Current through Register Vol. 46, No. 39, September 25, 2024
An "owner's policy of liability insurance", as defined in
section
311 of
the Vehicle and Traffic Law, shall contain in substance the following minimum
provisions or provisions which are equally or more favorable to the insured and
judgment creditors, so far as such provisions relate to judgment
creditors:
(a) Insurance against loss
from the liability imposed by law upon the insured for damages, including
damages for care and loss of services, because of bodily injury, sickness,
disease or death sustained by any person and because of injury to or
destruction of property, including the loss of use thereof, caused by accident
and arising out of the ownership, maintenance, use or operation of a specific
motor vehicle or motor vehicles within the State of New York, or elsewhere in
the United States, in North America or Canada, subject to limits, exclusive of
interest and costs, with respect to each such motor vehicle of $25,000 because
of bodily injury, sickness or disease of any one person who does not die as a
result of any one accident and $50,000 because of bodily injury, sickness or
disease of any one person who dies as the result of any one accident; and,
subject to said limits for any one person, to limits of $50,000 because of
bodily injury, sickness or disease of two or more persons who do not die as the
result of any one accident and $100,000 because of bodily injury, sickness or
disease of two or more persons who die as the result of any one accident; and
to a total limit of $10,000 because of injury to or destruction of property of
one or more persons or organizations as the result of any one accident;
provided that a motor vehicle and a trailer or trailers attached thereto shall
be held to be one motor vehicle as respects such limits of liability.
(b) With respect to such insurance as is
afforded, the insurer, subject to the policy terms shall: defend any suit, with
the right to make such investigation, negotiation and settlement as it deems
expedient; pay all premiums on attachment bonds and appeal bonds; pay all
expenses incurred by the company, all costs taxed against the insured in any
such suit, and all interest accruing after entry of judgment until the insurer
has paid or tendered or deposited in court such part of such judgment as does
not exceed the applicable policy limits; pay expenses incurred by the insured
for first aid to others at the time of accident; and reimburse the insured for
reasonable expenses other than loss of earnings, incurred at the company's
request. The amounts so incurred under this subdivision, except settlement of
claims and suits, shall be payable by the company in addition to the applicable
policy limits.
(c) A provision
insuring as "insured":
(1) the named insured
and, if an individual, his or her spouse if a resident of the same household
with respect to the motor vehicle or vehicles;
(2) any other person using the motor vehicle
with the permission of the named insured or such spouse provided his or her
actual operation or (if he or she is not operating) his or her other actual use
thereof is within the scope of such permission; and
(3) any other person or organization but only
with respect to his, her or its liability because of acts or omissions of an
insured within paragraph (1) or (2) of this subdivision. As respects any person
or organization other than the named insured or such spouse the policy need not
apply:
(i) to any person or organization, or
to any agent or employee thereof, employed or otherwise engaged in operating an
automobile sales agency, repair shop, service station, storage garage or public
parking place, with respect to any accident arising out of the maintenance or
use of a motor vehicle in connection therewith;
(ii) to any employee with respect to injury,
sickness, disease or death of a fellow employee injured in the course of his or
her employment in an accident arising out of the maintenance or use of the
motor vehicle in the business of their common employer; or
(iii) to any person or organization, or to
any agent or employee thereof, with respect to bodily injury, sickness, disease
or death, or injury to or destruction of property arising out of the loading or
unloading of the motor vehicle. The insurance shall apply separately to each
insured against whom claim is made or suit is brought, provided the inclusion
of more than one insured shall not operate to increase the limits of the
insurer's liability.
(d)
(1) A
provision that, if the named insured is an individual or husband or wife and
the policy affords insurance with respect to a private passenger automobile
owned by either, such policy shall afford bodily injury and property damage
liability insurance for:
(i) any other
private passenger automobile of which the named insured acquires ownership
provided it replaces the automobile described in the policy or the company
insures all automobiles owned by the named insured or his spouse on the
delivery date; or
(ii) any
automobile, used with the permission of the owner, and not owned by the named
insured or his spouse or any resident of the same household, which is
temporarily substituted for the said automobile while withdrawn from service
because of breakdown, servicing, repair, loss or destruction; or
(iii) the incidental use in other than a
business or occupation of such insured or his spouse of automobiles not owned
by such named insured or a member of his household, nor furnished or available
for their regular use, provided the actual operation or other actual use
thereof is with the permission of the owner and is within the scope of such
permission.
(2) Such a
provision need not apply:
(i) to any accident
arising out of the maintenance or use of an automobile by a person employed or
otherwise engaged in the business of an automobile sales agency, repair shop,
service station, storage garage or public parking place; or
(ii) with respect to a newly acquired
automobile, to any loss against which the named insured or his spouse has other
valid and collectible insurance.
(e) A provision that when a motor vehicle is
used or operated in any other state or Canadian province, a policy currently in
effect or hereafter issued shall provide at least the minimum amount and kind
of coverage which is required in such cases under the laws of such other
jurisdiction. Any policy not containing such provision shall nevertheless be
deemed to provide such coverage. This provision is not intended to create a
duplication of coverage or benefits to the extent that a New York insured
carries additional coverages under any automobile or motor vehicle insurance
policy or is covered under an automobile or motor vehicle policy of a resident
of the jurisdiction wherein an injury occurs.
(f) A provision that assault and battery
shall be deemed an accident unless committed by or at the direction of the
insured. (Not required if policy is written on an occurrence basis in which
event the policy shall be subject to an exclusion pertaining to bodily injury
or property damage caused intentionally by or at the direction of the
insured.)
(g) Either of the
following provisions:
(1) The insurer shall
not be liable for a greater proportion of the loss than the applicable limit of
liability of the policy bears to the total applicable limit of liability of all
other valid and collectible insurance covering the insured against such loss;
provided, however, with respect to an automobile, other than a newly acquired
automobile, for which insurance is provided under subdivision (d) of this
section, the insurance shall be excess insurance over any other valid and
collectible insurance.
(2) The
insurance afforded by this policy is primary insurance, except when stated to
apply in excess of or contingent upon the absence of other insurance. When this
insurance is primary and the insured has other insurance which is stated to be
applicable to the loss on an excess or contingent basis, the amount of the
company's liability under this policy shall not be reduced by the existence of
such other insurance. When both this insurance and other insurance apply to the
loss on the same basis, whether primary, excess or contingent, the company
shall not be liable under this policy for a greater proportion of the loss than
that stated in the applicable contribution provision below:
(i) Contribution by equal shares. If all of
such other valid and collectible insurance provides for contribution by equal
shares, the company shall not be liable for a greater proportion of such loss
than would be payable if each insurer contributes an equal share until the
share of each insurer equals the lowest applicable limit of liability under any
one policy or the full amount of the loss is paid, and with respect to any
amount of loss not so paid the remaining insurers then continue to contribute
equal shares of the remaining amount of the loss until each such insurer has
paid its limit in full or the full amount of the loss is paid.
(ii) Contribution by limits. If any of such
other insurance does not provide for contribution by equal shares, the company
shall not be liable for a greater proportion of such loss than the applicable
limit of liability under this policy for such loss bears to the total
applicable limit of liability of all valid and collectible insurance against
such loss.
With respect to the maintenance or use of hired
automobiles and nonowned automobiles, this insurance shall apply only as excess
insurance over any other valid and collectible insurance available to the
insured.
(h) A provision that if the insurer cancels
the policy, at least 20 days prior written notice must be mailed or delivered
to the named insured, except where the cancellation is for nonpayment of
premium in which case 15 days notice of cancellation by the insurer shall be
sufficient.
