Assembly Bill A6181

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6181
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2017
                                ___________
 
 Introduced  by  M. of A. MOYA -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
   relation to enacting the "personal motor vehicle sharing act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "personal motor vehicle sharing act".
   §  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.
   §  3501.  DEFINITIONS.  IN THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING DEFINITIONS:
   (A) "AUTHORIZED OPERATOR" MEANS A PERSON,  OTHER  THAN  THE  OWNER  OR
 RENTER, WHO OPERATES A PERSONAL PASSENGER MOTOR VEHICLE DURING THE SHAR-
 ING  PERIOD  AND  WHO  HAS  BEEN APPROVED BY THE PROGRAM TO OPERATE SUCH
 PERSONAL PASSENGER MOTOR VEHICLE.
   (B) "COMMISSIONER" MEANS THE COMMISSIONER OF MOTOR VEHICLES.
   (C) "MOTOR VEHICLE" SHALL:
   (1) HAVE THE MEANING SET FORTH IN SECTION ONE HUNDRED  TWENTY-FIVE  OF
 THE VEHICLE AND TRAFFIC LAW;
   (2) HAVE A GROSS WEIGHT RATING OF TEN THOUSAND POUNDS OR LESS; AND
   (3) NOT BE USED FOR THE COMMERCIAL DELIVERY OR TRANSPORTATION OF GOODS
 OR MATERIALS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07230-01-7
              

 A. 6181                             2
 
   (D) "PERSONAL PASSENGER MOTOR VEHICLE" MEANS A MOTOR VEHICLE OWNED AND
 REGISTERED IN THE STATE, AND INSURED OR SUBJECT TO BEING INSURED UNDER A
 PRIVATE  PASSENGER  MOTOR  VEHICLE LIABILITY INSURANCE POLICY INSURING A
 SINGLE INDIVIDUAL OR INDIVIDUALS RESIDING IN THE SAME HOUSEHOLD, AS  THE
 NAMED INSURED, BUT DOES NOT INCLUDE A MOTOR VEHICLE WITH FEWER THAN FOUR
 WHEELS.
   (E)  "PERSONAL MOTOR VEHICLE SHARING" MEANS THE USE OF PRIVATE PASSEN-
 GER MOTOR VEHICLES  BY  PERSONS  OTHER  THAN  THE  VEHICLES'  OWNER,  IN
 CONNECTION WITH A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
   (F)  "PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM" OR "PROGRAM" MEANS A
 PROGRAM ENGAGED IN FACILITATING THE SHARING OF PRIVATE  PASSENGER  MOTOR
 VEHICLES.
   (G)  "PERSONAL MOTOR VEHICLE SHARING OWNER" OR "OWNER" MEANS A PERSON,
 OTHER THAN A LIENHOLDER, HAVING THE PROPERTY IN OR TITLE TO THE PERSONAL
 PASSENGER MOTOR VEHICLE.
   (H) "PERSONAL MOTOR  VEHICLE  SHARING  RENTER"  OR  "RENTER"  MEANS  A
 PERSON,  OTHER  THAN THE PERSONAL MOTOR VEHICLE SHARING OWNER, WHO RENTS
 THE PERSONAL MOTOR VEHICLE SHARING OWNER'S VEHICLE  THROUGH  A  PERSONAL
