Bill Text: NY A06181 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts the "personal motor vehicle sharing act"; defines terms; defines "personal motor vehicle sharing program" as a program engaged in facilitating the sharing of private passenger motor vehicles; provides that no personal passenger motor vehicle insured shall be classified as a commercial vehicle, for-hire vehicle, permissive use vehicle, taxicab, livery or any other type of vehicle operated for commercial use solely because the personal motor vehicle sharing owner allows it to be used for personal motor vehicle sharing when the owner is a party to a valid contract with a personal motor vehicle sharing program and the owner has not knowingly placed such personal passenger motor vehicle into use as a commercial vehicle or as a vehicle for hire; makes related provisions.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2017-02-27 - referred to insurance [A06181 Detail]
Download: New_York-2017-A06181-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6181 2017-2018 Regular Sessions IN ASSEMBLY February 27, 2017 ___________ Introduced by M. of A. MOYA -- 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: 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) "Authorized operator" means a person, other than the owner or 15 renter, who operates a personal passenger motor vehicle during the shar- 16 ing period and who has been approved by the program to operate such 17 personal passenger motor vehicle. 18 (b) "Commissioner" means the commissioner of motor vehicles. 19 (c) "Motor vehicle" shall: 20 (1) have the meaning set forth in section one hundred twenty-five of 21 the vehicle and traffic law; 22 (2) have a gross weight rating of ten thousand pounds or less; and 23 (3) not be used for the commercial delivery or transportation of goods 24 or materials. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07230-01-7A. 6181 2 1 (d) "Personal passenger motor vehicle" means a motor vehicle owned and 2 registered in the state, and insured or subject to being insured under a 3 private passenger motor vehicle liability insurance policy insuring a 4 single individual or individuals residing in the same household, as the 5 named insured, but does not include a motor vehicle with fewer than four 6 wheels. 7 (e) "Personal motor vehicle sharing" means the use of private passen- 8 ger motor vehicles by persons other than the vehicles' owner, in 9 connection with a personal motor vehicle sharing program. 10 (f) "Personal motor vehicle sharing program" or "program" means a 11 program engaged in facilitating the sharing of private passenger motor 12 vehicles. 13 (g) "Personal motor vehicle sharing owner" or "owner" means a person, 14 other than a lienholder, having the property in or title to the personal 15 passenger motor vehicle. 16 (h) "Personal motor vehicle sharing renter" or "renter" means a 17 person, other than the personal motor vehicle sharing owner, who rents 18 the personal motor vehicle sharing owner's vehicle through a personal 19 motor vehicle sharing program. 20 (i) "Sharing period" shall have the meaning set forth in subsection 21 (c) of section three thousand five hundred three of this article. 22 (j) "Group policy" means an insurance policy issued pursuant to 23 section three thousand five hundred four of this article. 24 (k) "Permissive user" means any person using or operating a personal 25 passenger motor vehicle with the permission, express or implied, of a 26 renter in accordance with section three hundred eighty-eight of the 27 vehicle and traffic law. 28 § 3502. Requirements for doing business. (a) No personal passenger 29 motor vehicle insured shall be classified as a commercial vehicle, for- 30 hire vehicle, permissive use vehicle, taxicab, livery or any other type 31 of vehicle operated for commercial use solely because the personal motor 32 vehicle sharing owner allows it to be used for personal motor vehicle 33 sharing when the owner is a party to a valid contract with a personal 34 motor vehicle sharing program, and the owner has not knowingly placed 35 the personal passenger motor vehicle into use as a commercial vehicle or 36 as a vehicle for hire by a personal motor vehicle sharing renter while 37 engaged in personal motor vehicle sharing. 