§ 370. Indemnity bonds or insurance policies; notice of accident. 1.
Every person, firm, association or corporation engaged in the business
of carrying or transporting passengers for hire in any motor vehicle or
motorcycle, except street cars, and motor vehicles or motorcycles owned
and operated by a municipality, and except as otherwise provided in this
section, which shall be operated over, upon or along any public street
or highway of the state of New York shall file with the commissioner of
motor vehicles for each motor vehicle or motorcycle intended to be so
operated evidence, in such form as the commissioner may prescribe, of a
corporate surety bond or a policy of insurance: (a) approved as to form
by the superintendent of financial services in a company authorized to
do business in the state, approved by the superintendent as to solvency
and responsibility; or (b) where a vehicle is registered by a
not-for-profit organization that is tax-exempt under section 501(c)(3)
of the federal internal revenue code, a risk retention group not
chartered in this state but which is registered with the superintendent
of financial services under the federal liability risk retention act of
1986, comprised entirely of organizations that are tax-exempt under
section 501(c)(3) of the federal internal revenue code and where the
risk retention group qualifies as a charitable risk pool under section
501(n) of the federal internal revenue code, provided that the vehicle
being registered does not have a seating capacity of more than fifteen
passengers, is not a limousine or luxury limousine, and where such
vehicles are not solely for personal use by a director, officer,
authorized person, or key person, their relatives or related parties.
Such surety bond or policy of insurance shall be conditioned for the
payment of a minimum sum, hereinafter called minimum liability, on a
judgment or judgments for damages, including damages for care and loss
of services, because of bodily injury to, or death of any one person in
any one accident, and subject to such minimum liability a maximum sum,
hereinafter called maximum liability on a judgment or judgments for
damages, including damages for care and loss of services because of
bodily injury to, or death of two or more persons in any one accident
and for the payment of a minimum sum, called minimum liability on all
judgments for damages because of injury to or destruction of property of
others in any one accident, recovered against such person, firm,
association or corporation upon claims arising out of the same
transaction or transactions connected with the same subject of action,
to be apportioned ratably among the judgment creditors according to the
amount of their respective judgments for damage or injury caused in the
operation, maintenance, use or the defective construction of such motor
vehicle or motorcycle as follows:

For damages for and incident to death or injuries to persons and
injury to or destruction of property: For each motorcycle and for each
motor vehicle engaged in the business of carrying or transporting
passengers for hire, having a seating capacity of not more than seven
passengers, a bond or insurance policy with a minimum liability of
twenty-five thousand dollars and a maximum liability of fifty thousand
dollars for bodily injury, and a minimum liability of fifty thousand
dollars and a maximum liability of one hundred thousand dollars for
death and a minimum liability of ten thousand dollars for injury to or
destruction of property; for each motor vehicle engaged in the business
of carrying or transporting passengers for hire, having a seating
capacity of not less than eight passengers, a bond or insurance policy
with a combined single limit of at least one million five hundred
thousand dollars for bodily injury or death to one or more persons, and
because of injury to or destruction of property in any one accident;
provided, further that for commuter vans that are engaged in the
business of carrying or transporting passengers for hire, having a
seating capacity of not less than eight passengers, a bond or insurance
policy with a combined single limit of at least five hundred thousand
dollars for bodily injury or death to one or more persons, and because
of injury to or destruction of property in any one accident. For the
purposes of this paragraph, the term "commuter van" shall have the same
meaning as such term is defined in section 19-502 of the administrative
code of the city of New York.

Such bond or policy of insurance shall contain a provision for a
continuing liability thereunder, notwithstanding any recovery thereon.
Any such bond or policy of insurance shall also contain a provision that
such bond or policy of insurance shall inure to the benefit of any
person legally operating the motor vehicle or motorcycle in the business
of the owner and with his permission, in the same manner and under the
same conditions and to the same extent as to the owner. If at any time,
in the judgment of the commissioner, such bond or policy is not
sufficient for any cause the commissioner may require the owner of such
motor vehicle or motorcycle to replace such bond or policy with another
approved by the commissioner. A corporate surety or an insurance company
evidence of whose bond or policy has been so filed, must file a notice
in the office of the commissioner that upon the expiration of twenty
days from such filing such surety will cease to be liable upon such
bond, or in the case of such insurance company, that upon the expiration
of such time such policy will be cancelled; provided, however, that
where the owner of such motor vehicle or motorcycle has replaced
coverage with another insurer, the expiration date shall be the date the
new coverage has commenced; further provided that where such owner has
had a total loss, the expiration date shall be the earlier of twenty
days or when the plates have been turned in to the commissioner. The
commissioner shall thereupon notify the owner of such motor vehicle or
motorcycle of the filing of such notice, and unless such owner shall
file a new bond or evidence of new bond or policy, as provided by this
section, on or before such date as shall be specified by the
commissioner, or shall place the number plates belonging to the motor
vehicle or motorcycle in the custody of the commissioner or his agent
within such time, to remain in such custody until a new bond or evidence
of a new bond or policy is filed, the registration of such motor vehicle
or motorcycle shall be revoked as of the date specified in said notice
of the commissioner and no new registration shall be issued for a period
of thirty days. Forthwith after his registration has been so revoked
such owner shall return the number plates issued for such vehicle to the
commissioner. The provisions of subdivision seven of section five
hundred ten of this chapter shall apply to such revocations.

Notwithstanding any contrary provision of this chapter, any such bond,
or policy of insurance shall also provide for uninsured motorists
coverage in the minimal amount and in the form provided for in
subsection (f) of section three thousand four hundred twenty of the
insurance law.

Nothing in this subdivision shall be construed to prevent compliance
therewith by filing a combination of bonds or policies or of a bond and
policy or evidence thereof if the commissioner approves and the
requirements of this subdivision are otherwise met.