 MOTOR VEHICLE SHARING PROGRAM.
   (I)  "SHARING  PERIOD"  SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
 (C) OF SECTION THREE THOUSAND FIVE HUNDRED THREE OF THIS ARTICLE.
   (J) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
 SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE.
   (K)  "PERMISSIVE  USER" MEANS ANY PERSON USING OR OPERATING A PERSONAL
 PASSENGER MOTOR VEHICLE WITH THE PERMISSION, EXPRESS OR  IMPLIED,  OF  A
 RENTER  IN  ACCORDANCE  WITH  SECTION  THREE HUNDRED EIGHTY-EIGHT OF THE
 VEHICLE AND TRAFFIC LAW.
   § 3502. REQUIREMENTS FOR DOING BUSINESS.  (A)  NO  PERSONAL  PASSENGER
 MOTOR  VEHICLE INSURED SHALL BE CLASSIFIED AS A COMMERCIAL VEHICLE, FOR-
 HIRE VEHICLE, PERMISSIVE USE VEHICLE, TAXICAB, LIVERY OR ANY OTHER  TYPE
 OF VEHICLE OPERATED FOR COMMERCIAL USE SOLELY BECAUSE THE PERSONAL MOTOR
 VEHICLE  SHARING  OWNER  ALLOWS IT TO BE USED FOR PERSONAL MOTOR VEHICLE
 SHARING WHEN THE OWNER IS A PARTY TO A VALID CONTRACT  WITH  A  PERSONAL
 MOTOR  VEHICLE  SHARING  PROGRAM, AND THE OWNER HAS NOT KNOWINGLY PLACED
 THE PERSONAL PASSENGER MOTOR VEHICLE INTO USE AS A COMMERCIAL VEHICLE OR
 AS A VEHICLE FOR HIRE BY A PERSONAL MOTOR VEHICLE SHARING  RENTER  WHILE
 ENGAGED IN PERSONAL MOTOR VEHICLE SHARING.
   (B) A PROGRAM SHALL, FOR EACH PERSONAL PASSENGER MOTOR VEHICLE THAT IT
 FACILITATES THE USE OF, DO ALL OF THE FOLLOWING:
   (1)  DURING  THE SHARING PERIOD FOR A PERSONAL PASSENGER MOTOR VEHICLE
 ENGAGED IN PERSONAL  MOTOR  VEHICLE  SHARING,  PROCURE  GROUP  INSURANCE
 COVERAGE  FOR  EACH VEHICLE AND AUTHORIZED OPERATOR OF THE VEHICLE. SUCH
 INSURANCE SHALL, AT A MINIMUM, PROVIDE  FOR  EACH  VEHICLE  COVERAGE  AT
 LEAST  EQUAL TO THE MINIMUM INSURANCE REQUIREMENTS FOR PRIVATE PASSENGER
 MOTOR VEHICLES AS PROVIDED BY SECTION THREE HUNDRED  FORTY-FIVE  OF  THE
 VEHICLE  AND  TRAFFIC LAW, SUBSECTION (A) OF SECTION THREE THOUSAND FIVE
 HUNDRED FOUR OF THIS ARTICLE, SECTION THREE THOUSAND FOUR HUNDRED TWENTY
 OF THIS CHAPTER, ARTICLE FIFTY-ONE OF THIS CHAPTER AND SUCH  OTHER  LAWS
 OF  THE  STATE WITH RESPECT TO MANDATORY LIABILITY AND FIRST-PARTY BENE-
 FITS COVERAGE, OR COVERAGE AS OTHERWISE REQUIRED UNDER THIS ARTICLE. THE
 PROGRAM SHALL PROVIDE LIABILITY COVERAGE OF ONE MILLION  DOLLARS.    THE
 PROGRAM  SHALL  ALSO  PROVIDE  PROPERTY  AND CASUALTY COVERAGE INCLUDING
 COMPREHENSIVE  AND  COLLISION  PROTECTION,  AS  FURTHER   DESCRIBED   IN
 SUBSECTION (D) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTI-
 CLE;

