT INSTALLED BY THE  PROGRAM  UNDER  PARAGRAPH
SEVEN  OF  THIS  SUBSECTION  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  OWNER,  THE
OWNER'S  PRIMARY  MOTOR  VEHICLE LIABILITY INSURER, THE RENTER'S PRIMARY
AUTOMOBILE INSURER, EXCESS OR UMBRELLA INSURER AND ANY GOVERNMENT AGENCY
AS REQUIRED BY LAW, WITHIN TEN BUSINESS DAYS OF A REQUEST AT THE COST OF
THE PROGRAM, THE FOLLOWING INFORMATION  PERTAINING  TO  INCIDENTS  WHICH
OCCURRED DURING THE RENTAL PERIOD:
  (A)  VERIFIABLE  RECORDS  OF  THE PROGRAM USE PERIOD FOR EACH VEHICLE,
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 WITH A  GROUP
INSURER,  ANY  AND  ALL  INFORMATION  RELEVANT  TO  THE CLAIM, INCLUDING
PAYMENTS BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
  (10) ENSURE THAT THE OWNER AND RENTER 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) DURING THE RENTAL PERIOD, THE OWNER'S INSURER MAY EXCLUDE ANY  AND
ALL  COVERAGE AFFORDED TO ITS POLICY AND THE 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 RENTAL PERIOD; AND
  (B) THE GROUP POLICY AND PHYSICAL DAMAGE  COVERAGE  CONTRACT  MAY  NOT
PROVIDE COVERAGE OUTSIDE OF THE RENTAL PERIOD.

S. 4444                             4

  (C)  A  PERSONAL MOTOR VEHICLE OWNER PARTICIPATING IN A PERSONAL MOTOR
VEHICLE SHARING PROGRAM, SHALL WITHIN THIRTY DAYS  OF  ENROLLMENT  OF  A
PERSONAL  PASSENGER  MOTOR  VEHICLE  IN A PERSONAL MOTOR VEHICLE SHARING
PROGRAM, OR PRIOR TO THE FIRST RENTAL OF THE  PERSONAL  PASSENGER  MOTOR
VEHICLE  IN  THE  PERSONAL  MOTOR  VEHICLE SHARING PROGRAM, WHICHEVER IS
SOONER, NOTIFY THE INSURANCE COMPANY WITH WHICH THE PERSONAL MOTOR VEHI-
CLE OWNER HAS CONTRACTED TO PROVIDE LIABILITY AND PROPERTY AND  CASUALTY
INSURANCE  COVERAGE  FOR THE PERSONAL PASSENGER MOTOR VEHICLE, INCLUDING
ANY INSURER PROVIDING EITHER PRIMARY OR EXCESS  COVERAGE,  OR  BOTH,  IN
WRITING,  BY  EMAIL  OR BY ANY OTHER MEANS AS SUCH INSURANCE COMPANY MAY
REQUIRE THAT SUCH PERSONAL PASSENGER MOTOR VEHICLE WILL BE OR  HAS  BEEN
ENROLLED IN THE PERSONAL MOTOR VEHICLE SHARING PROGRAM, AND;
  (1) THE INSURANCE COMPANY, WITH WHICH THE PERSONAL MOTOR VEHICLE OWNER
HAS  CONTRACTED TO PROVIDE LIABILITY AND PROPERTY AND CASUALTY INSURANCE
COVERAGE FOR THE PERSONAL PASSENGER MOTOR VEHICLE, INCLUDING ANY INSURER
PROVIDING EITHER PRIMARY OR EXCESS COVERAGE, OR BOTH, MAY  REQUIRE,  AND
UPON SUCH REQUIREMENT, THE PERSONAL MOTOR VEHICLE OWNER SHALL PROVIDE TO
SUCH INSURANCE COMPANY, THE NAME AND WEBSITE OF THE PERSONAL MOTOR VEHI-
CLE  SHARING  PROGRAM PROVIDER, AND THE NAME OF THE INSURANCE COMPANY OR
COMPANIES WITH WHICH THE PERSONAL MOTOR VEHICLE SHARING PROGRAM PROVIDER
CONTRACTS TO PROVIDE  LIABILITY  AND  PROPERTY  AND  CASUALTY  INSURANCE
COVERAGE  FOR  THE  PERSONAL  PASSENGER  MOTOR VEHICLE DURING THE RENTAL
PERIOD;
  (2) THE INSURANCE COMPANY, WITH WHICH THE PERSONAL MOTOR VEHICLE OWNER
HAS CONTRACTED TO PROVIDE LIABILITY AND PROPERTY AND CASUALTY  INSURANCE
COVERAGE FOR THE PERSONAL PASSENGER MOTOR VEHICLE, INCLUDING ANY INSURER
PROVIDING  EITHER  PRIMARY  OR  EXCESS  COVERAGE, OR BOTH, MAY, UPON THE
NOTICE REQUIRED BY THIS PARAGRAPH, DISCLAIM COVERAGE  FOR  ANY  AND  ALL
LIABILITY  AND/OR  DAMAGE INVOLVING THE PERSONAL PASSENGER MOTOR VEHICLE
DURING ANY TIME PERIOD IN WHICH THE PERSONAL PASSENGER MOTOR VEHICLE  IS
BEING RENTED UNDER THE PERSONAL MOTOR VEHICLE SHARING PROGRAM, BUT IN NO
EVENT  SHALL  ANY INSURANCE COMPANY SO NOTIFIED UNDER THIS PARAGRAPH, BE
PERMITTED TO CANCEL COVERAGE FOR OR INCREASE RATES FOR THE COST  OF  THE
CONTRACT TO PROVIDE LIABILITY AND PROPERTY AND CASUALTY INSURANCE COVER-
AGE, INCLUDING PRIMARY AND/OR EXCESS COVERAGE, OR BOTH, FOR THE PERSONAL
PASSENGER  MOTOR  VEHICLE,  SOLELY  DUE  TO  THE  FACT THAT THE PERSONAL
PASSENGER MOTOR VEHICLE HAS BEEN ENROLLED, AND IS RENTED, IN A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM;
  (3)  IN  THE EVENT THE PERSONAL MOTOR VEHICLE OWNER ENROLLS A PERSONAL
PASSENGER MOTOR VEHICLE IN MORE THAN ONE PERSONAL MOTOR VEHICLE  SHARING
PROGRAM,  THE  NOTICE  REQUIRED BY THIS PARAGRAPH SHALL BE MADE FOR EACH
PERSONAL MOTOR VEHICLE SHARING PROGRAM FOR WHICH THE PERSONAL  PASSENGER
MOTOR VEHICLE IS ENROLLED; AND
  (4)  IN THE EVENT THE PERSONAL MOTOR VEHICLE OWNER FAILS TO NOTIFY THE
INSURANCE COMPANY WITH WHICH THE PERSONAL PASSENGER MOTOR VEHICLE  OWNER
HAS  CONTRACTED TO PROVIDE LIABILITY AND PROPERTY AND CASUALTY INSURANCE
COVERAGE FOR THE PERSONAL PASSENGER MOTOR VEHICLE, INCLUDING ANY INSURER
PROVIDING EITHER PRIMARY OR EXCESS COVERAGE, OR  BOTH,  AS  REQUIRED  BY
THIS  PARAGRAPH,  SUCH INSURANCE COMPANY MAY STILL DISCLAIM COVERAGE FOR
ANY AND ALL LIABILITY AND/OR DAMAGE  INVOLVING  THE  PERSONAL  PASSENGER
MOTOR  VEHICLE  DURING  ANY TIME PERIOD IN WHICH SUCH PERSONAL PASSENGER
MOTOR VEHICLE IS BEING RENTED UNDER THE PERSONAL MOTOR  VEHICLE  SHARING
PROGRAM;  AND PROVIDED, FURTHER, SUCH INSURANCE COMPANY SHALL BE PERMIT-
TED TO CANCEL OR NON-RENEW COVERAGE FOR OR INCREASE  THE  RATE  FOR  THE
COST  OF  THE  CONTRACT  TO  PROVIDE LIABILITY AND PROPERTY AND CASUALTY
INSURANCE COVERAGE, INCLUDING PRIMARY AND/OR EXCESS, OR  BOTH,  FOR  THE

S. 4444                             5

PERSONAL  PASSENGER  MOTOR  VEHICLE,  DUE  TO THE FACT THAT THE REQUIRED
NOTICE THAT THE PERSONAL MOTOR VEHICLE HAS BEEN ENROLLED, AND IS RENTED,
IN A PERSONAL MOTOR VEHICLE SHARING PROGRAM WAS NOT IN  ACCORDANCE  WITH
THIS  ARTICLE.  THE OWNER SHALL HAVE FIFTEEN DAYS AFTER THE FIRST RENTAL
OR WITHIN THE THIRTY DAY NOTIFICATION PERIOD STATED IN  THIS  PARAGRAPH,
WHICHEVER  IS SOONER, TO CURE THE FAILURE TO PROVIDE NOTICE PROVISION OF
THIS PARAGRAPH.
  S 3503. LIABILITY PROVISIONS. (A) NOTWITHSTANDING ANY OTHER  PROVISION
OF  LAW  OR  ANY PROVISION IN A PERSONAL PASSENGER MOTOR VEHICLE OWNER'S
AUTOMOBILE INSURANCE POLICY, IN THE EVENT  OF  A  LOSS  OR  INJURY  THAT
OCCURS  DURING  THE  RENTAL  PERIOD  OR OTHERWISE UNDER THE CONTROL OF A
PERSONAL MOTOR 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  LIABIL-
ITY UPON AN OWNER OF A PRIVATE PASSENGER MOTOR VEHICLE AS IF THE PROGRAM
PROVIDER  WERE  THE  OWNER  OF  THE  VEHICLE. THE PROGRAM PROVIDER SHALL
RETAIN SUCH LIABILITY IRRESPECTIVE OF A LAPSE IN THE INSURANCE POLICY OF
THE PROGRAM OR WHETHER SUCH LIABILITY IS  COVERED  UNDER  THE  INSURANCE
POLICY OF THE PROGRAM.
  (B)  SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW
SHALL NOT APPLY TO THE PERSONAL MOTOR VEHICLE 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 SHAR-
ING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT THE  LIABILITY  OF  THE
PROGRAM  PROVIDER FOR ITS ACTS OR OMISSIONS, OR THE ACTS OR OMISSIONS OF
THE PERSONAL MOTOR VEHICLE SHARING RENTER, 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. HOWEVER, NOTHING IN
THIS SECTION SHALL LIMIT 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 MATE-
RIAL INTENTIONAL MISREPRESENTATION BY THE  VEHICLE'S  REGISTERED  OWNER,
PROVIDED  THAT  THE  VEHICLE  SHARING  PROGRAM DISCLOSES IN THE CONTRACT
THAT:
  (1) THE PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN  THESE  CIRCUM-
STANCES; AND
  (2) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT PROVIDE DEFENSE OR
INDEMNIFICATION  FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATERIAL
INTENTIONAL MISREPRESENTATION.
  (C) A PROGRAM PROVIDER'S GROUP POLICY SHALL  PROVIDE  COVERAGE  DURING
THE  RENTAL PERIOD FOR AN OWNER'S MOTOR VEHICLE REGISTERED IN THIS STATE
THE EARLIER OF ONE-HALF HOUR BEFORE THE SCHEDULED RESERVATION START TIME
DESCRIBED IN THE PROGRAM PROVIDER'S RECORDS, OR WHEN  THE  RENTER  TAKES
POSSESSION  OR  CONTROL  OF  THE VEHICLE, AND THE PROGRAM PROVIDER SHALL
CONTINUE TO BE LIABLE PURSUANT TO THIS SECTION UNTIL BOTH OF THE FOLLOW-
ING OCCUR:
  (1) THE PERSONAL PASSENGER MOTOR VEHICLE IS  RETURNED  TO  A  LOCATION
SPECIFIED  BY  THE  OWNER,  OR  DESIGNATED BY THE PERSONAL MOTOR 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 MOTOR VEHICLE SHARING USE IS
VERIFIABLY COMMUNICATED TO THE PROGRAM PROVIDER OR THE OWNER; OR
  (C) THE VEHICLE'S OWNER TAKES POSSESSION AND CONTROL OF  THE  PERSONAL
PASSENGER MOTOR VEHICLE.

