Bill Text: NY S00427 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S00427 Detail]
Download: New_York-2017-S00427-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 427 2017-2018 Regular Sessions IN SENATE (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: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "personal motor vehicle sharing act". 3 § 2. The insurance law is amended by adding a new article 35 to read 4 as follows: 5 ARTICLE 35 6 PERSONAL MOTOR VEHICLE SHARING PROGRAMS 7 Section 3501. Definitions. 8 3502. Requirements for doing business. 9 3503. Liability provisions. 10 3504. Group insurance for personal motor vehicle sharing 11 programs. 12 § 3501. Definitions. In this article the following terms shall have 13 the following definitions: 14 (a) "Motor vehicle" shall: 15 (1) have the meaning set forth in section one hundred twenty-five of 16 the vehicle and traffic law; 17 (2) have a gross weight rating of ten thousand pounds or less; and 18 (3) not be used for the commercial delivery or transportation of goods 19 or materials. 20 (b) "Personal passenger motor vehicle" means a motor vehicle owned and 21 registered in the state, and insured or subject to being insured under a 22 private passenger motor vehicle liability insurance policy insuring a 23 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. LBD04829-01-7S. 427 2 1 named insured, but does not include a motor vehicle with fewer than four 2 wheels. 3 (c) "Personal motor vehicle sharing" means the use of private passen- 4 ger motor vehicles by persons other than the vehicles' owner, in 5 connection with a personal motor vehicle sharing program. 6 (d) "Personal motor vehicle sharing program" means a program engaged 7 in facilitating the sharing of private passenger motor vehicles. 8 (e) "Personal motor vehicle sharing program provider" or "program 9 provider" means the person or entity that is responsible for operating 10 or administering the personal motor vehicle sharing program. 11 (f) "Personal motor vehicle sharing owner" or "owner" means the regis- 12 tered owner of the personal passenger motor vehicle. 13 (g) "Personal motor vehicle sharing renter" or "renter" means a 14 person, other than the vehicle owner, who rents the owner's vehicle 15 through a personal motor vehicle sharing program. 16 (h) "Rental period" shall have the meaning set forth in subsection (c) 17 of section three thousand five hundred three of this article. 18 (i) "Group policy" means an insurance policy issued pursuant to 19 section three thousand five hundred four of this article. 20 § 3502. Requirements for doing business. (a) No private passenger 21 motor vehicle insured or subject to being insured by its owner pursuant 22 to a policy of insurance subject to section three thousand four hundred 23 twenty-five or article fifty-three of this chapter shall be classified 24 as a commercial vehicle, for-hire vehicle, permissive use vehicle, taxi- 25 cab or livery solely because its owner allows it to be used for personal 26 motor vehicle sharing as long as all of the following circumstances 27 apply: 28 (1) the personal motor vehicle sharing is compliant with a personal 29 motor vehicle sharing program as provided for in this article; 30 (2) the owner of the private passenger motor vehicle does not knowing- 31 ly place the vehicle into use as a commercial vehicle or as a vehicle 32 for hire by a personal motor vehicle sharing renter while engaged in 33 personal motor vehicle sharing; and 34 (3) the number of personal passenger motor vehicles a single individ- 35 ual or individuals residing in the same household may enroll in the 36 program before the private passenger motor vehicle liability insurance 37 company may cancel or refuse coverage for such contract solely due to 38 the number of vehicles enrolled under such private passenger motor vehi- 39 cle liability insurance policy shall be limited to four motor vehicles. 40 (b) A program provider shall, for each vehicle that it facilitates the 41 use of, do all of the following: 42 (1) During the rental period for a vehicle engaged in personal motor 43 vehicle sharing, procure group insurance coverage for each vehicle and 44 authorized operator of the vehicle. Such insurance shall, at a minimum, 45 provide for each vehicle coverage at least equal to the minimum insur- 46 ance requirements for private passenger motor vehicles as provided by 47 section three hundred forty-five of the vehicle and traffic law, 48 subsection (a) of section three thousand five hundred four of this arti- 49 cle, article fifty-one of this chapter and such other laws of the state 50 with respect to mandatory liability, uninsured and underinsured, and 51 first-party benefits coverage as may be enacted from time to time. The 52 program provider shall not provide liability coverage less than three 53 times the minimum insurance requirements for private passenger vehicles. 