New York State Law
Vehicle and Traffic Law
Consolidated Laws of New York's VTL code
Article 6 - NY Vehicle and Traffic Law
MOTOR VEHICLE FINANCIAL SECURITY ACT
| Section | Description |
|---|---|
| 310 | Short title and declaration of purpose. |
| 311 | Definitions. |
| 312 | Registration of motor vehicles. |
| 312-a | Issuance and termination of liability insurance and maintenance of records. |
| 313 | Notice of termination. |
| 314 | Acceptance of financial security deposits. |
| 315 | Release of financial security bonds or deposits. |
| 316 | Self-insurers. |
| 317 | Expenses of administering article. |
| 318 | Revocation of registrations, drivers' licenses and non-resident privileges. |
| 319 | Penalties. |
| 320 | Notice to other jurisdictions. |
| 321 | Exceptions. |
S 310. Short title and declaration of purpose. (1) This article shall be known and may be cited as the "Motor Vehicle Financial Security Act." (2) Declaration of purpose. The legislature is concerned over the rising toll of motor vehicle accidents and the suffering and loss thereby inflicted. The legislature determines that it is a matter of grave concern that motorists shall be financially able to respond in damages for their negligent acts, so that innocent victims of motor vehicle accidents may be recompensed for the injury and financial loss inflicted upon them. The legislature finds and declares that the public interest can best be served in satisfying the insurance requirements of this article by private enterprise operating in a competitive market to provide proof of financial security through the methods prescribed herein. Nothing in this article shall be construed to affect any change in the application of article twenty-three of the insurance law to automobile liability insurance rate-making or to effect the development of various methods of doing or operating an automobile liability insurance business. S 311. Definitions. As used in this article: 1. The term "superintendent" shall mean the superintendent of financial services of this state. 2. The term "motor vehicle" shall be defined as in section one hundred twenty-five of this chapter, except that it shall also include trailers, semi-trailers and tractors other than tractors used exclusively for agricultural purposes, and shall exclude fire and police vehicles, farm equipment, including self-propelled machines used exclusively in growing, harvesting or handling farm produce, tractors used exclusively for agricultural purposes, or for snow plowing other than for hire, and self-propelled caterpillar or crawler-type equipment while being operated on the contract site. 3. The term "proof of financial security" shall mean proof of ability to respond in damages for liability arising out of the ownership, maintenance or use of a motor vehicle as evidenced by an owner's policy of liability insurance, a financial security bond, a financial security deposit, or qualifications as a self-insurer under section three hundred sixteen of this chapter or, in the case of a non-resident, under self-insurance provisions of the laws of the jurisdiction of such non-resident. Notwithstanding any other provision of any law or regulation, any proof of financial security shall for any self-propelled motor vehicle also provide coverage required by this article to any non-commercial trailer hauled by any such motor vehicle, other than a mobile home. For the purposes of this article, a mobile home or "manufactured home" means a mobile home or manufactured home as defined in section one hundred twenty-two-c of this chapter. 4. The term "owner's policy of liability insurance" shall mean a policy (a) Affording coverage as defined in the minimum provisions prescribed in a regulation which shall be promulgated by the superintendent at least ninety days prior to effective date of this act. The superintendent before promulgating such regulations or any amendment thereof, shall consult with all insurers licensed to write automobile liability insurance in this state and shall not prescribe minimum provisions which fail to reflect the provisions of automobile liability insurance policies, other than motor vehicle liability policies as defined in section three hundred forty-five of this chapter, issued within this state at the date of such regulation or amendment thereof. Nothing contained in such regulation or in this article shall prohibit any insurer from affording coverage under an owner's policy of liability insurance more liberal than that required by said minimum provisions. Every such owner's policy of liability insurance shall provide insurance subject to said regulation 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 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 costs, with respect to each such motor vehicle except a tow truck, of twenty-five thousand dollars because of bodily injuries to and 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 and 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 provided, however, that such policy need not be for a period coterminous with the registration period of the vehicle insured. The limit, exclusive of interest and costs, with respect to a tow truck shall be a combined single limit of at least three hundred thousand dollars because of bodily injury or 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. Any insurer authorized to issue an owner's policy of liability insurance as provided for in this article may, pending the issue of such a policy, make an