2023 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.

§  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: (a) 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;  or  (b)  where  a  vehicle  is  registered  by   a
not-for-profit  organization  that is tax-exempt under section 501(c)(3)
of the federal  internal  revenue  code,  a  risk  retention  group  not
chartered  in this state but which is registered with the superintendent
of financial services under the federal liability risk retention act  of
1986,  comprised  entirely  of  organizations  that are tax-exempt under
section 501(c)(3) of the federal internal revenue  code  and  where  the
risk  retention  group qualifies as a charitable risk pool under section
501(n) of the federal internal revenue code, provided that  the  vehicle
being  registered  does not have a seating capacity of more than fifteen
passengers, is not a limousine  or  luxury  limousine,  and  where  such
vehicles  are  not  solely  for  personal  use  by  a director, officer,
authorized person, or key person, their relatives  or  related  parties.
Such  surety  bond  or  policy of insurance shall be 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:
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;
provided,  further  that  for  commuter  vans  that  are  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  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.  For  the
purposes  of this paragraph, the term "commuter van" shall have the same
meaning as such term is defined in section 19-502 of the  administrative
code of the city of New York.
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.