S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5793--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 14, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance  --  recommitted
  to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
  relation to personal vehicle sharing programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new  section  3441
to read as follows:
  S  3441.  PERSONAL  VEHICLE SHARING PROGRAMS. (A) NO PRIVATE PASSENGER
MOTOR VEHICLE AS DEFINED IN THIS SECTION INSURED BY ITS  OWNER  PURSUANT
TO  A POLICY OF INSURANCE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED
TWENTY-FIVE OF THIS ARTICLE OR ARTICLE FIFTY-THREE OF THIS CHAPTER SHALL
BE CLASSIFIED AS A COMMERCIAL VEHICLE, FOR-HIRE VEHICLE, PERMISSIVE  USE
VEHICLE, TAXICAB OR LIVERY SOLELY BECAUSE ITS OWNER ALLOWS IT TO BE USED
FOR  PERSONAL  VEHICLE  SHARING  AS LONG AS ALL OF THE FOLLOWING CIRCUM-
STANCES APPLY:
  (1) THE PERSONAL VEHICLE SHARING IS COMPLIANT WITH A PERSONAL  VEHICLE
SHARING PROGRAM AS PROVIDED FOR IN THIS SECTION; AND
  (2) THE OWNER OF THE PRIVATE PASSENGER MOTOR VEHICLE DOES NOT KNOWING-
LY  PLACE  THE  VEHICLE INTO USE AS A COMMERCIAL VEHICLE OR AS A VEHICLE
FOR HIRE BY A PERSONAL VEHICLE SHARING RENTER AS DEFINED IN THIS SECTION
WHILE ENGAGED IN PERSONAL VEHICLE SHARING; AND
  (3) THE ANNUAL REVENUE RECEIVED BY THE VEHICLE'S REGISTERED OWNER THAT
WAS GENERATED BY THE PERSONAL VEHICLE SHARING DOES NOT EXCEED THE ANNUAL
EXPENSES OF OWNING AND OPERATING THE  VEHICLE,  INCLUDING  DEPRECIATION,
INTEREST,  LEASE PAYMENTS, MOTOR VEHICLE LOAN PAYMENTS, INSURANCE, MAIN-
TENANCE, PARKING, FUEL, CLEANING, AUTOMOBILE REPAIR AND COSTS ASSOCIATED
WITH PERSONAL VEHICLE SHARING, INCLUDING BUT NOT LIMITED TO THE  INSTAL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11405-05-4
              

S. 5793--A                          2

LATION,  OPERATION,  AND  MAINTENANCE OF COMPUTER HARDWARE AND SOFTWARE,
SIGNAGE IDENTIFYING THE VEHICLE AS A PERSONAL VEHICLE  SHARING  VEHICLE,
AND ANY FEES CHARGED BY THE PROGRAM.
  (B) FOR PURPOSES OF THIS SECTION THE FOLLOWING DEFINITIONS APPLY:
  (1)  "PERSONAL  VEHICLE  SHARING"  MEANS  THE USE OF PRIVATE PASSENGER
MOTOR VEHICLES BY PERSONS OTHER THAN THE VEHICLE'S OWNER, IN  CONNECTION
WITH A PERSONAL VEHICLE SHARING PROGRAM.
  (2)  "PERSONAL  VEHICLE  SHARING  PROGRAM"  MEANS A PROGRAM ENGAGED IN
FACILITATING THE SHARING OF PRIVATE PASSENGER MOTOR VEHICLES FOR NONCOM-
MERCIAL USE.
  (3) "PRIVATE PASSENGER MOTOR VEHICLE" MEANS:
  (A) A PRIVATE PASSENGER AUTO; OR
  (B) A PICKUP OR VAN THAT:
  (I) HAS A GROSS VEHICLE WEIGHT RATING OF TEN THOUSAND POUNDS OR  LESS;
AND
  (II)  IS  NOT  USED  FOR  THE COMMERCIAL DELIVERY OR TRANSPORTATION OF
GOODS AND MATERIALS.
  (C) A PRIVATE PASSENGER MOTOR VEHICLE UNDER THIS  DEFINITION  MUST  BE
INSURED, OR BE SUBJECT TO BEING INSURED, UNDER A PRIVATE PASSENGER MOTOR
VEHICLE  LIABILITY  INSURANCE  POLICY  INSURING  A SINGLE INDIVIDUAL, OR
INDIVIDUALS RESIDING IN THE SAME HOUSEHOLD, AS THE  NAMED  INSURED,  BUT
DOES NOT INCLUDE A VEHICLE WITH FEWER THAN FOUR WHEELS.
