S T A T E O F N E W Y O R K
________________________________________________________________________
611
2015-2016 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2015
___________
Introduced by M. of A. GANTT -- read once and referred to the Committee
on Transportation
AN ACT to amend the vehicle and traffic law and the insurance law, in
relation to minimum insurance requirements for rental vehicles and
vehicles for hire
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The article heading of article 8 of the vehicle and traffic
law, is amended to read as follows:
INDEMNITY BONDS OR INSURANCE POLICIES ON RENTAL VEHICLES
AND
VEHICLES
TRANSPORTING PASSENGERS FOR HIRE
S 2. Subdivision 3 of section 370 of the vehicle and traffic law, as
amended by chapter 232 of the laws of 2001, is amended to read as
follows:
3. (A) A person, firm, association or corporation engaged in the busi-
ness of renting or leasing rental vehicles to be operated upon the
public highways for carrying passengers shall be subject to the
provisions of this section in the same manner and to the same extent as
if such person, firm, association or corporation were actually engaged
in the business of carrying or transporting passengers for hire, EXCEPT
IN RESPECT TO SUCH VEHICLES RENTED OR LEASED FOR LESS THAN ONE YEAR, IN
WHICH CASE:
(I) THE CORPORATE SURETY BOND OR A POLICY OF INSURANCE REQUIRED BY
THIS SECTION SHALL BE CONDITIONED UPON THE FOLLOWING LIABILITY FOR
DAMAGES FOR AND INCIDENT TO DEATH OR INJURIES TO PERSONS: FOR EACH
MOTORCYCLE AND FOR EACH MOTOR VEHICLE HAVING A SEATING CAPACITY OF NOT
MORE THAN SEVEN PASSENGERS, A BOND OR INSURANCE POLICY WITH A MINIMUM
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03146-01-5
A. 611 2
LIABILITY OF ONE HUNDRED THOUSAND DOLLARS AND A MAXIMUM LIABILITY OF
THREE HUNDRED THOUSAND DOLLARS FOR BODILY INJURY OR DEATH; FOR EACH
MOTOR VEHICLE HAVING A SEATING CAPACITY OF NOT LESS THAN EIGHT NOR MORE
THAN TWELVE PASSENGERS, A BOND OR INSURANCE POLICY WITH A MINIMUM
LIABILITY OF ONE HUNDRED THOUSAND DOLLARS AND A MAXIMUM LIABILITY OF
FIVE HUNDRED THOUSAND DOLLARS FOR BODILY INJURY OR DEATH; FOR EACH MOTOR
VEHICLE HAVING A SEATING CAPACITY OF NOT LESS THAN THIRTEEN NOR MORE
THAN TWENTY PASSENGERS, A BOND OR INSURANCE POLICY WITH A MINIMUM
LIABILITY OF ONE HUNDRED THOUSAND DOLLARS AND A MAXIMUM LIABILITY OF
EIGHT HUNDRED THOUSAND DOLLARS FOR BODILY INJURY OR DEATH; FOR EACH
MOTOR VEHICLE HAVING A SEATING CAPACITY OF NOT LESS THAN TWENTY-ONE NOR
MORE THAN THIRTY PASSENGERS, A BOND OR INSURANCE POLICY WITH A MINIMUM
LIABILITY OF ONE HUNDRED THOUSAND DOLLARS AND A MAXIMUM LIABILITY OF ONE
MILLION DOLLARS FOR BODILY INJURY OR DEATH; FOR EACH MOTOR VEHICLE
HAVING A SEATING CAPACITY OF MORE THAN THIRTY PASSENGERS, A BOND OR
INSURANCE POLICY WITH A MINIMUM LIABILITY OF ONE HUNDRED THOUSAND
DOLLARS AND A MAXIMUM LIABILITY OF ONE MILLION TWO HUNDRED FIFTY THOU-
SAND DOLLARS FOR BODILY INJURY OR DEATH; AND
(II) SUCH PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL ALSO FILE
WITH THE COMMISSIONER FOR EACH MOTOR VEHICLE OR MOTORCYCLE INTENDED TO
BE SO OPERATED EVIDENCE, IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE,
OF AN EXCESS LIABILITY POLICY OF INSURANCE, APPROVED AS TO FORM BY THE
SUPERINTENDENT OF FINANCIAL SERVICES IN A COMPANY AUTHORIZED TO DO BUSI-
NESS IN THE STATE, APPROVED BY SUCH SUPERINTENDENT AS TO SOLVENCY AND
RESPONSIBILITY, PROVIDING EXCESS LIABILITY COVERAGE IN THE AMOUNT OF ONE
MILLION DOLLARS FOR EACH VEHICLE AND COVERING THE SAME RISKS AS THE
UNDERLYING POLICY.
