Bill Text: NY S00568 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Increases the minimum insurance coverage requirements for motor vehicles rented or leased in the state.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO TRANSPORTATION [S00568 Detail]
Download: New_York-2019-S00568-Introduced.html
Bill Title: Increases the minimum insurance coverage requirements for motor vehicles rented or leased in the state.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO TRANSPORTATION [S00568 Detail]
Download: New_York-2019-S00568-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 568 2019-2020 Regular Sessions IN SENATE (Prefiled) January 9, 2019 ___________ Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation 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, 23 or elsewhere in the United States in North America or the Dominion of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05489-01-9S. 568 2 1 Canada, subject to a limit, exclusive of interest and costs, with 2 respect to each such motor vehicle except a tow truck or a motor vehicle 3 which is rented or leased from a person, organization or business regu- 4 larly engaged in the business of renting or leasing motor vehicles to 5 the general public, of twenty-five thousand dollars because of bodily 6 injuries to and fifty thousand dollars because of death of one person in 7 any one accident and, subject to said limit for one person, to a limit 8 of fifty thousand dollars because of bodily injury to and one hundred 9 thousand dollars because of death of two or more persons in any one 10 accident, and to a limit of ten thousand dollars because of injury to or 11 destruction of property of others in any one accident provided, however, 12 that such policy need not be for a period coterminous with the registra- 13 tion period of the vehicle insured. The limit, exclusive of interest and 14 costs, with respect to a tow truck shall be a combined single limit of 15 at least three hundred thousand dollars because of bodily injury or 16 death to one or more persons or because of injury or destruction of 17 property of others in any one accident, and to a limit of twenty-five 18 thousand dollars because of damage to a vehicle in the care, custody and 19 control of the insured. The limit, exclusive of interest and costs, 20 with respect to a motor vehicle which is rented or leased from a person, 21 organization or business regularly engaged in the business of renting or 22 leasing motor vehicles to the general public, shall be a combined single 23 limit of at least one million dollars because of bodily injury or death 24 to one or more persons or because of injury or destruction of property 25 of others in any one accident, and to a limit of twenty-five thousand 26 dollars because of damage to a vehicle in the care, custody and control 27 of the insured. Any insurer authorized to issue an owner's policy of 28 liability insurance as provided for in this article may, pending the 29 issue of such a policy, make an agreement, to be known as a binder, or 30 may, in lieu of such a policy, issue a renewal endorsement or evidence 31 of renewal of an existing policy; each of which shall be construed to 32 provide indemnity or protection in like manner and to the same extent as 33 such a policy. The provisions of this article shall apply to such bind- 34 ers, renewal endorsements or evidences of renewal. Every such policy 35 issued insuring private passenger vehicles and every renewal policy, 36 renewal endorsement, or other evidence of renewal issued shall have 37 attached thereto a rating information form which clearly specifies and 38 defines the rating classification assigned thereto, including any appli- 39 cable merit rating plan; and 40 § 2. Section 312 of the vehicle and traffic law is amended by adding a 41 new subdivision 6 to read as follows: 42 6. (a) No motor vehicle shall be leased or rented in this state unless 43 upon the registration of the leased or rented motor vehicle, the appli- 44 cation for such registration is accompanied by proof of financial secu- 45 rity required by section three hundred eleven of this article which 46 shall be evidenced by proof of insurance or evidence of a financial 47 security bond, a financial security deposit or qualification as a self- 48 insurer under section three hundred sixteen of this article; provided, 49 that if directed by regulation of the commissioner, upon renewal of 50 registration an application accompanied by a certificate of registration 51 or renewal stub in force immediately preceding the date of application 52 for renewal, together with a statement in a form prescribed by the 53 commissioner certifying that there is in effect proof of financial secu- 54 rity, shall meet the requirements of this section. Upon the issuance or 55 renewal of a private passenger automobile insurance policy subject to 56 the provisions of section three thousand four hundred twenty-five of theS. 568 3 1 insurance law, the insurance company shall provide the insured with an 2 informational statement outlining the legal and financial consequences 3 of convictions under section eleven hundred ninety-two of this chapter, 4 pertaining to operating a motor vehicle while under the influence of 5 alcohol or drugs. Such information shall be supplied to the company by 6 the state department of financial services in consultation with the 7 commissioner. 