2023 New York Laws › VAT - Vehicle and Traffic › Title 8 - Respective Powers of State and Local Authorities › Article 44-B - Transportation Network Company Services › 1693 - Financial Responsibility of Transportation Network Companies.

§  1693. Financial responsibility of transportation network companies.
1. A TNC driver, or TNC on the  TNC  driver's  behalf  through  a  group
policy,  shall  maintain  insurance that recognizes that the driver is a
TNC driver and provides financial responsibility coverage:
(a) while the TNC driver is logged onto the TNC's digital network; and
(b) while the TNC driver is engaged in a TNC prearranged trip.
2. (a) The following  automobile  financial  responsibility  insurance
requirements  shall  apply  while  a TNC driver is logged onto the TNC's
digital network but is not engaged in a TNC prearranged trip:  insurance
against  loss  from  the liability imposed by law for damages, 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  personal
vehicle or vehicles within this state, or elsewhere in the United States
in  North  America  or Canada, subject to a limit, exclusive of interest
and  costs,  with  respect  to  each  such  occurrence,  of   at   least
seventy-five  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  at  least  one hundred fifty thousand dollars
because of bodily injury to or death of two or more persons in  any  one
accident,  and  to  a  limit  of  at  least twenty-five thousand dollars
because of injury to or destruction of property of  others  in  any  one
accident,  provided  however,  that such policy need not be for a period
coterminous  with  the  registration  period  of  the  personal  vehicle
insured,  and  coverage  in satisfaction of the financial responsibility
requirements set forth in section three thousand four hundred twenty  of
the  insurance  law,  article  fifty-one  of the insurance law, and such
other requirements 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) The coverage requirements of paragraph (a) of this subdivision may
be satisfied by any of the following:
(i) insurance maintained by the TNC driver; or
(ii)  insurance provided through a group policy maintained by the TNC;
or
(iii) a combination of subparagraphs (i) and (ii) of this paragraph.
3. (a) The following  automobile  financial  responsibility  insurance
requirements  shall  apply  while  a  TNC  driver  is  engaged  in a TNC
prearranged trip: insurance against loss from the liability  imposed  by
law  for  damages,  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  this
state,  or  elsewhere  in  the United States in North America 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 provided however, that  such  policy  need
not  be  for  a  period  coterminous with the registration period of the
personal vehicle insured, and coverage in satisfaction of the  financial
responsibility  requirements  set  forth  in section three thousand four
hundred twenty of the insurance law, article fifty-one of the  insurance
law;  coverage  provided  in  accordance  with subsection (f) of section
three thousand four hundred  twenty  of  the  insurance  law,  providing
supplementary   uninsured/underinsured  motorist  insurance  for  bodily
injury, in the amount of one million two hundred fifty thousand  dollars
because  of bodily injury to or death of any person in any one accident;
and such other requirements  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) The coverage requirements of paragraph (a) of this subdivision may
be satisfied by any of the following:
(i) insurance maintained by the TNC driver; or
(ii)  insurance provided through a group policy maintained by the TNC;
or
(iii) a combination of subparagraphs (i) and (ii) of this paragraph.
4. A TNC shall, upon entering into a contractual agreement with a  TNC
driver,  provide  notice  to  the  TNC  driver  that  he or she may need
additional insurance coverage including motor  vehicle  physical  damage
coverage as described in paragraph nineteen of subsection (a) of section
one  thousand  one  hundred  thirteen  of  the  insurance law if the TNC
vehicle being used by the TNC driver is subject to a lease  or  loan.  A
TNC shall also post this notice on its website in a prominent place, and
provide contact information for the department of financial services.
5.  If  insurance  maintained by a TNC driver pursuant to subdivisions
two and three of this  section  has  lapsed  or  does  not  provide  the
required  coverage,  then  the  group  policy  maintained by a TNC shall
provide the coverage required by this section beginning with  the  first
dollar of a claim and have the duty to defend such claim.
6.  Coverage  under  a group policy maintained by the TNC shall not be
dependent on the denial of a  claim  by  the  insurer  that  issued  the
insurance  policy  used  to  register  the  TNC  vehicle, nor shall that
insurer be required to first deny a claim.
7. (a) Except as provided in paragraph  (b)  of  this  subdivision,  a
group  policy  maintained  by  a  TNC  pursuant  to subparagraph (ii) of
paragraph (b) of subdivisions two or three  of  this  section  shall  be
placed with an insurer authorized to write insurance in this state.
(b)  If  a  TNC  is  unable  to  purchase  a  group policy pursuant to
subparagraph (ii) of paragraph (b) of subdivisions two or three of  this
section  because  such insurance is unavailable from authorized insurers
the TNC may acquire such group insurance  with  an  excess  line  broker
pursuant  to  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.
8. A TNC driver who, while operating a TNC vehicle was  logged  on  to
the  TNC's  digital network but not engaged in a TNC prearranged trip or
was engaged in a TNC prearranged trip, and has in effect  the  insurance
required  pursuant  to  this  article,  shall  not  be  deemed  to be in
violation of article six of this chapter during such time that he or she
was logged on to the TNC's digital network but  not  engaged  in  a  TNC
prearranged trip or was engaged in a TNC prearranged trip.
9.  A TNC driver shall carry proof of coverage satisfying subdivisions
two and three of this section with him or her at all times during his or
her use or operation of a TNC vehicle in connection with a TNC's digital
network.  Such  proof  of  coverage  shall  be  in  such  form  as   the
commissioner  shall  prescribe, which may be in the form of an insurance
identification card as defined in section three hundred eleven  of  this
chapter.  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 this chapter,
and nothing contained in this article shall be deemed to  supersede  the
requirements  of  such  article  six.  Whenever  the  production  of  an
insurance identification card is required by law, a TNC driver shall (a)

produce the insurance identification card issued pursuant to article six
of this chapter and, (b) if such driver (i) was logged  onto  the  TNC's
digital  network  but  not engaged in a TNC prearranged trip or (ii) was
engaged  in  a  TNC prearranged trip, such driver shall also produce the
insurance identification card required pursuant to this article.
10. The superintendent of financial services is  authorized  to  issue
such rules and regulations necessary to implement this section.
11.   The   superintendent   of   financial  services  may  promulgate
regulations to address insurance coverage under this section and section
sixteen hundred ninety-five of this  article  when  a  TNC  driver  uses
multiple digital networks simultaneously.
12.  Nothing  in  this  section  shall impose financial responsibility
requirements upon any entities operating as vehicles for hire in a  city
with a population of one million or more.
13.  An  insurer shall not include a mandatory arbitration clause in a
policy  issued  pursuant  to  this  section.  Nothing  in  this  section
supercedes  the  mandatory arbitration requirements contained in section
five thousand one hundred five of the insurance law.