 A. 6181                             3
 
   (2)  PROVIDE  THE  PERSONAL  MOTOR VEHICLE SHARING OWNER WITH PROOF OF
 COMPLIANCE WITH THE INSURANCE  REQUIREMENTS  OF  THIS  SECTION  AND  THE
 REQUIREMENTS  OF  SECTIONS THREE HUNDRED ELEVEN AND THREE HUNDRED FORTY-
 FIVE OF THE VEHICLE AND TRAFFIC LAW AND ARTICLE FIFTY-ONE OF THIS  CHAP-
 TER IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE OR APPROVE. A COPY OF
 SUCH  PROOF  SHALL  BE  MAINTAINED  IN THE VEHICLE BY THE PERSONAL MOTOR
 VEHICLE SHARING OWNER DURING ANY TIME WHEN THE VEHICLE  IS  OPERATED  BY
 THE  RENTER  OR AUTHORIZED OPERATOR PURSUANT TO A PERSONAL MOTOR 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 OR
 AUTHORIZED OPERATOR WHILE ENGAGED IN PERSONAL MOTOR VEHICLE SHARING;
   (4) PROVIDE EACH PERSONAL MOTOR VEHICLE RENTER AND AUTHORIZED OPERATOR
 FOR EACH VEHICLE RENTAL TRANSACTION UNDER  THE  PERSONAL  MOTOR  VEHICLE
 SHARING PROGRAM AT THE TIME OF EACH RENTAL:
   (A) ACCESS TO THE INSURANCE IDENTIFICATION CARD AS DEFINED IN SUBDIVI-
 SION  TEN OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW
 APPLICABLE TO SUCH PERSONAL  PASSENGER  MOTOR  VEHICLE  AND  SUCH  OTHER
 DOCUMENTATION TO BE CARRIED IN THE VEHICLE AT ALL TIMES DURING THE SHAR-
 ING  PERIOD,  STATING  IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE OR
 APPROVE THAT INSURANCE COVERAGE REFERRED TO IN  PARAGRAPH  ONE  OF  THIS
 SUBSECTION IS IN FULL FORCE AND EFFECT; AND
   (B)  MEANS  OF  COMMUNICATION,  IN  SUCH  FORM AS THE COMMISSIONER MAY
 PRESCRIBE OR APPROVE, BY WHICH A POLICE OFFICER, THE DEPARTMENT OF MOTOR
 VEHICLES OR OTHER OFFICER OF THIS STATE  OR  ANY  POLITICAL  SUBDIVISION
 THEREOF  MAY  CONFIRM  IN REAL TIME THAT THE INSURANCE COVERAGE PROVIDED
 FOR IN PARAGRAPH ONE OF THIS SUBSECTION IS IN EFFECT;
   (5) SHALL COMPLY WITH THE REQUIREMENTS OF SUBDIVISION TWO  OF  SECTION
 THREE HUNDRED TWELVE OF THE VEHICLE AND TRAFFIC LAW;
   (6) REQUIRE THAT THE VEHICLES USED IN THE PERSONAL MOTOR VEHICLE SHAR-
 ING PROGRAM ARE LIMITED TO PERSONAL PASSENGER MOTOR VEHICLES;
   (7)  FACILITATE THE INSTALLATION, OPERATION AND MAINTENANCE OF ITS OWN
 SIGNAGE AND COMPUTER HARDWARE AND SOFTWARE TO THE EXTENT  NECESSARY  FOR
 THE PERSONAL PASSENGER MOTOR VEHICLE TO BE USED IN THE PROGRAM;
   (8)  INDEMNIFY  AND  HOLD  HARMLESS THE PERSONAL MOTOR VEHICLE SHARING
 OWNER FOR THE COST OF DAMAGE OR THEFT  OF  EQUIPMENT  INSTALLED  BY  THE
 PROGRAM  UNDER  PARAGRAPH  SEVEN  OF  THIS SUBSECTION AND FOR ANY DAMAGE
 CAUSED TO THE PERSONAL PASSENGER  MOTOR  VEHICLE  BY  THE  INSTALLATION,
 OPERATION OR MAINTENANCE OF SUCH EQUIPMENT;
   (9) COLLECT, MAINTAIN AND MAKE AVAILABLE TO THE PERSONAL MOTOR VEHICLE
 SHARING  OWNER, THE PERSONAL MOTOR VEHICLE SHARING OWNER'S PRIMARY MOTOR
 VEHICLE LIABILITY INSURER, THE RENTER'S AND AUTHORIZED OPERATOR'S PRIMA-
 RY AUTOMOBILE INSURER IF APPLICABLE, ANY APPLICABLE EXCESS  OR  UMBRELLA
 INSURER,  AND  THIRD  PARTIES  INVOLVED  IN  ACCIDENTS WITH A RENTER, IN
 INSTANCES WHERE AN INSURANCE CLAIM HAS BEEN  FILED  WITH  THE  PROGRAM'S
 GROUP  INSURER,  THE FOLLOWING INFORMATION PERTAINING TO INCIDENTS WHICH
 OCCURRED DURING THE RENTER'S SHARING PERIOD:
   (A) VERIFIABLE RECORDS OF THE PROGRAM USE  PERIOD  FOR  EACH  PERSONAL
 PASSENGER  MOTOR VEHICLE, AND VERIFIABLE ELECTRONIC RECORDS OF THE TIME,
 INITIAL AND FINAL LOCATIONS OF THE VEHICLE, AND MILES DRIVEN DURING  THE
 PROGRAM USE PERIOD IN WHICH SUCH INCIDENT OCCURRED;
   (B)  ANY AND ALL INFORMATION RELEVANT TO THE CLAIM, INCLUDING PAYMENTS
 BY THE PROGRAM CONCERNING ACCIDENTS, DAMAGES AND INJURIES; AND
   (C) THE PROGRAM SHALL ALSO PROVIDE THE DEPARTMENT  OF  MOTOR  VEHICLES
 WITH A LIST OF THE PERSONAL PASSENGER MOTOR VEHICLES THAT PARTICIPATE IN

