Bill Text: NY A03904 | 2019-2020 | 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 5-0)

Status: (Introduced - Dead) 2020-01-08 - referred to transportation [A03904 Detail]

Download: New_York-2019-A03904-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3904--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 31, 2019
                                       ___________

        Introduced  by M. of A. HYNDMAN, ARROYO, WILLIAMS, SAYEGH -- Multi-Spon-
          sored by -- M.   of A. DenDEKKER -- read  once  and  referred  to  the
          Committee  on  Transportation  --  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
    22  a specific motor vehicle or motor vehicles within the state of New York,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05489-02-9
        A. 3904--A                          2

     1  or  elsewhere  in  the United States in North America or the Dominion of
     2  Canada, subject to a  limit,  exclusive  of  interest  and  costs,  with
     3  respect to each such motor vehicle except a tow truck or a motor vehicle
     4  which  is rented or leased from a person, organization or business regu-
     5  larly engaged in the business of renting or leasing  motor  vehicles  to
     6  the  general  public,  of twenty-five thousand dollars because of bodily
     7  injuries to and fifty thousand dollars because of death of one person in
     8  any one accident and, subject to said limit for one person, to  a  limit
     9  of  fifty  thousand  dollars because of bodily injury to and one hundred
    10  thousand dollars because of death of two or  more  persons  in  any  one
    11  accident, and to a limit of ten thousand dollars because of injury to or
    12  destruction of property of others in any one accident provided, however,
    13  that such policy need not be for a period coterminous with the registra-
    14  tion period of the vehicle insured. The limit, exclusive of interest and
    15  costs,  with  respect to a tow truck shall be a combined single limit of
    16  at least three hundred thousand dollars  because  of  bodily  injury  or
    17  death  to  one  or  more  persons or because of injury or destruction of
    18  property of others in any one accident, and to a  limit  of  twenty-five
    19  thousand dollars because of damage to a vehicle in the care, custody and
    20  control  of  the  insured.   The limit, exclusive of interest and costs,
    21  with respect to a motor vehicle which is rented or leased from a person,
    22  organization or business regularly engaged in the business of renting or
    23  leasing motor vehicles to the general public, shall be a combined single
    24  limit of at least one million dollars because of bodily injury or  death
    25  to  one  or more persons or because of injury or destruction of property
    26  of others in any one accident, and to a limit  of  twenty-five  thousand
    27  dollars  because of damage to a vehicle in the care, custody and control
    28  of the insured. Any insurer authorized to issue  an  owner's  policy  of
    29  liability  insurance  as  provided  for in this article may, pending the
    30  issue of such a policy, make an agreement, to be known as a  binder,  or
    31  may,  in  lieu of such a policy, issue a renewal endorsement or evidence
    32  of renewal of an existing policy; each of which shall  be  construed  to
    33  provide indemnity or protection in like manner and to the same extent as
    34  such  a policy. The provisions of this article shall apply to such bind-
    35  ers, renewal endorsements or evidences of  renewal.  Every  such  policy
    36  issued  insuring  private  passenger  vehicles and every renewal policy,
    37  renewal endorsement, or other evidence  of  renewal  issued  shall  have
    38  attached  thereto  a rating information form which clearly specifies and
    39  defines the rating classification assigned thereto, including any appli-
    40  cable merit rating plan; and
    41    § 2. Section 312 of the vehicle and traffic law is amended by adding a
    42  new subdivision 6 to read as follows:
    43    6. (a) No motor vehicle shall be leased or rented in this state unless
    44  upon the registration of the leased or rented motor vehicle, the  appli-
    45  cation  for such registration is accompanied by proof of financial secu-
    46  rity required by section three hundred  eleven  of  this  article  which
    47  shall  be  evidenced  by  proof  of insurance or evidence of a financial
    48  security bond, a financial security deposit or qualification as a  self-
    49  insurer  under  section three hundred sixteen of this article; provided,
    50  that if directed by regulation of  the  commissioner,  upon  renewal  of
    51  registration an application accompanied by a certificate of registration
    52  or  renewal  stub in force immediately preceding the date of application
    53  for renewal, together with a statement  in  a  form  prescribed  by  the
    54  commissioner certifying that there is in effect proof of financial secu-
    55  rity,  shall meet the requirements of this section. Upon the issuance or
    56  renewal of a private passenger automobile insurance  policy  subject  to
        A. 3904--A                          3

