2006 New York Code - Liability Insurance; Standard Provisions; Right Of Injured Person.

 
    §  3420.  Liability  insurance;  standard provisions; right of injured
  person.  (a) No policy or contract insuring against liability for injury
  to person, except as provided  in  subsection  (g)  hereof,  or  against
  liability  for injury to, or destruction of, property shall be issued or
  delivered in this state, unless it contains in substance  the  following
  provisions  or  provisions  which  are  equally or more favorable to the
  insured and to judgment creditors so far as such  provisions  relate  to
  judgment creditors:
    (1)  A  provision  that  the  insolvency  or  bankruptcy of the person
  insured, or the insolvency of his estate, shall not release the  insurer
  from  the  payment  of  damages  for injury sustained or loss occasioned
  during the life of and within the coverage of such policy or contract.
    (2) A provision that in case  judgment  against  the  insured  or  his
  personal  representative  in  an  action  brought to recover damages for
  injury sustained or loss or damage occasioned during  the  life  of  the
  policy  or contract shall remain unsatisfied at the expiration of thirty
  days from the serving of notice of entry of judgment upon  the  attorney
  for  the  insured,  or  upon  the insured, and upon the insurer, then an
  action may, except during a stay or limited stay  of  execution  against
  the  insured  on  such judgment, be maintained against the insurer under
  the terms of the policy or contract for the amount of such judgment  not
  exceeding  the  amount  of  the  applicable limit of coverage under such
  policy or contract.
    (3) A provision that notice given by or on behalf of the  insured,  or
  written  notice  by  or  on  behalf  of  the injured person or any other
  claimant, to any licensed agent of  the  insurer  in  this  state,  with
  particulars  sufficient  to identify the insured, shall be deemed notice
  to the insurer.
    (4) A provision that failure to give any notice required to  be  given
  by  such  policy within the time prescribed therein shall not invalidate
  any claim made by the insured or by any other claimant if  it  shall  be
  shown  not  to  have been reasonably possible to give such notice within
  the prescribed time and that notice was given as soon as was  reasonably
  possible.
    (b)  Subject  to  the  limitations  and conditions of paragraph two of
  subsection (a) hereof, an action may  be  maintained  by  the  following
  persons  against  the  insurer  upon any policy or contract of liability
  insurance which is governed by such paragraph, to recover the amount  of
  a judgment against the insured or his personal representative:
    (1)  any person who, or the personal representative of any person who,
  has  obtained  a  judgment  against  the   insured   or   his   personal
  representative,  for  damages  for  injury  sustained  or loss or damage
  occasioned during the life of the policy or contract;
    (2) any person who, or the personal representative of any person  who,
  has   obtained   a   judgment   against  the  insured  or  his  personal
  representative to enforce a right of contribution or indemnity,  or  any
  person subrogated to the judgment creditor's rights under such judgment;
  and
    (3)  any assignee of a judgment obtained as specified in paragraph one
  or paragraph two of this subsection, subject further to  the  limitation
  contained in section 13-103 of the general obligations law.
    (c) If an action is maintained against an insurer under the provisions
  of  paragraph  two  of  subsection  (a)  of this section and the insurer
  alleges in defense that the insured failed or refused to cooperate  with
  the  insurer  in  violation  of  any provision in the policy or contract
  requiring such cooperation, the burden shall  be  upon  the  insurer  to
  prove such alleged failure or refusal to cooperate.
    (d)  If  under  a liability policy delivered or issued for delivery in
  this state, an insurer shall disclaim liability  or  deny  coverage  for
  death  or  bodily  injury arising out of a motor vehicle accident or any
  other type of accident  occurring  within  this  state,  it  shall  give
  written  notice  as soon as is reasonably possible of such disclaimer of
  liability or denial of coverage to the insured and the injured person or
  any other claimant.