 A. 6181                             4
 
 THE  PROGRAM WHICH SHALL BE UPDATED BY THE PROGRAM EACH TIME A NEW OWNER
 BECOMES A PARTY TO A VALID CONTRACT WITH THE PROGRAM.
   (10)  ENSURE THAT THE PERSONAL MOTOR VEHICLE SHARING OWNER, RENTER AND
 AUTHORIZED OPERATOR ARE GIVEN NOTICE PRIOR TO THE FIRST USE OR OPERATION
 OF A MOTOR VEHICLE PURSUANT TO ENROLLMENT IN A  PERSONAL  MOTOR  VEHICLE
 SHARING PROGRAM, THAT:
   (A)  DURING  THE  SHARING  PERIOD,  THE PERSONAL MOTOR VEHICLE SHARING
 OWNER'S INSURER MAY EXCLUDE ANY AND ALL COVERAGE AFFORDED TO ITS  POLICY
 AND  THE  PERSONAL  MOTOR VEHICLE SHARING OWNER'S INSURER SHALL HAVE THE
 RIGHT TO NOTIFY AN INSURED THAT IT SHALL  HAVE  NO  DUTY  TO  DEFEND  OR
 INDEMNIFY  ANY  PERSON  OR  ORGANIZATION FOR LIABILITY FOR ANY LOSS THAT
 OCCURS DURING THE SHARING PERIOD; AND
   (B) THE GROUP POLICY AND PHYSICAL DAMAGE  COVERAGE  CONTRACT  MAY  NOT
 PROVIDE COVERAGE OUTSIDE OF THE SHARING PERIOD.
   (11)  SHALL  NOT  CHARGE FEES ASSOCIATED WITH A CLAIM ABOVE AND BEYOND
 THE DEDUCTIBLE AS REQUIRED IN THE GROUP POLICY.
   § 3503. LIABILITY PROVISIONS. (A) NOTWITHSTANDING ANY OTHER  PROVISION
 OF  LAW  OR  ANY  PROVISION  IN A PERSONAL MOTOR VEHICLE SHARING OWNER'S
 AUTOMOBILE INSURANCE POLICY, IN THE EVENT  OF  A  LOSS  OR  INJURY  THAT
 OCCURS  DURING  THE SHARING PERIOD, AS DEFINED IN THIS SECTION, OR WHILE
 THE PERSONAL PASSENGER MOTOR VEHICLE IS OTHERWISE UNDER THE CONTROL OF A
 PERSONAL MOTOR VEHICLE SHARING PROGRAM,  THE  PROGRAM  IS  LIABLE.  THIS
 LIABILITY  WILL  EXTEND  TO  ALL  PERMISSIVE USERS OF THE SHARED VEHICLE
 DURING THE SHARING PERIOD.
   (B) SECTION THREE HUNDRED EIGHTY-EIGHT OF THE VEHICLE AND TRAFFIC  LAW
 SHALL  APPLY  TO  THE  VEHICLE'S  OWNER  WHILE  THE VEHICLE IS UNDER THE
 POSSESSION AND CONTROL OF A PERSONAL MOTOR  VEHICLE  SHARING  RENTER  OR
 OTHERWISE UNDER THE CONTROL OF A PERSONAL MOTOR VEHICLE SHARING PROGRAM.