38 (b) A program shall, for each personal passenger motor vehicle that it 39 facilitates the use of, do all of the following: 40 (1) During the sharing period for a personal passenger motor vehicle 41 engaged in personal motor vehicle sharing, procure group insurance 42 coverage for each vehicle and authorized operator of the vehicle. Such 43 insurance shall, at a minimum, provide for each vehicle coverage at 44 least equal to the minimum insurance requirements for private passenger 45 motor vehicles as provided by section three hundred forty-five of the 46 vehicle and traffic law, subsection (a) of section three thousand five 47 hundred four of this article, section three thousand four hundred twenty 48 of this chapter, article fifty-one of this chapter and such other laws 49 of the state with respect to mandatory liability and first-party bene- 50 fits coverage, or coverage as otherwise required under this article. The 51 program shall provide liability coverage of one million dollars. The 52 program shall also provide property and casualty coverage including 53 comprehensive and collision protection, as further described in 54 subsection (d) of section three thousand five hundred four of this arti- 55 cle;A. 6181 3 1 (2) Provide the personal motor vehicle sharing owner with proof of 2 compliance with the insurance requirements of this section and the 3 requirements of sections three hundred eleven and three hundred forty- 4 five of the vehicle and traffic law and article fifty-one of this chap- 5 ter in such form as the commissioner may prescribe or approve. A copy of 6 such proof shall be maintained in the vehicle by the personal motor 7 vehicle sharing owner during any time when the vehicle is operated by 8 the renter or authorized operator pursuant to a personal motor vehicle 9 sharing program; 10 (3) Shall not permit the vehicle to be operated for commercial use or 11 as a vehicle for hire by a personal motor vehicle sharing renter or 12 authorized operator while engaged in personal motor vehicle sharing; 13 (4) Provide each personal motor vehicle renter and authorized operator 14 for each vehicle rental transaction under the personal motor vehicle 15 sharing program at the time of each rental: 16 (A) access to the insurance identification card as defined in subdivi- 17 sion ten of section three hundred eleven of the vehicle and traffic law 18 applicable to such personal passenger motor vehicle and such other 19 documentation to be carried in the vehicle at all times during the shar- 20 ing period, stating in such form as the commissioner may prescribe or 21 approve that insurance coverage referred to in paragraph one of this 22 subsection is in full force and effect; and 23 (B) means of communication, in such form as the commissioner may 24 prescribe or approve, by which a police officer, the department of motor 25 vehicles or other officer of this state or any political subdivision 26 thereof may confirm in real time that the insurance coverage provided 27 for in paragraph one of this subsection is in 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 personal passenger motor vehicle to be used in the program; 35 (8) Indemnify and hold harmless the personal motor vehicle sharing 36 owner for the cost of damage or theft of equipment installed by the 37 program under paragraph seven of this subsection and for any damage 38 caused to the personal passenger motor vehicle by the installation, 39 operation or maintenance of such equipment; 40 (9) Collect, maintain and make available to the personal motor vehicle 41 sharing owner, the personal motor vehicle sharing owner's primary motor 42 vehicle liability insurer, the renter's and authorized operator's prima- 43 ry automobile insurer if applicable, any applicable excess or umbrella 44 insurer, and third parties involved in accidents with a renter, in 45 instances where an insurance claim has been filed with the program's 46 group insurer, the following information pertaining to incidents which 47 occurred during the renter's sharing period: 48 (A) verifiable records of the program use period for each personal 49 passenger motor vehicle, and verifiable electronic records of the time, 50 initial and final locations of the vehicle, and miles driven during the 51 program use period in which such incident occurred; 52 (B) any and all information relevant to the claim, including payments 53 by the program concerning accidents, damages and injuries; and 54 (C) the program shall also provide the department of motor vehicles 55 with a list of the personal passenger motor vehicles that participate inA. 6181 4 1 the program which shall be updated by the program each time a new owner 2 becomes a party to a valid contract with the program. 3 (10) Ensure that the personal motor vehicle sharing owner, renter and 4 authorized operator are given notice prior to the first use or operation 5 of a motor vehicle pursuant to enrollment in a personal motor vehicle 6 sharing program, that: 7 (A) during the sharing period, the personal motor vehicle sharing 8 owner's insurer may exclude any and all coverage afforded to its policy 9 and the personal motor vehicle sharing owner's insurer shall have the 10 right to notify an insured that it shall have no duty to defend or 11 indemnify any person or organization for liability for any loss that 12 occurs during the sharing period; and 13 (B) the group policy and physical damage coverage contract may not 14 provide coverage outside of the sharing period. 15 (11) Shall not charge fees associated with a claim above and beyond 16 the deductible as required in the group policy. 