Legalize Peer Car Sharing

Section 1. Short title. This act shall be known and may be cited as the "peer-to-peer car sharing program act".

§ 2. The insurance law is amended by adding a new article 35 to read as follows:

ARTICLE 35

PEER-TO-PEER CAR SHARING PROGRAMS Section 3501. Definitions.

3502. Requirements for doing business.

3503. Program liability.

3504. Lien implications; notification.

3505. Exclusions for personal motor vehicle liability insurance

policy.

3506. Insurable interest.

3507. Group insurance for peer-to-peer car sharing programs.

§ 3501. Definitions. As used in this article, the following terms shall have the following meanings:

(a) "Peer-to-peer car sharing" shall mean the authorized use of a shared vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program.

(b) "Peer-to-peer car sharing program" or "program" shall mean the institution, sole proprietorship or other entity or person that is responsible for operating, facilitating or administering the means, digital or otherwise, by which a business platform facilitates peer-topeer car sharing for financial consideration.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11222-03-9

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(c) "Peer-to-peer car sharing program agreement" or "agreement" shall mean the terms and conditions that govern the use of a shared vehicle through a peer-to-peer car sharing program.

(d) "Shared vehicle" means a motor vehicle that is available for sharing through a peer-to-peer car sharing program that is both:

(1) used nonexclusively for peer-to-peer car sharing activity pursuant to a peer-to-peer car sharing program agreement; and

(2) not otherwise made available by the shared vehicle owner for use as a rental vehicle as defined in section one hundred thirty-seven-a of the vehicle and traffic law.

(e) "Shared vehicle driver" shall mean an individual who has been authorized to use a shared vehicle under a peer-to-peer car sharing program agreement.

(f) "Shared vehicle owner" shall mean a registered owner of a shared vehicle made available for use by shared vehicle drivers through a peerto-peer car sharing program.

(g) "Peer-to-peer car sharing delivery period" shall mean the period of time during which a shared vehicle is being delivered to the location of the peer-to-peer car sharing start time, if applicable, as documented by the governing peer-to-peer car sharing program agreement.

(h) "Peer-to-peer car sharing start time" shall mean the time when the shared vehicle becomes subject to the control of the shared vehicle driver at, or after, the time the peer-to-peer car sharing period is scheduled to begin as documented in the records of a peer-to-peer car sharing program.

(i) "Peer-to-peer car sharing period" or "car sharing period" shall mean the period of time that shall commence with the peer-to-peer car sharing delivery period or, if there is no peer-to-peer car sharing delivery period, the period of time that shall commence with the peerto-peer car sharing start time and, in either case, shall end at the peer-to-peer car sharing termination time.

(j) "Peer-to-peer car sharing termination time" shall mean the earliest of the following events:

(1) the expiration of the agreed upon period of time established for the use of a shared vehicle according to the terms of the car sharing program agreement if the shared vehicle is delivered to the location agreed upon in the car sharing program agreement;

(2) returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver as communicated through a peerto-peer car sharing program; or

(3) when the shared vehicle owner or the shared vehicle owner's authorized designee takes possession and control of the shared vehicle.

(k) "Group policy" means an insurance policy issued pursuant to this article.

(l) "Personal motor car sharing" means the use of private passenger motor vehicles by persons other than the vehicles' owner, in connection with a peer-to-peer car sharing program.

(m) "Motor vehicle" shall:

(1) have the meaning set forth in section one hundred twenty-five of the vehicle and traffic law; and

(2) have a gross weight rating of ten thousand pounds or less.

(n) "Financial security" means a financial security bond, financial security deposit, or qualification as a self-insurer as set forth in section three hundred twelve of the vehicle and traffic law.

§ 3502. Requirements for doing business. (a) No shared vehicle shall be classified as a commercial vehicle, for-hire vehicle, permissive use

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vehicle, taxi-cab, or rental vehicle as defined in section one hundred thirty-seven-a of the vehicle and traffic law, or livery solely because its registered owner allows it to be used for peer-to-peer car sharing, or as such for the duration of the car sharing period, as long as:

(1) the peer-to-peer car sharing is compliant with a peer-to-peer car sharing program as provided for in this article; and

(2) the car sharing program does not knowingly place the vehicle into use as a commercial vehicle or as a vehicle for hire by a shared driver while engaged in peer-to-peer car sharing unless the owner or user, as applicable, are in compliance with other laws applicable to the commercial use or use as a vehicle for hire.

(b) A peer-to-peer car sharing program shall, during each peer-to-peer car sharing period for each shared vehicle that it facilitates the use of:

(1) provide insurance coverage in amounts no less than the minimum amounts required by section three hundred seventy of the vehicle and traffic law, article fifty-one of this chapter, and other laws of the state;

(2) maintain additional insurance or financial security against loss from the liability imposed by law on the shared vehicle owner for damages during the car sharing period, including damages for care and loss of services, because of bodily injury to or death of any person or injury to or destruction of property arising out of the ownership, maintenance, use or operation of a specific personal vehicle or vehicles within this state, or elsewhere in the United States in North America or Canada, subject to a limit, exclusive of interest and costs, with respect to each such occurrence, or at least one million two hundred fifty thousand dollars because of bodily injury to or death of any person, and injury to or destruction of property; and

(3) coverage provided in accordance with subsection (f) of section three thousand four hundred twenty of this chapter, providing supplementary uninsured/underinsured motorist insurance for bodily injury, subject to a limit per occurrence in the amount of one million two hundred fifty thousand dollars because of bodily injury or death of any person.