8 (b) The owner and registrant if the registrant is different from the 9 owner of such leased or rented motor vehicle shall maintain proof of 10 financial security continuously throughout the registration period and 11 his failure to produce proof of financial security when requested to do 12 so upon demand of a magistrate, motor vehicle inspector, peace officer, 13 acting pursuant to his special duties, or police officer, while such 14 vehicle is being operated upon the public highway, shall be presumptive 15 evidence of operating a motor vehicle without proof of financial securi- 16 ty. Upon the production of proof of financial security such presumption 17 is removed. Production of proof of financial security may be made by 18 mailing such proof to the court having jurisdiction in the matter, and 19 any necessary response by such court or acknowledgement of the 20 production of such proof may also be made by mail. When insurance with 21 respect to any motor vehicle, other than a motorcycle, is terminated the 22 owner shall surrender forthwith their registration certificate and 23 number plates of the vehicle to the commissioner unless proof of finan- 24 cial security otherwise is maintained in compliance with this article. 25 (c) The owner of any leased or rented vehicle that fails to maintain 26 the proof of financial security required above may be held personally 27 liable for any judgment entered against any driver and/or registrant of 28 the leased or rented vehicle for damages sustained as a result of 29 personal injury, wrongful death and/or property damage suffered as a 30 result of the use and operation of the leased or rented vehicle. 31 § 3. Paragraph 3 of subdivision (b) of section 345 of the vehicle and 32 traffic law, as amended by chapter 305 of the laws of 1995, is amended 33 to read as follows: 34 (3) Shall insure the insured, the vehicle operator, or such other 35 person against loss from the liability imposed by law for damages, 36 including damages for care and loss of services because of bodily injury 37 to or death of any person and injury to or destruction of property aris- 38 ing out of the ownership, maintenance, use, or operation of such motor 39 vehicle or motor vehicles within the state of New York, or elsewhere in 40 the United States in North America or the Dominion of Canada, subject to 41 a limit, exclusive of interest and cost, with respect to each such motor 42 vehicle, except a tow truck or a motor vehicle which is rented or leased 43 from a person, organization or business regularly engaged in the busi- 44 ness of renting or leasing motor vehicles to the general public, of 45 twenty-five thousand dollars because of bodily injury to or fifty thou- 46 sand dollars because of death of one person in any one accident and, 47 subject to said limit for one person, to a limit of fifty thousand 48 dollars because of bodily injury to or one hundred thousand dollars 49 because of death of two or more persons in any one accident, and to a 50 limit of ten thousand dollars because of injury to or destruction of 51 property of others in any one accident. The limit, exclusive of interest 52 and costs, with respect to a tow truck shall be a combined single limit 53 of three hundred thousand dollars because of bodily injury [of] or death 54 to one or more persons or because of injury or destruction of property 55 of others in any one accident, and to a limit of twenty-five thousand 56 dollars because of damage to a vehicle in the care, custody and controlS. 568 4 1 of the insured. The limit, exclusive of interest and costs, with 2 respect to a motor vehicle which is rented or leased from a person, 3 organization or business regularly engaged in the business of renting or 4 leasing motor vehicles to the general public, shall be a combined single 5 limit of at least one million dollars because of bodily injury or death 6 to one or more persons or because of injury or destruction of property 7 of others in any one accident, and to a limit of twenty-five thousand 8 dollars because of damage to a vehicle in the care, custody and control 9 of the insured. 10 § 4. This act shall take effect on the one hundred eightieth day after 11 it shall have become a law.