S. 4444                             6

  (D) THE INSURER OR INSURERS PROVIDING GROUP LIABILITY INSURANCE TO THE
PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM  PURSUANT TO PARAGRAPH (A) OF
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE AND GROUP PHYS-
ICAL DAMAGE INSURANCE TO THE  PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM
PURSUANT TO PARAGRAPH (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 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
VEHICLE'S OWNER WAS IN CONTROL OF THE VEHICLE AT THE TIME OF  THE  LOSS.
THE  PROGRAM  SHALL  NOTIFY  THE  REGISTERED OWNER'S INSURER OF ANY SUCH
DISPUTE WITHIN TEN BUSINESS DAYS OF BECOMING AWARE THAT SUCH  A  DISPUTE
EXISTS.
  (E) 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  WITHIN THE RENTAL PERIOD, OR OTHERWISE UNDER THE CONTROL OF A
PERSONAL MOTOR VEHICLE SHARING PROGRAM, THE PERSONAL MOTOR VEHICLE SHAR-
ING PROGRAM'S GROUP LIABILITY INSURANCE INSURER UNDER PARAGRAPH  (A)  OF
SECTION  THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE SHALL HAVE THE
DUTY TO DEFEND AND INDEMNIFY THE VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER, SUBJECT TO THE PROVISIONS OF SUBSECTIONS (B) AND  (D)  OF  THIS
SECTION.
  (F)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, WHILE
A PERSONAL 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; AND
  (2) THE PRIMARY AND EXCESS INSURER OR INSURERS OF  THE  OWNER  OF  THE
PERSONAL  PASSENGER  MOTOR  VEHICLE  USED  IN A PERSONAL VEHICLE SHARING
PROGRAM SHALL HAVE THE RIGHT TO NOTIFY THE 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.
  (G)  NO VEHICLE 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, NON-RENEWED OR HAVE ITS RATES
INCREASED, 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. PROVIDED, HOWEVER THAT:
  (1) THE PROVISIONS OF THIS SUBSECTION SHALL NOT PERTAIN  TO  CANCELLA-
TIONS  IN  ACCORDANCE  WITH  THE PROVISIONS OF SUBSECTION (F) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER;
  (2) 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 PERSONAL VEHICLE SHARING PROGRAM UNDER THIS ARTICLE; AND
  (3) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED IN THE PERSONAL VEHICLE SHARING PROGRAM IF THAT VEHICLE IS ENROLLED

S. 4444                             7

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.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A PERSONAL MOTOR VEHI-
CLE  OWNER  THAT MAKES A VEHICLE AVAILABLE FOR UTILIZATION IN A PERSONAL
MOTOR VEHICLE SHARING PROGRAM, AND THE PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM, SHALL NOT BE SUBJECT TO VICARIOUS LIABILITY UNDER SECTION THREE
HUNDRED  EIGHTY-EIGHT  OF THE VEHICLE AND TRAFFIC LAW IN ACCORDANCE WITH
THE RELEVANT PROVISIONS OF FEDERAL LAW.
  S 3504. GROUP INSURANCE FOR PERSONAL MOTOR VEHICLE  SHARING  PROGRAMS.
(A)  AN  INSURER  WHICH  IS  AUTHORIZED  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 VEHICLE SHARING
PROGRAM PROVIDER TO INSURE THE PERSONAL MOTOR VEHICLE  SHARING  PROGRAM,
AND  ITS  RENTERS AND OCCUPANTS OF THE PERSONAL PASSENGER MOTOR VEHICLE,
AS WELL AS THE PROGRAM PROVIDER, ITS AGENTS, EMPLOYEES, DIRECTORS, OFFI-
CERS AND ASSIGNS; AND
  (1) THAT SUCH POLICY SHALL PROVIDE FIRST  PARTY  COVERAGE,  LIABILITY,
PROPERTY,  COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED MOTORIST
COVERAGE FOR THE PERSONAL 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
MOTOR VEHICLE SHARING PROGRAM;
  (2) THAT SUCH POLICY SHALL BE PRIMARY WITH RESPECT TO ANY OTHER INSUR-
ANCE AVAILABLE TO THE OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE  AND
SHALL BE EXCESS OVER ANY OTHER INSURANCE AVAILABLE TO THE PERSONAL MOTOR
VEHICLE SHARING RENTER; AND
  (3)  THAT  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)  THAT  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 FILED WITH THE
DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (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 AND PROGRAM PROVIDER AS THE NAMED
INSURED; AND ANY SUCH POLICY SHALL INCLUDE  A  PROVISION  THAT  PROVIDES
COVERAGE,  WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL PERSONAL PASSEN-
GER MOTOR VEHICLES DURING  THE  RENTAL  PERIOD  AND  SUCH  POLICY  SHALL
FURTHER INCLUDE A PROVISION THAT THE VEHICLES' OWNERS, AUTHORIZED OPERA-
TORS AND OCCUPANTS 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 TWEN-
TY-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)  A  PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK OF PHYSICAL
DAMAGE LOSS TO PERSONAL PASSENGER MOTOR VEHICLES DURING  THE  TIME  THAT
THE  VEHICLES ARE IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE RENTER OR
PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (1) THAT 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;

S. 4444                             8

  (2)  THAT SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS TO THE VEHI-
CLE SHALL NOT BE DEEMED TO BE PHYSICAL DAMAGE INSURANCE; AND
  (3)  THAT A PROGRAM PROVIDER SHALL ONLY BE PERMITTED TO ASSUME RESPON-
SIBILITY 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, AND SUCH
REGULATIONS SHALL ADDRESS THE FINANCIAL RESPONSIBILITY  OF  THE  PROGRAM
PROVIDER TO COVER THE COST OF PHYSICAL DAMAGE, AND SHALL ESTABLISH STAN-
DARDS  REGARDING  THE  PROGRAM  PROVIDER'S  RESPONSE  TO  VEHICLE OWNERS
REGARDING ANY PHYSICAL DAMAGE TO THEIR VEHICLES WHILE IN THE CUSTODY  OF
PERSONAL MOTOR VEHICLE SHARING RENTER AND PERSONAL MOTOR VEHICLE SHARING
PROGRAM.
  (E)  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 AND TO THE OWNERS OF PERSONAL
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 MOTOR VEHICLE SHARING PROGRAM OR PERSONAL MOTOR VEHICLE
SHARING RENTER. SUCH GROUP POLICY SHALL  PROVIDE  PRIMARY  COVERAGE  FOR
PHYSICAL DAMAGE LOSS EITHER BY COLLISION, COMPREHENSIVE, OR BOTH, TO THE
VEHICLE WHILE IT IS IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE SHARING
PROGRAM OR A PERSONAL MOTOR VEHICLE SHARING RENTER.
  (F)  IF  THE  GROUP  COVERAGE  PROVIDED  FOR IN SUBSECTION (E) 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.
  (G)  AN  INSURER  WHICH  ISSUES  A GROUP INSURANCE POLICY DESCRIBED IN
SUBSECTION (E) 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 RENTAL PERIOD, AND SHALL FURTHER INCLUDE A PROVISION
THAT CLAIMS WILL BE ADJUSTED PURSUANT TO  SECTION  THREE  THOUSAND  FOUR
HUNDRED  TWELVE  OF  THIS CHAPTER, AND IT SHALL FURTHER INCLUDE PHYSICAL
DAMAGE COVERAGE FOR DAMAGE OR  LOSS  TO  THE  OWNER'S  VEHICLE  INCURRED
DURING  THE  RENTAL  PERIOD  AT A LEVEL NO LESS THAN THAT OF THIRD PARTY
PHYSICAL DAMAGE COVERAGE.
  (H) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (E), (F) AND (G)  OF
THIS  SECTION  SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION.
  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, AS DEFINED IN
SECTION THREE THOUSAND FIVE HUNDRED ONE OF THE INSURANCE  LAW,  THAT  IS
USED  IN  CONNECTION  WITH  A  PERSONAL MOTOR VEHICLE SHARING PROGRAM AS
DEFINED IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH  IN  PARA-
GRAPH  (A)  OF THIS SUBDIVISION SHALL BE MET BY A GROUP INSURANCE POLICY
ISSUED PURSUANT TO SECTION THREE  THOUSAND  FIVE  HUNDRED  FOUR  OF  THE
INSURANCE  LAW  TO  A PROGRAM PROVIDER AND TO THE PERSONAL MOTOR VEHICLE
SHARING RENTERS OF THAT PROGRAM FOR ANY TIME THAT THE VEHICLE  IS  BEING
USED IN CONNECTION WITH THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  S  4.  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  subdi-
vision 2 is added to read as follows:

S. 4444                             9

  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A  PERSONAL  MOTOR VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION THREE
THOUSAND FIVE HUNDRED FOUR 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
PERSONAL PASSENGER MOTOR VEHICLES REGISTERED IN THIS STATE THAT  PARTIC-
IPATE  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 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 PROGRAM PROVIDER OF 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 regulations promulgated by the commissioner pursuant  to  para-
graph  (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 PROGRAM PROVIDER OF A
PERSONAL MOTOR VEHICLE SHARING PROGRAM PURSUANT TO SECTION  THREE  THOU-
SAND FIVE HUNDRED FOUR OF THE INSURANCE LAW, other than an owner's poli-
cy  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
paragraph (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 MOTOR VEHICLE SHARING PROGRAM PURSUANT TO SECTION  THREE  THOU-
SAND  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
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.

