§ 345. Motor vehicle liability policy. (a) A "motor vehicle liability
policy" as said term is used in this article shall mean an owner's or an
operator's policy of liability insurance certified as provided in
section three hundred forty-three or section three hundred forty-four as
proof of financial responsibility, and issued except as otherwise
provided in section three hundred forty-four, by an insurance carrier
duly authorized to transact business in this state to or for the benefit
of the person named therein as insured.

(b) Such owner's policy of liability insurance

(1) Shall designate by explicit description or by appropriate
reference, all motor vehicles with respect to which coverage is thereby
intended to be granted.

(2) Shall insure as insured the person named therein and any other
person using or responsible for the use of any such motor vehicle or
motor vehicles with the consent, express or implied, of such named
insured.

(3) Shall insure the insured 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 arising 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, of twenty-five thousand dollars because of bodily injury to or
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 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 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.

(c) Such operator's policy of liability insurance shall insure the
person named therein as insured against loss from the liability imposed
upon him 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 use by him of any motor
vehicle not owned by him, within the same territorial limits and subject
to the same limits of liability as are set forth above with respect to
an owner's policy of liability insurance.

(d) Such motor vehicle liability policy shall provide for the name and
address of the named insured, the coverage afforded by the policy, the
premium charged therefor, the policy period and the limits of liability,
and shall contain an agreement that the insurance thereunder is provided
in accordance with the coverage defined in this article as respects
bodily injury and death or property damage or both and is subject to all
the provisions of this article.

(e) Such motor vehicle liability policy shall not insure any liability
on account of bodily injury to or death of an employee of the insured
for which benefits are payable under any workmen's compensation law. Nor
is any such policy required to insure any liability on account of (1)
damage to property of others in charge of the insured or of his agents
or employees (2) bodily injury to or death of the insured, or (3) except
as provided in paragraphs one and two of subsection (g) of section three
thousand four hundred twenty of the insurance law, bodily injury to or
death of the spouse of the insured, or for injury to property of the
spouse of the insured; and any insurance of any such liability afforded
by such a policy shall be subject to the provisions of subsection (f) of
this section.

(f) Such motor vehicle liability policy may, however, grant any lawful
coverage in excess of or in addition to the coverage herein specified
and such excess or additional coverage shall not be subject to the
provisions of this article.

(g) Several policies of one or more insurance carriers which together
meet the requirements of this section shall be termed "motor vehicle
liability policy" within the meaning of this article.

(h) No motor vehicle liability policy shall be issued or delivered in
this state until a copy of the form of policy shall have been on file
with the superintendent of financial services for at least thirty days,
unless sooner approved in writing by the superintendent of financial
services, nor if within said period of thirty days the superintendent of
financial services shall have notified the carrier in writing that in
his opinion, specifying the reasons therefor, the form of policy does
not comply with the laws of this state. The superintendent of financial
services shall approve any form of policy which discloses the name and
address of the insured, the coverage afforded by such policy, the
premium charged therefor, the policy period, the limit of liability and
the agreement that the insurance thereunder is provided in accordance
with the coverage defined in this section and is subject to all the
provisions of this article.

(i) Every motor vehicle liability policy shall be subject to the
following provisions which need not be contained therein:

(1) The liability of any company under a motor vehicle liability
policy shall become absolute whenever loss or damage covered by said
policy occurs, and the satisfaction by the insured of a final judgment
for such loss or damage shall not be a condition precedent to the right
or duty of the carrier to make payment on account of such loss or
damage. No such policy shall be cancelled or annulled as respects any
loss or damage by any agreement between the carrier and the insured
after the said insured has become responsible for such loss or damage,
and any such cancellation or annullment shall be void. If the death of
the insured shall occur after the insured has become liable during the
policy period for loss or damage covered by the policy, the policy shall
not be deemed terminated by such death with respect to such liability
and the company shall be liable thereunder in the same manner and to the
same extent as though death had not occurred. Upon the recovery of a
final judgment against any person for any such loss or damage, if the
judgment debtor or the decedent whom he represents was at the accrual of
the cause of action insured against liability therefor under a motor
vehicle liability policy, the judgment creditor shall be entitled to
have the insurance money applied to the satisfaction of the judgment.
But the policy may provide that the insured, or any other person covered
by the policy, shall reimburse the company for payments made on account
of any accident, claim or suit involving a breach of the terms,
provisions or conditions of the policy; and further, if the policy shall
provide for limits in excess of the limits designated in this section,
the insurance carrier may plead against such judgment creditor, with
respect to the amount of such excess limits of liability, any defenses
which it may be entitled to plead against the insured. Any such policy
may further provide for the prorating of the insurance thereunder with
other applicable valid and collectible insurance. If the death,
insolvency or bankruptcy of the insured shall occur within the policy
period, the policy during the unexpired portion of such period shall
cover the legal representatives of the insured. No statement made by the
insured or on his behalf, and no violation of the terms of the policy,
shall operate to defeat or avoid the policy so as to bar recovery within
the limits provided in subdivision (b) of this section.

(2) The policy, the written application therefor (if any) and any
rider or endorsement, which shall not conflict with the provisions of
this article, shall constitute the entire contract between the parties.

(3) Any insurance carrier authorized to issue motor vehicle liability
policies as provided for in this article may, pending the issue of such
a policy, execute an agreement, to be known as a binder; or may, in lieu
of such a policy issue an indorsement to 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
section shall apply to such binders and endorsements.