N.Y. Vehicle & Traffic Law § 370: Indemnity bonds or insurance policies; notice of accident

§ 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.