agreement, to be known as a binder, or may, in lieu of such a policy, issue a renewal endorsement or evidence of renewal of 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 article shall apply to such binders, renewal endorsements or evidences of renewal. Every such policy issued insuring private passenger vehicles and every renewal policy, renewal endorsement, or other evidence of renewal issued shall have attached thereto a rating information form which clearly specifies and defines the rating classification assigned thereto, including any applicable merit rating plan; and (b) In the case of a vehicle registered in this state, a policy issued by an insurer duly authorized to transact business in this state; or (c) In the case of a vehicle lawfully registered in another state, or in both this state and another state, either a policy issued by an authorized insurer, or a policy issued by an unauthorized insurer authorized to transact business in another state if such unauthorized insurer files with the commissioner in form to be approved by him a statement consenting to service of process and declaring its policies shall be deemed to be varied to comply with the requirements of this article; and (d) The form of which has been approved by the superintendent. No such 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 for at least thirty days, unless sooner approved in writing by the superintendent, nor if within said period of thirty days the superintendent 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. 5. The term "certificate of insurance" shall mean any evidence issued by or on behalf of an insurance company duly authorized to transact business in this state, stating in such form as the commissioner may prescribe or approve that such company has issued an owner's policy of liability insurance on the motor vehicle or vehicles designated therein. Such certificate shall contain information as required by the commissioner including at least the following except as otherwise provided: (a) The name and address of the person to whom the policy was issued. (b) The number and effective period of the policy. If all of the motor vehicles owned by one person during a defined period are insured under the same owner's policy of liability insurance the certificate of insurance may so state and it shall then not be necessary to identify the specific vehicle insured. The requirements of this article for an owner's policy of liability insurance may be fulfilled by the policies of one or more insurance carriers which policies together meet such requirements. (c) As to new policies, a statement that at least ten per cent of the annual premium due on the policy has been paid. For the purposes of this paragraph a transfer of insurance from one company to another by an agent or broker shall not be considered the issuance of a new policy. 6. The term "financial security bond" shall mean for each motor vehicle a bond executed by the owner and by a surety company duly authorized to transact business in this state. The provisions of subdivision (e) of section three hundred forty-nine of this chapter shall apply to such bond. 7. The term "financial security deposit" shall mean for each motor vehicle the deposit with the commissioner of twenty-five thousand dollars in cash, or securities, such as may legally be purchased by savings banks or trust funds, of a market value of twenty-five thousand dollars and an additional deposit in an amount determined by the commissioner to be sufficient to satisfy the requirements of article fifty-one of the insurance law. 8. The term "self-insurer" shall mean a person who shall have been determined by the commissioner in accordance with section three hundred sixteen to be financially responsible. 9. The word "state" when used in this article shall unless the context clearly indicates otherwise, mean any state, territory or possession of the United States, the District of Columbia or any province of the Dominion of Canada. 10. "Insurance Identification Card" shall mean a card issued by or on behalf of an insurance company or bonding company duly authorized to transact business in this state, stating in such form as the commissioner may prescribe or approve that such company has issued an owner's policy of liability insurance or a financial security bond on the motor vehicle or vehicles designated therein. Such card shall contain such information and shall be valid during such period as may be prescribed by the commissioner. If an owner shall have filed a financial security deposit, or shall have qualified as a self-insurer under section three hundred sixteen of this chapter, the term "insurance identification card" shall mean a card issued by the department which evidences that such deposit has been filed or that such owner has so qualified. S 312. Registration of motor vehicles. 