2015-S4444A - Details

Current Committee:: Senate Rules
Law Section:: Insurance Law
Laws Affected:: Add Art 35 §§3501 - 3504, Ins L; amd §§311, 312, 312-a & 313, V & T L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S427
2019-2020: S3506

2015-S4444A - Summary

Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.

2015-S4444A - Sponsor Memo

                                BILL NUMBER:S4444A

TITLE OF BILL:

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

PURPOSE:

The purpose of this legislation is to provide insurance coverage for
vehicle owners and renters participating in a personal vehicle sharing
program.

SUMMARY OF PROVISIONS:

Section 1 provides that this act shall be known as the "Personal Motor
Vehicle Sharing Act "

Section 2 creates a new Article 35 in the Insurance Law entitled
Personal Motor Vehicle Sharing Programs.

Section 3 amends the vehicle and traffic law by adding a new paragraph
(e) to subdivision 4 of section 311

Section 4 amends the vehicle and traffic law by renumbering
subdivisions 2, 3, 4, and 5 of section 312 as subdivisions 3, 4, 5,

and 6, and adding a new subdivision 2.

Section 5 amends subdivision 1 of section 312-a of the vehicle and
traffic law.

Section 6 amends paragraphs (a) and (b) of subdivision 2 of section
313 of the vehicle and traffic law.

Section 7 provides that consent orders agreed to by the Department of
Financial Services are deemed fulfilled and expired as of the
effective date.

Section 8 is the effective date

JUSTIFICATION:

Public policy that nurtures the sharing economy can be an important
catalyst of future economic development and growth.  Economic progress
is often driven by marshaling available resources more efficiently
rather than simply creating new resources. And history has taught us
that when technological progress leads to more efficient production,
such technologies will always have a positive overall economic impact.
Technologies and platforms which facilitate better use of assets we
already have will lead to growth that is sustainable, and create value
that is income equalizing.

Peer-to-peer marketplaces like those created by cars sharing programs
add tremendous value to our existing asset base. Creating a widespread
car-sharing platform can achieve the same goals as building a new
transportation network with little or no additional physical resource


utilization, and in a manner that lowers a population's average
ecological footprint.

This bill would amend the law to provide the necessary authority to
peer-to-peer car sharing companies to purchase group insurance for the
car sharing program thereby providing insurance coverage for the
vehicles enrolled in the program during the periods in which those
vehicles are being rented and in the control of the peer-to-peer car
sharing program. Furthermore, this bill would provide for the
necessary insurance coverage and motor vehicle oversight needed to
protect both consumers and vehicle owners so that peer-to-peer car
sharing companies may operate in the state of New York.

LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately

2015-S4444A - Bill Text download pdf

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

                                 4444--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 20, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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) "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.
  (B) "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.
                                                           LBD09888-04-5

S. 4444--A                          2

NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
WHEELS.
  (C)  "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.
  (D)  "PERSONAL  MOTOR VEHICLE SHARING PROGRAM" MEANS A PROGRAM ENGAGED
IN FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES.
  (E) "PERSONAL MOTOR VEHICLE  SHARING  PROGRAM  PROVIDER"  OR  "PROGRAM
PROVIDER"  MEANS  THE PERSON OR ENTITY THAT IS RESPONSIBLE FOR OPERATING
OR ADMINISTERING THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (F) "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS THE REGIS-
TERED OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE.
  (G) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
PERSON,  OTHER  THAN  THE  VEHICLE  OWNER, WHO RENTS THE OWNER'S VEHICLE
THROUGH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (H) "RENTAL PERIOD" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION (C)
OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
  (I) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
  S  3502.  REQUIREMENTS  FOR  DOING  BUSINESS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE INSURED OR SUBJECT TO BEING INSURED BY ITS OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL  BE  CLASSIFIED
AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXI-
CAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED FOR PERSONAL
MOTOR  VEHICLE  SHARING  AS  LONG  AS ALL OF THE FOLLOWING CIRCUMSTANCES
APPLY:
  (1) THE PERSONAL MOTOR VEHICLE SHARING IS COMPLIANT  WITH  A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM AS PROVIDED FOR IN THIS ARTICLE;
  (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 MOTOR VEHICLE SHARING  RENTER  WHILE  ENGAGED  IN
PERSONAL MOTOR VEHICLE SHARING; AND
  (3)  THE  NUMBER  OF  PERSONAL  PASSENGER  MOTOR VEHICLES AN OWNER MAY
ENROLL IN THE PROGRAM BEFORE THE PRIVATE PASSENGER MOTOR VEHICLE LIABIL-
ITY INSURANCE COMPANY MAY CANCEL OR REFUSE COVERAGE  FOR  SUCH  CONTRACT
SOLELY DUE TO THE NUMBER OF VEHICLES ENROLLED UNDER SUCH PRIVATE PASSEN-
GER  MOTOR  VEHICLE  LIABILITY INSURANCE POLICY SHALL BE LIMITED TO FOUR
MOTOR VEHICLES.
  (B) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1) DURING THE RENTAL PERIOD FOR A 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 INSUR-
ANCE 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 ARTI-
CLE, ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH OTHER LAWS OF THE  STATE
WITH  RESPECT  TO  MANDATORY  LIABILITY, UNINSURED AND UNDERINSURED, AND
FIRST-PARTY BENEFITS COVERAGE AS MAY BE ENACTED FROM TIME TO TIME.   THE
PROGRAM  PROVIDER  SHALL  NOT PROVIDE LIABILITY COVERAGE LESS THAN THREE
TIMES THE MINIMUM INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER VEHICLES.
THE PROGRAM SHALL ALSO OFFER PROPERTY AND  CASUALTY  COVERAGE  INCLUDING
COMPREHENSIVE   AND   COLLISION  PROTECTION,  AS  FURTHER  DESCRIBED  IN

S. 4444--A                          3

SUBSECTIONS (D) AND (E) OF SECTION THREE THOUSAND FIVE HUNDRED  FOUR  OF
THIS ARTICLE;
  (2)  PROVIDE  THE  REGISTERED OWNER OF THE MOTOR VEHICLE WITH SUITABLE
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, A COPY OF WHICH SHALL BE MAINTAINED IN THE VEHICLE BY THE VEHI-
CLE'S  REGISTERED  OWNER DURING ANY TIME WHEN THE VEHICLE IS OPERATED BY
THE RENTER, OR PERSON OTHER THAN THE OWNER PURSUANT TO A PERSONAL  MOTOR
VEHICLE 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  WHILE
ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
  (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER FOR EACH VEHICLE RENTAL
TRANSACTION UNDER THE PERSONAL MOTOR VEHICLE SHARING PROGRAM AT THE TIME
OF EACH RENTAL:
  (A)  ACCESS TO AN INSURANCE IDENTIFICATION CARD AS DEFINED IN SUBDIVI-
SION TEN OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW,
OR OTHER DOCUMENTATION ABLE TO BE CARRIED IN THE VEHICLE  AT  ALL  TIMES
DURING  THE  RENTAL THAT INSURANCE COVERAGE REFERRED TO IN PARAGRAPH ONE
OF THIS SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B) MEANS VIA A TOLL FREE NUMBER, EMAIL ADDRESS OR SUCH OTHER FORM  OF
COMMUNICATION  WHICH  A LAW ENFORCEMENT POLICE OFFICER, A REPRESENTATIVE
OF THE DEPARTMENT OF MOTOR VEHICLES OR OTHER OFFICER OF  THIS  STATE  OR
ANY  POLITICAL  SUBDIVISION THEREOF MAY CONFIRM IN REAL TIME THAT INSUR-
ANCE 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 VEHICLE TO BE USED IN THE PROGRAM;
  (8) INDEMNIFY AND HOLD HARMLESS THE VEHICLE'S OWNER FOR  THE  COST  OF
DAMAGE  OR  THEFT  OF EQUIPMENT INSTALLED BY THE PROGRAM UNDER PARAGRAPH
SEVEN OF THIS SUBSECTION 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 OWNER, THE
OWNER'S PRIMARY MOTOR VEHICLE LIABILITY INSURER,  THE  RENTER'S  PRIMARY
AUTOMOBILE INSURER, EXCESS OR UMBRELLA INSURER AND ANY GOVERNMENT AGENCY
AS REQUIRED BY LAW, WITHIN TEN BUSINESS DAYS OF A REQUEST AT THE COST OF
THE  PROGRAM,  THE  FOLLOWING  INFORMATION PERTAINING TO INCIDENTS WHICH
OCCURRED DURING THE RENTER'S RENTAL PERIOD:
  (A) VERIFIABLE RECORDS OF THE PROGRAM USE PERIOD FOR EACH VEHICLE, AND
(TO THE EXTENT ELECTRONIC EQUIPMENT FOR MONITORING THE FOLLOWING  INFOR-
MATION IS INSTALLED IN THE VEHICLE) 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 WITH A  GROUP
INSURER,  ANY  AND  ALL  INFORMATION  RELEVANT  TO  THE CLAIM, INCLUDING
PAYMENTS BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
  (10) ENSURE THAT THE OWNER AND RENTER 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:

S. 4444--A                          4

  (A) DURING THE RENTAL PERIOD, THE OWNER'S INSURER MAY EXCLUDE ANY  AND
ALL  COVERAGE AFFORDED TO ITS POLICY AND THE 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 RENTAL PERIOD; AND
  (B)  THE  GROUP  POLICY  AND PHYSICAL DAMAGE COVERAGE CONTRACT MAY NOT
PROVIDE COVERAGE OUTSIDE OF THE RENTAL PERIOD.
  S 3503. LIABILITY PROVISIONS. (A) 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  THE RENTAL PERIOD OR WHILE THE PERSONAL MOTOR VEHICLE IS
OTHERWISE UNDER THE CONTROL OF A PERSONAL MOTOR VEHICLE SHARING  PROGRAM
PROVIDER, SUBJECT TO SUBSECTION (H) OF THIS SECTION THE PROGRAM PROVIDER
SHALL  BE  DEEMED  THE  OWNER OF THE VEHICLE 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
SOLELY BASED ON SUCH OWNERSHIP AS IF THE PROGRAM PROVIDER WERE THE OWNER
OF  THE  VEHICLE. THE PROGRAM PROVIDER SHALL RETAIN SUCH LIABILITY IRRE-
SPECTIVE OF A LAPSE IN THE INSURANCE POLICY OF THE  PROGRAM  OR  WHETHER
SUCH LIABILITY IS COVERED UNDER THE INSURANCE POLICY OF THE PROGRAM.
  (B)  SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW
SHALL NOT APPLY TO THE PERSONAL MOTOR VEHICLE 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 SHAR-
ING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT THE  LIABILITY  OF  THE
PROGRAM  PROVIDER  FOR  ITS ACTS OR OMISSIONS, OR LIMIT THE LIABILITY OF
THE PERSONAL MOTOR VEHICLE SHARING RENTER FOR THE RENTER'S ACTS OR OMIS-
SIONS, 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 VEHI-
CLE SHARING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT 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
THE  VEHICLE'S  REGISTERED  OWNER,  PROVIDED  THAT  THE  VEHICLE SHARING
PROGRAM DISCLOSES IN THE CONTRACT THAT:
  (1) THE PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN  THESE  CIRCUM-
STANCES; AND
  (2) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT PROVIDE DEFENSE OR
INDEMNIFICATION  FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATERIAL
INTENTIONAL MISREPRESENTATION.
  (C) A PROGRAM PROVIDER'S GROUP POLICY SHALL  PROVIDE  COVERAGE  DURING
THE  RENTAL  PERIOD AS RECORDED IN THE PROGRAM PROVIDER'S RECORDS FOR AN
OWNER'S MOTOR VEHICLE REGISTERED IN THIS STATE,  FROM  WHEN  THE  RENTER
TAKES POSSESSION AND CONTROL OF THE VEHICLE, OR WHEN OTHERWISE UNDER THE
CONTROL  OF THE PROGRAM PROVIDER AND THE PROGRAM PROVIDER SHALL CONTINUE
TO BE LIABLE PURSUANT TO THIS SECTION UNTIL BOTH OF THE FOLLOWING OCCUR:
  (1) THE PERSONAL PASSENGER MOTOR VEHICLE IS RETRIEVED BY THE OWNER, OR
RETURNED TO A LOCATION AGREED TO BY THE OWNER AND RENTER, OR  DESIGNATED
BY THE PERSONAL MOTOR 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 MOTOR VEHICLE SHARING USE  IS
VERIFIABLY COMMUNICATED TO THE PROGRAM PROVIDER OR THE OWNER; OR
  (C)  THE  VEHICLE'S  OWNER  OR  PROGRAM  PROVIDER TAKES POSSESSION AND
CONTROL OF THE PERSONAL PASSENGER MOTOR VEHICLE.

S. 4444--A                          5

  (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-
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  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
VEHICLE'S  OWNER  WAS IN CONTROL OF THE VEHICLE AT THE TIME OF THE LOSS.
THE PROGRAM SHALL NOTIFY THE REGISTERED  OWNER'S  INSURER  OF  ANY  SUCH
DISPUTE  WITHIN  TEN BUSINESS DAYS OF BECOMING AWARE THAT SUCH A DISPUTE
EXISTS.
  (E) 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 WITHIN THE RENTAL PERIOD, OR OTHERWISE UNDER THE CONTROL  OF  A
PERSONAL MOTOR VEHICLE SHARING PROGRAM, THE PERSONAL MOTOR VEHICLE SHAR-
ING  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 VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER,  SUBJECT  TO  THE PROVISIONS OF SUBSECTIONS (B) AND (D) OF THIS
SECTION.
  (F) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  WHILE
A  PERSONAL  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; AND
  (2)  THE  PRIMARY  AND  EXCESS INSURER OR INSURERS OF THE OWNER OF THE
PERSONAL PASSENGER MOTOR VEHICLE USED  IN  A  PERSONAL  VEHICLE  SHARING
PROGRAM  SHALL  HAVE THE RIGHT TO NOTIFY THE 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.
  (G) NO VEHICLE 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,  NON-RENEWED,  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.
PROVIDED, HOWEVER THAT:
  (1) THE PROVISIONS OF THIS SUBSECTION SHALL NOT PERTAIN  TO  CANCELLA-
TIONS  IN  ACCORDANCE  WITH  THE PROVISIONS OF SUBSECTION (F) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER;
  (2) 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 PERSONAL VEHICLE SHARING PROGRAM UNDER THIS ARTICLE; AND
  (3) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED IN THE PERSONAL VEHICLE SHARING PROGRAM IF THAT VEHICLE IS ENROLLED

S. 4444--A                          6

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.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A PERSONAL MOTOR VEHI-
CLE  OWNER  THAT MAKES A VEHICLE AVAILABLE FOR UTILIZATION IN A PERSONAL
MOTOR VEHICLE SHARING PROGRAM, AND THE PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM PROVIDER, SHALL NOT BE SUBJECT TO VICARIOUS LIABILITY IN ACCORD-
ANCE WITH THE RELEVANT PROVISIONS OF FEDERAL LAW, OR UNDER SECTION THREE
HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW OR UNDER ANY SIMILAR
LAW THAT IMPOSES LIABILITY SOLELY BASED ON VEHICLE OWNERSHIP.
  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 PROVIDER TO INSURE THE PERSONAL MOTOR VEHICLE SHAR-
ING PROGRAM, AND ITS RENTERS AND OCCUPANTS  OF  THE  PERSONAL  PASSENGER
MOTOR  VEHICLE,  AS WELL AS THE PROGRAM PROVIDER, ITS AGENTS, EMPLOYEES,
DIRECTORS, OFFICERS AND ASSIGNS; AND
  (1) THAT SUCH POLICY SHALL PROVIDE FIRST  PARTY  COVERAGE,  LIABILITY,
PROPERTY,  COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED MOTORIST
COVERAGE FOR THE PERSONAL PASSENGER MOTOR  VEHICLE  AND  ITS  AUTHORIZED
OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING FROM THE USE OR
OPERATION OF THAT VEHICLE DURING THE RENTAL PERIOD;
  (2) THAT SUCH POLICY SHALL BE PRIMARY WITH RESPECT TO ANY OTHER INSUR-
ANCE  AVAILABLE TO THE OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE AND
SHALL BE EXCESS OVER ANY OTHER INSURANCE AVAILABLE TO THE PERSONAL MOTOR
VEHICLE SHARING RENTER; AND
  (3) THAT 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) THAT 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  FILED  WITH  THE
DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (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 AND PROGRAM PROVIDER AS THE NAMED
INSURED;  AND  ANY  SUCH  POLICY SHALL INCLUDE A PROVISION THAT PROVIDES
COVERAGE, WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL PERSONAL  PASSEN-
GER  MOTOR  VEHICLES  DURING  THE  RENTAL  PERIOD  AND SUCH POLICY SHALL
FURTHER INCLUDE A PROVISION THAT THE VEHICLES' RENTERS, AUTHORIZED OPER-
ATORS 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 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) A PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK  OF  PHYSICAL
DAMAGE  LOSS  TO  PERSONAL PASSENGER MOTOR VEHICLES DURING THE TIME THAT
THE VEHICLES ARE IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE RENTER  OR
PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (1) THAT 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;

S. 4444--A                          7

  (2) THAT SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS TO THE  VEHI-
CLE SHALL NOT BE DEEMED TO BE PHYSICAL DAMAGE INSURANCE; AND
  (E)  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 AND TO THE OWNERS OF PERSONAL
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 MOTOR VEHICLE SHARING PROGRAM OR PERSONAL MOTOR VEHICLE
SHARING RENTER. SUCH GROUP POLICY SHALL  PROVIDE  PRIMARY  COVERAGE  FOR
PHYSICAL DAMAGE LOSS EITHER BY COLLISION, COMPREHENSIVE, OR BOTH, TO THE
VEHICLE WHILE IT IS IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE SHARING
PROGRAM OR A PERSONAL MOTOR VEHICLE SHARING RENTER.
  (F)  IF  THE  GROUP  COVERAGE  PROVIDED  FOR IN SUBSECTION (E) 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.
  (G)  AN  INSURER  WHICH  ISSUES  A GROUP INSURANCE POLICY DESCRIBED IN
SUBSECTION (E) 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 RENTAL PERIOD, AND SHALL FURTHER INCLUDE A PROVISION
THAT CLAIMS WILL BE ADJUSTED PURSUANT TO  SECTION  THREE  THOUSAND  FOUR
HUNDRED  TWELVE  OF  THIS CHAPTER, AND IT SHALL FURTHER INCLUDE PHYSICAL
DAMAGE COVERAGE FOR DAMAGE OR  LOSS  TO  THE  OWNER'S  VEHICLE  INCURRED
DURING  THE  RENTAL  PERIOD  AT A LEVEL NO LESS THAN THAT OF THIRD PARTY
PHYSICAL DAMAGE COVERAGE.
  (H) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (E), (F) AND (G)  OF
THIS  SECTION  SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION.
  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, AS DEFINED IN
SECTION THREE THOUSAND FIVE HUNDRED ONE OF THE INSURANCE  LAW,  THAT  IS
USED  IN  CONNECTION  WITH  A  PERSONAL MOTOR VEHICLE SHARING PROGRAM AS
DEFINED IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH  IN  PARA-
GRAPH  (A)  OF THIS SUBDIVISION SHALL BE MET BY A GROUP INSURANCE POLICY
ISSUED PURSUANT TO SECTION THREE  THOUSAND  FIVE  HUNDRED  FOUR  OF  THE
INSURANCE  LAW  TO  A PROGRAM PROVIDER AND TO THE PERSONAL MOTOR VEHICLE
SHARING RENTERS OF THAT PROGRAM FOR ANY TIME THAT THE VEHICLE  IS  BEING
USED IN CONNECTION WITH THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  S  4.  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  subdi-
vision 2 is added to read as follows:
  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A  PERSONAL  MOTOR VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION THREE
THOUSAND FIVE HUNDRED FOUR 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
PERSONAL  PASSENGER MOTOR VEHICLES REGISTERED IN THIS STATE THAT PARTIC-
IPATE 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. 4444--A                          8

  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 PROGRAM PROVIDER  OF  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  regulations promulgated by the commissioner pursuant to para-
graph (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 PROGRAM PROVIDER OF  A
PERSONAL  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND FIVE HUNDRED FOUR OF THE INSURANCE LAW, other than an owner's poli-
cy 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
paragraph (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  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND 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
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.

co-Sponsors

2015-S4444B - Details

Current Committee:: Senate Rules
Law Section:: Insurance Law
Laws Affected:: Add Art 35 §§3501 - 3504, Ins L; amd §§311, 312, 312-a & 313, V & T L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S427
2019-2020: S3506

2015-S4444B - Summary

Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.

2015-S4444B - Sponsor Memo

                                BILL NUMBER:S4444B

TITLE OF BILL:  An act to amend the insurance law and the vehicle and
traffic law, in relation to enacting the "personal motor vehicle
sharing act"

PURPOSE:

The purpose of this legislation is to provide insurance coverage for
vehicle owners and renters participating in a personal vehicle sharing
program.

SUMMARY OF PROVISIONS:

Section 1 provides that this act shall be known as the "Personal Motor
Vehicle Sharing Act."