17 § 3503. Liability provisions. (a) Notwithstanding any other provision 18 of law or any provision in a personal motor vehicle sharing owner's 19 automobile insurance policy, in the event of a loss or injury that 20 occurs during the sharing period, as defined in this section, or while 21 the personal passenger motor vehicle is otherwise under the control of a 22 personal motor vehicle sharing program, the program is liable. This 23 liability will extend to all permissive users of the shared vehicle 24 during the sharing period. 25 (b) Section three hundred eighty-eight of the vehicle and traffic law 26 shall apply to the vehicle's owner while the vehicle is under the 27 possession and control of a personal motor vehicle sharing renter or 28 otherwise under the control of a personal motor vehicle sharing program. 29 Nothing in this section shall limit the liability of the program for its 30 acts or omissions, or limit the liability of the personal motor vehicle 31 sharing renter for the renter's acts or omissions, that result in injury 32 to any persons as a result of the use or operation of a motor vehicle 33 while in custody of a personal motor vehicle sharing program. Nothing in 34 this section shall limit the ability of the personal motor vehicle shar- 35 ing program to, by contract, seek indemnification from the vehicle's 36 registered owner for any claims paid by the personal motor vehicle shar- 37 ing program for any loss or injury resulting from fraud or material 38 intentional misrepresentation by the personal motor vehicle sharing 39 owner, provided that the personal motor vehicle sharing program 40 discloses in the contract that: 41 (1) the personal motor vehicle sharing program is entitled to seek 42 indemnification in these circumstances; and 43 (2) the personal motor vehicle sharing owner's insurance policy may 44 not provide defense or indemnification for any loss or injury resulting 45 from fraud or material intentional misrepresentation. For the purposes 46 of this section a vehicle owner's participation in the personal motor 47 vehicle sharing program will not constitute a fraud or a material 48 misrepresentation. 49 (c) A program's group policy shall provide coverage during the sharing 50 period as recorded in the program's records for a personal motor vehicle 51 sharing owner's motor vehicle registered in this state, from when the 52 renter takes possession and control of the shared vehicle, or when 53 otherwise under the control of the program and the program shall contin- 54 ue to be liable pursuant to this section until the personal passenger 55 motor vehicle is returned to a location agreed to by the personal motor 56 vehicle sharing owner and renter, or designated by the program. TheA. 6181 5 1 shared vehicle will be deemed to be in control by the program until the 2 vehicle has been returned to the agreed upon location, irrespective of 3 any temporal reservation period. 4 (d) The insurer or insurers providing group liability insurance to the 5 personal motor vehicle sharing program pursuant to subsection (a) of 6 section three thousand five hundred four of this article and group phys- 7 ical damage insurance to the personal motor vehicle sharing program 8 pursuant to subsection (d) of section three thousand five hundred four 9 of this article shall assume liability for a claim in which a dispute 10 exists regarding who was in control of the vehicle when the loss 11 occurred giving rise to the claim, and the personal motor vehicle shar- 12 ing owner's private passenger motor vehicle insurer shall indemnify the 13 personal motor vehicle sharing program's group insurer or insurers to 14 the extent of its obligation under the applicable insurance policy, if 15 it is determined that the personal motor vehicle sharing owner was in 16 control of the vehicle at the time of the loss. Such a dispute as to 17 control shall be adjudicated pursuant to subsection (b) of section five 18 thousand one hundred five of this chapter. The personal motor vehicle 19 sharing program shall notify the personal motor vehicle sharing owner's 20 private insurer of any such dispute within fifteen business days of 21 becoming aware that such a dispute exists. 