 NOTHING IN THIS SECTION SHALL LIMIT THE LIABILITY OF THE PROGRAM FOR ITS
 ACTS  OR OMISSIONS, OR LIMIT THE LIABILITY OF THE PERSONAL MOTOR VEHICLE
 SHARING RENTER FOR THE RENTER'S ACTS OR OMISSIONS, THAT RESULT IN INJURY
 TO ANY PERSONS AS A RESULT OF THE USE OR OPERATION OF  A  MOTOR  VEHICLE
 WHILE IN CUSTODY OF A PERSONAL MOTOR VEHICLE SHARING PROGRAM. NOTHING IN
 THIS SECTION SHALL LIMIT THE ABILITY OF THE PERSONAL MOTOR VEHICLE SHAR-
 ING  PROGRAM  TO,  BY  CONTRACT, SEEK INDEMNIFICATION FROM THE VEHICLE'S
 REGISTERED OWNER FOR ANY CLAIMS PAID BY THE PERSONAL MOTOR VEHICLE SHAR-
 ING PROGRAM FOR ANY LOSS OR INJURY  RESULTING  FROM  FRAUD  OR  MATERIAL
 INTENTIONAL  MISREPRESENTATION  BY  THE  PERSONAL  MOTOR VEHICLE SHARING
 OWNER,  PROVIDED  THAT  THE  PERSONAL  MOTOR  VEHICLE  SHARING   PROGRAM
 DISCLOSES IN THE CONTRACT THAT:
   (1)  THE  PERSONAL  MOTOR  VEHICLE SHARING PROGRAM IS ENTITLED TO SEEK
 INDEMNIFICATION IN THESE CIRCUMSTANCES; AND
   (2) THE PERSONAL MOTOR VEHICLE SHARING OWNER'S  INSURANCE  POLICY  MAY
 NOT  PROVIDE DEFENSE OR INDEMNIFICATION FOR ANY LOSS OR INJURY RESULTING
 FROM FRAUD OR MATERIAL INTENTIONAL MISREPRESENTATION. FOR  THE  PURPOSES
 OF  THIS  SECTION  A VEHICLE OWNER'S PARTICIPATION IN THE PERSONAL MOTOR
 VEHICLE SHARING PROGRAM WILL  NOT  CONSTITUTE  A  FRAUD  OR  A  MATERIAL
 MISREPRESENTATION.
   (C) A PROGRAM'S GROUP POLICY SHALL PROVIDE COVERAGE DURING THE SHARING
 PERIOD AS RECORDED IN THE PROGRAM'S RECORDS FOR A PERSONAL MOTOR VEHICLE
 SHARING  OWNER'S  MOTOR  VEHICLE REGISTERED IN THIS STATE, FROM WHEN THE
 RENTER TAKES POSSESSION AND CONTROL  OF  THE  SHARED  VEHICLE,  OR  WHEN
 OTHERWISE UNDER THE CONTROL OF THE PROGRAM AND THE PROGRAM SHALL CONTIN-
 UE  TO  BE  LIABLE PURSUANT TO THIS SECTION UNTIL THE PERSONAL PASSENGER
 MOTOR VEHICLE IS RETURNED TO A LOCATION AGREED TO BY THE PERSONAL  MOTOR
 VEHICLE  SHARING  OWNER  AND  RENTER,  OR DESIGNATED BY THE PROGRAM. THE