(c) As a condition to filing evidence of a corporate surety bond, the
registrant shall pay annually in addition to any other fee prescribed by
this chapter, a fee of one dollar and fifty cents for each motor vehicle
registered in his name and the aggregate amount of such fees shall be
applied in the reduction of the assessment levied pursuant to section
three hundred seventeen of this chapter.

(d) As used in this section, a judgment or judgment for damages shall
include a final arbitration award and any unpaid fees due to the
arbitration forum established pursuant to section five thousand one
hundred six of the insurance law.

1-a. Every person, firm, association or corporation engaged in
carrying or transporting sick or injured persons in any hearse,
combination hearse or ambulance operated over, upon or along a public
street or highway within a town having a population of less than two
thousand inhabitants, shall secure either a corporate surety bond or
policy of insurance executed by a surety or insurance company authorized
to do business in this state, containing like conditions to secure the
payment of damages as is required to be provided for motor vehicles
operated for the transportation of passengers for hire; provided,
however, that any bond or policy of insurance so secured, may contain
the condition that it shall secure the payment of damages only during
the time or times such hearse or combination hearse or ambulance is used
or operated for the transportation of sick or injured persons and shall
not be operative or effective during any other time or times or for the
payment of damages incurred while being operated for any other purpose.
A bond or policy of insurance executed pursuant to the provisions of
this subdivision need not be approved or filed notwithstanding any
inconsistent provision of this section.

2. Any person, firm, association or corporation operating a motor
vehicle or motorcycle as to which a bond or policy of insurance is
required by this section who or which shall operate such vehicle, or
cause the same to be operated, while such a bond or policy, or evidence
thereof as required by this section, is not on file with the
commissioner, and in full force and effect shall be guilty of a
misdemeanor.

3. A person, firm, association or corporation engaged in the business
of renting or leasing rental vehicles to be operated upon the public
highways for carrying passengers shall be subject to the provisions of
this section in the same manner and to the same extent as if such
person, firm, association or corporation were actually engaged in the
business of carrying or transporting passengers for hire.

Notwithstanding the provisions of subdivision one of this section, a
person, firm, association or corporation engaged in the business of
renting or leasing motor vehicles, having registered in this state more
than twenty-five motor vehicles subject to the provisions of this
section and who qualifies as hereinafter provided, may file a
certificate of self-insurance. The commissioner of motor vehicles in his
discretion may, upon the application of such a person, firm, association
or corporation issue a certificate of self-insurance when he is
reasonably satisfied that such person is possessed and will continue to
be possessed of financial ability to respond to judgments obtained
against such person, arising out of the ownership, maintenance, use or
operation of any such person's motor vehicle. Upon due notice and
hearing, the commissioner may, in his discretion and upon reasonable
grounds, cancel a certificate of self-insurance.

As a condition to the issuance of a certificate of self-insurance
under this subdivision the registrant shall pay annually in addition to
any other fee prescribed by this chapter, a fee of one dollar and fifty
cents for each motor vehicle registered in his name and the aggregate
amount of such fees shall be applied in reduction of the assessment
levied pursuant to section three hundred seventeen.

As a further condition to the issuance of a certificate of
self-insurance, the registrant shall pay annually in addition to any
other fee prescribed by this chapter, an amount per vehicle to be
determined by the Motor Vehicle Accident Indemnification Corporation
pursuant to section five thousand two hundred seven of the insurance law
and the aggregate amount of such fees shall be transmitted by the
commissioner to the Motor Vehicle Accident Indemnification Corporation
continued pursuant to section five thousand two hundred three of the
insurance law to be applied in reduction of assessments levied by said
corporation pursuant to section five thousand two hundred seven of the
insurance law.

4. Every person operating a motor vehicle or motorcycle as to which a
bond or policy of insurance is required by this section, which is in any
manner involved in an accident, shall within five days give written
notice of the time and place of the accident to the surety or insurer.
Failure to give notice of an accident as herein provided shall
constitute a misdemeanor, but shall not affect the liability of the
surety or insurer.

5. If a vehicle subject to the provisions of this section or section
three hundred seventy-one of this chapter shall be operated on a public
highway without having the minimum corporate surety bond or policy of
liability insurance, unless the owner shall have filed an approved
certificate of insurance therefor, the driver's license, privileges and
registration certificate or privilege of operation within this state of
the owner and operator shall be subject to revocation and suspension as
provided in articles six and seven of this chapter, in the same manner
as if such vehicle were a private passenger vehicle, not used to carry
persons for hire or profit.

6. Notwithstanding any other provision of law, the commissioner, may,
by regulation, in addition to, or in lieu of any requirements relating
to notice of insurance required by this section, extend all or part of
the provisions of article six of this chapter concerning insurance
identification cards to vehicles subject to the provisions of this
section. Furthermore, the commissioner may exempt by such regulations
any type or types of vehicles subject to the provisions of this section
where he deems the application of the provisions of such regulations to
be inappropriate. If the commissioner promulgates any such regulations,
the failure to produce an insurance identification card when requested
by any peace officer, acting pursuant to his special duties, police
officer or magistrate shall be presumptive evidence of a violation of
subdivision two of this section. In addition, any such regulations may
require that the insurance identification card be placed in plain view
of any for-hire passengers carried in such vehicle.

7. Nothing contained in this section shall prohibit any person, firm,
association or corporation subject to this section from purchasing
liability insurance coverage in excess of the maximum liability set
forth in subdivision one of this section.

8. Notwithstanding any other provision of this article, an individual
shall not be deemed to be engaged in the business of carrying or
transporting passengers for hire if the individual does so solely as a
transportation network company driver in accordance with article
forty-four-B of this chapter.