S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7408
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 23, 2023
                                ___________
 
 Introduced  by  Sen. ADDABBO -- 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:
 
   Section  1. Paragraph (a) of subdivision 4 of section 311 of the vehi-
 cle and traffic law, as amended by chapter 305 of the laws of  1995,  is
 amended to read as follows:
   (a) Affording coverage as defined in the minimum provisions prescribed
 in  a  regulation  which  shall  be promulgated by the superintendent at
 least ninety days prior to effective date of this act.  The  superinten-
 dent  before  promulgating  such  regulations  or any amendment thereof,
 shall consult with all insurers licensed to write  automobile  liability
 insurance in this state and shall not prescribe minimum provisions which
 fail  to  reflect the provisions of automobile liability insurance poli-
 cies, other than motor vehicle liability policies as defined in  section
 three  hundred  forty-five  of this chapter, issued within this state at
 the date of such regulation or amendment thereof.  Nothing contained  in
 such  regulation  or  in  this  article  shall prohibit any insurer from
 affording coverage under an owner's policy of liability  insurance  more
 liberal  than  that  required  by  said minimum provisions.   Every such
 owner's policy of liability insurance shall provide insurance subject to
 said regulation against loss from  the  liability  imposed  by  law  for
 damages,  including  damages  for  care and loss of services, because of
 bodily injury to or death of any person and injury to or destruction  of
 property arising out of the ownership, maintenance, use, or operation of
 a specific motor vehicle or motor vehicles within the state of New York,
 or  elsewhere  in  the United States in North America or the Dominion of
 Canada, subject to a  limit,  exclusive  of  interest  and  costs,  with
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06443-01-3
              

 S. 7408                             2
 
 respect to each such motor vehicle except a tow truck OR A MOTOR VEHICLE
 WHICH  IS RENTED OR LEASED FROM A PERSON, ORGANIZATION OR BUSINESS REGU-
 LARLY ENGAGED IN THE BUSINESS OF RENTING OR LEASING  MOTOR  VEHICLES  TO
 THE  GENERAL  PUBLIC,  of twenty-five thousand dollars because of bodily
 injuries to and fifty thousand dollars because of death of one person in
 any one accident and, subject to said limit for one person, to  a  limit
 of  fifty  thousand  dollars because of bodily injury to and one hundred
 thousand dollars because of death of two or  more  persons  in  any  one
 accident, and to a limit of ten thousand dollars because of injury to or
 destruction of property of others in any one accident provided, however,
 that such policy need not be for a period coterminous with the registra-
 tion period of the vehicle insured. The limit, exclusive of interest and
 costs,  with  respect to a tow truck shall be a combined single limit of