54 The program shall also offer property and casualty coverage including 55 comprehensive and collision protection, as further described inS. 427 3 1 subsections (d) and (e) of section three thousand five hundred four of 2 this article; 3 (2) Provide the registered owner of the motor vehicle with suitable 4 proof of compliance with the insurance requirements of this section and 5 the requirements of sections three hundred eleven and three hundred 6 forty-five of the vehicle and traffic law and article fifty-one of this 7 chapter, a copy of which shall be maintained in the vehicle by the vehi- 8 cle's registered owner during any time when the vehicle is operated by 9 the renter, or person other than the owner pursuant to a personal motor 10 vehicle sharing program; 11 (3) Shall not permit the vehicle to be operated for commercial use or 12 as a vehicle for hire by a personal motor vehicle sharing renter while 13 engaged in personal motor vehicle sharing; 14 (4) Provide each personal motor vehicle renter for each vehicle rental 15 transaction under the personal motor vehicle sharing program at the time 16 of each rental: 17 (A) access to an insurance identification card as defined in subdivi- 18 sion ten of section three hundred eleven of the vehicle and traffic law, 19 or other documentation able to be carried in the vehicle at all times 20 during the rental that insurance coverage referred to in paragraph one 21 of this subsection is in full force and effect; and 22 (B) means via a toll free number, email address or such other form of 23 communication which a law enforcement police officer, a representative 24 of the department of motor vehicles or other officer of this state or 25 any political subdivision thereof may confirm in real time that insur- 26 ance coverage provided for in paragraph one of this subsection is in 27 effect; 28 (5) Shall comply with the requirements of subdivision two of section 29 three hundred twelve of the vehicle and traffic law; 30 (6) Require that the vehicles used in the personal motor vehicle shar- 31 ing program are limited to personal passenger motor vehicles; 32 (7) Facilitate the installation, operation and maintenance of its own 33 signage and computer hardware and software to the extent necessary for 34 the vehicle to be used in the program; 35 (8) Indemnify and hold harmless the vehicle's owner for the cost of 36 damage or theft of equipment installed by the program under paragraph 37 seven of this subsection for any damage caused to the vehicle by the 38 installation, operation or maintenance of such equipment; 39 (9) Collect, maintain and make available to the vehicle's owner, the 40 owner's primary motor vehicle liability insurer, the renter's primary 41 automobile insurer, excess or umbrella insurer and any government agency 42 as required by law, within ten business days of a request at the cost of 43 the program, the following information pertaining to incidents which 44 occurred during the renter's rental period: 45 (A) verifiable records of the program use period for each vehicle, and 46 (to the extent electronic equipment for monitoring the following infor- 47 mation is installed in the vehicle) verifiable electronic records of the 48 time, initial and final locations of the vehicle, and (to the extent 49 mileage is collected) miles driven; and 50 (B) in instances where an insurance claim has been filed with a group 51 insurer, any and all information relevant to the claim, including 52 payments by the program concerning accidents, damages and injuries; and 53 (10) Ensure that the owner and renter are given notice prior to the 54 first use or operation of a motor vehicle pursuant to enrollment in a 55 personal motor vehicle sharing program, that:S. 427 4 1 (A) during the rental period, the owner's insurer may exclude any and 2 all coverage afforded to its policy and the owner's insurer, shall have 3 the right to notify an insured that it shall have no duty to defend or 4 indemnify any person or organization for liability for any loss that 5 occurs during the rental period; and 6 (B) the group policy and physical damage coverage contract may not 7 provide coverage outside of the rental period. 8 § 3503. Liability provisions. (a) Notwithstanding any other provision 9 of law or any provision in a private passenger motor vehicle owner's 10 automobile insurance policy, in the event of a loss or injury that 11 occurs during the rental period or while the personal motor vehicle is 12 otherwise under the control of a personal motor vehicle sharing program 13 provider, subject to subsection (h) of this section the program provider 14 shall be deemed the owner of the vehicle under section three hundred 15 eighty-eight of the vehicle and traffic law and such other statutes that 16 may impose liability upon an owner of a private passenger motor vehicle 17 solely based on such ownership as if the program provider were the owner 18 of the vehicle. The program provider shall retain such liability irre- 19 spective of a lapse in the insurance policy of the program or whether 20 such liability is covered under the insurance policy of the program. 