    (e) No policy or contract of personal injury liability insurance or of
  property damage liability insurance, covering liability arising from the
  ownership, maintenance or operation of  any  motor  vehicle  or  of  any
  vehicle  as defined in section three hundred eighty-eight of the vehicle
  and traffic law, or an aircraft, or any vessel  as  defined  in  section
  forty-eight  of the navigation law, shall be issued or delivered in this
  state to the owner thereof, or shall  be  issued  or  delivered  by  any
  authorized  insurer  upon  any  such  vehicle or aircraft or vessel then
  principally garaged  or  principally  used  in  this  state,  unless  it
  contains  a  provision  insuring the named insured against liability for
  death or injury sustained, or  loss  or  damage  occasioned  within  the
  coverage  of  the  policy  or contract, as a result of negligence in the
  operation or use of such vehicle, aircraft or vessel, as  the  case  may
  be,  by  any  person  operating  or  using the same with the permission,
  express or implied, of the named insured.
    (f) (1) No policy  insuring  against  loss  resulting  from  liability
  imposed by law for bodily injury or death suffered by any natural person
  arising  out of the ownership, maintenance and use of a motor vehicle by
  the insured shall be issued or delivered by any authorized insurer  upon
  any  motor  vehicle then principally garaged or principally used in this
  state unless it contains a provision whereby the insurer agrees that  it
  will  pay  to  the insured, as defined in such provision, subject to the
  terms and conditions set forth therein to be prescribed by the board  of
  directors  of the Motor Vehicle Accident Indemnification Corporation and
  approved by the superintendent, all sums, not exceeding a maximum amount
  or limit of twenty-five  thousand  dollars  exclusive  of  interest  and
  costs,  on  account  of  injury to and all sums, not exceeding a maximum
  amount or limit of fifty thousand  dollars  exclusive  of  interest  and
  costs,  on  account of death of one person, in any one accident, and the
  maximum amount or limit, subject to such limit for  any  one  person  so
  injured  of  fifty thousand dollars or so killed of one hundred thousand
  dollars, exclusive of interest and costs, on account of  injury  to,  or
  death of, more than one person in any one accident, which the insured or
  his legal representative shall be entitled to recover as damages from an
  owner  or  operator  of  an  uninsured motor vehicle, unidentified motor
  vehicle  which  leaves  the  scene  of  an  accident,  a  motor  vehicle
  registered  in  this state as to which at the time of the accident there
  was not in effect a policy of liability insurance, a stolen  vehicle,  a
  motor vehicle operated without permission of the owner, an insured motor
  vehicle  where  the insurer disclaims liability or denies coverage or an
  unregistered vehicle because of  bodily  injury,  sickness  or  disease,
  including death resulting therefrom, sustained by the insured, caused by
  accident  occurring  in  this  state  and  arising out of the ownership,
  maintenance or use of such motor vehicle. No  payment  for  non-economic
  loss  shall  be  made  under  such  policy provision to a covered person
  unless such person has incurred a serious  injury,  as  such  terms  are
  defined  in  section five thousand one hundred two of this chapter. Such
  policy shall not duplicate any element of basic economic  loss  provided
  for  under article fifty-one of this chapter. No payments of first party
  benefits for basic economic loss made pursuant  to  such  article  shall
  diminish  the obligations of the insurer under this policy provision for
  the payment of non-economic loss and economic loss in  excess  of  basic
  economic  loss.  Notwithstanding  any inconsistent provisions of section
  three thousand four hundred twenty-five of this article, any such policy
  which does not contain the aforesaid provisions shall be construed as if
  such provisions were embodied therein.