22 (e) In the event that a personal motor vehicle sharing owner or a 23 personal motor vehicle sharing owner's insurer is named as a defendant 24 in a civil action for a loss or injury that occurs during any time with- 25 in the sharing period, or otherwise under the control of a personal 26 motor vehicle sharing program, the personal motor vehicle sharing 27 program's group liability insurance insurer under subsection (a) of 28 section three thousand five hundred four of this article shall have the 29 duty to defend and indemnify the personal motor vehicle sharing owner 30 and the personal motor vehicle sharing owner's insurer, subject to the 31 provisions of subsections (b) and (d) of this section. The personal 32 motor vehicle sharing program shall notify the personal passenger motor 33 vehicle's private owner and his or her private insurance of the program 34 insurer's duty to defend and indemnify within fifteen days of the duty. 35 (f) No personal motor vehicle sharing owner's policy of insurance that 36 is subject to section three thousand four hundred twenty-five of this 37 chapter shall be cancelled, voided, terminated, rescinded, or non-re- 38 newed, solely on the basis that the personal passenger motor vehicle has 39 been made available for personal vehicle sharing pursuant to a personal 40 vehicle sharing program that is in compliance with the provisions of 41 this section. For the purposes of this section participation in the 42 personal motor vehicle sharing program shall not constitute fraud or 43 misrepresentation by the vehicle owner. Provided, however that the 44 provisions of this subsection shall not pertain to cancellations in 45 accordance with the provisions of subsection (f) of section three thou- 46 sand four hundred twenty-five of this chapter. 47 § 3504. Group insurance for personal motor vehicle sharing programs. 48 (a) An insurer which is authorized or eligible to do business in the 49 state may issue, or issue for delivery in this state, a group policy of 50 liability and property and casualty insurance to a personal motor vehi- 51 cle sharing program to insure the personal motor vehicle sharing 52 program, renters, authorized operators and occupants of the personal 53 passenger motor vehicle, as well as the program's agents, employees, 54 directors, officers and assigns; and 55 (1) such group policy shall provide first party coverage, liability, 56 property, comprehensive, collision, and uninsured/underinsured motoristA. 6181 6 1 coverage for the personal passenger motor vehicle and its renters, 2 authorized operators and occupants for claims and damages resulting from 3 the use or operation of that vehicle during the sharing period; 4 (2) such group policy shall be primary with respect to any other 5 insurance available to the personal motor vehicle sharing owner and 6 shall be primary over any other insurance available to the personal 7 motor vehicle sharing renter; 8 (3) such insurer shall comply with the provisions of sections three 9 hundred twelve-a and three hundred thirteen of the vehicle and traffic 10 law; and 11 (4) for the purposes of group insurance written under this section 12 only, the rates charged by the insurer for group liability insurance as 13 provided for in this section shall be subject to prior approval in 14 accordance with subsection (b) of section two thousand three hundred 15 five of this chapter. 16 (b) An insurer which issues an insurance policy described in 17 subsection (a) of this section shall issue such policy identifying the 18 personal motor vehicle sharing program as the named insured; and any 19 such group policy shall include a provision that provides coverage, 20 without prior notice to the insurer, for all personal passenger motor 21 vehicles during the sharing period and such policy shall further include 22 a provision that such vehicles' renters, authorized operators and occu- 23 pants are included as insureds under the policy to the same extent that 24 they would be insureds under a private passenger motor vehicle policy 25 issued pursuant to section three thousand four hundred twenty-five of 26 this chapter and section three hundred eleven of the vehicle and traffic 27 law. 28 (c) A group policy as provided for in subsections (a) and (b) of this 29 section shall only be issued in accordance with the provisions of this 30 article. 31 (d) An insurer which is authorized or eligible to do business in the 32 state may issue a group policy of physical damage insurance to a 33 personal motor vehicle sharing program to insure against physical damage 34 or loss to personal passenger motor vehicles while such vehicles are in 35 the custody of the personal motor vehicle sharing program, personal 36 motor vehicle sharing renter or authorized operator. Such group policy 37 shall provide primary coverage for physical damage or loss either by 38 collision, comprehensive, or both, to the personal passenger motor vehi- 39 cle while it is in the custody of the personal motor vehicle sharing 40 program, a personal motor vehicle sharing renter or authorized operator. 41 (e) An insurer which issues a group insurance policy described in 42 subsection (d) of this section shall issue such policy identifying the 43 personal motor vehicle sharing program as the named insured, and any 44 such policy shall include a provision that provides primary coverage, 45 without prior notice to the insurer, for all personal passenger motor 46 vehicles during the sharing period, and shall further include a 47 provision that claims will be adjusted pursuant to section three thou- 48 sand four hundred twelve of this chapter, and it shall further include 49 physical damage coverage for damage or loss to the owner's personal 50 passenger motor vehicle incurred during the sharing period at a level no 51 less than that of third party physical damage coverage. 