  (4)  "PERSONAL  VEHICLE SHARING RENTER" MEANS A PERSON, OTHER THAN THE
VEHICLE OWNER, WHO RENTS THE OWNER'S VEHICLE THROUGH A PERSONAL  VEHICLE
SHARING PROGRAM AS DEFINED IN THIS SECTION.
  (5)  "PROGRAM PROVIDER" MEANS THE PERSON OR ENTITY THAT IS RESPONSIBLE
FOR OPERATING THE PERSONAL VEHICLE SHARING PROGRAM.
  (C) A PROGRAM PROVIDER SHALL, FOR EACH VEHICLE THAT IT FACILITATES THE
USE OF, DO ALL OF THE FOLLOWING:
  (1) DURING ALL TIMES THAT THE VEHICLE IS ENGAGED IN  PERSONAL  VEHICLE
SHARING,  PROCURE  GROUP INSURANCE COVERAGE FOR EACH VEHICLE AND AUTHOR-
IZED OPERATOR OF THE  VEHICLE.  SUCH  INSURANCE  SHALL,  AT  A  MINIMUM,
PROVIDE  FOR  EACH VEHICLE COVERAGE AT LEAST EQUAL TO THE MINIMUM INSUR-
ANCE REQUIREMENTS FOR PRIVATE PASSENGER VEHICLES AS PROVIDED BY  SECTION
THREE  HUNDRED  ELEVEN OF THE VEHICLE AND TRAFFIC LAW, ARTICLE FIFTY-ONE
OF THIS CHAPTER AND SUCH OTHER NEW YORK STATE STATUTES WITH  RESPECT  TO
MANDATORY LIABILITY, UNINSURED, AND FIRST-PARTY BENEFITS COVERAGE AS MAY
BE  ENACTED  FROM  TIME  TO TIME. THE GROUP INSURANCE POLICY MAY PROVIDE
UNDERINSURED INSURANCE COVERAGE AT THE OPTION OF THE PROGRAM PROVIDER AS
INSURED OF THE GROUP POLICY. THE PROGRAM SHALL ALSO OFFER  COMPREHENSIVE
AND  COLLISION  PROTECTION,  AS FURTHER DESCRIBED IN SUBSECTIONS (M) AND
(N) OF THIS SECTION.
  (2) PROVIDE THE REGISTERED OWNER OF THE VEHICLE WITH SUITABLE PROOF OF
COMPLIANCE WITH THE INSURANCE  REQUIREMENTS  OF  THIS  SECTION  AND  THE
REQUIREMENTS  OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC
LAW AND ARTICLE FIFTY-ONE OF THIS CHAPTER, A  COPY  OF  WHICH  SHALL  BE
MAINTAINED  IN  THE VEHICLE BY THE VEHICLE'S REGISTERED OWNER DURING ANY
TIME WHEN THE VEHICLE IS OPERATED BY ANY PERSON OTHER THAN THE VEHICLE'S
OWNER PURSUANT TO A PERSONAL VEHICLE SHARING PROGRAM.
  (3) NOT KNOWINGLY PERMIT THE VEHICLE TO BE OPERATED FOR COMMERCIAL USE
OR AS A VEHICLE FOR HIRE BY A  PERSONAL  VEHICLE  SHARING  RENTER  WHILE
ENGAGED IN PERSONAL VEHICLE SHARING.
  (4)  PROVIDE  EACH  PERSONAL  VEHICLE  SHARING RENTER FOR EACH VEHICLE
RENTAL TRANSACTION UNDER THE PERSONAL VEHICLE  SHARING  PROGRAM  AT  THE
TIME OF EACH RENTAL:

S. 5793--A                          3

  (A)  DOCUMENTATION  ABLE  TO  BE  CARRIED  IN THE VEHICLE AT ALL TIMES
DURING THE RENTAL THAT THE INSURANCE COVERAGE REFERRED TO  IN  PARAGRAPH
ONE OF THIS SUBSECTION IS IN FULL FORCE AND EFFECT; AND
  (B) PROVIDE MEANS VIA A TOLL FREE NUMBER, E-MAIL ADDRESS OR SUCH OTHER
MEANS  OF COMMUNICATION PURSUANT TO WHICH A LAW ENFORCEMENT POLICE OFFI-
CER, A REPRESENTATIVE OF THE DEPARTMENT OF MOTOR VEHICLES OR OTHER OFFI-
CER OF THIS STATE OR ANY POLITICAL SUBDIVISION THEREOF  MAY  CONFIRM  IN
REAL  TIME  THAT THE INSURANCE COVERAGE PROVIDED FOR IN PARAGRAPH ONE OF
THIS SUBSECTION, IS IN EFFECT.