21 (b) Section three hundred eighty-eight of the vehicle and traffic law 22 shall not apply to the personal motor vehicle owner while the vehicle is 23 under the possession and control of a personal motor vehicle sharing 24 renter or otherwise under the control of a personal motor vehicle shar- 25 ing program. Nothing in this section shall limit the liability of the 26 program provider for its acts or omissions, or limit the liability of 27 the personal motor vehicle sharing renter for the renter's acts or omis- 28 sions, that result in injury to any persons as a result of the use or 29 operation of a motor vehicle while in custody of a personal motor vehi- 30 cle sharing program. Nothing in this section shall limit the ability of 31 the program to, by contract, seek indemnification from the vehicle's 32 registered owner for any claims paid by the program for any loss or 33 injury resulting from fraud or material intentional misrepresentation by 34 the vehicle's registered owner, provided that the vehicle sharing 35 program discloses in the contract that: 36 (1) the program is entitled to seek indemnification in these circum- 37 stances; and 38 (2) the registered owner's insurance policy may not provide defense or 39 indemnification for any loss or injury resulting from fraud or material 40 intentional misrepresentation. 41 (c) A program provider's group policy shall provide coverage during 42 the rental period as recorded in the program provider's records for an 43 owner's motor vehicle registered in this state, from when the renter 44 takes possession and control of the vehicle, or when otherwise under the 45 control of the program provider and the program provider shall continue 46 to be liable pursuant to this section until both of the following occur: 47 (1) the personal passenger motor vehicle is retrieved by the owner, or 48 returned to a location agreed to by the owner and renter, or designated 49 by the personal motor vehicle sharing program; and 50 (2) one of the following occurs: 51 (A) the expiration of the time period established for the particular 52 use of the vehicle; 53 (B) the intent to terminate the personal motor vehicle sharing use is 54 verifiably communicated to the program provider or the owner; or 55 (C) the vehicle's owner takes possession and control of the personal 56 passenger motor vehicle.S. 427 5 1 (d) The insurer or insurers providing group liability insurance to the 2 personal motor vehicle sharing program pursuant to subsection (a) of 3 section three thousand five hundred four of this article and group phys- 4 ical damage insurance to the personal motor vehicle sharing program 5 pursuant to subsection (d) of section three thousand five hundred four 6 of this article shall assume liability for a claim in which a dispute 7 exists regarding who was in control of the vehicle when the loss 8 occurred giving rise to the claim, and the owner's private passenger 9 motor vehicle insurer shall indemnify the personal motor vehicle sharing 10 program's group insurer or insurers to the extent of its obligation 11 under the applicable insurance policy, if it is determined that the 12 vehicle's owner was in control of the vehicle at the time of the loss. 13 The program shall notify the registered owner's insurer of any such 14 dispute within ten business days of becoming aware that such a dispute 15 exists. 16 (e) In the event that the owner of the vehicle or its insurer is named 17 as a defendant in a civil action for a loss or injury that occurs during 18 any time within the rental period, or otherwise under the control of a 19 personal motor vehicle sharing program, the personal motor vehicle shar- 20 ing program's group liability insurance insurer under subsection (a) of 21 section three thousand five hundred four of this article shall have the 22 duty to defend and indemnify the vehicle's owner and the vehicle owner's 23 insurer, subject to the provisions of subsections (b) and (d) of this 24 section. 25 (f) Notwithstanding any other provision of law to the contrary, while 26 a personal passenger motor vehicle is used by or under the control of a 27 person other than its owner, pursuant to personal vehicle sharing facil- 28 itated through a personal vehicle sharing program, all of the following 29 shall apply: 30 (1) the insurer of that vehicle on file with the department of motor 31 vehicles may exclude any and all coverage for liability, uninsured, 32 underinsured, collision physical damage and comprehensive physical 33 damage benefits and first-party benefits that may otherwise be afforded 34 pursuant to its policy; and 35 (2) the primary and excess insurer or insurers of the owner of the 36 personal passenger motor vehicle used in a personal vehicle sharing 37 program shall have the right to notify the insured that it has no duty 38 to defend or indemnify any person or organization for liability for any 39 loss that occurs during the rental period of the vehicle in a personal 40 vehicle sharing program. 41 (g) No vehicle owner's policy of insurance that is subject to section 42 three thousand four hundred twenty-five of this chapter shall be 43 cancelled, voided, terminated, rescinded, non-renewed, solely on the 44 basis that the personal passenger motor vehicle has been made available 45 for personal vehicle sharing pursuant to a personal vehicle sharing 46 program that is in compliance with the provisions of this section. 47 Provided, however that: 48 (1) the provisions of this subsection shall not pertain to non-rene- 49 wals in accordance with the provisions of subsection (f) of section 50 three thousand four hundred twenty-five of this chapter; 51 (2) an insurer may refuse to enroll a vehicle in a usage-based insur- 52 ance program, where such usage-based insurance program continually moni- 53 tors usage electronically to determine acceleration, braking, miles 54 driven and other indicia of driving behavior, if that vehicle is used in 55 a personal vehicle sharing program under this article; andS. 427 6 1 (3) an insurer may cancel or non-renew a policy that insures a vehicle 2 used in the personal vehicle sharing program if that vehicle is enrolled 3 in such a usage-based insurance program. The insurer must immediately 4 offer the insured a new policy with the same coverages and pre-existing 5 rates, but without enrollment in the usage-based insurance program. 