1. (a) No motor vehicle shall be registered in this state unless the application for such registration is accompanied by proof of financial security which shall be evidenced by proof of insurance or evidence of a financial security bond, a financial security deposit or qualification as a self-insurer under section three hundred sixteen; provided that, if directed by regulation of the commissioner, upon renewal of registration an application accompanied by a certificate of registration or renewal stub in force immediately preceding the date of application for renewal, together with a statement in a form prescribed by the commissioner certifying that there is in effect proof of financial security, shall meet the requirements of this section. Upon the issuance or renewal of a private passenger automobile insurance policy subject to the provisions of section one hundred sixty-seven-aa of the insurance law, the insurance company shall provide the insured with an informational statement outlining the legal and financial consequences of convictions under section one thousand one hundred ninety-two of this chapter, pertaining to operating a motor vehicle while under the influence of alcohol or drugs. Such information shall be supplied to the company by the state department of financial services in consultation with the commissioner. (b) The owner of such motor vehicle shall maintain proof of financial security continuously throughout the registration period and his failure to produce proof of financial security when requested to do so upon demand of a magistrate, motor vehicle inspector, peace officer, acting pursuant to his special duties, or police officer, while such vehicle is being operated upon the public highway, shall be presumptive evidence of operating a motor vehicle without proof of financial security. Upon the production of proof of financial security such presumption is removed. Production of proof of financial security may be made by mailing such proof to the court having jurisdiction in the matter, and any necessary response by such court or acknowledgement of the production of such proof may also be made by mail. When insurance with respect to any motor vehicle, other than a motorcycle, is terminated the owner shall surrender forthwith his registration certificate and number plates of the vehicle to the commissioner unless proof of financial security otherwise is maintained in compliance with this article. 2. No financial security bond shall be accepted by the commissioner unless it is conditioned for payments in amount and under the same terms and conditions as are required for an owner's policy of liability insurance. 3. No financial security deposit shall be accepted by the commissioner except in accordance with the provisions of section three hundred fourteen. 4. The commissioner is hereby authorized to promulgate reasonable regulations to provide effective administration and enforcement of the provisions of this article in accordance with the purposes thereof. 5. Notwithstanding any inconsistent provisions of this article, the commissioner may by regulation, in lieu of the provisions of subdivision one requiring the submission of a certificate of insurance or evidence of a financial security bond, require that an insurance identification card be presented each time a vehicle is registered or a registration is renewed in this state. S 312-a. Issuance and termination of liability insurance and maintenance of records. 1. Upon issuance of an owner's policy of liability insurance or other financial security required by this chapter, an insurer shall issue proof of insurance in accordance with the regulations promulgated by the commissioner pursuant to paragraph (b) of subdivision two of section three hundred thirteen of this article. 2. The commissioner shall make a record of all notices of termination received by him. After such record has been made, the notices need not be retained by the commissioner. S 313. Notice of termination. 1. (a) No contract of insurance for which a certificate of insurance has been filed with the commissioner shall be terminated by cancellation by the insurer until at least twenty days after mailing to the named insured at the address shown on the policy a notice of termination by regular mail, with a certificate of mailing, properly endorsed by the postal service to be obtained, except where the cancellation is for non-payment of premium in which case fifteen days notice of cancellation by the insurer shall be sufficient, provided, however, if another insurance contract has been procured, such other insurance contract shall, as of its effective date and hour, terminate the insurance previously in effect with respect to any motor vehicles designated in both contracts. No contract of insurance for which a certificate of insurance has been filed with the commissioner in which a natural person is the named insured and the motor vehicle is used predominantly for non-business purposes shall be non-renewed by an insurer unless at least forty-five, but not more than sixty days in advance of the renewal date the insurer mails or delivers to the named insured at the address shown on the policy a written notice of its intention not to renew. No such contract of insurance in which the named insured is not a natural person or the motor vehicle is used predominantly for business purposes shall be non-renewed by an insurer unless at least twenty days in advance of the renewal date the insurer mails or delivers to the named insured at the address shown on the policy a written notice of its intention not to renew. All notices of non-renewal shall be sent by regular mail with a certificate of mailing, properly endorsed by the postal service to be obtained. Time of the effective date and hour of termination stated in the notice shall become the end of the policy period. Every notice or acknowledgement of termination for any cause whatsoever sent to the insured shall include in type of which the face shall not be smaller than twelve point a statement that proof of financial security is required to be maintained continuously throughout the registration period and a notice prescribed by the commissioner indicating the punitive effects of failure to maintain continuous proof of financial security and actions which may be taken by the insured to avoid such punitive effects. (b) Every insurer shall retain a copy of the notice of termination mailed pursuant to this chapter and shall retain the certificate of mailing obtained from the postal service upon the mailing of the original of said notice. A copy of a notice of termination and the certificate of mailing, when kept in the regular course of the insurer's business, shall constitute conclusive proof of compliance with the mailing requirements of this chapter. 