  (5) SHALL COMPLY WITH THE REQUIREMENTS OF SUBDIVISION TWO  OF  SECTION
THREE HUNDRED TWELVE OF THE VEHICLE AND TRAFFIC LAW.
  (6)  REQUIRE  THAT  THE  VEHICLES USED IN THE PERSONAL VEHICLE SHARING
PROGRAM ARE LIMITED TO PRIVATE PASSENGER MOTOR VEHICLES  AS  DEFINED  IN
THIS SECTION.
  (7) FACILITATE THE INSTALLATION, OPERATION, AND MAINTENANCE OF ITS OWN
SIGNAGE AND COMPUTER HARDWARE AND SOFTWARE, IF AND WHEN REQUESTED BY THE
VEHICLE'S  REGISTERED  OWNER, TO THE EXTENT NECESSARY FOR THE VEHICLE TO
BE USED IN THE PROGRAM.
  (8) INDEMNIFY AND HOLD HARMLESS THE VEHICLE'S REGISTERED OWNER FOR THE
COST OF DAMAGE OR THEFT OF EQUIPMENT  INSTALLED  BY  THE  PROGRAM  UNDER
PARAGRAPH  SEVEN  OF  THIS  SUBSECTION  AND FOR ANY DAMAGE CAUSED TO THE
VEHICLE BY THE INSTALLATION, OPERATION OR MAINTENANCE OF SUCH EQUIPMENT.
  (9) COLLECT, MAINTAIN, AND MAKE AVAILABLE TO THE VEHICLE'S  REGISTERED
OWNER,  AND  THE  OWNER'S  PRIMARY  MOTOR VEHICLE LIABILITY INSURER, THE
OPERATOR'S PRIMARY AUTOMOBILE INSURER, EXCESS OR  UMBRELLA  INSURER  AND
ANY GOVERNMENT AGENCY AS REQUIRED BY LAW, AT THE COST OF THE PROGRAM THE
FOLLOWING WITHIN TEN BUSINESS DAYS OF A REQUEST:
  (A) VERIFIABLE RECORDS OF THE PROGRAM USE PERIOD FOR EACH VEHICLE. FOR
VEHICLES  WITH  AN  ELECTRONIC  TRACKING  DEVICE,  VERIFIABLE ELECTRONIC
RECORDS OF THE TIME, INITIAL AND FINAL LOCATIONS OF THE VEHICLE, AND (TO
THE EXTENT MILEAGE IS COLLECTED) MILES DRIVEN; AND
  (B) IN INSTANCES WHERE AN INSURANCE CLAIM HAS BEEN FILED, ANY AND  ALL
INFORMATION  RELEVANT  TO  THE CLAIM, INCLUDING PAYMENTS BY THE PROGRAM,
CONCERNING ACCIDENTS, DAMAGES AND INJURIES.
  (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR ANY PROVISION  IN  A
PRIVATE  PASSENGER MOTOR VEHICLE OWNER'S AUTOMOBILE INSURANCE POLICY, IN
THE EVENT OF A LOSS OR INJURY THAT OCCURS DURING ANY  TIME  PERIOD  WHEN
THE  VEHICLE  IS  UNDER  THE OPERATION AND CONTROL OF A PERSONAL VEHICLE
SHARING RENTER AS DEFINED IN THIS SECTION OR OTHERWISE UNDER THE CONTROL
OF A PERSONAL VEHICLE SHARING PROGRAM, THE PROGRAM PROVIDER SHALL ASSUME
ALL LIABILITY UNDER SECTION THREE HUNDRED EIGHTY-EIGHT  OF  THE  VEHICLE
AND  TRAFFIC  LAW AND SUCH OTHER STATUTES THAT MAY IMPOSE LIABILITY UPON
AN OWNER OF A PRIVATE PASSENGER MOTOR VEHICLE AS IF THE PROGRAM PROVIDER
WERE THE OWNER OF THE VEHICLE.
