N.Y.
General Business Law Section 901
Requirements for doing business
1.
No shared vehicle shall be classified as a commercial vehicle, for-hire vehicle, transportation network company or TNC vehicle as defined in article forty-four-B of the vehicle and traffic law, taxi-cab, rental vehicle as defined in Vehicle & Traffic Law § 137-A (Rental vehicle)section one hundred thirty-seven-a of the vehicle and traffic law, or livery vehicle solely because the shared vehicle owner allows such vehicle to be used for peer-to-peer car sharing, or as such for the duration of the car sharing period, provided that:(a)
the peer-to-peer car sharing is compliant with a peer-to-peer car sharing program as provided in this article;(b)
if the car sharing program does not prohibit shared vehicle drivers from using shared vehicles for commercial uses, the insurance maintained by the car sharing program does not exclude coverage for such commercial uses; and(c)
the car sharing program does not knowingly place the shared vehicle into use as a commercial vehicle or as a vehicle for-hire or as a transportation network company vehicle by a shared vehicle driver while engaged in peer-to-peer car sharing, unless the shared vehicle driver or owner, as applicable, is in compliance with other laws applied to the commercial use or to use as a vehicle for-hire or as a transportation network company vehicle.2.
A peer-to-peer car sharing program administrator, during each peer-to-peer car sharing period for each shared vehicle that it facilitates the use and operation of, shall maintain insurance that provides financial responsibility coverage as follows:(a)
provide insurance coverage that satisfies the financial responsibility requirements set forth in Insurance Law § 3420 (Liability insurance)section three thousand four hundred twenty of the insurance law, article fifty-one of the insurance law and such other requirements, rules or regulations that may apply for the purposes of satisfying the financial responsibility requirements with respect to the use or operation of a motor vehicle;(b)
maintain additional insurance against loss from the liability imposed by law for damages during the car sharing period, including damages for care and loss of services, because of bodily injury to or death of any person and injury to or destruction of property arising out of the ownership, maintenance, use or operation of a specific personal vehicle or vehicles within the state, or elsewhere in the United States or Canada, subject to a limit, exclusive of interest and costs, with respect to each such occurrence, of at least one million two hundred fifty thousand dollars because of bodily injury to or death of any person, and injury to or destruction of property;(c)
provide coverage in accordance with subsection (f) of Insurance Law § 3420 (Liability insurance)section three thousand four hundred twenty of the insurance law, providing supplementary uninsured/underinsured motorist insurance for bodily injury, subject to a limit per occurrence in the amount of one million two hundred fifty thousand dollars because of bodily injury or death of any person;(d)
the insurance required under this subdivision need not be coterminous with the registration period of the shared vehicle insured; and(e)
For purposes of article fifty-one of the insurance law, 11 NYCRR Part 65 and general liability claims, notice to the shared vehicle owner, shared vehicle driver, peer-to-peer car sharing program administrator, or any insurer of the shared vehicle owner, shared vehicle driver, or peer-to-peer car sharing program administrator of any claim shall be deemed notice to all appropriate parties and insurers. Any shared vehicle owner, shared vehicle driver, peer-to-peer car sharing program administrator, or any insurer of the shared vehicle owner, shared vehicle driver, or peer-to-peer car sharing program administrator receiving such notice shall provide such notice to all appropriate parties.3.
The insurance requirements provided in subdivision two of this section may be satisfied by insurance provided through a group policy maintained by the peer-to-peer car sharing program administrator on the shared vehicle, shared vehicle owner, and shared vehicle driver pursuant to this article. Provided that the peer-to-peer car sharing program administrator’s group liability insurance policy shall be primary during each car sharing period, pursuant to § 902 (Program liability)section nine hundred two of this article, nothing shall be deemed to preclude an insurer from providing excess or umbrella coverage for the shared vehicle owner or shared vehicle driver if such shared vehicle owner or shared vehicle driver chooses to do so by contract or endorsement.4.
A peer-to-peer car sharing program administrator shall, during each peer-to-peer car sharing period for each shared vehicle that it facilitates the use and operation of, perform the following:(a)
provide shared vehicle owners with proof of insurance coverage satisfying subdivision two of this section and such shared vehicle owner or shared vehicle driver shall carry such proof of coverage with him or her at all times during his or her operation of a shared vehicle during a peer-to-peer car sharing period. Such proof of coverage shall be in such form as the commissioner of motor vehicles shall prescribe, which may be in the form of an insurance identification card as defined in Vehicle & Traffic Law § 311 (Definitions)section three hundred eleven of the vehicle and traffic law. Any insurance identification card issued pursuant to the provisions of this article shall be in addition to the insurance identification card required pursuant to article six of the vehicle and traffic law, and nothing contained in this article shall be deemed to supersede the provisions of article six of the vehicle and traffic law. Whenever the production of an insurance identification card is required by law, a shared vehicle owner or shared vehicle driver shall:(i)
produce the insurance identification card pursuant to article six of the vehicle and traffic law; and(ii)
if such shared vehicle owner or shared vehicle driver was operating such vehicle during a peer-to-peer car sharing period, such shared vehicle owner or shared vehicle driver shall also produce the insurance identification card required pursuant to this article. A shared vehicle owner or shared vehicle driver who, while operating a shared vehicle during a peer-to-peer car sharing period, has in effect the insurance required pursuant to this article, shall not be deemed to be in violation of insurance requirements under article six of the vehicle and traffic law during such time as he or she was operating such vehicle during such period.(b)
provide the following for each shared vehicle driver, for each peer-to-peer car sharing period:(i)