 at least three hundred thousand dollars  because  of  bodily  injury  or
 death  to  one  or  more  persons or because of injury or destruction of
 property of others in any one accident, and to a  limit  of  twenty-five
 thousand dollars because of damage to a vehicle in the care, custody and
 control  of  the  insured.   THE LIMIT, EXCLUSIVE OF INTEREST AND COSTS,
 WITH RESPECT TO A MOTOR VEHICLE WHICH IS RENTED OR LEASED FROM A PERSON,
 ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
 LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
 LIMIT OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURY OR  DEATH
 TO  ONE  OR MORE PERSONS OR BECAUSE OF INJURY OR DESTRUCTION OF PROPERTY
 OF OTHERS IN ANY ONE ACCIDENT, AND TO A LIMIT  OF  TWENTY-FIVE  THOUSAND
 DOLLARS  BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE, CUSTODY AND CONTROL
 OF THE INSURED. Any insurer authorized to issue  an  owner's  policy  of
 liability  insurance  as  provided  for in this article may, pending the
 issue of such a policy, make an agreement, to be known as a  binder,  or
 may,  in  lieu of such a policy, issue a renewal endorsement or evidence
 of renewal of an existing policy; each of which shall  be  construed  to
 provide indemnity or protection in like manner and to the same extent as
 such  a policy. The provisions of this article shall apply to such bind-
 ers, renewal endorsements or evidences of  renewal.  Every  such  policy
 issued  insuring  private  passenger  vehicles and every renewal policy,
 renewal endorsement, or other evidence  of  renewal  issued  shall  have
 attached  thereto  a rating information form which clearly specifies and
 defines the rating classification assigned thereto, including any appli-
 cable merit rating plan; and
   § 2. Section 312 of the vehicle and traffic law is amended by adding a
 new subdivision 6 to read as follows:
   6. (A) NO MOTOR VEHICLE SHALL BE LEASED OR RENTED IN THIS STATE UNLESS
 UPON THE REGISTRATION OF THE LEASED OR RENTED MOTOR VEHICLE, THE  APPLI-
 CATION  FOR SUCH REGISTRATION IS ACCOMPANIED BY PROOF OF FINANCIAL SECU-
 RITY REQUIRED BY SECTION THREE HUNDRED  ELEVEN  OF  THIS  ARTICLE  WHICH
 SHALL  BE  EVIDENCED  BY  PROOF  OF INSURANCE OR EVIDENCE OF A FINANCIAL
 SECURITY BOND, A FINANCIAL SECURITY DEPOSIT OR QUALIFICATION AS A  SELF-
 INSURER  UNDER  SECTION THREE HUNDRED SIXTEEN OF THIS ARTICLE; PROVIDED,
 THAT IF DIRECTED BY REGULATION OF  THE  COMMISSIONER,  UPON  RENEWAL  OF
 REGISTRATION AN APPLICATION ACCOMPANIED BY A CERTIFICATE OF REGISTRATION
 OR  RENEWAL  STUB IN FORCE IMMEDIATELY PRECEDING THE DATE OF APPLICATION
 FOR RENEWAL, TOGETHER WITH A STATEMENT  IN  A  FORM  PRESCRIBED  BY  THE
 COMMISSIONER CERTIFYING THAT THERE IS IN EFFECT PROOF OF FINANCIAL SECU-
 RITY,  SHALL MEET THE REQUIREMENTS OF THIS SECTION. UPON THE ISSUANCE OR
 RENEWAL OF A PRIVATE PASSENGER AUTOMOBILE INSURANCE  POLICY  SUBJECT  TO
 THE PROVISIONS OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THE
 INSURANCE  LAW,  THE INSURANCE COMPANY SHALL PROVIDE THE INSURED WITH AN
 S. 7408                             3
 