2. (a) Upon the termination of an owner's policy of liability insurance, other than an owner's policy of liability insurance for a motorcycle, at the request of the insured or by cancellation by the insurer, the insurer shall file a notice of termination with reference to such policy, as opposed to any insured vehicle or vehicles under such policy, with the commissioner not later than thirty days following the effective date of such cancellation or other termination, in accordance with the regulations required by paragraph (c) of this subdivision. An insurer shall not file a notice of termination with the commissioner except as required by this subdivision. (b) Upon the issuance of an owner's policy of liability insurance the insurer shall file a notice or confirmation of issuance with reference to such policy not later than fourteen days following the effective date of such issuance, and not later than seven days following the effective date for policies issued after January first, two thousand one, in accordance with the regulations required by paragraph (c) of this subdivision. (c) The commissioner shall promulgate regulations establishing procedures for issuance of proof of insurance and for reporting by insurers of notices of termination and policy issuance, either electronically or by paper copy, at the option of the department. Such reporting shall be required for every cancellation or termination which is effective on or after July first, nineteen hundred eighty-four and for every policy issuance which is effective on or after January first, two thousand; provided, however, that should the commissioner find, after testing of reporting procedures, that it would be feasible to require reporting for policy cancellations, terminations or issuances effective on an earlier date, he may by regulation so require reporting on such earlier date, but in no event shall reporting be required for cancellations or terminations effective prior to February first, nineteen hundred eighty-four nor for policy issuances effective prior to September first, nineteen hundred ninety-nine. Insurers shall cooperate fully with the commissioner in any such testing of reporting procedures. (d) Upon application by an insurer, the commissioner may extend the period for filing of notices of termination by such insurer for up to fifteen days, and for seven days for policies issued by an insurer. Extensions shall not be granted unless the insurer demonstrates to the satisfaction of the commissioner that compliance with the notice period would result in substantial hardship to the insurer. The commissioner shall maintain a list of extensions granted pursuant to this paragraph. 3. A cancellation or termination for which notice is required to be filed with the commissioner pursuant to subdivision two of this section shall not be effective with respect to persons other than the named insured and members of the insured's household until the insurer has filed a notice thereof with the commissioner or until another insurance policy covering the same risk has been procured, except that a notice filed with the commissioner, in the format prescribed by the commissioner, within the period prescribed in subdivision two of this section shall be effective as of the date certified therein, regardless of whether a suspension order is issued pursuant to section three hundred eighteen of this article. A receipt from the department stating that a notice of termination has been filed shall be deemed conclusive evidence of such filing. An insurer shall cooperate with the commissioner in attempting to identify persons not in compliance with this article in cases where the information reported by the insurer does not correspond with records maintained by the department. 4. Notwithstanding any other provision of this article to the contrary, the commissioner shall establish a pilot program to maintain an up-to-date insured vehicle identification database to assist in identifying uninsured motor vehicles. Such databases shall be implemented by the department pursuant to standards prescribed by the commissioner or an agent designated by the commissioner which shall seek technical assistance from affected insurers and the New York Automobile Insurance Plan. This program shall utilize all information collected pursuant to this section and shall also include the following elements: (a) In addition to and in conjunction with the provisions of subdivision two of this section, insurers that write private passenger or commercial motor vehicle insurance in this state shall also submit to the department, either electronically or by paper copy, at the option of the department, information that identifies those policies that have been cancelled, terminated or non-renewed and all policies that have been issued, the date