52 (f) A group policy as provided for in subsections (d) and (e) of this 53 section shall only be issued in accordance with the provisions of this 54 section. 55 (g) A group policy shall not have any deductible or associated fees 56 exceeding five hundred dollars.A. 6181 7 1 § 3. Subdivision 4 of section 311 of the vehicle and traffic law is 2 amended by adding a new paragraph (e) to read as follows: 3 (e) In the case of a personal passenger motor vehicle that is used in 4 connection with a personal motor vehicle sharing program, a group insur- 5 ance policy issued pursuant to section three thousand five hundred four 6 of the insurance law on such vehicle and to the renters and authorized 7 operators of such vehicles shall be valid for any time that the vehicle 8 is being used in connection with such personal motor vehicle sharing 9 program. For the purposes of this paragraph, the terms "personal passen- 10 ger motor vehicle" and "personal motor vehicle sharing program" shall 11 have the same meaning as such terms are defined by section three thou- 12 sand five hundred one of the insurance law. 13 § 4. Section 312 of the vehicle and traffic law is amended by adding a 14 new subdivision 1-a to read as follows: 15 1-a. In the case of financial security procured by a personal motor 16 vehicle sharing program as set forth in section three thousand five 17 hundred four of the insurance law, the program shall provide the commis- 18 sioner with proof of financial security in the form of a group insurance 19 policy covering itself and the owners of all motor vehicles registered 20 in this state that participate in the program as insured group members, 21 covering those vehicles while they are being used in conjunction with 22 that program. Notwithstanding the foregoing, nothing contained in this 23 subdivision shall be deemed to supersede the requirements of subdivision 24 one of this section. 25 § 5. Subdivision 1 of section 312-a of the vehicle and traffic law, as 26 amended by chapter 781 of the laws of 1983, is amended to read as 27 follows: 28 1. Upon issuance of an owner's policy of liability insurance, a group 29 liability insurance policy issued to a personal motor vehicle sharing 30 program pursuant to section three thousand five hundred four of the 31 insurance law or other financial security required by this chapter, an 32 insurer shall issue proof of insurance in accordance with the regu- 33 lations promulgated by the commissioner pursuant to paragraph (b) of 34 subdivision two of section three hundred thirteen of this article. 35 § 6. Paragraphs (a) and (b) of subdivision 2 of section 313 of the 36 vehicle and traffic law, as amended by chapter 509 of the laws of 1998, 37 are amended to read as follows: 38 (a) Upon the termination of an owner's policy of liability insurance 39 or a group liability insurance policy issued to a personal motor vehicle 40 sharing program pursuant to section three thousand five hundred four of 41 the insurance law, other than an owner's policy of liability insurance 42 for a motorcycle, at the request of the insured or by cancellation by 43 the insurer, the insurer shall file a notice of termination with refer- 44 ence to such policy, as opposed to any insured vehicle or vehicles under 45 such policy, with the commissioner not later than thirty days following 46 the effective date of such cancellation or other termination, in accord- 47 ance with the regulations required by paragraph (c) of this subdivision. 48 An insurer shall not file a notice of termination with the commissioner 49 except as required by this subdivision. 50 (b) Upon the issuance of an owner's policy of liability insurance or a 51 group liability insurance policy issued to a personal motor vehicle 52 sharing program pursuant to section three thousand five hundred four of 53 the insurance law, the insurer shall file a notice or confirmation of 54 issuance with reference to such policy not later than fourteen days 55 following the effective date of such issuance, and not later than seven 56 days following the effective date for policies issued after JanuaryA. 6181 8 1 first, two thousand one, in accordance with the regulations required by 2 paragraph (c) of this subdivision. 3 § 7. Consent orders. All consent orders agreed to by the department of 4 financial services, concerning allegations of unauthorized and/or unlaw- 5 ful operation of a car sharing program in the state of New York, and 6 involving incidents which allegedly occurred prior to the effective date 7 of this act, shall be deemed, satisfied, expired, discontinued and non- 8 renewable by all parties, on and after the effective date of this act. 9 § 8. This act shall take effect immediately.
