Bill Text: NY A02551 | 2023-2024 | General Assembly | Amended

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Bill Title: Increases the minimum insurance coverage requirements for motor vehicles rented or leased in the state.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-03-18 - print number 2551a [A02551 Detail]

Download: New_York-2023-A02551-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         2551--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 26, 2023
                                       ___________

        Introduced  by M. of A. HYNDMAN, SAYEGH -- read once and referred to the
          Committee on Transportation -- recommitted to the Committee on  Trans-
          portation  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN ACT to amend the vehicle and traffic law, in relation  to  increasing
          the  minimum insurance coverage requirements for motor vehicles rented
          or leased in the state of New York

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Paragraph (a) of subdivision 4 of section 311 of the vehi-
     2  cle and traffic law, as amended by chapter 305 of the laws of  1995,  is
     3  amended to read as follows:
     4    (a) Affording coverage as defined in the minimum provisions prescribed
     5  in  a  regulation  which  shall  be promulgated by the superintendent at
     6  least ninety days prior to effective date of this act.  The  superinten-
     7  dent  before  promulgating  such  regulations  or any amendment thereof,
     8  shall consult with all insurers licensed to write  automobile  liability
     9  insurance in this state and shall not prescribe minimum provisions which
    10  fail  to  reflect the provisions of automobile liability insurance poli-
    11  cies, other than motor vehicle liability policies as defined in  section
    12  three  hundred  forty-five  of this chapter, issued within this state at
    13  the date of such regulation or amendment thereof.  Nothing contained  in
    14  such  regulation  or  in  this  article  shall prohibit any insurer from
    15  affording coverage under an owner's policy of liability  insurance  more
    16  liberal  than  that  required  by  said minimum provisions.   Every such
    17  owner's policy of liability insurance shall provide insurance subject to
    18  said regulation against loss from  the  liability  imposed  by  law  for
    19  damages,  including  damages  for  care and loss of services, because of
    20  bodily injury to or death of any person and injury to or destruction  of
    21  property arising out of the ownership, maintenance, use, or operation of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06443-02-4
        A. 2551--A                          2

     1  a specific motor vehicle or motor vehicles within the state of New York,
     2  or  elsewhere  in  the United States in North America or the Dominion of
     3  Canada, subject to a  limit,  exclusive  of  interest  and  costs,  with
     4  respect to each such motor vehicle except a tow truck or a motor vehicle
     5  which  is rented or leased from a person, organization or business regu-
     6  larly engaged in the business of renting or leasing  motor  vehicles  to
     7  the  general  public,  of twenty-five thousand dollars because of bodily
     8  injuries to and fifty thousand dollars because of death of one person in
     9  any one accident and, subject to said limit for one person, to  a  limit
    10  of  fifty  thousand  dollars because of bodily injury to and one hundred
    11  thousand dollars because of death of two or  more  persons  in  any  one
    12  accident, and to a limit of ten thousand dollars because of injury to or
    13  destruction of property of others in any one accident provided, however,
    14  that such policy need not be for a period coterminous with the registra-
    15  tion period of the vehicle insured. The limit, exclusive of interest and
    16  costs,  with  respect to a tow truck shall be a combined single limit of
    17  at least three hundred thousand dollars  because  of  bodily  injury  or
    18  death  to  one  or  more  persons or because of injury or destruction of
    19  property of others in any one accident, and to a  limit  of  twenty-five
    20  thousand dollars because of damage to a vehicle in the care, custody and
    21  control  of  the  insured.   The limit, exclusive of interest and costs,
    22  with respect to a motor vehicle which is rented or leased from a person,
    23  organization or business regularly engaged in the business of renting or
    24  leasing motor vehicles to the general public, shall be a combined single
    25  limit of at least one million two hundred fifty thousand dollars because
    26  of bodily injury or death to one or more persons or because of injury or
    27  destruction of property of others in any one accident, and to a limit of
    28  twenty-five thousand dollars because of damage to a vehicle in the care,
    29  custody and control of the insured. Any insurer authorized to  issue  an
    30  owner's  policy  of  liability insurance as provided for in this article
    31  may, pending the issue of such a policy, make an agreement, to be  known
    32  as  a binder, or may, in lieu of such a policy, issue a renewal endorse-
    33  ment or evidence of renewal of an existing policy; each of  which  shall
    34  be  construed  to  provide indemnity or protection in like manner and to
    35  the same extent as such a policy. The provisions of this  article  shall
    36  apply  to  such  binders,  renewal endorsements or evidences of renewal.
    37  Every such policy issued insuring private passenger vehicles  and  every
    38  renewal policy, renewal endorsement, or other evidence of renewal issued
    39  shall  have  attached  thereto  a  rating information form which clearly
    40  specifies  and  defines  the  rating  classification  assigned  thereto,
    41  including any applicable merit rating plan; and
    42    § 2. Section 312 of the vehicle and traffic law is amended by adding a
    43  new subdivision 6 to read as follows:
    44    6. (a) No motor vehicle shall be leased or rented in this state unless
    45  upon  the registration of the leased or rented motor vehicle, the appli-
    46  cation for such registration is accompanied by proof of financial  secu-
    47  rity  required  by  section  three  hundred eleven of this article which
    48  shall be evidenced by proof of insurance  or  evidence  of  a  financial
    49  security  bond, a financial security deposit or qualification as a self-
    50  insurer under section three hundred sixteen of this  article;  provided,
    51  that  if  directed  by  regulation  of the commissioner, upon renewal of
    52  registration an application accompanied by a certificate of registration
    53  or renewal stub in force immediately preceding the date  of  application
    54  for  renewal,  together  with  a  statement  in a form prescribed by the
    55  commissioner certifying that there is in effect proof of financial secu-
    56  rity, shall meet the requirements of this section. Upon the issuance  or
        A. 2551--A                          3