6 (h) Notwithstanding any other provision of law, a personal motor vehi- 7 cle owner that makes a vehicle available for utilization in a personal 8 motor vehicle sharing program, and the personal motor vehicle sharing 9 program provider, shall not be subject to vicarious liability in accord- 10 ance with the relevant provisions of federal law, or under section three 11 hundred eighty-eight of the vehicle and traffic law or under any similar 12 law that imposes liability solely based on vehicle ownership. 13 § 3504. Group insurance for personal motor vehicle sharing programs. 14 (a) An insurer which is authorized or eligible to do business in the 15 state may issue, or issue for delivery in this state, a group policy of 16 liability and property and casualty insurance to a personal motor vehi- 17 cle sharing program provider to insure the personal motor vehicle shar- 18 ing program, and its renters and occupants of the personal passenger 19 motor vehicle, as well as the program provider, its agents, employees, 20 directors, officers and assigns; and 21 (1) that such policy shall provide first party coverage, liability, 22 property, comprehensive, collision, and uninsured/underinsured motorist 23 coverage for the personal passenger motor vehicle and its authorized 24 operators and occupants for claims and damages resulting from the use or 25 operation of that vehicle during the rental period; 26 (2) that such policy shall be primary with respect to any other insur- 27 ance available to the owner of the personal passenger motor vehicle and 28 shall be excess over any other insurance available to the personal motor 29 vehicle sharing renter; and 30 (3) that such insurer shall comply with the provisions of sections 31 three hundred twelve-a and three hundred thirteen of the vehicle and 32 traffic law; and 33 (4) that for the purposes of group insurance written under this 34 section only, the rates charged by the insurer for group liability 35 insurance as provided for in this section shall be filed with the 36 department of financial services on a file and use basis. 37 (b) An insurer which issues an insurance policy described in 38 subsection (a) of this section shall issue such policy identifying the 39 personal motor vehicle sharing program and program provider as the named 40 insured; and any such policy shall include a provision that provides 41 coverage, without prior notice to the insurer, for all personal passen- 42 ger motor vehicles during the rental period and such policy shall 43 further include a provision that the vehicles' renters, authorized oper- 44 ators and occupants are included as insureds under the policy to the 45 same extent that they would be insureds under a private passenger motor 46 vehicle policy issued pursuant to section three thousand four hundred 47 twenty-five of this chapter and section three hundred eleven of the 48 vehicle and traffic law. 49 (c) A group policy as provided for in subsections (a) and (b) of this 50 section shall only be issued in accordance with the provisions of this 51 article. 52 (d) A program provider may contractually assume the risk of physical 53 damage loss to personal passenger motor vehicles during the time that 54 the vehicles are in the custody of the personal motor vehicle renter or 55 personal motor vehicle sharing program; andS. 427 7 1 (1) that the terms of such contractual assumption may provide that the 2 program provider is assuming the risk of physical damage loss to the 3 vehicle in excess of a sum certain; 4 (2) that such assumption of risk of physical damage loss to the vehi- 5 cle shall not be deemed to be physical damage insurance; and 6 (e) An insurer which is authorized or eligible to do business in the 7 state may issue a group policy of physical damage insurance to a 8 personal motor vehicle sharing program and to the owners of personal 9 passenger motor vehicles participating in that program to insure against 10 physical damage loss to vehicles while the vehicles are in the custody 11 of the personal motor vehicle sharing program or personal motor vehicle 12 sharing renter. Such group policy shall provide primary coverage for 13 physical damage loss either by collision, comprehensive, or both, to the 14 vehicle while it is in the custody of the personal motor vehicle sharing 15 program or a personal motor vehicle sharing renter. 16 (f) If the group coverage provided for in subsection (e) of this 17 section is placed with an eligible excess line insurer, compliance with 18 the excess line statutes and regulations of this state shall be 19 performed with respect to the group as a whole and not with respect to 20 individual group members. 