Section 2 creates a new Article 35 in the Insurance Law entitled
Personal Motor Vehicle Sharing Programs.

Section 3 amends the vehicle and traffic law by adding a new paragraph
(e) to subdivision 4 of section 311.

Section 4 amends the vehicle and traffic law by renumbering
subdivisions 2, 3, 4, and 5 of section 312 as subdivisions 3, 4, 5,
and 6, and adding a new subdivision 2.

Section 5 amends subdivision 1 of section 312-a of the vehicle and
traffic law.

Section 6 amends paragraphs (a) and (b) of subdivision 2 of section
313 of the vehicle and traffic law.

Section 7 provides that consent orders agreed to by the Department of
Financial Services are deemed fulfilled and expired as of the
effective date.

Section 8 is the effective date.

JUSTIFICATION:

Public policy that nurtures the sharing economy can be an important
catalyst of future economic development and growth.  Economic progress
is often driven by marshaling available resources more efficiently
rather than simply creating new resources. And history has taught us
that when technological progress leads to more efficient production,
such technologies will always have a positive overall economic impact.
Technologies and platforms which facilitate better use of assets we
already have will lead to growth that is sustainable, and create value
that is income equalizing.

Peer-to-peer marketplaces like those created by cars sharing programs
add tremendous value to our existing asset base. Creating a widespread
car-sharing platform can achieve the same goals as building a new
transportation network with little or no additional physical resource
utilization, and in a manner that lowers a population's average
ecological footprint.


This bill would amend the law to provide the necessary authority to
peer-to-peer car sharing companies to purchase group insurance for the
car sharing program thereby providing insurance coverage for the
vehicles enrolled in the program during the periods in which those
vehicles are being rented and in the control of the peer-to-peer car
sharing program. Furthermore, this bill would provide for the
necessary insurance coverage and motor vehicle oversight needed to
protect both consumers and vehicle owners so that peer-to-peer car
sharing companies may operate in the state of New York

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

2015-S4444B - Bill Text download pdf

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

                                 4444--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 20, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee

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) "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.
  (B) "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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09888-05-5

S. 4444--B                          2

SINGLE INDIVIDUAL OR INDIVIDUALS RESIDING IN THE SAME HOUSEHOLD, AS  THE
NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
WHEELS.
  (C)  "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.
  (D)  "PERSONAL  MOTOR VEHICLE SHARING PROGRAM" MEANS A PROGRAM ENGAGED
IN FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES.
  (E) "PERSONAL MOTOR VEHICLE  SHARING  PROGRAM  PROVIDER"  OR  "PROGRAM
PROVIDER"  MEANS  THE PERSON OR ENTITY THAT IS RESPONSIBLE FOR OPERATING
OR ADMINISTERING THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (F) "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS THE REGIS-
TERED OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE.
  (G) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
PERSON,  OTHER  THAN  THE  VEHICLE  OWNER, WHO RENTS THE OWNER'S VEHICLE
THROUGH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (H) "RENTAL PERIOD" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION (C)
OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
  (I) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
  S  3502.  REQUIREMENTS  FOR  DOING  BUSINESS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE INSURED OR SUBJECT TO BEING INSURED BY ITS OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL  BE  CLASSIFIED
AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXI-
CAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED FOR PERSONAL
MOTOR  VEHICLE  SHARING  AS  LONG  AS ALL OF THE FOLLOWING CIRCUMSTANCES
APPLY:
  (1) THE PERSONAL MOTOR VEHICLE SHARING IS COMPLIANT  WITH  A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM AS PROVIDED FOR IN THIS ARTICLE;
  (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 MOTOR VEHICLE SHARING  RENTER  WHILE  ENGAGED  IN
PERSONAL MOTOR VEHICLE SHARING; AND
  (3)  THE NUMBER OF PERSONAL PASSENGER MOTOR VEHICLES A SINGLE INDIVID-
UAL OR INDIVIDUALS RESIDING IN THE SAME  HOUSEHOLD  MAY  ENROLL  IN  THE
PROGRAM  BEFORE  THE PRIVATE PASSENGER MOTOR VEHICLE LIABILITY INSURANCE
COMPANY MAY CANCEL OR REFUSE COVERAGE FOR SUCH CONTRACT  SOLELY  DUE  TO
THE NUMBER OF VEHICLES ENROLLED UNDER SUCH PRIVATE PASSENGER MOTOR VEHI-
CLE LIABILITY INSURANCE POLICY SHALL BE LIMITED TO FOUR MOTOR VEHICLES.
  (B) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1)  DURING  THE RENTAL PERIOD FOR A 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  INSUR-
ANCE  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 ARTI-
CLE,  ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH OTHER LAWS OF THE STATE
WITH RESPECT TO MANDATORY LIABILITY,  UNINSURED  AND  UNDERINSURED,  AND
FIRST-PARTY  BENEFITS COVERAGE AS MAY BE ENACTED FROM TIME TO TIME.  THE
PROGRAM PROVIDER SHALL NOT PROVIDE LIABILITY COVERAGE  LESS  THAN  THREE
TIMES THE MINIMUM INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER VEHICLES.
THE  PROGRAM  SHALL  ALSO OFFER PROPERTY AND CASUALTY COVERAGE INCLUDING
COMPREHENSIVE  AND  COLLISION  PROTECTION,  AS  FURTHER   DESCRIBED   IN

S. 4444--B                          3

SUBSECTIONS  (D)  AND (E) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR OF
THIS ARTICLE;
  (2)  PROVIDE  THE  REGISTERED OWNER OF THE MOTOR VEHICLE WITH SUITABLE
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, A COPY OF WHICH SHALL BE MAINTAINED IN THE VEHICLE BY THE VEHI-
CLE'S  REGISTERED  OWNER DURING ANY TIME WHEN THE VEHICLE IS OPERATED BY
THE RENTER, OR PERSON OTHER THAN THE OWNER PURSUANT TO A PERSONAL  MOTOR
VEHICLE 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  WHILE
ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
  (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER FOR EACH VEHICLE RENTAL
TRANSACTION UNDER THE PERSONAL MOTOR VEHICLE SHARING PROGRAM AT THE TIME
OF EACH RENTAL:
  (A)  ACCESS TO AN INSURANCE IDENTIFICATION CARD AS DEFINED IN SUBDIVI-
SION TEN OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW,
OR OTHER DOCUMENTATION ABLE TO BE CARRIED IN THE VEHICLE  AT  ALL  TIMES
DURING  THE  RENTAL THAT INSURANCE COVERAGE REFERRED TO IN PARAGRAPH ONE
OF THIS SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B) MEANS VIA A TOLL FREE NUMBER, EMAIL ADDRESS OR SUCH OTHER FORM  OF
COMMUNICATION  WHICH  A LAW ENFORCEMENT POLICE OFFICER, A REPRESENTATIVE
OF THE DEPARTMENT OF MOTOR VEHICLES OR OTHER OFFICER OF  THIS  STATE  OR
ANY  POLITICAL  SUBDIVISION THEREOF MAY CONFIRM IN REAL TIME THAT INSUR-
ANCE 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 VEHICLE TO BE USED IN THE PROGRAM;
  (8) INDEMNIFY AND HOLD HARMLESS THE VEHICLE'S OWNER FOR  THE  COST  OF
DAMAGE  OR  THEFT  OF EQUIPMENT INSTALLED BY THE PROGRAM UNDER PARAGRAPH
SEVEN OF THIS SUBSECTION 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 OWNER, THE
OWNER'S PRIMARY MOTOR VEHICLE LIABILITY INSURER,  THE  RENTER'S  PRIMARY
AUTOMOBILE INSURER, EXCESS OR UMBRELLA INSURER AND ANY GOVERNMENT AGENCY
AS REQUIRED BY LAW, WITHIN TEN BUSINESS DAYS OF A REQUEST AT THE COST OF
THE  PROGRAM,  THE  FOLLOWING  INFORMATION PERTAINING TO INCIDENTS WHICH
OCCURRED DURING THE RENTER'S RENTAL PERIOD:
  (A) VERIFIABLE RECORDS OF THE PROGRAM USE PERIOD FOR EACH VEHICLE, AND
(TO THE EXTENT ELECTRONIC EQUIPMENT FOR MONITORING THE FOLLOWING  INFOR-
MATION IS INSTALLED IN THE VEHICLE) 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 WITH A  GROUP
INSURER,  ANY  AND  ALL  INFORMATION  RELEVANT  TO  THE CLAIM, INCLUDING
PAYMENTS BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
  (10) ENSURE THAT THE OWNER AND RENTER 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:

S. 4444--B                          4

  (A) DURING THE RENTAL PERIOD, THE OWNER'S INSURER MAY EXCLUDE ANY  AND
ALL  COVERAGE AFFORDED TO ITS POLICY AND THE 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 RENTAL PERIOD; AND
  (B)  THE  GROUP  POLICY  AND PHYSICAL DAMAGE COVERAGE CONTRACT MAY NOT
PROVIDE COVERAGE OUTSIDE OF THE RENTAL PERIOD.
  S 3503. LIABILITY PROVISIONS. (A) 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  THE RENTAL PERIOD OR WHILE THE PERSONAL MOTOR VEHICLE IS
OTHERWISE UNDER THE CONTROL OF A PERSONAL MOTOR VEHICLE SHARING  PROGRAM
PROVIDER, SUBJECT TO SUBSECTION (H) OF THIS SECTION THE PROGRAM PROVIDER
SHALL  BE  DEEMED  THE  OWNER OF THE VEHICLE 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
SOLELY BASED ON SUCH OWNERSHIP AS IF THE PROGRAM PROVIDER WERE THE OWNER
OF  THE  VEHICLE. THE PROGRAM PROVIDER SHALL RETAIN SUCH LIABILITY IRRE-
SPECTIVE OF A LAPSE IN THE INSURANCE POLICY OF THE  PROGRAM  OR  WHETHER
SUCH LIABILITY IS COVERED UNDER THE INSURANCE POLICY OF THE PROGRAM.
  (B)  SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW
SHALL NOT APPLY TO THE PERSONAL MOTOR VEHICLE 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 SHAR-
ING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT THE  LIABILITY  OF  THE
PROGRAM  PROVIDER  FOR  ITS ACTS OR OMISSIONS, OR LIMIT THE LIABILITY OF
THE PERSONAL MOTOR VEHICLE SHARING RENTER FOR THE RENTER'S ACTS OR OMIS-
SIONS, 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 VEHI-
CLE SHARING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT 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
THE  VEHICLE'S  REGISTERED  OWNER,  PROVIDED  THAT  THE  VEHICLE SHARING
PROGRAM DISCLOSES IN THE CONTRACT THAT:
  (1) THE PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN  THESE  CIRCUM-
STANCES; AND
  (2) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT PROVIDE DEFENSE OR
INDEMNIFICATION  FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATERIAL
INTENTIONAL MISREPRESENTATION.
  (C) A PROGRAM PROVIDER'S GROUP POLICY SHALL  PROVIDE  COVERAGE  DURING
THE  RENTAL  PERIOD AS RECORDED IN THE PROGRAM PROVIDER'S RECORDS FOR AN
OWNER'S MOTOR VEHICLE REGISTERED IN THIS STATE,  FROM  WHEN  THE  RENTER
TAKES POSSESSION AND CONTROL OF THE VEHICLE, OR WHEN OTHERWISE UNDER THE
CONTROL  OF THE PROGRAM PROVIDER AND THE PROGRAM PROVIDER SHALL CONTINUE
TO BE LIABLE PURSUANT TO THIS SECTION UNTIL BOTH OF THE FOLLOWING OCCUR:
  (1) THE PERSONAL PASSENGER MOTOR VEHICLE IS RETRIEVED BY THE OWNER, OR
RETURNED TO A LOCATION AGREED TO BY THE OWNER AND RENTER, OR  DESIGNATED
BY THE PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (2) 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 MOTOR VEHICLE SHARING USE  IS
VERIFIABLY COMMUNICATED TO THE PROGRAM PROVIDER OR THE OWNER; OR
  (C)  THE  VEHICLE'S  OWNER  OR  PROGRAM  PROVIDER TAKES POSSESSION AND
CONTROL OF THE PERSONAL PASSENGER MOTOR VEHICLE.