  SECTION THREE HUNDRED EIGHTY-EIGHT OF  THE  VEHICLE  AND  TRAFFIC  LAW
SHALL  NOT  APPLY  TO  THE  VEHICLE OWNER WHILE THE VEHICLE IS UNDER THE
OPERATION AND CONTROL OF A PERSONAL VEHICLE SHARING RENTER OR  OTHERWISE
UNDER THE CONTROL OF A PERSONAL VEHICLE SHARING PROGRAM. NOTHING IN THIS
SECTION  LIMITS  THE  LIABILITY  OF THE PROGRAM PROVIDER FOR ITS ACTS OR
OMISSIONS THAT RESULT IN INJURY TO ANY PERSONS AS A RESULT OF THE USE OR
OPERATION OF A MOTOR VEHICLE WHILE IN  CUSTODY  OF  A  PERSONAL  VEHICLE
SHARING  PROGRAM.  HOWEVER NOTHING IN THIS SECTION LIMITS THE ABILITY OF
THE PROGRAM TO, BY CONTRACT, SEEK  INDEMNIFICATION  FROM  THE  VEHICLE'S
REGISTERED  OWNER  FOR  ANY  CLAIMS  PAID BY THE PROGRAM FOR ANY LOSS OR
INJURY RESULTING FROM FRAUD OR MATERIAL INTENTIONAL MISREPRESENTATION BY

S. 5793--A                          4

THE VEHICLE'S  REGISTERED  OWNER,  PROVIDED  THAT  THE  VEHICLE  SHARING
PROGRAM DISCLOSES IN THE CONTRACT THAT:
  (I)  THE  PROGRAM IS ENTITLED TO SEEK INDEMNIFICATION IN THESE CIRCUM-
STANCES; AND
  (II) THE REGISTERED OWNER'S INSURANCE POLICY MAY NOT  PROVIDE  DEFENSE
OR  INDEMNIFICATION FOR ANY LOSS OR INJURY RESULTING FROM FRAUD OR MATE-
RIAL INTENTIONAL MISREPRESENTATION.
  (E) A PROGRAM  PROVIDER  SHALL  CONTINUE  TO  BE  LIABLE  PURSUANT  TO
SUBSECTION (D) OF THIS SECTION UNTIL BOTH OF THE FOLLOWING OCCUR:
  (1)  THE  PRIVATE  PASSENGER  MOTOR  VEHICLE IS RETURNED TO A LOCATION
SPECIFIED BY THE OWNER, OR DESIGNATED BY THE  PERSONAL  VEHICLE  SHARING
PROGRAM; AND
  (2) THE EARLIEST OF ONE OF THE FOLLOWING OCCURS:
  (A)  THE  EXPIRATION OF THE TIME PERIOD ESTABLISHED FOR THE PARTICULAR
USE OF THE VEHICLE;
  (B) THE INTENT TO TERMINATE THE PERSONAL VEHICLE SHARING USE IS  VERI-
FIABLY COMMUNICATED TO THE PROGRAM PROVIDER; OR
  (C) THE VEHICLE'S OWNER TAKES POSSESSION AND CONTROL OF THE VEHICLE.
  (F) THE INSURER OR INSURERS PROVIDING GROUP LIABILITY INSURANCE TO THE
PERSONAL  VEHICLE  SHARING  PROGRAM  PURSUANT  TO SUBSECTION (J) OF THIS
SECTION AND GROUP PHYSICAL DAMAGE  INSURANCE  TO  THE  PERSONAL  VEHICLE
SHARING  PROGRAM PURSUANT TO SUBSECTION (M) OF THIS SECTION SHALL ASSUME
LIABILITY FOR A CLAIM IN WHICH A DISPUTE EXISTS  REGARDING  WHO  WAS  IN
CONTROL  OF THE VEHICLE WHEN THE LOSS OCCURRED GIVING RISE TO THE CLAIM,
AND THE VEHICLE OWNER'S PRIVATE PASSENGER MOTOR  VEHICLE  INSURER  SHALL
INDEMNIFY THE PERSONAL VEHICLE SHARING PROGRAM'S GROUP INSURER OR INSUR-
ERS TO THE EXTENT OF ITS OBLIGATION UNDER THE APPLICABLE INSURANCE POLI-
CY,  IF  IT IS DETERMINED THAT THE VEHICLE'S OWNER WAS IN CONTROL OF THE
VEHICLE AT THE TIME OF THE LOSS. THE PROGRAM MUST NOTIFY THE  REGISTERED
OWNER'S  INSURER OF ANY SUCH DISPUTE WITHIN TWENTY-FIVE BUSINESS DAYS OF
BECOMING AWARE THAT SUCH A DISPUTE MAY EXIST.
