2006 New York Code - 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, approved as to form by
  the superintendent of insurance in a company authorized to  do  business
  in  the  state,  approved  by  the  superintendent  as  to  solvency and
  responsibility,  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:
    (a)  For damages for and incident to death or injuries to persons: For
  each motorcycle and for each motor vehicle 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;  for each motor vehicle having a
  seating capacity of not less than eight nor more than twelve passengers,
  a bond or insurance policy  with  a  minimum  liability  of  twenty-five
  thousand  dollars and a maximum liability of eighty thousand dollars for
  bodily injury, and a minimum liability of fifty thousand dollars  and  a
  maximum  liability  of one hundred fifty thousand dollars for death; for
  each motor vehicle having a seating capacity of not less  than  thirteen
  nor  more  than  twenty  passengers,  a  bond or insurance policy with a
  minimum  liability  of  twenty-five  thousand  dollars  and  a   maximum
  liability of one hundred twenty thousand dollars for bodily injury and a
  minimum  liability  of fifty thousand dollars and a maximum liability of
  one hundred fifty thousand dollars for death;  for  each  motor  vehicle
  having  a  seating  capacity  of  not less than twenty-one nor more than
  thirty passengers, a bond or insurance policy with a  minimum  liability
  of  twenty-five  thousand dollars and a maximum liability of one hundred
  sixty thousand dollars for bodily injury  and  a  minimum  liability  of
  fifty  thousand  dollars and a maximum liability of two hundred thousand
  dollars for death; for each motor vehicle having a seating  capacity  of
  more  than  thirty passengers, a bond or insurance policy with a minimum
  liability of twenty-five thousand dollars and a maximum liability of two
  hundred thousand dollars for bodily injury and a  minimum  liability  of
  fifty  thousand  dollars  and  a  maximum liability of two hundred fifty
  thousand dollars for death;
    (b) For damages for and  incident  to  injury  to  or  destruction  of
  property; for each motor vehicle and each motorcycle a bond or insurance
  policy with a minimum liability of ten thousand dollars.
    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.