S. 4444--B                          5

  (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-
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  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
VEHICLE'S  OWNER  WAS IN CONTROL OF THE VEHICLE AT THE TIME OF THE LOSS.
THE PROGRAM SHALL NOTIFY THE REGISTERED  OWNER'S  INSURER  OF  ANY  SUCH
DISPUTE  WITHIN  TEN BUSINESS DAYS OF BECOMING AWARE THAT SUCH A DISPUTE
EXISTS.
  (E) 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 WITHIN THE RENTAL PERIOD, OR OTHERWISE UNDER THE CONTROL  OF  A
PERSONAL MOTOR VEHICLE SHARING PROGRAM, THE PERSONAL MOTOR VEHICLE SHAR-
ING  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 VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER,  SUBJECT  TO  THE PROVISIONS OF SUBSECTIONS (B) AND (D) OF THIS
SECTION.
  (F) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  WHILE
A  PERSONAL  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; AND
  (2)  THE  PRIMARY  AND  EXCESS INSURER OR INSURERS OF THE OWNER OF THE
PERSONAL PASSENGER MOTOR VEHICLE USED  IN  A  PERSONAL  VEHICLE  SHARING
PROGRAM  SHALL  HAVE THE RIGHT TO NOTIFY THE 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.
  (G) NO VEHICLE 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,  NON-RENEWED,  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.
PROVIDED, HOWEVER THAT:
  (1) THE PROVISIONS OF THIS SUBSECTION SHALL NOT PERTAIN  TO  CANCELLA-
TIONS  IN  ACCORDANCE  WITH  THE PROVISIONS OF SUBSECTION (F) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER;
  (2) 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 PERSONAL VEHICLE SHARING PROGRAM UNDER THIS ARTICLE; AND
  (3) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED IN THE PERSONAL VEHICLE SHARING PROGRAM IF THAT VEHICLE IS ENROLLED

S. 4444--B                          6

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.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A PERSONAL MOTOR VEHI-
CLE  OWNER  THAT MAKES A VEHICLE AVAILABLE FOR UTILIZATION IN A PERSONAL
MOTOR VEHICLE SHARING PROGRAM, AND THE PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM PROVIDER, SHALL NOT BE SUBJECT TO VICARIOUS LIABILITY IN ACCORD-
ANCE WITH THE RELEVANT PROVISIONS OF FEDERAL LAW, OR UNDER SECTION THREE
HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW OR UNDER ANY SIMILAR
LAW THAT IMPOSES LIABILITY SOLELY BASED ON VEHICLE OWNERSHIP.
  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 PROVIDER TO INSURE THE PERSONAL MOTOR VEHICLE SHAR-
ING PROGRAM, AND ITS RENTERS AND OCCUPANTS  OF  THE  PERSONAL  PASSENGER
MOTOR  VEHICLE,  AS WELL AS THE PROGRAM PROVIDER, ITS AGENTS, EMPLOYEES,
DIRECTORS, OFFICERS AND ASSIGNS; AND
  (1) THAT SUCH POLICY SHALL PROVIDE FIRST  PARTY  COVERAGE,  LIABILITY,
PROPERTY,  COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED MOTORIST
COVERAGE FOR THE PERSONAL PASSENGER MOTOR  VEHICLE  AND  ITS  AUTHORIZED
OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING FROM THE USE OR
OPERATION OF THAT VEHICLE DURING THE RENTAL PERIOD;
  (2) THAT SUCH POLICY SHALL BE PRIMARY WITH RESPECT TO ANY OTHER INSUR-
ANCE  AVAILABLE TO THE OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE AND
SHALL BE EXCESS OVER ANY OTHER INSURANCE AVAILABLE TO THE PERSONAL MOTOR
VEHICLE SHARING RENTER; AND
  (3) THAT 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) THAT 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  FILED  WITH  THE
DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (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 AND PROGRAM PROVIDER AS THE NAMED
INSURED;  AND  ANY  SUCH  POLICY SHALL INCLUDE A PROVISION THAT PROVIDES
COVERAGE, WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL PERSONAL  PASSEN-
GER  MOTOR  VEHICLES  DURING  THE  RENTAL  PERIOD  AND SUCH POLICY SHALL
FURTHER INCLUDE A PROVISION THAT THE VEHICLES' RENTERS, AUTHORIZED OPER-
ATORS 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 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) A PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK  OF  PHYSICAL
DAMAGE  LOSS  TO  PERSONAL PASSENGER MOTOR VEHICLES DURING THE TIME THAT
THE VEHICLES ARE IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE RENTER  OR
PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (1) THAT 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;

S. 4444--B                          7

  (2) THAT SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS TO THE  VEHI-
CLE SHALL NOT BE DEEMED TO BE PHYSICAL DAMAGE INSURANCE; AND
  (E)  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 AND TO THE OWNERS OF PERSONAL
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 MOTOR VEHICLE SHARING PROGRAM OR PERSONAL MOTOR VEHICLE
SHARING RENTER. SUCH GROUP POLICY SHALL  PROVIDE  PRIMARY  COVERAGE  FOR
PHYSICAL DAMAGE LOSS EITHER BY COLLISION, COMPREHENSIVE, OR BOTH, TO THE
VEHICLE WHILE IT IS IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE SHARING
PROGRAM OR A PERSONAL MOTOR VEHICLE SHARING RENTER.
  (F)  IF  THE  GROUP  COVERAGE  PROVIDED  FOR IN SUBSECTION (E) 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.
  (G)  AN  INSURER  WHICH  ISSUES  A GROUP INSURANCE POLICY DESCRIBED IN
SUBSECTION (E) 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 RENTAL PERIOD, AND SHALL FURTHER INCLUDE A PROVISION
THAT CLAIMS WILL BE ADJUSTED PURSUANT TO  SECTION  THREE  THOUSAND  FOUR
HUNDRED  TWELVE  OF  THIS CHAPTER, AND IT SHALL FURTHER INCLUDE PHYSICAL
DAMAGE COVERAGE FOR DAMAGE OR  LOSS  TO  THE  OWNER'S  VEHICLE  INCURRED
DURING  THE  RENTAL  PERIOD  AT A LEVEL NO LESS THAN THAT OF THIRD PARTY
PHYSICAL DAMAGE COVERAGE.
  (H) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (E), (F) AND (G)  OF
THIS  SECTION  SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION.
  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, AS DEFINED IN
SECTION THREE THOUSAND FIVE HUNDRED ONE OF THE INSURANCE  LAW,  THAT  IS
USED  IN  CONNECTION  WITH  A  PERSONAL MOTOR VEHICLE SHARING PROGRAM AS
DEFINED IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH  IN  PARA-
GRAPH  (A)  OF THIS SUBDIVISION SHALL BE MET BY A GROUP INSURANCE POLICY
ISSUED PURSUANT TO SECTION THREE  THOUSAND  FIVE  HUNDRED  FOUR  OF  THE
INSURANCE  LAW  TO  A PROGRAM PROVIDER AND TO THE PERSONAL MOTOR VEHICLE
SHARING RENTERS OF THAT PROGRAM FOR ANY TIME THAT THE VEHICLE  IS  BEING
USED IN CONNECTION WITH THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  S  4.  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  subdi-
vision 2 is added to read as follows:
  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A  PERSONAL  MOTOR VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION THREE
THOUSAND FIVE HUNDRED FOUR 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
PERSONAL  PASSENGER MOTOR VEHICLES REGISTERED IN THIS STATE THAT PARTIC-
IPATE 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. 4444--B                          8

  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 PROGRAM PROVIDER  OF  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  regulations promulgated by the commissioner pursuant to para-
graph (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 PROGRAM PROVIDER OF  A
PERSONAL  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND FIVE HUNDRED FOUR OF THE INSURANCE LAW, other than an owner's poli-
cy 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
paragraph (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  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND 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
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.

co-Sponsors

2015-S4444C (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Insurance Law
Laws Affected:: Add Art 35 §§3501 - 3504, Ins L; amd §§311, 312, 312-a & 313, V & T L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S427
2019-2020: S3506

2015-S4444C (ACTIVE) - Summary

Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.

2015-S4444C (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4444C

 TITLE OF BILL :

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

 PURPOSE :

The purpose of this legislation is to provide insurance coverage for
vehicle owners and renters participating in a personal vehicle sharing
program.

 SUMMARY OF PROVISIONS :

Section 1 provides that this act shall be known as the "Personal Motor
Vehicle Sharing Act."

Section 2 creates a new Article 35 in the Insurance Law entitled
Personal Motor Vehicle Sharing Programs.

Section 3 amends the vehicle and traffic law by adding a new paragraph
(e) to subdivision 4 of section 311

Section 4 amends the vehicle and traffic law by renumbering
subdivisions 2, 3, 4, and 5 of section 312 as subdivisions 3, 4, 5,

and 6, and adding a new subdivision 2.

Section 5 amends subdivision 1 of section 312-a of the vehicle and
traffic law.

Section 6 amends paragraphs (a) and (b) of subdivision 2 of section
313 of the vehicle and traffic law.

Section 7 provides that consent orders agreed to by the Department of
Financial Services are deemed fulfilled and expired as of the
effective date.

Section 8 is the effective date.