an insurance identification card as defined in subdivision ten of Vehicle & Traffic Law § 311 (Definitions)section three hundred eleven of the vehicle and traffic law, or other documentation, whether printed or electronic, which the shared vehicle driver shall carry and have available in the vehicle at all times during the peer-to-peer car sharing period and clearly demonstrates that the security insurance referred to in subdivision two of this section is in full force and effect; and(ii)
a toll-free number, electronic mail, or other such form of communication by which a law enforcement police officer, representative of the department of motor vehicles, or other officer of this state or any political subdivision thereof with relevant job responsibilities may confirm that the insurance provided for in subdivision two of this section is in full force and effect.(c)
collect, maintain, and make available to the shared vehicle owner, the shared vehicle owner’s primary motor vehicle liability insurer in connection with a claimed loss, the shared vehicle driver’s primary motor vehicle liability insurer in connection with a claimed loss, any excess or umbrella insurers in connection with a claimed loss, third parties directly involved in motor vehicle incidents with a shared vehicle in connection with a claimed loss, and any government agency as required by law, within ten business days of a request, or as reasonably practicable thereafter the following information pertaining to incidents which occurred during the peer-to-peer car sharing period:(i)
available records of the peer-to-peer car sharing period for each shared vehicle involved, and to the extent available, verifiable electronic records of the time, initial and final locations of the vehicle, and, to the extent mileage is collected, miles driven;(ii)
in instances where an insurance claim has been filed with a group insurer, all information relevant to the claim, to the extent such information is available, including but not limited to, payments by the program concerning accidents, damages and injuries; and(iii)
For purposes of article fifty-one of the insurance law, 11 NYCRR Part 65 and general liability claims, notice to the shared vehicle owner, shared vehicle driver, peer-to-peer car sharing program administrator, or any insurer of the shared vehicle owner, shared vehicle driver, or peer-to-peer car sharing program administrator of any claim shall be deemed notice to all appropriate parties and insurers. Any shared vehicle owner, shared vehicle driver, peer-to-peer car sharing program administrator, or any insurer of the shared vehicle owner, shared vehicle driver, or peer-to-peer car sharing program administrator receiving such notice shall provide such notice to all appropriate parties.(d)
ensure that the shared vehicle owner and shared vehicle driver are given reasonable notice prior to the first use or operation of a shared vehicle pursuant to a peer-to-peer car sharing program agreement that:(i)
during the peer-to-peer car sharing period, the shared vehicle owner’s policy of liability insurance or other motor vehicle insurance may exclude any and all coverage afforded under the policy, provided the shared vehicle owner’s insurer notified its insured that it shall have no duty to indemnify or defend any person or entity for liability for any loss, death, or injury that occurs during the peer-to-peer car sharing period; and(ii)
any insurance or physical damage protection offered pursuant to paragraph (b) of subdivision two of this section or section three thousand four hundred fifty-eight of the insurance law, shall not be valid or collectible for damages, losses, deaths, or injuries that occur outside of the peer-to-peer car sharing period.(e)
ensure that the shared vehicle owner acknowledges upon or before enrollment in a peer-to-peer car sharing program, and is notified in plain conspicuous language before each car sharing period, that state law may impose liability for injuries to person or property resulting from the negligence in the use or operation of the shared vehicle by shared vehicle drivers for judgments exceeding the coverage limits of insurance in effect during the car sharing period. The subsequent notice required under this subsection may be provided electronically, including by electronic mail and hyperlink to a website explaining insurance coverages and vicarious liability or other substantially similar means of notice.5.
At the time a vehicle is enrolled in the peer-to-peer car sharing program, the peer-to-peer car sharing program administrator shall file with the commissioner of motor vehicles, in such form and manner as such commissioner may require, a statement identifying the shared vehicle and proof of a group policy applicable to such shared vehicle pursuant to Insurance Law § 3407 (Property insurance)section three thousand four hundred seven of the insurance law. The commissioner of motor vehicles shall identify the vehicle as enrolled in the peer-to-peer car sharing program and provide proof of a group policy applicable to such shared vehicle pursuant to the insurance law in such vehicle or registration record in a manner accessible to the public. Failure of a peer-to-peer car sharing program administrator to comply with the provisions of this article may result in penalties.6.
(a) Except as provided in paragraph (b) of this subdivision, a group policy maintained by a program shall be placed with an insurer authorized to write insurance in this state.(b)
If a program is unable to purchase a group policy because such insurance is unavailable from authorized insurers, the program may acquire such group insurance with an excess line broker pursuant to Insurance Law § 2118 (Excess line brokers)section two thousand one hundred eighteen of the insurance law;(c)
The obligation to determine whether the insurance required by this section is unavailable from insurers authorized to write insurance in this state shall be made prior to the initial placement and at each renewal of a policy.(d)
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.(e)
A group policy provided for in this section shall not include a mandatory arbitration clause in a policy issued pursuant to this section. Nothing in this section supersedes the mandatory arbitration requirements contained in section five thousand one hundred five of the insurance law.7.
A peer-to-peer car sharing program administrator shall, upon entering into a peer-to-peer car sharing agreement with a shared vehicle owner and prior to the shared vehicle owner making a shared vehicle available for sharing in the program, provide notice in plain conspicuous language to the shared vehicle owner that he or she may need additional insurance coverage including motor vehicle physical damage coverage as described in paragraph nineteen of subsection (a) of Insurance Law § 1113 (Kinds of insurance authorized)section one thousand one hundred thirteen of the insurance law if the shared vehicle is subject to a lease or loan. A program shall also post this notice on its website in a prominent place and provide contact information for the department of financial services.
Source:
Section 901 — Requirements for doing business, https://www.nysenate.gov/legislation/laws/GBS/901 (updated Jun. 24, 2022; accessed Dec. 21, 2024).