 A. 6181                             5
 
 SHARED VEHICLE WILL BE DEEMED TO BE IN CONTROL BY THE PROGRAM UNTIL  THE
 VEHICLE  HAS  BEEN RETURNED TO THE AGREED UPON LOCATION, IRRESPECTIVE OF
 ANY TEMPORAL RESERVATION PERIOD.
   (D) THE INSURER OR INSURERS PROVIDING GROUP LIABILITY INSURANCE TO THE
 PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM PURSUANT TO SUBSECTION (A) OF
 SECTION THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE AND GROUP PHYS-
 ICAL DAMAGE INSURANCE TO THE  PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM
 PURSUANT  TO  SUBSECTION (D) OF SECTION THREE THOUSAND FIVE HUNDRED FOUR
 OF THIS ARTICLE SHALL ASSUME LIABILITY FOR A CLAIM IN  WHICH  A  DISPUTE
 EXISTS  REGARDING  WHO  WAS  IN  CONTROL  OF  THE  VEHICLE WHEN THE LOSS
 OCCURRED GIVING RISE TO THE CLAIM, AND THE PERSONAL MOTOR VEHICLE  SHAR-
 ING  OWNER'S PRIVATE PASSENGER MOTOR VEHICLE INSURER SHALL INDEMNIFY THE
 PERSONAL MOTOR VEHICLE SHARING PROGRAM'S GROUP INSURER  OR  INSURERS  TO
 THE  EXTENT  OF ITS OBLIGATION UNDER THE APPLICABLE INSURANCE POLICY, IF
 IT IS DETERMINED THAT THE PERSONAL MOTOR VEHICLE SHARING  OWNER  WAS  IN
 CONTROL  OF  THE  VEHICLE  AT THE TIME OF THE LOSS. SUCH A DISPUTE AS TO
 CONTROL SHALL BE ADJUDICATED PURSUANT TO SUBSECTION (B) OF SECTION  FIVE
 THOUSAND  ONE  HUNDRED  FIVE OF THIS CHAPTER. THE PERSONAL MOTOR VEHICLE
 SHARING PROGRAM SHALL NOTIFY THE PERSONAL MOTOR VEHICLE SHARING  OWNER'S
 PRIVATE  INSURER  OF  ANY  SUCH  DISPUTE WITHIN FIFTEEN BUSINESS DAYS OF
 BECOMING AWARE THAT SUCH A DISPUTE EXISTS.
   (E) IN THE EVENT THAT A PERSONAL MOTOR  VEHICLE  SHARING  OWNER  OR  A
 PERSONAL  MOTOR  VEHICLE SHARING OWNER'S INSURER IS NAMED AS A DEFENDANT
 IN A CIVIL ACTION FOR A LOSS OR INJURY THAT OCCURS DURING ANY TIME WITH-
 IN THE SHARING PERIOD, OR OTHERWISE UNDER  THE  CONTROL  OF  A  PERSONAL
 MOTOR  VEHICLE  SHARING  PROGRAM,  THE  PERSONAL  MOTOR  VEHICLE SHARING
 PROGRAM'S GROUP LIABILITY INSURANCE  INSURER  UNDER  SUBSECTION  (A)  OF
 SECTION  THREE THOUSAND FIVE HUNDRED FOUR OF THIS ARTICLE SHALL HAVE THE
 DUTY TO DEFEND AND INDEMNIFY THE PERSONAL MOTOR  VEHICLE  SHARING  OWNER
 AND  THE  PERSONAL MOTOR VEHICLE SHARING OWNER'S INSURER, SUBJECT TO THE
 PROVISIONS OF SUBSECTIONS (B) AND (D)  OF  THIS  SECTION.  THE  PERSONAL
 MOTOR  VEHICLE SHARING PROGRAM SHALL NOTIFY THE PERSONAL PASSENGER MOTOR
 VEHICLE'S PRIVATE OWNER AND HIS OR HER PRIVATE INSURANCE OF THE  PROGRAM
 INSURER'S DUTY TO DEFEND AND INDEMNIFY WITHIN FIFTEEN DAYS OF THE DUTY.
   (F) NO PERSONAL MOTOR VEHICLE SHARING OWNER'S POLICY OF INSURANCE THAT
 IS  SUBJECT  TO  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS
 CHAPTER SHALL BE CANCELLED, VOIDED, TERMINATED,  RESCINDED,  OR  NON-RE-
 NEWED, SOLELY ON THE BASIS THAT THE PERSONAL PASSENGER MOTOR VEHICLE HAS
 BEEN  MADE AVAILABLE FOR PERSONAL VEHICLE SHARING PURSUANT TO A PERSONAL
 VEHICLE SHARING PROGRAM THAT IS IN COMPLIANCE  WITH  THE  PROVISIONS  OF
 THIS  SECTION.  FOR  THE  PURPOSES  OF THIS SECTION PARTICIPATION IN THE
 PERSONAL MOTOR VEHICLE SHARING PROGRAM SHALL  NOT  CONSTITUTE  FRAUD  OR
 MISREPRESENTATION  BY  THE  VEHICLE  OWNER.  PROVIDED,  HOWEVER THAT THE
 PROVISIONS OF THIS SUBSECTION SHALL  NOT  PERTAIN  TO  CANCELLATIONS  IN
 ACCORDANCE  WITH THE PROVISIONS OF SUBSECTION (F) OF SECTION THREE THOU-
 SAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER.
   § 3504. GROUP INSURANCE FOR PERSONAL MOTOR VEHICLE  SHARING  PROGRAMS.
 (A)  AN  INSURER  WHICH  IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS IN THE
 STATE MAY ISSUE, OR ISSUE FOR DELIVERY IN THIS STATE, A GROUP POLICY  OF
 LIABILITY  AND PROPERTY AND CASUALTY INSURANCE TO A PERSONAL MOTOR VEHI-
 CLE SHARING  PROGRAM  TO  INSURE  THE  PERSONAL  MOTOR  VEHICLE  SHARING
 PROGRAM,  RENTERS,  AUTHORIZED  OPERATORS  AND OCCUPANTS OF THE PERSONAL
 PASSENGER MOTOR VEHICLE, AS WELL AS  THE  PROGRAM'S  AGENTS,  EMPLOYEES,
 DIRECTORS, OFFICERS AND ASSIGNS; AND
   (1)  SUCH  GROUP POLICY SHALL PROVIDE FIRST PARTY COVERAGE, LIABILITY,
 PROPERTY, COMPREHENSIVE, COLLISION, AND UNINSURED/UNDERINSURED  MOTORIST