  (G) IN THE EVENT THAT THE OWNER OF THE VEHICLE OR ITS INSURER IS NAMED
AS A DEFENDANT IN A CIVIL ACTION FOR A LOSS OR INJURY THAT OCCURS DURING
ANY TIME PERIOD WHEN THE VEHICLE IS UNDER THE OPERATION AND CONTROL OF A
PERSON OTHER THAN THE VEHICLE'S OWNER PURSUANT  TO  A  PERSONAL  VEHICLE
SHARING  PROGRAM,  OR  OTHERWISE UNDER THE CONTROL OF A PERSONAL VEHICLE
SHARING PROGRAM, THE PERSONAL VEHICLE SHARING PROGRAM'S GROUP  LIABILITY
INSURANCE  INSURER  UNDER  SUBSECTION (J) OF THIS SECTION SHALL HAVE THE
DUTY TO DEFEND AND INDEMNIFY THE VEHICLE'S OWNER AND THE VEHICLE OWNER'S
INSURER, SUBJECT TO THE PROVISIONS OF SUBSECTIONS (D) AND  (F)  OF  THIS
SECTION.
  (H)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, WHILE
A PRIVATE PASSENGER MOTOR VEHICLE IS USED BY A  PERSON  OTHER  THAN  ITS
OWNER,  PURSUANT  TO  PERSONAL  VEHICLE  SHARING  FACILITATED  THROUGH A
PERSONAL VEHICLE SHARING PROGRAM, ALL OF THE FOLLOWING SHALL APPLY:
  (1) THE INSURER OF THAT VEHICLE ON FILE WITH THE DEPARTMENT  OF  MOTOR
VEHICLES  MAY  EXCLUDE  ANY  AND  ALL COVERAGE FOR LIABILITY, UNINSURED,
UNDERINSURED,  COLLISION  PHYSICAL  DAMAGE  AND  COMPREHENSIVE  PHYSICAL
DAMAGE  BENEFITS AND FIRST-PARTY BENEFITS THAT MAY OTHERWISE BE AFFORDED
PURSUANT TO ITS POLICY.
  (2) THE PRIMARY AND EXCESS INSURER OR INSURERS OF THE  OWNERS  OF  THE
PRIVATE  PASSENGER  MOTOR  VEHICLE  USED  IN  A PERSONAL VEHICLE SHARING
PROGRAM SHALL HAVE THE RIGHT TO NOTIFY AN INSURED THAT IT HAS NO DUTY TO
DEFEND OR INDEMNIFY ANY PERSON OR ORGANIZATION  FOR  LIABILITY  FOR  ANY
LOSS  THAT  OCCURS DURING THE RENTAL PERIOD OF THE VEHICLE IN A PERSONAL
VEHICLE SHARING PROGRAM.

S. 5793--A                          5

  (I) NO VEHICLE OWNER'S POLICY OF INSURANCE THAT IS SUBJECT TO  SECTION
THREE  THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  ARTICLE  SHALL BE
CANCELED, VOIDED, TERMINATED, RESCINDED, OR NON-RENEWED, SOLELY  ON  THE
BASIS  THAT  THE PRIVATE PASSENGER MOTOR VEHICLE HAS BEEN MADE AVAILABLE
FOR  PERSONAL  VEHICLE  SHARING  PURSUANT  TO A PERSONAL VEHICLE SHARING
PROGRAM THAT IS IN COMPLIANCE  WITH  THE  PROVISIONS  OF  THIS  SECTION.
PROVIDED, HOWEVER THAT:
  (1)  AN INSURER MAY REFUSE TO ENROLL A VEHICLE IN A USAGE-BASED INSUR-
ANCE PROGRAM (WHERE SUCH USAGE-BASED INSURANCE PROGRAM CONTINUALLY MONI-
TORS USAGE ELECTRONICALLY  TO  DETERMINE  ACCELERATION,  BRAKING,  MILES
DRIVEN AND OTHER INDICIA OF DRIVING BEHAVIOR) IF THAT VEHICLE IS USED IN
A PROGRAM; AND
  (2) AN INSURER MAY CANCEL OR NON-RENEW A POLICY THAT INSURES A VEHICLE
USED  IN  THE  PROGRAM IF THAT VEHICLE IS ENROLLED IN SUCH A USAGE-BASED
INSURANCE PROGRAM. THE INSURER MUST IMMEDIATELY OFFER THE INSURED A  NEW
POLICY  WITH  THE  SAME  COVERAGES  AND  PRE-EXISTING RATES, BUT WITHOUT
ENROLLMENT IN THE USAGE-BASED INSURANCE PROGRAM.
