2019 New York Laws
VAT - Vehicle and Traffic
Title 3 - Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions
Article 8 - Indemnity Bonds or Insurance Policies on Vehicles Transporting Passengers for Hire
370 - Indemnity Bonds or Insurance Policies; Notice of Accident.

Universal Citation: NY Veh & Traf L § 370 (2019)
§  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 financial services 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;

  * NB Effective until January 1, 2020
  * 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.
  * NB Effective January 1, 2020
  * (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.
  * NB Effective until January 1, 2020
  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.

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