     1  renewal  of  a  private passenger automobile insurance policy subject to
     2  the provisions of section three thousand four hundred twenty-five of the
     3  insurance law, the insurance company shall provide the insured  with  an
     4  informational  statement  outlining the legal and financial consequences
     5  of convictions under section eleven hundred ninety-two of this  chapter,
     6  pertaining  to  operating  a  motor vehicle while under the influence of
     7  alcohol or drugs. Such information shall be supplied to the  company  by
     8  the  state  department  of  financial  services in consultation with the
     9  commissioner.
    10    (b) The owner and registrant if the registrant is different  from  the
    11  owner  of  such  leased  or rented motor vehicle shall maintain proof of
    12  financial security continuously throughout the registration  period  and
    13  his  failure to produce proof of financial security when requested to do
    14  so upon demand of a magistrate, motor vehicle inspector, peace  officer,
    15  acting  pursuant  to  his  special duties, or police officer, while such
    16  vehicle is being operated upon the public highway, shall be  presumptive
    17  evidence of operating a motor vehicle without proof of financial securi-
    18  ty.  Upon the production of proof of financial security such presumption
    19  is removed. Production of proof of financial security  may  be  made  by
    20  mailing  such  proof to the court having jurisdiction in the matter, and
    21  any  necessary  response  by  such  court  or  acknowledgement  of   the
    22  production  of  such proof may also be made by mail. When insurance with
    23  respect to any motor vehicle, other than a motorcycle, is terminated the
    24  owner shall  surrender  forthwith  their  registration  certificate  and
    25  number  plates of the vehicle to the commissioner unless proof of finan-
    26  cial security otherwise is maintained in compliance with this article.
    27    (c) The owner of any leased or rented vehicle that fails  to  maintain
    28  the  proof  of  financial security required above may be held personally
    29  liable for any judgment entered against any driver and/or registrant  of
    30  the  leased  or  rented  vehicle  for  damages  sustained as a result of
    31  personal injury, wrongful death and/or property  damage  suffered  as  a
    32  result of the use and operation of the leased or rented vehicle.
    33    §  3. Paragraph 3 of subdivision (b) of section 345 of the vehicle and
    34  traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
    35  to read as follows:
    36    (3)  Shall  insure  the  insured,  the vehicle operator, or such other
    37  person against loss from the  liability  imposed  by  law  for  damages,
    38  including damages for care and loss of services because of bodily injury
    39  to or death of any person and injury to or destruction of property aris-
    40  ing  out  of the ownership, maintenance, use, or operation of such motor
    41  vehicle or motor vehicles within the state of New York, or elsewhere  in
    42  the United States in North America or the Dominion of Canada, subject to
    43  a limit, exclusive of interest and cost, with respect to each such motor
    44  vehicle, except a tow truck or a motor vehicle which is rented or leased
    45  from  a  person, organization or business regularly engaged in the busi-
    46  ness of renting or leasing motor vehicles  to  the  general  public,  of
    47  twenty-five  thousand dollars because of bodily injury to or fifty thou-
    48  sand dollars because of death of one person in  any  one  accident  and,
    49  subject  to  said  limit  for  one  person, to a limit of fifty thousand
    50  dollars because of bodily injury to  or  one  hundred  thousand  dollars
    51  because  of  death  of two or more persons in any one accident, and to a
    52  limit of ten thousand dollars because of injury  to  or  destruction  of
    53  property of others in any one accident. The limit, exclusive of interest
    54  and  costs, with respect to a tow truck shall be a combined single limit
    55  of three hundred thousand dollars because of bodily injury [of] or death
    56  to one or more persons or because of injury or destruction  of  property
        A. 2551--A                          4

     1  of  others  in  any one accident, and to a limit of twenty-five thousand
     2  dollars because of damage to a vehicle in the care, custody and  control
     3  of  the  insured.    The  limit,  exclusive  of interest and costs, with
     4  respect  to  a  motor  vehicle  which is rented or leased from a person,
     5  organization or business regularly engaged in the business of renting or
     6  leasing motor vehicles to the general public, shall be a combined single
     7  limit of at least one million two hundred fifty thousand dollars because
     8  of bodily injury or death to one or more persons or because of injury or
     9  destruction of property of others in any one accident, and to a limit of
    10  twenty-five thousand dollars because of damage to a vehicle in the care,
    11  custody and control of the insured.
    12    § 4. This act shall take effect one year after it shall have become  a
    13  law and shall apply to policies issued or renewed on or after such date.