S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2151
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2019
                                ___________
 
 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
 
   §  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
 LIABILITY OF ONE HUNDRED THOUSAND DOLLARS AND  A  MAXIMUM  LIABILITY  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00446-01-9

 A. 2151                             2
 
 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. 2151                             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.
   §  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.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.