NY Veh & Traf L § 335 (2021)
2021 New York Laws VAT - Vehicle and Traffic Title 3 - Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions Article 7 - Motor Vehicle Safety Responsibility Act 335 - Security and Proof Required Following Accident.

§ 335. Security  and  proof  required following accident. (a) Not less than ten days nor more than sixty days  after  receipt  by  him  of  the report  or  notice of an accident which has resulted in bodily injury or death, or in damage to the property of any one person in excess  of  one thousand  dollars,  the commissioner shall forthwith suspend the license of  any  person  operating,  and  the  registration   certificates   and registration  plates of any person owning, a motor vehicle in any manner involved in such accident unless and until such operator (or  chauffeur) or  owner  or  both  shall  have  previously  furnished  or  immediately furnishes security sufficient in the judgment  of  the  commissioner  to satisfy  any  judgment  or  judgments  for  damages  resulting from such accident as  may  be  recovered  against  such  owner  or  operator  (or chauffeur)  by  or  on  behalf  of  any  aggrieved  person  or his legal representative,  and  unless  and  until  such  owner  or  operator  (or chauffeur)  or  both  shall  immediately furnish and thereafter maintain proof  of  financial  responsibility  in  the  future.  Where  erroneous information  with respect to insurance coverage of the owner or operator (or chauffeur) of any such vehicle is furnished to the commissioner,  he shall  take appropriate action as above provided within sixty days after the receipt by him of correct information with respect to such coverage. This section shall  not  apply:  (1)  to  such  owner  or  operator  (or chauffeur) if such owner had in effect at the time of such accident with respect to such motor vehicle a standard provisions automobile liability policy  in form approved by the superintendent of financial services and issued by an insurance company authorized to do business in  this  state or,  if  such  motor  vehicle  was not registered in this state or was a motor vehicle which was registered elsewhere than in this state  at  the effective  date  of  the  policy, or the most recent renewal thereof, an automobile  liability  policy  acceptable  to  the   superintendent   of financial  services  as  substantially  the  equivalent of such standard provisions  automobile  liability  policy;  (2)  to  such  operator  (or chauffeur),  if  not  the  owner  of such motor vehicle, if there was in effect at the time of such accident such a policy with  respect  to  his operation  of  motor vehicles not owned by him or, if such motor vehicle was a private passenger motor vehicle, with respect to his operation  of private  passenger  motor vehicles not owned by him or (3) to such owner or operator (or chauffeur) if the liability of such  owner  or  operator (or  chauffeur)  for  damages  resulting  from  such accident is, in the judgment of the commissioner, covered by any  other  form  of  liability insurance  policy  issued  by  an  insurance  company  authorized  to do business in this state or by a bond, provided every such policy or  bond mentioned  herein  is  subject,  if  the accident has resulted in bodily injury, to a limit, exclusive of  interest  and  costs,  of  twenty-five thousand  dollars  or death to a limit, exclusive of interest and costs, of fifty thousand dollars, because of bodily injury to or death  of  one person in any one accident and, subject to said limit for one person, to a  limit  of  fifty  thousand dollars because of bodily injury to or one hundred thousand dollars because of death of two or more persons in  any one  accident,  and,  if  the  accident  has  resulted  in  injury to or destruction of property, to a limit of ten thousand dollars  because  of injury  to  or  destruction of property of others in any one accident or (4) to such owner or operator if the commissioner shall  determine  that the  failure  to  have  liability coverage as described above was caused solely by the negligence or malfeasance  of  a  person  other  than  the person whose license or registration has been suspended or is subject to suspension, and that the person seeking to avoid such suspension was not aware  of  the lack of such liability coverage. However, with respect to the provisions of (4) above, the burden  of  proof  shall  be  upon  the  person  seeking  to avoid such suspension action. Provided further, that such facts shall be established by clear and convincing evidence, either by the submission of affidavits or at a hearing called in the discretion of the commissioner.   Upon  receipt  of  notice  of  such accident, the insurance carrier or surety company which issued such policy or bond shall furnish for filing with the commissioner a written notice that such policy or bond  was  in effect  at the time of such accident or shall notify the commissioner in such manner as he may require in case such policy or  bond  was  not  in effect at the time of such accident.   In  case  any  such operator (or chauffeur) or owner has no license to operate issued under this chapter or no motor vehicle registered in  his name  in  this  state, he shall not be allowed a license or registration until he has complied with this article to the same extent as  would  be necessary  if  he  had  held  an operator's or chauffeur's license and a motor vehicle registration issued under this chapter at the time of  the accident.  (b)  Such  security,  where ordered, shall be in such form and in such amount as the commissioner may require, but in no case in excess of  the amount  of  proof  required  by  section three hundred forty-one of this article. The commissioner may reduce the amount of security  ordered  in any  case  within  six months after the date of the accident, if, in his judgment, the  amount  ordered  is  too  large.  In  case  the  security originally  ordered  has  been  deposited, the excess deposited over the reduced amount ordered  shall  be  returned  to  the  depositor  or  his personal  representative  forthwith,  notwithstanding  the provisions of subdivision (c) of this section.  (c) Security furnished in compliance with  the  requirements  of  this section  shall  be  placed  by  the  commissioner  in the custody of the commissioner of taxation and finance and shall be applicable only to the payment of a judgment against the depositor for damages arising  out  of the  accident  in  question in an action at law begun not later than one year after the  date  of  such  accident  or,  upon  assignment  of  the depositor, made not later than one year after the date of such accident, to  the  settlement  of  a  claim  arising out of such accident, or upon assignment of the depositor, made after the expiration of one year after the date of such accident, to the settlement of an action at  law  begun not  later  than  one  year after the date of such accident. All of such payments made out of the deposited security shall be  made  as  follows: Payment  shall  first  be  made to each of the judgment creditors and to each of the claimants who have agreed  to  settle  their  claims,  whose damages  were  evaluated  by  the commissioner, in an amount not greater than the amount fixed in  their  respective  evaluations.  Whenever  the commissioner  shall  be  given  evidence,  satisfactory to him, that the amounts of all claims for damages against the depositor arising  out  of such  accident  are  fixed,  either by judgment or settlement agreement, payment shall be made out of  any  balance  remaining  after  the  first distribution  to  each  of  those  persons whose judgments or settlement amounts have not been fully paid but whose damages were evaluated by the commissioner,  in  proportion  to  the  amounts  of   their   respective evaluations  unless there is sufficient to make payment in full; and any balance remaining after the first and second distributions are completed shall be paid to those judgment creditors and those claimants  who  have agreed  to  settle their claims but whose damages were not evaluated, in proportion to the amounts of their respective  judgments  or  settlement amounts  unless  there  is  sufficient  to  make  payment  in full. Such deposit, or any balance thereof, shall be returned to the  depositor  or his  personal representative whenever after the expiration of such year,  the commissioner shall be given  evidence,  satisfactory  to  him,  that there  is  no  such  action  pending and no such judgment unsatisfied or whenever, before the expiration of such year, the commissioner shall  be given  evidence,  satisfactory  to  him,  that there is no such judgment unsatisfied and that there is no existing cause of  action  against  the depositor for damages arising out of such accident.  (c-1) After security, furnished in compliance with the requirements of this  section,  has remained on deposit for five years, the commissioner shall make a determination as to whether the  deposit,  or  any  balance thereof,  is returnable to the depositor or the person entitled thereto. In the event that such deposit, or any balance thereof, is determined to be returnable, but remains unclaimed by  the  depositor  or  the  person entitled  thereto  for  a  period of one year following the date of such determination, such unclaimed deposit, or any balance thereof, shall  be deemed  abandoned  property  subject  to the provisions of the abandoned property law.  (d) The provisions of subdivision (a) of this section shall not  apply to  the  owner  of  a  motor  vehicle  operated  by  one having obtained possession or control thereof without the expressed or  implied  consent of  such owner, to a police officer or member of the state police who is compelled to assume the custody and operation  of  a  motor  vehicle  of another  because  such  motor vehicle was (1) stolen from or lost by the owner, (2) abandoned, either by the owner or any other  person  with  or without  the owner's consent, (3) is being operated by a person disabled so as not to be able to operate it properly, or (4) is being operated by an intoxicated person; or to either the owner or  operator  of  a  motor vehicle  involved  in an accident wherein no damage or injury was caused to other than the person or property of such owner or operator.  (e) In lieu of deposit of  security  when  required  pursuant  to  the provisions  of  this  section  the  commissioner  may  accept  a written agreement, executed and acknowledged by the person required  to  deposit security  and  any  person  who  has  sustained bodily injury, including death, or damage to his property, or his legal representative, providing for the payment of an agreed amount in installments, with respect to the claims of such  person  for  injuries  or  damages  resulting  from  the accident.  In  the  event of default in payment of any installment under such agreement, then upon notice of such default the commissioner  shall forthwith   suspend   the  license  and  registration  certificates  and registration plates of the person in  default  until  release  has  been filed with the commissioner indicating that the entire agreed amount has been  paid. But in no case shall such agreement be used in lieu of proof of maintenance  of  financial  responsibility  in  the  future  required pursuant to the provisions of this section.