  (J) AN INSURER WHICH IS AUTHORIZED TO DO BUSINESS IN THE STATE OF  NEW
YORK MAY ISSUE A GROUP POLICY OF LIABILITY INSURANCE TO A PERSONAL VEHI-
CLE  SHARING  PROGRAM TO INSURE THE PERSONAL VEHICLE SHARING PROGRAM AND
ITS PARTICIPANTS AS DESCRIBED IN SUBSECTIONS (C), (D), (E), (F), (G) AND
(H) OF THIS SECTION. SUCH POLICY SHALL PROVIDE LIABILITY, UNINSURED, AND
FIRST PARTY COVERAGE, AND IF ELECTED BY THE PROGRAM  PROVIDER,  UNDERIN-
SURED  COVERAGE, FOR THE PRIVATE PASSENGER MOTOR VEHICLE AND ITS AUTHOR-
IZED OPERATORS AND OCCUPANTS FOR CLAIMS AND DAMAGES RESULTING  FROM  THE
USE  OR  OPERATION  OF  THAT  VEHICLE  WHILE IT IS IN THE CUSTODY OF THE
PERSONAL VEHICLE SHARING PROGRAM. SUCH  POLICY  SHALL  BE  PRIMARY  WITH
RESPECT TO ANY OTHER INSURANCE AVAILABLE TO THE OWNER OF THE MOTOR VEHI-
CLE  AND  SHALL  BE  EXCESS  OVER  ANY  OTHER INSURANCE AVAILABLE TO THE
PERSONAL VEHICLE SHARING RENTER. SUCH INSURER SHALL ALSO COMPLY WITH THE
PROVISIONS OF SECTION THREE HUNDRED TWELVE-A AND THREE HUNDRED  THIRTEEN
OF  THE VEHICLE AND TRAFFIC LAW. FOR PURPOSES OF GROUP INSURANCE WRITTEN
UNDER THIS SECTION ONLY, THE RATES CHARGED BY THE AUTHORIZED INSURER FOR
GROUP LIABILITY INSURANCE AS PROVIDED FOR IN THIS SECTION SHALL BE FILED
WITH THE DEPARTMENT OF FINANCIAL SERVICES ON A FILE AND USE BASIS.
  (K)  AN  INSURER  WHICH  ISSUES  AN  INSURANCE  POLICY  DESCRIBED   IN
SUBSECTION  (J)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
PERSONAL VEHICLE SHARING PROGRAM AS THE NAMED INSURED. ANY  SUCH  POLICY
SHALL  INCLUDE  A PROVISION THAT PROVIDES COVERAGE, WITHOUT PRIOR NOTICE
TO THE INSURER, FOR ALL PRIVATE  PASSENGER  MOTOR  VEHICLES  DURING  ALL
TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR THE
NAMED  INSURED, AND SHALL FURTHER INCLUDE A PROVISION THAT THE VEHICLES'
OWNERS, AUTHORIZED OPERATORS AND  OCCUPANTS  ARE  INCLUDED  AS  INSUREDS
UNDER  THE POLICY TO THE SAME EXTENT THAT THEY WOULD BE INSUREDS UNDER A
PRIVATE PASSENGER MOTOR VEHICLE POLICY ISSUED PURSUANT TO SECTIONS THREE
THOUSAND FOUR HUNDRED TWENTY-FIVE OF  THIS  ARTICLE  AND  SECTION  THREE
HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
  (L)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (J) AND (K) OF THIS
SECTION MAY ONLY BE ISSUED IN ACCORDANCE WITH  THE  PROVISIONS  OF  THIS
SECTION.