     1  the provisions of section three thousand four hundred twenty-five of the
     2  insurance  law,  the insurance company shall provide the insured with an
     3  informational statement outlining the legal and  financial  consequences
     4  of  convictions under section eleven hundred ninety-two of this chapter,
     5  pertaining to operating a motor vehicle while  under  the  influence  of
     6  alcohol  or  drugs. Such information shall be supplied to the company by
     7  the state department of financial  services  in  consultation  with  the
     8  commissioner.
     9    (b)  The  owner and registrant if the registrant is different from the
    10  owner of such leased or rented motor vehicle  shall  maintain  proof  of
    11  financial  security  continuously throughout the registration period and
    12  his failure to produce proof of financial security when requested to  do
    13  so  upon demand of a magistrate, motor vehicle inspector, peace officer,
    14  acting pursuant to his special duties, or  police  officer,  while  such
    15  vehicle  is being operated upon the public highway, shall be presumptive
    16  evidence of operating a motor vehicle without proof of financial securi-
    17  ty. Upon the production of proof of financial security such  presumption
    18  is  removed.  Production  of  proof of financial security may be made by
    19  mailing such proof to the court having jurisdiction in the  matter,  and
    20  any   necessary  response  by  such  court  or  acknowledgement  of  the
    21  production of such proof may also be made by mail. When  insurance  with
    22  respect to any motor vehicle, other than a motorcycle, is terminated the
    23  owner  shall  surrender  forthwith  their  registration  certificate and
    24  number plates of the vehicle to the commissioner unless proof of  finan-
    25  cial security otherwise is maintained in compliance with this article.
    26    (c)  The  owner of any leased or rented vehicle that fails to maintain
    27  the proof of financial security required above may  be  held  personally
    28  liable  for any judgment entered against any driver and/or registrant of
    29  the leased or rented vehicle  for  damages  sustained  as  a  result  of
    30  personal  injury,  wrongful  death  and/or property damage suffered as a
    31  result of the use and operation of the leased or rented vehicle.
    32    § 3. Paragraph 3 of subdivision (b) of section 345 of the vehicle  and
    33  traffic  law,  as amended by chapter 305 of the laws of 1995, is amended
    34  to read as follows:
    35    (3) Shall insure the insured, the  vehicle  operator,  or  such  other
    36  person  against  loss  from  the  liability  imposed by law for damages,
    37  including damages for care and loss of services because of bodily injury
    38  to or death of any person and injury to or destruction of property aris-
    39  ing out of the ownership, maintenance, use, or operation of  such  motor
    40  vehicle  or motor vehicles within the state of New York, or elsewhere in
    41  the United States in North America or the Dominion of Canada, subject to
    42  a limit, exclusive of interest and cost, with respect to each such motor
    43  vehicle, except a tow truck or a motor vehicle which is rented or leased
    44  from a person, organization or business regularly engaged in  the  busi-
    45  ness  of  renting  or  leasing  motor vehicles to the general public, of
    46  twenty-five thousand dollars because of bodily injury to or fifty  thou-
    47  sand  dollars  because  of  death of one person in any one accident and,
    48  subject to said limit for one person,  to  a  limit  of  fifty  thousand
    49  dollars  because  of  bodily  injury  to or one hundred thousand dollars
    50  because of death of two or more persons in any one accident,  and  to  a
    51  limit  of  ten  thousand  dollars because of injury to or destruction of
    52  property of others in any one accident. The limit, exclusive of interest
    53  and costs, with respect to a tow truck shall be a combined single  limit
    54  of three hundred thousand dollars because of bodily injury [of] or death
    55  to  one  or more persons or because of injury or destruction of property
    56  of others in any one accident, and to a limit  of  twenty-five  thousand
        A. 3904--A                          4

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