N.Y. General Business Law § 901: Requirements for doing business

§ 901. Requirements for doing business. 1. No shared vehicle shall be

classified as a commercial vehicle, for-hire vehicle, transportation

network company or TNC vehicle as defined in article forty-four-B of the

vehicle and traffic law, taxi-cab, rental vehicle as defined in section

one hundred thirty-seven-a of the vehicle and traffic law, or livery

vehicle solely because the shared vehicle owner allows such vehicle to

be used for peer-to-peer car sharing, or as such for the duration of the

car sharing period, provided that: (a) the peer-to-peer car sharing is

compliant with a peer-to-peer car sharing program as provided in this

article; (b) if the car sharing program does not prohibit shared vehicle

drivers from using shared vehicles for commercial uses, the insurance

maintained by the car sharing program does not exclude coverage for such

commercial uses; and (c) the car sharing program does not knowingly

place the shared vehicle into use as a commercial vehicle or as a

vehicle for-hire or as a transportation network company vehicle by a

shared vehicle driver while engaged in peer-to-peer car sharing, unless

the shared vehicle driver or owner, as applicable, is in compliance with

other laws applied to the commercial use or to use as a vehicle for-hire

or as a transportation network company vehicle.

2. A peer-to-peer car sharing program administrator, during each

peer-to-peer car sharing period for each shared vehicle that it

facilitates the use and operation of, shall maintain insurance that

provides financial responsibility coverage as follows:

(a) provide insurance coverage that is three times the financial

responsibility requirements set forth in the definition of "owners'

policy of liability insurance" in subdivision four of section three

hundred eleven of the vehicle and traffic law;

(b) provide insurance coverage that satisfies the financial

responsibility requirements set forth in section three thousand four

hundred twenty of the insurance law, article fifty-one of the insurance

law and such other requirements, rules or regulations that may apply for

the purposes of satisfying the financial responsibility requirements

with respect to the use or operation of a motor vehicle;

(c) the insurance required under this subdivision need not be

coterminous with the registration period of the shared vehicle insured;

and

(d) For purposes of article fifty-one of the insurance law, 11 NYCRR

Part 65 and general liability claims, notice to the shared vehicle

owner, shared vehicle driver, peer-to-peer car sharing program

administrator, or any insurer of the shared vehicle owner, shared

vehicle driver, or peer-to-peer car sharing program administrator of any

claim shall be deemed notice to all appropriate parties and insurers.

Any shared vehicle owner, shared vehicle driver, peer-to-peer car

sharing program administrator, or any insurer of the shared vehicle

owner, shared vehicle driver, or peer-to-peer car sharing program

administrator receiving such notice shall provide such notice to all

appropriate parties.

3. The insurance requirements provided in subdivision two of this

section may be satisfied by insurance provided through a group policy

maintained by the peer-to-peer car sharing program administrator on the

shared vehicle, shared vehicle owner, and shared vehicle driver pursuant

to this article. Provided that the peer-to-peer car sharing program

administrator's group liability insurance policy shall be primary during

each car sharing period, pursuant to section nine hundred two of this

article, nothing shall be deemed to preclude an insurer from providing

excess or umbrella coverage for the shared vehicle owner or shared

vehicle driver if such shared vehicle owner or shared vehicle driver

chooses to do so by contract or endorsement.

4. A peer-to-peer car sharing program administrator shall, during each

peer-to-peer car sharing period for each shared vehicle that it

facilitates the use and operation of, perform the following:

(a) provide shared vehicle owners with proof of insurance coverage

satisfying subdivision two of this section and such shared vehicle owner

or shared vehicle driver shall carry such proof of coverage with him or

her at all times during his or her operation of a shared vehicle during

a peer-to-peer car sharing period. Such proof of coverage shall be in

such form as the commissioner of motor vehicles shall prescribe, which

may be in the form of an insurance identification card as defined in

section three hundred eleven of the vehicle and traffic law. Any

insurance identification card issued pursuant to the provisions of this

article shall be in addition to the insurance identification card

required pursuant to article six of the vehicle and traffic law, and

nothing contained in this article shall be deemed to supersede the

provisions of article six of the vehicle and traffic law. Whenever the

production of an insurance identification card is required by law, a

shared vehicle owner or shared vehicle driver shall: (i) produce the

insurance identification card pursuant to article six of the vehicle and

traffic law; and (ii) if such shared vehicle owner or shared vehicle

driver was operating such vehicle during a peer-to-peer car sharing

period, such shared vehicle owner or shared vehicle driver shall also

produce the insurance identification card required pursuant to this

article. A shared vehicle owner or shared vehicle driver who, while

operating a shared vehicle during a peer-to-peer car sharing period, has

in effect the insurance required pursuant to this article, shall not be

deemed to be in violation of insurance requirements under article six of

the vehicle and traffic law during such time as he or she was operating

such vehicle during such period.

(b) 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

security insurance referred to in subdivision two of this section is in

full force and effect; and

(ii) a toll-free number, electronic mail, 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 with relevant job responsibilities may

confirm that the insurance provided for in subdivision two of this

section is in full force and effect.