  (M)  A  PROGRAM PROVIDER MAY CONTRACTUALLY ASSUME THE RISK OF PHYSICAL
DAMAGE LOSS TO PRIVATE PASSENGER MOTOR VEHICLES DURING THE TIME THAT THE
VEHICLES ARE IN THE CUSTODY OF THE PERSONAL VEHICLE SHARING PROGRAM. THE
TERMS OF SUCH  CONTRACTUAL  ASSUMPTION  MAY  PROVIDE  THAT  THE  PROGRAM
PROVIDER  IS ASSUMING THE RISK OF PHYSICAL DAMAGE LOSS TO THE VEHICLE IN
EXCESS OF A SUM CERTAIN. SUCH ASSUMPTION OF RISK OF PHYSICAL DAMAGE LOSS

S. 5793--A                          6

TO THE VEHICLE SHALL NOT BE DEEMED TO BE PHYSICAL  DAMAGE  INSURANCE.  A
PROGRAM  PROVIDER  SHALL  ONLY BE PERMITTED TO ASSUME RESPONSIBILITY FOR
POTENTIAL PHYSICAL DAMAGE TO PARTICIPATING VEHICLES AS PROVIDED  FOR  IN
THIS PARAGRAPH UPON SATISFACTION OF CERTAIN STANDARDS TO BE DEVELOPED BY
THE  SUPERINTENDENT  PURSUANT  TO  REGULATION.  SUCH  REGULATIONS  SHALL
ADDRESS THE FINANCIAL RESPONSIBILITY OF THE PROGRAM  PROVIDER  TO  COVER
THE COST OF THE PHYSICAL DAMAGE, AND SHALL ESTABLISH STANDARDS REGARDING
THE PROGRAM PROVIDER'S RESPONSE TO VEHICLE OWNERS REGARDING ANY PHYSICAL
DAMAGE  TO  THEIR  VEHICLES WHILE IN THE CUSTODY OF THE PERSONAL VEHICLE
SHARING PROGRAM.
  (N) AN INSURER WHICH IS AUTHORIZED OR ELIGIBLE TO DO BUSINESS  IN  THE
STATE  OF NEW YORK MAY ISSUE A GROUP POLICY OF PHYSICAL DAMAGE INSURANCE
TO A PERSONAL VEHICLE SHARING PROGRAM  AND  TO  THE  OWNERS  OF  PRIVATE
PASSENGER MOTOR VEHICLES PARTICIPATING IN THAT PROGRAM TO INSURE AGAINST
PHYSICAL  DAMAGE  LOSS TO VEHICLES WHILE THE VEHICLES ARE IN THE CUSTODY
OF THE PERSONAL VEHICLE SHARING  PROGRAM  OR  PERSONAL  VEHICLE  SHARING
RENTER.  SUCH  POLICY  MAY  PROVIDE PRIMARY COVERAGE FOR PHYSICAL DAMAGE
LOSS BY EITHER COLLISION, COMPREHENSIVE OR BOTH TO THE VEHICLE WHILE  IT
IS  IN  THE CUSTODY OF THE VEHICLE SHARING PROGRAM OR A PERSONAL VEHICLE
SHARING RENTER.
  (O) IF THE GROUP COVERAGE PROVIDED  FOR  IN  SUBSECTION  (N)  OF  THIS
SECTION  IS PLACED WITH AN ELIGIBLE EXCESS LINE INSURER, COMPLIANCE WITH
THE EXCESS  LINE  STATUTES  AND  REGULATIONS  OF  THIS  STATE  SHALL  BE
PERFORMED  WITH  RESPECT TO THE GROUP AS A WHOLE AND NOT WITH RESPECT TO
INDIVIDUAL GROUP MEMBERS.
  (P) AN INSURER WHICH ISSUES A  GROUP  INSURANCE  POLICY  DESCRIBED  IN
SUBSECTION  (N)  OF THIS SECTION SHALL ISSUE SUCH POLICY IDENTIFYING THE
PERSONAL VEHICLE SHARING PROGRAM AS THE NAMED INSURED. ANY  SUCH  POLICY
SHALL  INCLUDE A PROVISION THAT PROVIDES PRIMARY COVERAGE, WITHOUT PRIOR
NOTICE TO THE INSURER, FOR ALL PRIVATE PASSENGER MOTOR  VEHICLES  DURING
ALL TIMES THAT SUCH VEHICLES ARE ENGAGED IN PERSONAL VEHICLE SHARING FOR
THE  NAMED  INSURED,  AND  SHALL FURTHER INCLUDE A PROVISION THAT CLAIMS
WILL BE ADJUSTED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED  TWELVE
OF THIS ARTICLE.
  (Q)  A GROUP POLICY AS PROVIDED FOR IN SUBSECTIONS (N), (O) AND (P) OF
THIS SECTION MAY ONLY BE ISSUED IN ACCORDANCE  WITH  THE  PROVISIONS  OF
THIS SECTION.