 INFORMATIONAL STATEMENT OUTLINING THE LEGAL AND  FINANCIAL  CONSEQUENCES
 OF  CONVICTIONS UNDER SECTION ELEVEN HUNDRED NINETY-TWO OF THIS CHAPTER,
 PERTAINING TO OPERATING A MOTOR VEHICLE WHILE  UNDER  THE  INFLUENCE  OF
 ALCOHOL  OR  DRUGS. SUCH INFORMATION SHALL BE SUPPLIED TO THE COMPANY BY
 THE STATE DEPARTMENT OF FINANCIAL  SERVICES  IN  CONSULTATION  WITH  THE
 COMMISSIONER.
   (B)  THE  OWNER AND REGISTRANT IF THE REGISTRANT IS DIFFERENT FROM THE
 OWNER OF SUCH LEASED OR RENTED MOTOR VEHICLE  SHALL  MAINTAIN  PROOF  OF
 FINANCIAL  SECURITY  CONTINUOUSLY THROUGHOUT THE REGISTRATION PERIOD AND
 HIS FAILURE TO PRODUCE PROOF OF FINANCIAL SECURITY WHEN REQUESTED TO  DO
 SO  UPON DEMAND OF A MAGISTRATE, MOTOR VEHICLE INSPECTOR, PEACE OFFICER,
 ACTING PURSUANT TO HIS SPECIAL DUTIES, OR  POLICE  OFFICER,  WHILE  SUCH
 VEHICLE  IS BEING OPERATED UPON THE PUBLIC HIGHWAY, SHALL BE PRESUMPTIVE
 EVIDENCE OF OPERATING A MOTOR VEHICLE WITHOUT PROOF OF FINANCIAL SECURI-
 TY. UPON THE PRODUCTION OF PROOF OF FINANCIAL SECURITY SUCH  PRESUMPTION
 IS  REMOVED.  PRODUCTION  OF  PROOF OF FINANCIAL SECURITY MAY BE MADE BY
 MAILING SUCH PROOF TO THE COURT HAVING JURISDICTION IN THE  MATTER,  AND
 ANY   NECESSARY  RESPONSE  BY  SUCH  COURT  OR  ACKNOWLEDGEMENT  OF  THE
 PRODUCTION OF SUCH PROOF MAY ALSO BE MADE BY MAIL. WHEN  INSURANCE  WITH
 RESPECT TO ANY MOTOR VEHICLE, OTHER THAN A MOTORCYCLE, IS TERMINATED THE
 OWNER  SHALL  SURRENDER  FORTHWITH  THEIR  REGISTRATION  CERTIFICATE AND
 NUMBER PLATES OF THE VEHICLE TO THE COMMISSIONER UNLESS PROOF OF  FINAN-
 CIAL SECURITY OTHERWISE IS MAINTAINED IN COMPLIANCE WITH THIS ARTICLE.
   (C)  THE  OWNER OF ANY LEASED OR RENTED VEHICLE THAT FAILS TO MAINTAIN
 THE PROOF OF FINANCIAL SECURITY REQUIRED ABOVE MAY  BE  HELD  PERSONALLY
 LIABLE  FOR ANY JUDGMENT ENTERED AGAINST ANY DRIVER AND/OR REGISTRANT OF
 THE LEASED OR RENTED VEHICLE  FOR  DAMAGES  SUSTAINED  AS  A  RESULT  OF
 PERSONAL  INJURY,  WRONGFUL  DEATH  AND/OR PROPERTY DAMAGE SUFFERED AS A
 RESULT OF THE USE AND OPERATION OF THE LEASED OR RENTED VEHICLE.
   § 3. Paragraph 3 of subdivision (b) of section 345 of the vehicle  and
 traffic  law,  as amended by chapter 305 of the laws of 1995, is amended
 to read as follows:
   (3) Shall insure the insured, THE  VEHICLE  OPERATOR,  or  such  other
 person  against  loss  from  the  liability  imposed by law for damages,
 including damages for care and loss of services because of bodily injury
 to or death of any person and injury to or destruction of property aris-
 ing out of the ownership, maintenance, use, or operation of  such  motor
 vehicle  or motor vehicles within the state of New York, or elsewhere in
 the United States in North America or the Dominion of Canada, subject to
 a limit, exclusive of interest and cost, with respect to each such motor
 vehicle, except a tow truck OR A MOTOR VEHICLE WHICH IS RENTED OR LEASED
 FROM A PERSON, ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN  THE  BUSI-
 NESS  OF  RENTING  OR  LEASING  MOTOR VEHICLES TO THE GENERAL PUBLIC, of
 twenty-five thousand dollars because of bodily injury to or fifty  thou-
 sand  dollars  because  of  death of one person in any one accident and,
 subject to said limit for one person,  to  a  limit  of  fifty  thousand
 dollars  because  of  bodily  injury  to or one hundred thousand dollars
 because of death of two or more persons in any one accident,  and  to  a
 limit  of  ten  thousand  dollars because of injury to or destruction of
 property of others in any one accident. The limit, exclusive of interest
 and costs, with respect to a tow truck shall be a combined single  limit
 of three hundred thousand dollars because of bodily injury [of] OR death
 to  one  or more persons or because of injury or destruction of property
 of others in any one accident, and to a limit  of  twenty-five  thousand
 dollars  because of damage to a vehicle in the care, custody and control
 of the insured.   THE LIMIT,  EXCLUSIVE  OF  INTEREST  AND  COSTS,  WITH
 S. 7408                             4
 
 RESPECT  TO  A  MOTOR  VEHICLE  WHICH IS RENTED OR LEASED FROM A PERSON,
 ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
 LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
 LIMIT  OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURY OR DEATH
 TO ONE OR MORE PERSONS OR BECAUSE OF INJURY OR DESTRUCTION  OF  PROPERTY
 OF  OTHERS  IN  ANY ONE ACCIDENT, AND TO A LIMIT OF TWENTY-FIVE THOUSAND
 DOLLARS BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE, CUSTODY AND  CONTROL
 OF THE INSURED.
   §  4. This act shall take effect one year after it shall have become a
 law and shall apply to policies issued or renewed on or after such date.