    (2)  (A)  Any  such  policy  shall, at the option of the insured, also
  provide supplementary  uninsured/underinsured  motorists  insurance  for
  bodily  injury, in an amount up to the bodily injury liability insurance
  limits of coverage provided under such policy, subject to a  maximum  of
  two  hundred fifty thousand dollars because of bodily injury to or death
  of one person in any one accident and, subject to  such  limit  for  one
  person,  up to five hundred thousand dollars because of bodily injury to
  or death of two or more persons in  any  one  accident,  or  a  combined
  single  limit  policy of five hundred thousand dollars because of bodily
  injury to or death of one or more persons in any one accident.  Provided
  however,  an  insurer  issuing  such  policy, in lieu of offering to the
  insured  the  coverages  stated   above,   may   provide   supplementary
  uninsured/underinsured  motorists  insurance  for  bodily  injury, in an
  amount up to the bodily injury liability insurance  limits  of  coverage
  provided under such policy, subject to a maximum of one hundred thousand
  dollars  because  of  bodily injury to or death of one person in any one
  accident and, subject to such limit for one person, up to three  hundred
  thousand  dollars  because  of  bodily injury to or death of two or more
  persons in any one accident, or a combined single limit policy of  three
  hundred  thousand dollars because of bodily injury to or death of one or
  more persons in any one accident, if such insurer also makes available a
  personal umbrella policy with liability coverage limits up to  at  least
  five   hundred   thousand  dollars  which  also  provides  coverage  for
  supplementary  uninsured/underinsured  motorists  claims.  Supplementary
  uninsured/underinsured  motorists  insurance  shall provide coverage, in
  any state or Canadian province, if the limits  of  liability  under  all
  bodily  injury  liability  bonds and insurance policies of another motor
  vehicle liable for damages are in a lesser amount than the bodily injury
  liability insurance limits of coverage provided  by  such  policy.  Upon
  written    request    by    any    insured   covered   by   supplemental
  uninsured/underinsured  motorists  insurance  or  his  duly   authorized
  representative  and  upon  disclosure  by  the  insured of the insured's
  bodily  injury   and   supplemental   uninsured/underinsured   motorists
  insurance coverage limits, the insurer of any other owner or operator of
  another motor vehicle against which a claim has been made for damages to
  the  insured  shall disclose, within forty-five days of the request, the
  bodily injury liability insurance limits of its coverage provided  under
  the policy or all bodily injury liability bonds. The time of the insured
  to  make  any supplementary uninsured/underinsured motorist claim, shall
  be tolled during the period the insurer of any other owner  or  operator
  of  another motor vehicle that may be liable for damages to the insured,
  fails to so disclose its coverage.  As  a  condition  precedent  to  the
  obligation   of   the   insurer   to   pay   under   the   supplementary
  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
  liability  of  all  bodily  injury liability bonds or insurance policies
  applicable at the time of the accident shall be exhausted by payment  of
  judgments or settlements.
    (B)  In  addition to the notice provided, upon issuance of a policy of
  motor vehicle liability insurance pursuant to regulations promulgated by
  the superintendent, insurers shall notify insureds, in writing,  of  the
  availability of supplementary uninsured/underinsured motorists coverage.
  Such   notification   shall  contain  an  explanation  of  supplementary
  uninsured/underinsured motorists coverage and the amounts  in  which  it
  can  be purchased. Subsequently, a notification of availability shall be
  provided at least  once  a  year  and  may  be  simplified  pursuant  to
  regulations  promulgated  by  the  superintendent,  but  must  include a
  concise  statement  that  supplementary uninsured/underinsured motorists
  coverage is available, an explanation of such coverage, and the coverage
  limits that can be purchased from the insurer.
    (3) The protection provided by this subsection shall not apply to  any
  cause  of  action  by  an  insured person arising out of a motor vehicle
  accident occurring in this state against  a  person  whose  identity  is
  unascertainable,  unless  the  bodily injury to the insured person arose
  out of physical contact of the motor vehicle causing the injury with the
  insured person or with a motor vehicle  which  the  insured  person  was
  occupying (meaning in or upon or entering into or alighting from) at the
  time of the accident.
    (4) An insurer shall give notice to the commissioner of motor vehicles
  of  the  entry  of  any judgment upon which a claim is made against such
  insurer under this subsection and of the payment or  settlement  of  any
  claim by the insurer.
    (g)  No  policy  or  contract  shall  be  deemed to insure against any
  liability of an insured because of death of or injuries to  his  or  her
  spouse or because of injury to, or destruction of property of his or her
  spouse   unless  express  provision  relating  specifically  thereto  is
  included in the policy as provided in paragraphs one  and  two  of  this
  subsection. This exclusion shall apply only where the injured spouse, to
  be  entitled  to recover, must prove the culpable conduct of the insured
  spouse.