 JUSTIFICATION :

Public policy that nurtures the sharing economy can be an important
catalyst of future economic development and growth.  Economic progress
is often driven by marshaling available resources more efficiently
rather than simply creating new resources. And history has taught us
that when technological progress leads to more efficient production,
such technologies will always have a positive overall economic impact.
Technologies and platforms which facilitate better use of assets we
already have will lead to growth that is sustainable, and create value
that is income equalizing.

Peer-to-peer marketplaces like those created by cars sharing programs
add tremendous value to our existing asset base. Creating a widespread
car-sharing platform can achieve the same goals as building a new
transportation network with little or no additional physical resource
utilization, and in a manner that lowers a population's average
ecological footprint.

This bill would amend the law to provide the necessary authority to
peer-to-peer car sharing companies to purchase group insurance for the
car sharing program thereby providing insurance coverage for the
vehicles enrolled in the program during the periods in which those
vehicles are being rented and in the control of the peer-to-peer car
sharing program. Furthermore, this bill would provide for the
necessary insurance coverage and motor vehicle oversight needed to
protect both consumers and vehicle owners so that peer-to-peer car
sharing companies may operate in the state of New York.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2015-S4444C (ACTIVE) - Bill Text download pdf

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

                                 4444--C
    Cal. No. 88

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 20, 2015
                               ___________

Introduced by Sens. SEWARD, BRESLIN, LARKIN, PANEPINTO -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Insurance -- committee discharged, bill amended, ordered reprinted  as
  amended  and  recommitted  to  said committee -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee  --  recommitted to the Committee on Insurance in accordance
  with Senate Rule 6, sec. 8 -- reported favorably from said  committee,
  ordered  to  first  and  second  report,  ordered  to a third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

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) "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

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

                                                           LBD09888-07-6

S. 4444--C                          2

  (3) NOT BE USED FOR THE COMMERCIAL DELIVERY OR TRANSPORTATION OF GOODS
OR MATERIALS.
  (B) "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
NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
WHEELS.
  (C)  "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.
  (D)  "PERSONAL  MOTOR VEHICLE SHARING PROGRAM" MEANS A PROGRAM ENGAGED
IN FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES.
  (E) "PERSONAL MOTOR VEHICLE  SHARING  PROGRAM  PROVIDER"  OR  "PROGRAM
PROVIDER"  MEANS  THE PERSON OR ENTITY THAT IS RESPONSIBLE FOR OPERATING
OR ADMINISTERING THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (F) "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS THE REGIS-
TERED OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE.
  (G) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
PERSON,  OTHER  THAN  THE  VEHICLE  OWNER, WHO RENTS THE OWNER'S VEHICLE
THROUGH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  (H) "RENTAL PERIOD" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION (C)
OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
  (I) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
  S  3502.  REQUIREMENTS  FOR  DOING  BUSINESS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE INSURED OR SUBJECT TO BEING INSURED BY ITS OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL  BE  CLASSIFIED
AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXI-
CAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED FOR PERSONAL
MOTOR  VEHICLE  SHARING  AS  LONG  AS ALL OF THE FOLLOWING CIRCUMSTANCES
APPLY:
  (1) THE PERSONAL MOTOR VEHICLE SHARING IS COMPLIANT  WITH  A  PERSONAL
MOTOR VEHICLE SHARING PROGRAM AS PROVIDED FOR IN THIS ARTICLE;
  (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 MOTOR VEHICLE SHARING  RENTER  WHILE  ENGAGED  IN
PERSONAL MOTOR VEHICLE SHARING; AND
  (3)  THE NUMBER OF PERSONAL PASSENGER MOTOR VEHICLES A SINGLE INDIVID-
UAL OR INDIVIDUALS RESIDING IN THE SAME  HOUSEHOLD  MAY  ENROLL  IN  THE
PROGRAM  BEFORE  THE PRIVATE PASSENGER MOTOR VEHICLE LIABILITY INSURANCE
COMPANY MAY CANCEL OR REFUSE COVERAGE FOR SUCH CONTRACT  SOLELY  DUE  TO
THE NUMBER OF VEHICLES ENROLLED UNDER SUCH PRIVATE PASSENGER MOTOR VEHI-
CLE LIABILITY INSURANCE POLICY SHALL BE LIMITED TO FOUR MOTOR VEHICLES.
  (B) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1)  DURING  THE RENTAL PERIOD FOR A 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  INSUR-
ANCE  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 ARTI-
CLE,  ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH OTHER LAWS OF THE STATE
WITH RESPECT TO MANDATORY LIABILITY,  UNINSURED  AND  UNDERINSURED,  AND

S. 4444--C                          3

FIRST-PARTY  BENEFITS COVERAGE AS MAY BE ENACTED FROM TIME TO TIME.  THE
PROGRAM PROVIDER SHALL NOT PROVIDE LIABILITY COVERAGE  LESS  THAN  THREE
TIMES THE MINIMUM INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER VEHICLES.
THE  PROGRAM  SHALL  ALSO OFFER PROPERTY AND CASUALTY COVERAGE INCLUDING
COMPREHENSIVE  AND  COLLISION  PROTECTION,  AS  FURTHER   DESCRIBED   IN
SUBSECTIONS  (D)  AND (E) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR OF
THIS ARTICLE;
  (2) PROVIDE THE REGISTERED OWNER OF THE MOTOR  VEHICLE  WITH  SUITABLE
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, A COPY OF WHICH SHALL BE MAINTAINED IN THE VEHICLE BY THE VEHI-
CLE'S REGISTERED OWNER DURING ANY TIME WHEN THE VEHICLE IS  OPERATED  BY
THE  RENTER, OR PERSON OTHER THAN THE OWNER PURSUANT TO A PERSONAL MOTOR
VEHICLE 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 WHILE
ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
  (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER FOR EACH VEHICLE RENTAL
TRANSACTION UNDER THE PERSONAL MOTOR VEHICLE SHARING PROGRAM AT THE TIME
OF EACH RENTAL:
  (A) ACCESS TO AN INSURANCE IDENTIFICATION CARD AS DEFINED IN  SUBDIVI-
SION TEN OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW,
OR  OTHER  DOCUMENTATION  ABLE TO BE CARRIED IN THE VEHICLE AT ALL TIMES
DURING THE RENTAL THAT INSURANCE COVERAGE REFERRED TO IN  PARAGRAPH  ONE
OF THIS SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B)  MEANS VIA A TOLL FREE NUMBER, EMAIL ADDRESS OR SUCH OTHER FORM OF
COMMUNICATION WHICH A LAW ENFORCEMENT POLICE OFFICER,  A  REPRESENTATIVE
OF  THE  DEPARTMENT  OF MOTOR VEHICLES OR OTHER OFFICER OF THIS STATE OR
ANY POLITICAL SUBDIVISION THEREOF MAY CONFIRM IN REAL TIME  THAT  INSUR-
ANCE  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 VEHICLE TO BE USED IN THE PROGRAM;
  (8)  INDEMNIFY  AND  HOLD HARMLESS THE VEHICLE'S OWNER FOR THE COST OF
DAMAGE OR THEFT OF EQUIPMENT INSTALLED BY THE  PROGRAM  UNDER  PARAGRAPH
SEVEN  OF  THIS  SUBSECTION  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  OWNER,  THE
OWNER'S  PRIMARY  MOTOR  VEHICLE LIABILITY INSURER, THE RENTER'S PRIMARY
AUTOMOBILE INSURER, EXCESS OR UMBRELLA INSURER AND ANY GOVERNMENT AGENCY
AS REQUIRED BY LAW, WITHIN TEN BUSINESS DAYS OF A REQUEST AT THE COST OF
THE PROGRAM, THE FOLLOWING INFORMATION  PERTAINING  TO  INCIDENTS  WHICH
OCCURRED DURING THE RENTER'S RENTAL PERIOD:
  (A) VERIFIABLE RECORDS OF THE PROGRAM USE PERIOD FOR EACH VEHICLE, AND
(TO  THE EXTENT ELECTRONIC EQUIPMENT FOR MONITORING THE FOLLOWING INFOR-
MATION IS INSTALLED IN THE VEHICLE) VERIFIABLE ELECTRONIC RECORDS OF THE
TIME, INITIAL AND FINAL LOCATIONS OF THE VEHICLE,  AND  (TO  THE  EXTENT
MILEAGE IS COLLECTED) MILES DRIVEN; AND

S. 4444--C                          4

  (B)  IN INSTANCES WHERE AN INSURANCE CLAIM HAS BEEN FILED WITH A GROUP
INSURER, ANY AND  ALL  INFORMATION  RELEVANT  TO  THE  CLAIM,  INCLUDING
PAYMENTS BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
  (10)  ENSURE  THAT  THE OWNER AND RENTER 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)  DURING THE RENTAL PERIOD, THE OWNER'S INSURER MAY EXCLUDE ANY AND
ALL COVERAGE AFFORDED TO ITS POLICY AND THE 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 RENTAL PERIOD; AND
  (B)  THE  GROUP  POLICY  AND PHYSICAL DAMAGE COVERAGE CONTRACT MAY NOT
PROVIDE COVERAGE OUTSIDE OF THE RENTAL PERIOD.
  S 3503. LIABILITY PROVISIONS. (A) 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  THE RENTAL PERIOD OR WHILE THE PERSONAL MOTOR VEHICLE IS
OTHERWISE UNDER THE CONTROL OF A PERSONAL MOTOR VEHICLE SHARING  PROGRAM
PROVIDER, SUBJECT TO SUBSECTION (H) OF THIS SECTION THE PROGRAM PROVIDER
SHALL  BE  DEEMED  THE  OWNER OF THE VEHICLE 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
SOLELY BASED ON SUCH OWNERSHIP AS IF THE PROGRAM PROVIDER WERE THE OWNER
OF  THE  VEHICLE. THE PROGRAM PROVIDER SHALL RETAIN SUCH LIABILITY IRRE-
SPECTIVE OF A LAPSE IN THE INSURANCE POLICY OF THE  PROGRAM  OR  WHETHER
SUCH LIABILITY IS COVERED UNDER THE INSURANCE POLICY OF THE PROGRAM.
  (B)  SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW
SHALL NOT APPLY TO THE PERSONAL MOTOR VEHICLE 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 SHAR-
ING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT THE  LIABILITY  OF  THE
PROGRAM  PROVIDER  FOR  ITS ACTS OR OMISSIONS, OR LIMIT THE LIABILITY OF
THE PERSONAL MOTOR VEHICLE SHARING RENTER FOR THE RENTER'S ACTS OR OMIS-
SIONS, 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 VEHI-
CLE SHARING PROGRAM. NOTHING IN THIS SECTION SHALL LIMIT 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
THE  VEHICLE'S  REGISTERED  OWNER,  PROVIDED  THAT  THE  VEHICLE SHARING
PROGRAM DISCLOSES IN THE CONTRACT THAT:
  (1) THE PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN  THESE  CIRCUM-
STANCES; AND
  (2) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT PROVIDE DEFENSE OR
INDEMNIFICATION  FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATERIAL
INTENTIONAL MISREPRESENTATION.
  (C) A PROGRAM PROVIDER'S GROUP POLICY SHALL  PROVIDE  COVERAGE  DURING
THE  RENTAL  PERIOD AS RECORDED IN THE PROGRAM PROVIDER'S RECORDS FOR AN
OWNER'S MOTOR VEHICLE REGISTERED IN THIS STATE,  FROM  WHEN  THE  RENTER
TAKES POSSESSION AND CONTROL OF THE VEHICLE, OR WHEN OTHERWISE UNDER THE
CONTROL  OF THE PROGRAM PROVIDER AND THE PROGRAM PROVIDER SHALL CONTINUE
TO BE LIABLE PURSUANT TO THIS SECTION UNTIL BOTH OF THE FOLLOWING OCCUR:
  (1) THE PERSONAL PASSENGER MOTOR VEHICLE IS RETRIEVED BY THE OWNER, OR
RETURNED TO A LOCATION AGREED TO BY THE OWNER AND RENTER, OR  DESIGNATED
BY THE PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (2) ONE OF THE FOLLOWING OCCURS:

S. 4444--C                          5

  (A)  THE  EXPIRATION OF THE TIME PERIOD ESTABLISHED FOR THE PARTICULAR
USE OF THE VEHICLE;
  (B)  THE INTENT TO TERMINATE THE PERSONAL MOTOR VEHICLE SHARING USE IS
VERIFIABLY COMMUNICATED TO THE PROGRAM PROVIDER OR THE OWNER; OR
  (C) THE VEHICLE'S OWNER TAKES POSSESSION AND CONTROL OF  THE  PERSONAL
PASSENGER MOTOR VEHICLE.
  (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-
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  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
VEHICLE'S  OWNER  WAS IN CONTROL OF THE VEHICLE AT THE TIME OF THE LOSS.
THE PROGRAM SHALL NOTIFY THE REGISTERED  OWNER'S  INSURER  OF  ANY  SUCH
DISPUTE  WITHIN  TEN BUSINESS DAYS OF BECOMING AWARE THAT SUCH A DISPUTE
EXISTS.
  (E) 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 WITHIN THE RENTAL PERIOD, OR OTHERWISE UNDER THE CONTROL  OF  A
PERSONAL MOTOR VEHICLE SHARING PROGRAM, THE PERSONAL MOTOR VEHICLE SHAR-
ING  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 VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER,  SUBJECT  TO  THE PROVISIONS OF SUBSECTIONS (B) AND (D) OF THIS
SECTION.
  (F) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  WHILE
A  PERSONAL PASSENGER MOTOR VEHICLE IS USED BY OR UNDER THE CONTROL OF A
PERSON OTHER THAN ITS OWNER, PURSUANT TO PERSONAL VEHICLE SHARING FACIL-
ITATED 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; AND
  (2)  THE  PRIMARY  AND  EXCESS INSURER OR INSURERS OF THE OWNER OF THE
PERSONAL PASSENGER MOTOR VEHICLE USED  IN  A  PERSONAL  VEHICLE  SHARING
PROGRAM  SHALL  HAVE THE RIGHT TO NOTIFY THE 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.
  (G) NO VEHICLE 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,  NON-RENEWED,  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.
PROVIDED, HOWEVER THAT:
  (1) THE PROVISIONS OF THIS SUBSECTION SHALL NOT PERTAIN  TO  NON-RENE-
WALS  IN  ACCORDANCE  WITH  THE  PROVISIONS OF SUBSECTION (F) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER;

S. 4444--C                          6

  (2) 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 PERSONAL VEHICLE SHARING PROGRAM UNDER THIS ARTICLE; AND
  (3) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED IN THE PERSONAL VEHICLE SHARING 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.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A PERSONAL MOTOR VEHI-
CLE  OWNER  THAT MAKES A VEHICLE AVAILABLE FOR UTILIZATION IN A PERSONAL
MOTOR VEHICLE SHARING PROGRAM, AND THE PERSONAL  MOTOR  VEHICLE  SHARING
PROGRAM PROVIDER, SHALL NOT BE SUBJECT TO VICARIOUS LIABILITY IN ACCORD-
ANCE WITH THE RELEVANT PROVISIONS OF FEDERAL LAW, OR UNDER SECTION THREE
HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC LAW OR UNDER ANY SIMILAR
LAW THAT IMPOSES LIABILITY SOLELY BASED ON VEHICLE OWNERSHIP.
  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 PROVIDER TO INSURE THE PERSONAL MOTOR VEHICLE SHAR-
ING PROGRAM, AND ITS RENTERS AND OCCUPANTS  OF  THE  PERSONAL  PASSENGER
MOTOR  VEHICLE,  AS WELL AS THE PROGRAM PROVIDER, ITS AGENTS, EMPLOYEES,
DIRECTORS, OFFICERS AND ASSIGNS; AND
  (1) THAT SUCH POLICY SHALL PROVIDE FIRST  PARTY  COVERAGE,  LIABILITY,
PROPERTY,  COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED MOTORIST
COVERAGE FOR THE PERSONAL PASSENGER MOTOR  VEHICLE  AND  ITS  AUTHORIZED
OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING FROM THE USE OR
OPERATION OF THAT VEHICLE DURING THE RENTAL PERIOD;
  (2) THAT SUCH POLICY SHALL BE PRIMARY WITH RESPECT TO ANY OTHER INSUR-
ANCE  AVAILABLE TO THE OWNER OF THE PERSONAL PASSENGER MOTOR VEHICLE AND
SHALL BE EXCESS OVER ANY OTHER INSURANCE AVAILABLE TO THE PERSONAL MOTOR
VEHICLE SHARING RENTER; AND
  (3) THAT 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) THAT 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  FILED  WITH  THE
DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (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 AND PROGRAM PROVIDER AS THE NAMED
INSURED;  AND  ANY  SUCH  POLICY SHALL INCLUDE A PROVISION THAT PROVIDES
COVERAGE, WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL PERSONAL  PASSEN-
GER  MOTOR  VEHICLES  DURING  THE  RENTAL  PERIOD  AND SUCH POLICY SHALL
FURTHER INCLUDE A PROVISION THAT THE VEHICLES' RENTERS, AUTHORIZED OPER-
ATORS 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 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.

S. 4444--C                          7

  (D) A PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK  OF  PHYSICAL
DAMAGE  LOSS  TO  PERSONAL PASSENGER MOTOR VEHICLES DURING THE TIME THAT
THE VEHICLES ARE IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE RENTER  OR
PERSONAL MOTOR VEHICLE SHARING PROGRAM; AND
  (1) THAT 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;
  (2) THAT SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS TO THE  VEHI-
CLE SHALL NOT BE DEEMED TO BE PHYSICAL DAMAGE INSURANCE; AND
  (E)  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 AND TO THE OWNERS OF PERSONAL
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 MOTOR VEHICLE SHARING PROGRAM OR PERSONAL MOTOR VEHICLE
SHARING RENTER. SUCH GROUP POLICY SHALL  PROVIDE  PRIMARY  COVERAGE  FOR
PHYSICAL DAMAGE LOSS EITHER BY COLLISION, COMPREHENSIVE, OR BOTH, TO THE
VEHICLE WHILE IT IS IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE SHARING
PROGRAM OR A PERSONAL MOTOR VEHICLE SHARING RENTER.
  (F)  IF  THE  GROUP  COVERAGE  PROVIDED  FOR IN SUBSECTION (E) 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.
  (G)  AN  INSURER  WHICH  ISSUES  A GROUP INSURANCE POLICY DESCRIBED IN
SUBSECTION (E) 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 RENTAL PERIOD, AND SHALL FURTHER INCLUDE A PROVISION
THAT CLAIMS WILL BE ADJUSTED PURSUANT TO  SECTION  THREE  THOUSAND  FOUR
HUNDRED  TWELVE  OF  THIS CHAPTER, AND IT SHALL FURTHER INCLUDE PHYSICAL
DAMAGE COVERAGE FOR DAMAGE OR  LOSS  TO  THE  OWNER'S  VEHICLE  INCURRED
DURING  THE  RENTAL  PERIOD  AT A LEVEL NO LESS THAN THAT OF THIRD PARTY
PHYSICAL DAMAGE COVERAGE.
  (H) A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (E), (F) AND (G)  OF
THIS  SECTION  SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION.
  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, AS DEFINED IN
SECTION THREE THOUSAND FIVE HUNDRED ONE OF THE INSURANCE  LAW,  THAT  IS
USED  IN  CONNECTION  WITH  A  PERSONAL MOTOR VEHICLE SHARING PROGRAM AS
DEFINED IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH  IN  PARA-
GRAPH  (A)  OF THIS SUBDIVISION SHALL BE MET BY A GROUP INSURANCE POLICY
ISSUED PURSUANT TO SECTION THREE  THOUSAND  FIVE  HUNDRED  FOUR  OF  THE
INSURANCE  LAW  TO  A PROGRAM PROVIDER AND TO THE PERSONAL MOTOR VEHICLE
SHARING RENTERS OF THAT PROGRAM FOR ANY TIME THAT THE VEHICLE  IS  BEING
USED IN CONNECTION WITH THE PERSONAL MOTOR VEHICLE SHARING PROGRAM.
  S  4.  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  subdi-
vision 2 is added to read as follows:
  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A  PERSONAL  MOTOR VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION THREE
THOUSAND FIVE HUNDRED FOUR OF THE INSURANCE LAW,  THE  PROGRAM  PROVIDER
SHALL  PROVIDE  THE COMMISSIONER WITH PROOF OF FINANCIAL SECURITY IN THE

S. 4444--C                          8

FORM OF A GROUP INSURANCE POLICY COVERING ITSELF AND THE OWNERS  OF  ALL
PERSONAL  PASSENGER MOTOR VEHICLES REGISTERED IN THIS STATE THAT PARTIC-
IPATE 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 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 PROGRAM PROVIDER  OF  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  regulations promulgated by the commissioner pursuant to para-
graph (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 PROGRAM PROVIDER OF  A
PERSONAL  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND FIVE HUNDRED FOUR OF THE INSURANCE LAW, other than an owner's poli-
cy 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
paragraph (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  MOTOR  VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOU-
SAND 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
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.

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Senate Bill S4444C

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Feb 1, 2016 - Insurance Committee Vote

Insurance Committee Vote: Feb 1, 2016

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Senate Bill S4444C

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Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

2015-S4444 - Details

2015-S4444 - Summary

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2015-S4444 - Bill Text download pdf

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