(B) A PERSON, FIRM, ASSOCIATION OR CORPORATION ENGAGED IN THE BUSINESS
OF RENTING OR LEASING TRUCKS, AS DEFINED IN THIS CHAPTER, SHALL, IN
RESPECT TO TRUCKS RENTED OR LEASED FOR LESS THAN ONE YEAR, BE SUBJECT TO
THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND TO THE SAME EXTENT
AS IF SUCH PERSON, FIRM, ASSOCIATION OR CORPORATION WERE ENGAGED IN THE
BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, EXCEPT THAT
THE CORPORATE SURETY BOND OR A POLICY OF INSURANCE REQUIRED BY THIS
SECTION SHALL BE CONDITIONED UPON A MINIMUM LIABILITY OF THREE HUNDRED
THOUSAND DOLLARS AND A MAXIMUM LIABILITY OF FIVE HUNDRED THOUSAND
DOLLARS; AND SUCH PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL ALSO
FILE WITH THE COMMISSIONER FOR EACH SUCH TRUCK EVIDENCE, IN SUCH FORM AS
THE COMMISSIONER MAY PRESCRIBE, OF AN EXCESS LIABILITY POLICY OF INSUR-
ANCE, APPROVED AS TO FORM BY THE SUPERINTENDENT OF FINANCIAL SERVICES IN
A COMPANY AUTHORIZED TO DO BUSINESS IN THE STATE, APPROVED BY THE SUPER-
INTENDENT AS TO SOLVENCY AND RESPONSIBILITY, PROVIDING EXCESS LIABILITY
COVERAGE IN THE AMOUNT OF TWO MILLION DOLLARS FOR EACH TRUCK AND COVER-
ING THE SAME RISKS AS THE UNDERLYING POLICY.
(C) Notwithstanding the provisions of subdivision one of this section,
a person, firm, association or corporation engaged in the business of
renting or leasing motor vehicles, having registered in this state more
than twenty-five motor vehicles subject to the provisions of this
section and who qualifies as hereinafter provided, may file a certif-
icate of self-insurance. The commissioner [of motor vehicles] in his
discretion may, upon the application of such a person, firm, association
or corporation issue a certificate of self-insurance when he is reason-
ably satisfied that such person is possessed and will continue to be
possessed of financial ability to respond to judgments obtained against
such person, arising out of the ownership, maintenance, use or operation
of any such person's motor vehicle. Upon due notice and hearing, the
A. 611 3
commissioner may, in his discretion and upon reasonable grounds, cancel
a certificate of self-insurance.
As a condition to the issuance of a certificate of self-insurance
under this subdivision the registrant shall pay annually in addition to
any other fee prescribed by this chapter, a fee of one dollar and fifty
cents for each motor vehicle registered in his name and the aggregate
amount of such fees shall be applied in reduction of the assessment
levied pursuant to section three hundred seventeen OF THIS TITLE. As a
further condition to the issuance of a certificate of self-insurance,
the registrant shall pay annually in addition to any other fee
prescribed by this chapter, an amount per vehicle to be determined by
the Motor Vehicle Accident Indemnification Corporation pursuant to
section five thousand two hundred seven of the insurance law and the
aggregate amount of such fees shall be transmitted by the commissioner
to the Motor Vehicle Accident Indemnification Corporation continued
pursuant to section five thousand two hundred three of the insurance law
to be applied in reduction of assessments levied by said corporation
pursuant to section five thousand two hundred seven of the insurance
law.
(D) ANY PERSON, FIRM, ASSOCIATION OR CORPORATION OWNING A MOTOR VEHI-
CLE OR MOTORCYCLE AS TO WHICH A BOND OR POLICY OF INSURANCE IS REQUIRED
BY THIS SUBDIVISION AND PERMITTING THE MOTOR VEHICLE OR MOTORCYCLE TO BE
OPERATED UNDER A LEASE OR RENTAL AGREEMENT WHILE SUCH A BOND OR POLICY,
OR EVIDENCE THEREOF AS REQUIRED BY THIS SECTION, IS NOT ON FILE WITH THE
COMMISSIONER, AND IN FULL FORCE AND EFFECT SHALL BE (I) GUILTY OF A
MISDEMEANOR; AND (II) LIABLE TO THIRD PERSONS FOR ALL DAMAGES ARISING
OUT OF THE USE OR OPERATION OF THE VEHICLE TO THE SAME EXTENT AS THE
OPERATOR OR PERMISSIVE USER.
(E) THE BANKRUPTCY OR INSOLVENCY OF THE OPERATOR OR PERMISSIVE USER OF
A LEASED OR RENTED MOTOR VEHICLE OR MOTORCYCLE SHALL NOT INURE TO THE
BENEFIT OF THE OWNER OF THE MOTOR VEHICLE OR MOTORCYCLE WHO OR WHICH
SHALL NEVERTHELESS REMAIN LIABLE UNDER THIS SUBDIVISION FOR NONCOMPLI-
ANCE WITH THIS SECTION.
S 3. Paragraph 6 of subsection (a) of section 3426 of the insurance
law, as amended by chapter 235 of the laws of 1989, is amended to read
as follows:
(6) "Excess liability policy" means a policy of commercial risk,
public entity or professional liability insurance, including a commer-
cial umbrella policy, when written over one or more underlying liability
policies that provide with respect to the same risk coverage of at least
five hundred thousand dollars in the aggregate, EXCEPT AS OTHERWISE
PROVIDED IN SUBDIVISION THREE OF SECTION THREE HUNDRED SEVENTY OF THE
VEHICLE AND TRAFFIC LAW.
S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.