    (1) Upon written  request  of  an  insured,  and  upon  payment  of  a
  reasonable  premium  established in accordance with article twenty-three
  of this chapter, an  insurer  issuing  or  delivering  any  policy  that
  satisfies the requirements of article six of the vehicle and traffic law
  shall  provide coverage against liability of an insured because of death
  of or injuries to his or her spouse up to the liability insurance limits
  provided under such policy even where the injured spouse, to be entitled
  to recover, must prove the culpable conduct of the insured spouse.  Such
  insurance  coverage  shall  be  known as "supplemental spousal liability
  insurance".
    (2) Upon issuance of a motor vehicle liability policy  that  satisfies
  the  requirements of article six of the vehicle and traffic law and that
  becomes effective  on  or  after  January  first,  two  thousand  three,
  pursuant  to  regulations promulgated by the superintendent, the insurer
  shall  notify  the  insured,  in  writing,  of   the   availability   of
  supplemental  spousal  liability  insurance.  Such notification shall be
  contained on the front of  the  premium  notice  in  boldface  type  and
  include  a  concise  statement  that  supplementary  spousal coverage is
  available, an explanation of such coverage, and  the  insurer's  premium
  for  such  coverage. Subsequently, a notification of the availability of
  supplementary spousal liability coverage shall be provided at least once
  a year in motor vehicle liability policies issued  pursuant  to  article
  six  of  the  vehicle and traffic law, including those originally issued
  prior to January first, two thousand three. Such notice must  include  a
  concise  statement  that supplementary spousal coverage is available, an
  explanation of  such  coverage,  and  the  insurer's  premium  for  such
  coverage.
    (h)  In  this  section,  the term "insurance upon any property or risk
  located in  this  state"  includes  insurance  against  legal  liability
  arising  out  of  the ownership, operation or maintenance of any vehicle
  which is principally garaged or  principally  used  in  this  state,  or
  arising  out  of  the  ownership,  operation,  use or maintenance of any
  property which is principally kept or principally used in this state, or
  arising out of any other activity which is  principally  carried  on  in
  this state.
    (i)  Except  as  provided  in  subsection  (j)  of  this  section, the
  provisions of this section shall not apply to any policy or contract  of
  insurance  in  so  far  as  it  covers  the liability of an employer for
  workers' compensation, if such contract is governed by the provisions of
  section fifty-four of the workers' compensation law, or by  any  similar
  law  of  another  state,  province  or  country,  nor  to  the  kinds of
  insurances set forth in paragraph three of subsection (b) of section two
  thousand one hundred seventeen of this chapter.
    (j) (1) Notwithstanding any other provision of  this  chapter  or  any
  other law to the contrary, every policy providing comprehensive personal
  liability  insurance  on a one, two, three or four family owner-occupied
  dwelling, issued or renewed in this state on  and  after  the  effective
  date of this subsection shall provide for coverage against liability for
  the payment of any obligation, which the policyholder may incur pursuant
  to  the  provisions  of  the  workers'  compensation law, to an employee
  arising out of and in the course of employment of less than forty  hours
  per  week,  in  and  about  such  residences of the policyholder in this
  state. Such coverage shall provide for  the  benefits  in  the  standard
  workers'  compensation policy issued in this state. No one who purchases
  a policy providing comprehensive personal liability insurance  shall  be
  deemed  to have elected to cover under the workers' compensation law any
  employee who is not required, under the provisions of such  law,  to  be
  covered.
    (2)  The  term  "policyholder"  as  used  in  this subsection shall be
  limited to an individual or individuals as defined by the terms  of  the
  policy, but shall not include corporate or other business entities or an
  individual  who  has  or  individuals  who  have  in  effect  a workers'
  compensation policy which covers employees working in and about  his  or
  their residence.
    (3)  Every  insurer  who  is  licensed  by the superintendent to issue
  homeowners or other policies providing comprehensive personal  liability
  insurance  in this state shall also be deemed to be licensed to transact
  workers' compensation  insurance  for  the  purpose  of  covering  those
  persons specified in this subsection.