(c) collect, maintain, and make available to the shared vehicle owner,

the shared vehicle owner's primary motor vehicle liability insurer in

connection with a claimed loss, the shared vehicle driver's primary

motor vehicle liability insurer in connection with a claimed loss, any

excess or umbrella insurers in connection with a claimed loss, third

parties directly involved in motor vehicle incidents with a shared

vehicle 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;

(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; and

(iii) For purposes of article fifty-one of the insurance law, 11 NYCRR

Part 65 and general liability claims, notice to the shared vehicle

owner, shared vehicle driver, peer-to-peer car sharing program

administrator, or any insurer of the shared vehicle owner, shared

vehicle driver, or peer-to-peer car sharing program administrator of any

claim shall be deemed notice to all appropriate parties and insurers.

Any shared vehicle owner, shared vehicle driver, peer-to-peer car

sharing program administrator, or any insurer of the shared vehicle

owner, shared vehicle driver, or peer-to-peer car sharing program

administrator receiving such notice shall provide such notice to all

appropriate parties.

(d) ensure that the shared vehicle owner and 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 policy of liability insurance or other motor vehicle insurance

may exclude any and all coverage afforded under the policy, provided the

shared vehicle owner's insurer notified its insured that it shall have

no duty to indemnify or defend any person or entity for liability for

any loss, death, or injury that occurs during the peer-to-peer car

sharing period; and

(ii) any insurance or physical damage protection offered pursuant to

paragraph (b) of subdivision two of this section or section three

thousand four hundred fifty-eight of the insurance law, shall not be

valid or collectible for damages, losses, deaths, or injuries that occur

outside of the peer-to-peer car sharing period.

(e) ensure that the shared vehicle owner acknowledges upon or before

enrollment in a peer-to-peer car sharing program, and is notified in

plain conspicuous language before each car sharing period, that state

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.

5. At the time a vehicle is enrolled in the peer-to-peer car sharing

program, the peer-to-peer car sharing program administrator shall file

with the commissioner of motor vehicles, in such form and manner as such

commissioner may require, a statement identifying the shared vehicle and

proof of a group policy applicable to such shared vehicle pursuant to

section three thousand four hundred seven of the insurance law. The

commissioner of motor vehicles shall identify the vehicle as enrolled in

the peer-to-peer car sharing program and provide proof of a group policy

applicable to such shared vehicle pursuant to the insurance law in such

vehicle or registration record in a manner accessible to the public.

Failure of a peer-to-peer car sharing program administrator to comply

with the provisions of this article may result in penalties.

6. (a) Except as provided in paragraph (b) of this subdivision, a

group policy maintained by a program shall be placed with an insurer

authorized to write insurance in this state.

(b) If a program is unable to purchase a group policy because such

insurance is unavailable from authorized insurers, the program may

acquire such group insurance with an excess line broker pursuant to

section two thousand one hundred eighteen of the insurance law;

(c) The obligation to determine whether the insurance required by this

section is unavailable from insurers authorized to write insurance in

this state shall be made prior to the initial placement and at each

renewal of a policy.

(d) Compliance with the excess line statutes and regulations of this

state shall be performed with respect to the group as a whole and not

with respect to individual group members.

(e) A group policy provided for in this section shall not include a

mandatory arbitration clause in a policy issued pursuant to this

section. Nothing in this section supersedes the mandatory arbitration

requirements contained in section five thousand one hundred five of the

insurance law.

7. A peer-to-peer car sharing program administrator shall, upon

entering into a peer-to-peer car sharing agreement with a shared vehicle

owner and prior to the shared vehicle owner making a shared vehicle

available for sharing in the program, provide notice in plain

conspicuous language to the shared vehicle owner that he or she may need

additional insurance coverage including motor vehicle physical damage

coverage as described in paragraph nineteen of subsection (a) of section

one thousand one hundred thirteen of the insurance law if the shared

vehicle is subject to a lease or loan. A program shall also post this

notice on its website in a prominent place and provide contact

information for the department of financial services.

8. For each peer-to-peer car sharing period, a peer-to-peer car

sharing program administrator shall:

(a) either provide the shared vehicle owner with additional liability

insurance or provide the shared vehicle owner with the opportunity to

purchase additional liability insurance pursuant to subparagraph (A) of

paragraph one of subsection (d) of section two thousand one hundred

thirty-one of the insurance law; and

(b) either provide the shared vehicle driver with additional liability

insurance or provide the shared vehicle driver with the opportunity to

purchase additional liability insurance pursuant to subparagraph (A) of

paragraph one of subsection (d) of section two thousand one hundred

thirty-one of the insurance law.

9. For each peer-to-peer car sharing period, a peer-to-peer car

sharing administrator may offer the shared vehicle owner or the shared

driver the opportunity to purchase additional insurance coverages

described in subparagraph (B), (C) or (D) of paragraph one of subsection

(d) of section two thousand one hundred thirty-one of the insurance law.