STATE OF NEW YORK ________________________________________________________________________ 2151 2019-2020 Regular Sessions IN ASSEMBLY January 22, 2019 ___________ Introduced by M. of A. GANTT -- read once and referred to the Committee on Transportation AN ACT to amend the vehicle and traffic law and the insurance law, in relation to minimum insurance requirements for rental vehicles and vehicles for hire The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The article heading of article 8 of the vehicle and traffic 2 law, is amended to read as follows: 3 INDEMNITY BONDS OR INSURANCE POLICIES ON RENTAL VEHICLES 4 AND 5 VEHICLES 6 TRANSPORTING PASSENGERS FOR HIRE 7 § 2. Subdivision 3 of section 370 of the vehicle and traffic law, as 8 amended by chapter 232 of the laws of 2001, is amended to read as 9 follows: 10 3. (a) A person, firm, association or corporation engaged in the busi- 11 ness of renting or leasing rental vehicles to be operated upon the 12 public highways for carrying passengers shall be subject to the 13 provisions of this section in the same manner and to the same extent as 14 if such person, firm, association or corporation were actually engaged 15 in the business of carrying or transporting passengers for hire, except 16 in respect to such vehicles rented or leased for less than one year, in 17 which case: 18 (i) the corporate surety bond or a policy of insurance required by 19 this section shall be conditioned upon the following liability for 20 damages for and incident to death or injuries to persons: For each 21 motorcycle and for each motor vehicle having a seating capacity of not 22 more than seven passengers, a bond or insurance policy with a minimum 23 liability of one hundred thousand dollars and a maximum liability of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00446-01-9

A. 2151 2 1 three hundred thousand dollars for bodily injury or death; for each 2 motor vehicle having a seating capacity of not less than eight nor more 3 than twelve passengers, a bond or insurance policy with a minimum 4 liability of one hundred thousand dollars and a maximum liability of 5 five hundred thousand dollars for bodily injury or death; for each motor 6 vehicle having a seating capacity of not less than thirteen nor more 7 than twenty passengers, a bond or insurance policy with a minimum 8 liability of one hundred thousand dollars and a maximum liability of 9 eight hundred thousand dollars for bodily injury or death; for each 10 motor vehicle having a seating capacity of not less than twenty-one nor 11 more than thirty passengers, a bond or insurance policy with a minimum 12 liability of one hundred thousand dollars and a maximum liability of one 13 million dollars for bodily injury or death; for each motor vehicle 14 having a seating capacity of more than thirty passengers, a bond or 15 insurance policy with a minimum liability of one hundred thousand 16 dollars and a maximum liability of one million two hundred fifty thou- 17 sand dollars for bodily injury or death; and 18 (ii) such person, firm, association or corporation shall also file 19 with the commissioner for each motor vehicle or motorcycle intended to 20 be so operated evidence, in such form as the commissioner may prescribe, 21 of an excess liability policy of insurance, approved as to form by the 22 superintendent of financial services in a company authorized to do busi- 23 ness in the state, approved by such superintendent as to solvency and 24 responsibility, providing excess liability coverage in the amount of one 25 million dollars for each vehicle and covering the same risks as the 26 underlying policy. 27 (b) A person, firm, association or corporation engaged in the business 28 of renting or leasing trucks, as defined in this chapter, shall, in 29 respect to trucks rented or leased for less than one year, be subject to 30 the provisions of this section in the same manner and to the same extent 31 as if such person, firm, association or corporation were engaged in the 32 business of carrying or transporting passengers for hire, except that 33 the corporate surety bond or a policy of insurance required by this 34 section shall be conditioned upon a minimum liability of three hundred 35 thousand dollars and a maximum liability of five hundred thousand 36 dollars; and such person, firm, association or corporation shall also 37 file with the commissioner for each such truck evidence, in such form as 38 the commissioner may prescribe, of an excess liability policy of insur- 39 ance, approved as to form by the superintendent of financial services in 40 a company authorized to do business in the state, approved by the super- 41 intendent as to solvency and responsibility, providing excess liability 42 coverage in the amount of two million dollars for each truck and cover- 43 ing the same risks as the underlying policy. 44 (c) Notwithstanding the provisions of subdivision one of this section, 45 a person, firm, association or corporation engaged in the business of 46 renting or leasing motor vehicles, having registered in this state more 47 than twenty-five motor vehicles subject to the provisions of this 48 section and who qualifies as hereinafter provided, may file a certif- 49 icate of self-insurance. The commissioner [~~of motor vehicles~~] in his 50 discretion may, upon the application of such a person, firm, association 51 or corporation issue a certificate of self-insurance when he is reason- 52 ably satisfied that such person is possessed and will continue to be 53 possessed of financial ability to respond to judgments obtained against 54 such person, arising out of the ownership, maintenance, use or operation 55 of any such person's motor vehicle. Upon due notice and hearing, the

A. 2151 3 1 commissioner may, in his discretion and upon reasonable grounds, cancel 2 a certificate of self-insurance. 3 As a condition to the issuance of a certificate of self-insurance 4 under this subdivision the registrant shall pay annually in addition to 5 any other fee prescribed by this chapter, a fee of one dollar and fifty 6 cents for each motor vehicle registered in his name and the aggregate 7 amount of such fees shall be applied in reduction of the assessment 8 levied pursuant to section three hundred seventeen of this title. As a 9 further condition to the issuance of a certificate of self-insurance, 10 the registrant shall pay annually in addition to any other fee 11 prescribed by this chapter, an amount per vehicle to be determined by 12 the Motor Vehicle Accident Indemnification Corporation pursuant to 13 section five thousand two hundred seven of the insurance law and the 14 aggregate amount of such fees shall be transmitted by the commissioner 15 to the Motor Vehicle Accident Indemnification Corporation continued 16 pursuant to section five thousand two hundred three of the insurance law 17 to be applied in reduction of assessments levied by said corporation 18 pursuant to section five thousand two hundred seven of the insurance 19 law. 20 (d) Any person, firm, association or corporation owning a motor vehi- 21 cle or motorcycle as to which a bond or policy of insurance is required 22 by this subdivision and permitting the motor vehicle or motorcycle to be 23 operated under a lease or rental agreement while such a bond or policy, 24 or evidence thereof as required by this section, is not on file with the 25 commissioner, and in full force and effect shall be (i) guilty of a 26 misdemeanor; and (ii) liable to third persons for all damages arising 27 out of the use or operation of the vehicle to the same extent as the 28 operator or permissive user. 29 (e) The bankruptcy or insolvency of the operator or permissive user of 30 a leased or rented motor vehicle or motorcycle shall not inure to the 31 benefit of the owner of the motor vehicle or motorcycle who or which 32 shall nevertheless remain liable under this subdivision for noncompli- 33 ance with this section. 34 § 3. Paragraph 6 of subsection (a) of section 3426 of the insurance 35 law, as amended by chapter 235 of the laws of 1989, is amended to read 36 as follows: 37 (6) "Excess liability policy" means a policy of commercial risk, 38 public entity or professional liability insurance, including a commer- 39 cial umbrella policy, when written over one or more underlying liability 40 policies that provide with respect to the same risk coverage of at least 41 five hundred thousand dollars in the aggregate, except as otherwise 42 provided in subdivision three of section three hundred seventy of the 43 vehicle and traffic law. 44 § 4. This act shall take effect on the one hundred eightieth day after 45 it shall have become a law.

Sets forth minimum requirements for rental vehicles

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