The New York State Senate

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

                                  9043

                          I N  A S S E M B L Y

                            January 18, 2018
                               ___________

Introduced  by  M.  of  A.  RODRIGUEZ  --  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) "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.
  (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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD04829-01-7

A. 9043                             2

  (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
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

A. 9043                             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)  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:
  (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.

A. 9043                             4

  §  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.
  (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

A. 9043                             5

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
  (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

A. 9043                             6

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
  (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

A. 9043                             7

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
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

A. 9043                             8

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.