21 (g) An insurer which issues a group insurance policy described in 22 subsection (e) of this section shall issue such policy identifying the 23 personal motor vehicle sharing program as the named insured, and any 24 such policy shall include a provision that provides primary coverage, 25 without prior notice to the insurer, for all personal passenger motor 26 vehicles during the rental period, and shall further include a provision 27 that claims will be adjusted pursuant to section three thousand four 28 hundred twelve of this chapter, and it shall further include physical 29 damage coverage for damage or loss to the owner's vehicle incurred 30 during the rental period at a level no less than that of third party 31 physical damage coverage. 32 (h) A group policy as provided for in subsections (e), (f) and (g) of 33 this section shall only be issued in accordance with the provisions of 34 this section. 35 § 3. Subdivision 4 of section 311 of the vehicle and traffic law is 36 amended by adding a new paragraph (e) to read as follows: 37 (e) In the case of a personal passenger motor vehicle, as defined in 38 section three thousand five hundred one of the insurance law, that is 39 used in connection with a personal motor vehicle sharing program as 40 defined in such section, the insurance requirements set forth in para- 41 graph (a) of this subdivision shall be met by a group insurance policy 42 issued pursuant to section three thousand five hundred four of the 43 insurance law to a program provider and to the personal motor vehicle 44 sharing renters of that program for any time that the vehicle is being 45 used in connection with the personal motor vehicle sharing program. 46 § 4. Subdivisions 2, 3, 4 and 5 of section 312 of the vehicle and 47 traffic law are renumbered subdivisions 3, 4, 5 and 6, and a new subdi- 48 vision 2 is added to read as follows: 49 2. In the case of financial security procured by a program provider of 50 a personal motor vehicle sharing program as set forth in section three 51 thousand five hundred four of the insurance law, the program provider 52 shall provide the commissioner with proof of financial security in the 53 form of a group insurance policy covering itself and the owners of all 54 personal passenger motor vehicles registered in this state that partic- 55 ipate in the program as insured group members, covering those vehicles 56 while they are being used in conjunction with that program. Such proofS. 427 8 1 shall not be used in connection with the registration of the vehicles 2 and no such vehicle shall be registered unless the owner of the vehicle 3 separately complies with subdivision one of this section. 4 § 5. Subdivision 1 of section 312-a of the vehicle and traffic law, as 5 amended by chapter 781 of the laws of 1983, is amended to read as 6 follows: 7 1. Upon issuance of an owner's policy of liability insurance, a group 8 liability insurance policy issued to a program provider of a personal 9 motor vehicle sharing program pursuant to section three thousand five 10 hundred four of the insurance law or other financial security required 11 by this chapter, an insurer shall issue proof of insurance in accordance 12 with the regulations promulgated by the commissioner pursuant to para- 13 graph (b) of subdivision two of section three hundred thirteen of this 14 article. 15 § 6. Paragraphs (a) and (b) of subdivision 2 of section 313 of the 16 vehicle and traffic law, as amended by chapter 509 of the laws of 1998, 17 are amended to read as follows: 18 (a) Upon the termination of an owner's policy of liability insurance 19 or a group liability insurance policy issued to a program provider of a 20 personal motor vehicle sharing program pursuant to section three thou- 21 sand five hundred four of the insurance law, other than an owner's poli- 22 cy of liability insurance for a motorcycle, at the request of the 23 insured or by cancellation by the insurer, the insurer shall file a 24 notice of termination with reference to such policy, as opposed to any 25 insured vehicle or vehicles under such policy, with the commissioner not 26 later than thirty days following the effective date of such cancellation 27 or other termination, in accordance with the regulations required by 28 paragraph (c) of this subdivision. An insurer shall not file a notice of 29 termination with the commissioner except as required by this subdivi- 30 sion. 31 (b) Upon the issuance of an owner's policy of liability insurance or 32 a group liability insurance policy issued to a program provider of a 33 personal motor vehicle sharing program pursuant to section three thou- 34 sand five hundred four of the insurance law, the insurer shall file a 35 notice or confirmation of issuance with reference to such policy not 36 later than fourteen days following the effective date of such issuance, 37 and not later than seven days following the effective date for policies 38 issued after January first, two thousand one, in accordance with the 39 regulations required by paragraph (c) of this subdivision. 40 § 7. Consent orders. All consent orders agreed to by the department of 41 financial services, concerning allegations of unauthorized and/or unlaw- 42 ful operation of a car sharing program in the state of New York, and 43 involving incidents which allegedly occurred prior to the effective date 44 of this act, shall be deemed, satisfied, expired, discontinued and non- 45 renewable by all parties, on and after the effective date of this act. 46 § 8. This act shall take effect immediately.
