N.Y. Vehicle & Traffic Law § 345: Motor vehicle liability policy

§ 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.