  S  2.  Subdivision  4 of section 311 of the vehicle and traffic law is
amended by adding a new paragraph (e) to read as follows:
  (E) IN THE CASE OF A PRIVATE PASSENGER MOTOR  VEHICLE  AS  DEFINED  IN
SECTION  THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THE INSURANCE LAW THAT
IS USED IN CONNECTION WITH A PERSONAL VEHICLE SHARING PROGRAM AS DEFINED
IN SUCH SECTION, THE INSURANCE REQUIREMENTS SET FORTH IN  PARAGRAPH  (A)
OF  THIS  SUBDIVISION  SHALL  BE  MET BY A GROUP INSURANCE POLICY ISSUED
PURSUANT TO SECTION THIRTY-FOUR HUNDRED FORTY-ONE OF THE  INSURANCE  LAW
TO  A  PROGRAM  PROVIDER  AND TO THE PERSONAL VEHICLE SHARING RENTERS OF
THAT PROGRAM FOR ANY TIME THAT THE VEHICLE IS BEING USED  IN  CONNECTION
WITH THE PERSONAL VEHICLE SHARING PROGRAM.
  S  3.  Subdivisions  2,  3,  4 and 5 of section 312 of the vehicle and
traffic law are renumbered subdivisions 3, 4, 5 and 6 and a new subdivi-
sion 2 is added to read as follows:
  2. IN THE CASE OF FINANCIAL SECURITY PROCURED BY A PROGRAM PROVIDER OF
A PERSONAL VEHICLE SHARING PROGRAM AS SET FORTH IN SECTION  THREE  THOU-
SAND  FOUR  HUNDRED FORTY-ONE OF THE INSURANCE LAW, THE PROGRAM PROVIDER
SHALL PROVIDE THE COMMISSIONER WITH PROOF OF FINANCIAL SECURITY  IN  THE
FORM  OF  A GROUP INSURANCE POLICY COVERING ITSELF AND THE OWNERS OF ALL

S. 5793--A                          7

NEW YORK REGISTERED PRIVATE PASSENGER MOTOR VEHICLES THAT PARTICIPATE IN
THE PROGRAM AS INSURED GROUP MEMBERS, COVERING THOSE VEHICLES WHILE THEY
ARE BEING USED IN CONJUNCTION WITH THAT PROGRAM. SUCH PROOF SHALL NOT BE
USED  IN  CONNECTION  WITH  THE REGISTRATION OF THE VEHICLES AND NO SUCH
VEHICLE SHALL BE REGISTERED UNLESS THE OWNER OF THE  VEHICLE  SEPARATELY
COMPLIES WITH SUBDIVISION ONE OF THIS SECTION.
  S 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as
amended  by  chapter  781  of  the  laws  of 1983, is amended to read as
follows:
  1. Upon issuance of an owner's policy of liability insurance, A  GROUP
LIABILITY  INSURANCE  POLICY  ISSUED TO A PROGRAM PROVIDER OF A PERSONAL
VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR  HUNDRED
FORTY-ONE  OF  THE INSURANCE LAW or other financial security required by
this chapter, an insurer shall issue proof of  insurance  in  accordance
with  the  regulations promulgated by the commissioner pursuant to para-
graph (b) of subdivision two of section three hundred thirteen  of  this
article.
  S  5.  Paragraphs  (a)  and (b) of subdivision 2 of section 313 of the
vehicle and traffic law, as amended by chapter 509 of the laws of  1998,
are amended to read as follows:
  (a)  Upon the termination of an owner's policy of liability insurance,
OR A GROUP LIABILITY INSURANCE POLICY ISSUED TO A PROGRAM PROVIDER OF  A
PERSONAL VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR
HUNDRED  FORTY-ONE  OF THE INSURANCE LAW other than an owner's policy of
liability insurance for a motorcycle, at the request of the  insured  or
by  cancellation  by  the  insurer,  the  insurer shall file a notice of
termination with reference to such policy, as  opposed  to  any  insured
vehicle  or  vehicles under such policy, with the commissioner not later
than thirty days following the effective date of  such  cancellation  or
other  termination, in accordance with the regulations required by para-
graph (c) of this subdivision. An insurer shall not  file  a  notice  of
termination  with  the  commissioner except as required by this subdivi-
sion.
  (b) Upon the issuance of an owner's policy of liability insurance,  OR
A  GROUP  LIABILITY  INSURANCE  POLICY ISSUED TO A PROGRAM PROVIDER OF A
PERSONAL VEHICLE SHARING PROGRAM PURSUANT TO SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THE INSURANCE LAW the insurer shall file  a  notice
or confirmation of issuance with reference to such policy not later than
fourteen  days  following  the  effective date of such issuance, and not
later than seven days following the effective date for  policies  issued
after  January  first,  two  thousand  one, in accordance with the regu-
lations required by paragraph (c) of this subdivision.
  S 6. This act shall take effect immediately.