 A. 6181                             6
 
 COVERAGE  FOR  THE  PERSONAL  PASSENGER  MOTOR  VEHICLE AND ITS RENTERS,
 AUTHORIZED OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING FROM
 THE USE OR OPERATION OF THAT VEHICLE DURING THE SHARING PERIOD;
   (2)  SUCH  GROUP  POLICY  SHALL  BE  PRIMARY WITH RESPECT TO ANY OTHER
 INSURANCE AVAILABLE TO THE PERSONAL  MOTOR  VEHICLE  SHARING  OWNER  AND
 SHALL  BE  PRIMARY  OVER  ANY  OTHER INSURANCE AVAILABLE TO THE PERSONAL
 MOTOR VEHICLE SHARING RENTER;
   (3) SUCH INSURER SHALL COMPLY WITH THE PROVISIONS  OF  SECTIONS  THREE
 HUNDRED  TWELVE-A  AND THREE HUNDRED THIRTEEN OF THE VEHICLE AND TRAFFIC
 LAW; AND
   (4) FOR THE PURPOSES OF GROUP INSURANCE  WRITTEN  UNDER  THIS  SECTION
 ONLY,  THE RATES CHARGED BY THE INSURER FOR GROUP LIABILITY INSURANCE AS
 PROVIDED FOR IN THIS SECTION SHALL  BE  SUBJECT  TO  PRIOR  APPROVAL  IN
 ACCORDANCE  WITH  SUBSECTION  (B)  OF SECTION TWO THOUSAND THREE HUNDRED
 FIVE OF THIS CHAPTER.
   (B)  AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED   IN
 SUBSECTION  (A)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
 PERSONAL MOTOR VEHICLE SHARING PROGRAM AS THE  NAMED  INSURED;  AND  ANY
 SUCH  GROUP  POLICY  SHALL  INCLUDE  A PROVISION THAT PROVIDES COVERAGE,
 WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL  PERSONAL  PASSENGER  MOTOR
 VEHICLES DURING THE SHARING PERIOD AND SUCH POLICY SHALL FURTHER INCLUDE
 A  PROVISION THAT SUCH VEHICLES' RENTERS, AUTHORIZED OPERATORS AND OCCU-
 PANTS ARE INCLUDED AS INSUREDS UNDER THE POLICY TO THE SAME EXTENT  THAT
 THEY  WOULD  BE  INSUREDS UNDER A PRIVATE PASSENGER MOTOR VEHICLE POLICY
 ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR  HUNDRED  TWENTY-FIVE  OF
 THIS CHAPTER AND SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC
 LAW.
   (C)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (A) AND (B) OF THIS
 SECTION SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 ARTICLE.
   (D)  AN  INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS IN THE
 STATE MAY ISSUE A  GROUP  POLICY  OF  PHYSICAL  DAMAGE  INSURANCE  TO  A
 PERSONAL MOTOR VEHICLE SHARING PROGRAM TO INSURE AGAINST PHYSICAL DAMAGE
 OR  LOSS TO PERSONAL PASSENGER MOTOR VEHICLES WHILE SUCH VEHICLES ARE IN
 THE CUSTODY OF THE PERSONAL  MOTOR  VEHICLE  SHARING  PROGRAM,  PERSONAL
 MOTOR  VEHICLE  SHARING RENTER OR AUTHORIZED OPERATOR. SUCH GROUP POLICY
 SHALL PROVIDE PRIMARY COVERAGE FOR PHYSICAL DAMAGE  OR  LOSS  EITHER  BY
 COLLISION, COMPREHENSIVE, OR BOTH, TO THE PERSONAL PASSENGER MOTOR VEHI-
 CLE  WHILE  IT  IS  IN THE CUSTODY OF THE PERSONAL MOTOR VEHICLE SHARING
 PROGRAM, A PERSONAL MOTOR VEHICLE SHARING RENTER OR AUTHORIZED OPERATOR.
   (E) AN INSURER WHICH ISSUES A  GROUP  INSURANCE  POLICY  DESCRIBED  IN
 SUBSECTION  (D)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
 PERSONAL MOTOR VEHICLE SHARING PROGRAM AS THE  NAMED  INSURED,  AND  ANY
 SUCH  POLICY  SHALL  INCLUDE A PROVISION THAT PROVIDES PRIMARY COVERAGE,
 WITHOUT PRIOR NOTICE TO THE INSURER, FOR ALL  PERSONAL  PASSENGER  MOTOR
 VEHICLES  DURING  THE  SHARING  PERIOD,  AND  SHALL  FURTHER  INCLUDE  A
 PROVISION THAT CLAIMS WILL BE ADJUSTED PURSUANT TO SECTION  THREE  THOU-
 SAND  FOUR  HUNDRED TWELVE OF THIS CHAPTER, AND IT SHALL FURTHER INCLUDE
 PHYSICAL DAMAGE COVERAGE FOR DAMAGE OR  LOSS  TO  THE  OWNER'S  PERSONAL
 PASSENGER MOTOR VEHICLE INCURRED DURING THE SHARING PERIOD AT A LEVEL NO
 LESS THAN THAT OF THIRD PARTY PHYSICAL DAMAGE COVERAGE.
   (F)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (D) AND (E) OF THIS
 SECTION SHALL ONLY BE ISSUED IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 SECTION.
   (G)  A  GROUP  POLICY SHALL NOT HAVE ANY DEDUCTIBLE OR ASSOCIATED FEES
 EXCEEDING FIVE HUNDRED DOLLARS.

