The New York State Senate

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

                                   427

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 4, 2017
                               ___________

Introduced  by  Sens.  SEWARD, BRESLIN, LARKIN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance

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) "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.
                                                           LBD04829-01-7

S. 427                              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.
  §  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. 427                              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. 427                              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.
  § 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 TAKES POSSESSION AND CONTROL OF THE PERSONAL
PASSENGER MOTOR VEHICLE.

S. 427                              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 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;
  (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

S. 427                              6

  (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.
  §  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

S. 427                              7

  (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.
  §  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.
  § 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

S. 427                              8

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.
  § 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.
  § 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.
  § 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.