2023 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 › 345 - Motor Vehicle Liability Policy.

§  345. Motor vehicle liability policy. (a) A "motor vehicle liability
policy" as said term is used in this article shall mean an owner's or an
operator's policy  of  liability  insurance  certified  as  provided  in
section three hundred forty-three or section three hundred forty-four as
proof  of  financial  responsibility,  and  issued  except  as otherwise
provided in section three hundred forty-four, by  an  insurance  carrier
duly authorized to transact business in this state to or for the benefit
of the person named therein as insured.
(b) Such owner's policy of liability insurance
(1)   Shall  designate  by  explicit  description  or  by  appropriate
reference, all motor vehicles with respect to which coverage is  thereby
intended to be granted.
(2)  Shall  insure  as  insured the person named therein and any other
person using or responsible for the use of any  such  motor  vehicle  or
motor  vehicles  with  the  consent,  express  or implied, of such named
insured.
(3) Shall insure the insured or such other person  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 such motor vehicle or motor vehicles
within the state of New York, or elsewhere in the United States in North
America or the Dominion of Canada, subject  to  a  limit,  exclusive  of
interest and cost, with respect to each such motor vehicle, except a tow
truck,  of  twenty-five  thousand dollars because of bodily injury to or
fifty thousand dollars because  of  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
to  a  limit of ten thousand dollars because of injury to or destruction
of property of others in any  one  accident.  The  limit,  exclusive  of
interest  and  costs,  with  respect  to a tow truck shall be a combined
single limit of three hundred thousand dollars because of bodily  injury
of  death  to one or more persons or because of injury or destruction of
property of others in any one accident, and to a  limit  of  twenty-five
thousand dollars because of damage to a vehicle in the care, custody and
control of the insured.
(c)  Such  operator's  policy  of liability insurance shall insure the
person named therein as insured against loss from the liability  imposed
upon  him  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 use by him of any motor
vehicle not owned by him, within the same territorial limits and subject
to  the  same limits of liability as are set forth above with respect to
an owner's policy of liability insurance.
(d) Such motor vehicle liability policy shall provide for the name and
address of the named insured, the coverage afforded by the  policy,  the
premium charged therefor, the policy period and the limits of liability,
and shall contain an agreement that the insurance thereunder is provided
in  accordance  with  the  coverage  defined in this article as respects
bodily injury and death or property damage or both and is subject to all
the provisions of this article.
(e) Such motor vehicle liability policy shall not insure any liability
on account of bodily injury to or death of an employee  of  the  insured
for which benefits are payable under any workmen's compensation law. Nor
is  any  such  policy required to insure any liability on account of (1)
damage to property of others in charge of the insured or of  his  agents
or employees (2) bodily injury to or death of the insured, or (3) except

as provided in paragraphs one and two of subsection (g) of section three
thousand  four  hundred twenty of the insurance law, bodily injury to or
death of the spouse of the insured, or for injury  to  property  of  the
spouse  of the insured; and any insurance of any such liability afforded
by such a policy shall be subject to the provisions of subsection (f) of
this section.
(f) Such motor vehicle liability policy may, however, grant any lawful
coverage in excess of or in addition to the  coverage  herein  specified
and  such  excess  or  additional  coverage  shall not be subject to the
provisions of this article.
(g) Several policies of one or more insurance carriers which  together
meet  the  requirements  of  this section shall be termed "motor vehicle
liability policy" within the meaning of this article.
(h) No motor vehicle liability policy shall be issued or delivered  in
this  state  until  a copy of the form of policy shall have been on file
with the superintendent of financial services for at least thirty  days,
unless  sooner  approved  in  writing by the superintendent of financial
services, nor if within said period of thirty days the superintendent of
financial services shall have notified the carrier in  writing  that  in
his  opinion,  specifying  the reasons therefor, the form of policy does
not comply with the laws of this state. The superintendent of  financial
services  shall  approve any form of policy which discloses the name and
address of the insured,  the  coverage  afforded  by  such  policy,  the
premium  charged therefor, the policy period, the limit of liability and
the agreement that the insurance thereunder is  provided  in  accordance
with  the  coverage  defined  in  this section and is subject to all the
provisions of this article.
(i) Every motor vehicle liability  policy  shall  be  subject  to  the
following provisions which need not be contained therein:
(1)  The  liability  of  any  company  under a motor vehicle liability
policy shall become absolute whenever loss or  damage  covered  by  said
policy  occurs,  and the satisfaction by the insured of a final judgment
for such loss or damage shall not be a condition precedent to the  right
or  duty  of  the  carrier  to  make  payment on account of such loss or
damage. No such policy shall be cancelled or annulled  as  respects  any
loss  or  damage  by  any  agreement between the carrier and the insured
after the said insured has become responsible for such loss  or  damage,
and  any  such cancellation or annullment shall be void. If the death of
the insured shall occur after the insured has become liable  during  the
policy period for loss or damage covered by the policy, the policy shall
not  be  deemed  terminated by such death with respect to such liability
and the company shall be liable thereunder in the same manner and to the
same extent as though death had not occurred. Upon  the  recovery  of  a
final  judgment  against  any person for any such loss or damage, if the
judgment debtor or the decedent whom he represents was at the accrual of
the cause of action insured against liability  therefor  under  a  motor
vehicle  liability  policy,  the  judgment creditor shall be entitled to
have the insurance money applied to the satisfaction  of  the  judgment.
But the policy may provide that the insured, or any other person covered
by  the policy, shall reimburse the company for payments made on account
of any accident,  claim  or  suit  involving  a  breach  of  the  terms,
provisions or conditions of the policy; and further, if the policy shall
provide  for  limits in excess of the limits designated in this section,
the insurance carrier may plead against  such  judgment  creditor,  with
respect  to  the amount of such excess limits of liability, any defenses
which it may be entitled to plead against the insured. Any  such  policy
may  further  provide for the prorating of the insurance thereunder with
other  applicable  valid  and  collectible  insurance.  If  the   death,

insolvency  or  bankruptcy  of the insured shall occur within the policy
period, the policy during the unexpired portion  of  such  period  shall
cover the legal representatives of the insured. No statement made by the
insured  or  on his behalf, and no violation of the terms of the policy,
shall operate to defeat or avoid the policy so as to bar recovery within
the limits provided in subdivision (b) of this section.
(2) The policy, the written application  therefor  (if  any)  and  any
rider  or  endorsement,  which shall not conflict with the provisions of
this article, shall constitute the entire contract between the parties.
(3) Any insurance carrier authorized to issue motor vehicle  liability
policies  as provided for in this article may, pending the issue of such
a policy, execute an agreement, to be known as a binder; or may, in lieu
of such a policy issue an indorsement to an  existing  policy;  each  of
which  shall  be  construed  to  provide indemnity or protection in like
manner and to the same extent as such a policy. The provisions  of  this
section shall apply to such binders and endorsements.