 A. 6181                             7
 
   § 3. Subdivision 4 of section 311 of the vehicle and  traffic  law  is
 amended by adding a new paragraph (e) to read as follows:
   (E)  IN THE CASE OF A PERSONAL PASSENGER MOTOR VEHICLE THAT IS USED IN
 CONNECTION WITH A PERSONAL MOTOR VEHICLE SHARING PROGRAM, A GROUP INSUR-
 ANCE POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED  FOUR
 OF  THE  INSURANCE LAW ON SUCH VEHICLE AND TO THE RENTERS AND AUTHORIZED
 OPERATORS OF SUCH VEHICLES SHALL BE VALID FOR ANY TIME THAT THE  VEHICLE
 IS  BEING  USED  IN  CONNECTION WITH SUCH PERSONAL MOTOR VEHICLE SHARING
 PROGRAM. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERMS "PERSONAL PASSEN-
 GER MOTOR VEHICLE" AND "PERSONAL MOTOR VEHICLE  SHARING  PROGRAM"  SHALL
 HAVE  THE  SAME MEANING AS SUCH TERMS ARE DEFINED BY SECTION THREE THOU-
 SAND FIVE HUNDRED ONE OF THE INSURANCE LAW.
   § 4. Section 312 of the vehicle and traffic law is amended by adding a
 new subdivision 1-a to read as follows:
   1-A. IN THE CASE OF FINANCIAL SECURITY PROCURED BY  A  PERSONAL  MOTOR
 VEHICLE  SHARING  PROGRAM  AS  SET  FORTH IN SECTION THREE THOUSAND FIVE
 HUNDRED FOUR OF THE INSURANCE LAW, THE PROGRAM SHALL PROVIDE THE COMMIS-
 SIONER WITH PROOF OF FINANCIAL SECURITY IN THE FORM OF A GROUP INSURANCE
 POLICY COVERING ITSELF AND THE OWNERS OF ALL MOTOR  VEHICLES  REGISTERED
 IN  THIS STATE THAT PARTICIPATE IN THE PROGRAM AS INSURED GROUP MEMBERS,
 COVERING THOSE VEHICLES WHILE THEY ARE BEING USED  IN  CONJUNCTION  WITH
 THAT  PROGRAM.  NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS
 SUBDIVISION SHALL BE DEEMED TO SUPERSEDE THE REQUIREMENTS OF SUBDIVISION
 ONE OF THIS SECTION.
   § 5. Subdivision 1 of section 312-a of the vehicle and traffic law, as
 amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
 follows:
   1.  Upon issuance of an owner's policy of liability insurance, A GROUP
 LIABILITY INSURANCE POLICY ISSUED TO A PERSONAL  MOTOR  VEHICLE  SHARING
 PROGRAM  PURSUANT  TO  SECTION  THREE  THOUSAND FIVE HUNDRED FOUR OF THE
 INSURANCE LAW or other financial security required by this  chapter,  an
 insurer  shall  issue  proof  of  insurance in accordance with the regu-
 lations promulgated by the commissioner pursuant  to  paragraph  (b)  of
 subdivision two of section three hundred thirteen of this article.
   §  6.  Paragraphs  (a)  and (b) of subdivision 2 of section 313 of the
 vehicle and traffic law, as amended by chapter 509 of the laws of  1998,
 are amended to read as follows:
   (a)  Upon  the termination of an owner's policy of liability insurance
 OR A GROUP LIABILITY INSURANCE POLICY ISSUED TO A PERSONAL MOTOR VEHICLE
 SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED FOUR  OF
 THE  INSURANCE  LAW, other than an owner's policy of liability insurance
 for a motorcycle, at the request of the insured or  by  cancellation  by
 the  insurer, the insurer shall file a notice of termination with refer-
 ence to such policy, as opposed to any insured vehicle or vehicles under
 such policy, with the commissioner not later than thirty days  following
 the effective date of such cancellation or other termination, in accord-
 ance with the regulations required by paragraph (c) of this subdivision.
 An  insurer shall not file a notice of termination with the commissioner
 except as required by this subdivision.
   (b) Upon the issuance of an owner's policy of liability insurance OR A
 GROUP LIABILITY INSURANCE POLICY ISSUED  TO  A  PERSONAL  MOTOR  VEHICLE
 SHARING  PROGRAM PURSUANT TO SECTION THREE THOUSAND FIVE HUNDRED FOUR OF
 THE INSURANCE LAW, the insurer shall file a notice  or  confirmation  of
 issuance  with  reference  to  such  policy not later than fourteen days
 following the effective date of such issuance, and not later than  seven
 days  following  the  effective  date  for policies issued after January

 A. 6181                             8
 
 first, two thousand one, in accordance with the regulations required  by
 paragraph (c) of this subdivision.
   § 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.
   § 8. This act shall take effect immediately.