(4) the insurance and financial security required under this subsection need not be coterminous with the registration period of the shared vehicle insured.

(c) The insurance and financial security requirements provided in subsection (b) of this section may be satisfied by:

(1) insurance, or other financial security, maintained by the shared vehicle owner;

(2) insurance provided through a group policy maintained by the shared vehicle program, or other financial security maintained by the shared vehicle program, on the shared vehicle, shared vehicle owner, or shared vehicle driver;

(3) insurance, or other financial security, maintained by the shared vehicle driver; or

(4) any combination of insurance or other financial security under paragraphs one through three of this subsection.

Provided, however, that insurance and financial security required under paragraph three of subsection (b) of this section respecting supplementary uninsured/underinsured motor insurance shall be maintained by the shared vehicle program, or a parent entity or direct subsidiary of the shared vehicle program.

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(d) A peer-to-peer car sharing program shall, during each peer-to-peer car sharing period for each shared vehicle that it facilitates the use of, also do all of the following:

(1) Provide shared vehicle owners with suitable proof of compliance with the insurance and financial security requirements of this section, the requirements of sections three hundred eleven and three hundred forty-five of the vehicle and traffic law, and article fifty-one of this chapter. An electronically provided proof of insurance constitutes suitable proof of compliance.

(2) Provide the following for each shared vehicle driver, for each peer-to-peer car sharing period:

(i) an insurance identification card as defined in subdivision ten of section three hundred eleven of the vehicle and traffic law, or other documentation, whether printed or electronic, which the shared vehicle driver shall carry and have available in the vehicle at all times during the peer-to-peer car sharing period and clearly demonstrates that the financial security referred to in subsection (b) of this section is in full force and effect; and

(ii) a toll-free number, email address, or other such form of communication by which a law enforcement police officer, representative of the department of motor vehicles, or other officer of this state or any political subdivision thereof may confirm that the financial security provided for in subsection (b) of this section is in full force and effect;

(3) Collect, maintain, and make available to the shared vehicle owner, the owner's motor vehicle liability insurer in connection with a claimed loss, the shared vehicle driver's primary automobile insurer in connection with a claimed loss, any excess or umbrella insurers in connection with a claimed loss, and any government agency as required by law, within ten business days of a request, or as reasonably practicable thereafter the following information pertaining to incidents which occurred during the peer-to-peer car sharing period:

(i) available records of the peer-to-peer car sharing period for each shared vehicle involved, and to the extent available, verifiable electronic records of the time, initial and final locations of the vehicle, and (to the extent mileage is collected) miles driven; and

(ii) in instances where an insurance claim has been filed with a group insurer, all information relevant to the claim, to the extent such information is available, including but not limited to, payments by the program concerning accidents, damages and injuries;

(4) Ensure that the shared vehicle owner and the shared vehicle driver are given reasonable notice prior to the first use or operation of a shared vehicle pursuant to a peer-to-peer car sharing program agreement that:

(i) during the peer-to-peer car sharing period, the shared vehicle owner's personal motor vehicle liability insurer may exclude any and all coverage afforded under its policy and the shared vehicle owner's insurer shall have the right to notify its insured that it shall have no duty to indemnify or defend any person or organization for liability for any loss that occurs during the peer-to-peer car sharing period; and

(ii) any insurance financial security, or physical damage protection offered pursuant to subsection (b) of this section, may not be valid or collectible for damages or losses that occur outside of the peer-to-peer car sharing period; and

(5) Ensure that the shared vehicle owner acknowledges upon or before enrollment in a peer-to-peer car sharing program, and is notified to the

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extent reasonably practicable before each car sharing period, that New York law may impose liability for injuries to person or property resulting from the negligence in the use or operation of the shared vehicle by shared vehicle drivers for judgments exceeding the coverage limits of insurance in effect during the car sharing period. The subsequent notice required under this subsection may be provided electronically, including by electronic mail and hyperlink to a website explaining insurance coverages and vicarious liability or other substantially similar means of notice.

(e) An insurer which is authorized or eligible to do business in this state may issue a group policy of physical damage insurance to a peerto-peer car sharing program and to shared vehicle owners participating in that program to insure against physical damage loss to vehicles while the vehicles are in the custody of the peer-to-peer car sharing program or shared vehicle driver. Such group policy shall provide primary coverage for physical damage loss either by collision, comprehensive, or both, to the shared vehicle during the car sharing period.

(f) An insurer which issues a group insurance policy pursuant to this article shall issue such policy identifying the peer-to-peer car sharing program as the named insured, and any such policy shall include a provision that provides coverage, without prior notice to the insurer, for all personal passenger vehicles during the car sharing period, and shall further include a provision that claims will be adjusted pursuant to section three thousand four hundred twelve of this chapter.