when such insurance lapses, and any other information that the commissioner deems necessary to efficiently identify and track uninsured vehicles in this state such as a policyholder's address, policy number, vehicle registration number, and vehicle identification number. The department may exempt from such pilot program the transfer of information on certain classifications of vehicles that are in the opinion of the department generally insured and which it is difficult to identify uninsured vehicles within such classification, such as large commercial vehicle fleets; (b) The department shall forward to each motor vehicle insurer, at such times as deemed necessary and appropriate by the commissioner, a listing of all the registrants the department has on file as insured with that insurer. Such insurer shall then review the listing within thirty days of receipt of the listing and report to the department which of the registrants the insurer does not insure; (c) The commissioner shall, in conjunction with the superintendent of state police and local law enforcement officials formulate a means to allow such database to be easily accessible to on-duty law enforcement personnel in the performance of their official duties for the purpose of verifying whether an operator maintains proper insurance coverage and to increase compliance with the motor vehicle financial security laws under this article and article eight of this title; (d) In developing the mechanism to electronically transfer information to the department, the commissioner shall consult with the superintendent of financial services and insurers to adopt a standardized system of organizing, recording and transferring such information so as to minimize insurer administrative expenses. The commissioner shall to the maximum extent possible utilize nationally recognized electronic data information systems such as those developed by the American National Standards Institute or the American Association of Motor Vehicle Administrators; (e)(1) Either simultaneously or after the up-dated database system has been established, the commissioner shall develop a computer indicator that can be imprinted on a vehicle registration sticker or on a sticker to be affixed to the insured's license plate. Such indicator system shall enable law enforcement personnel and other authorized persons when acting in the course of their official duties to access the department's database so that such persons can ascertain whether a vehicle is properly insured or not insured; (2) Such computer indicator system shall enable authorized persons in the performance of their official duties to access information such as the registrant's name, vehicle identification number, name of insurer, current status of insurance, vehicle registration number and other information that the commissioner deems necessary to implement the provisions of this section. The commissioner in developing such computer indicator system shall enable authorized persons in the performance of their official duties to access only such information that is necessary to detect uninsured motor vehicles or accomplish other goals clearly established and authorized by law. Such computer indicator system shall be designed to protect the personal privacy interests of motorists; (f) The commissioner shall maintain an insured vehicle database system that is accurate to within a period of fourteen days and a computer indicator system described in paragraph (e) of this subdivision within twenty-four months of the effective date of this subdivision and to within seven days by January first, two thousand one. The commissioner shall submit to the legislature a report within eighteen months from the date this subdivision takes effect which outlines the progress being made to implement such database and computer indicator system. After such database and computer indicator system is established and put into operation, the commissioner shall make recommendations to the legislature to alter, minimize or eliminate the need for the issuance of insurance identification cards, simplify the requirements to demonstrate proof of financial security and certificate of insurance currently required by this article, eliminate the requirement for production of proof of financial security to accompany applications for registrations or renewals thereof provided that such database indicates that the registrant is insured, and the repeal or modification of section three hundred twelve-a of this article. The commissioner shall also make recommendations to the legislature to streamline and shorten the notice termination requirements of subdivisions one, two and three of this section and section three hundred eighteen of this article. Such report shall be submitted to the legislature within twelve months from the date such database and indicator system has been implemented; (g) To minimize the cost of this program, the commissioner, if he deems it necessary and prudent, can initially limit the scope of this project to a select number of vehicle classifications or insurers; (h) Notwithstanding any other provision of law, information obtained by the department pursuant to this section shall not be disclosed, used, sold, accessed, utilized in any manner or released by the department to any person, corporation, or state and local agency, except in response to a specific, individual request for such information authorized pursuant to the federal driver's privacy protection act (18 U.S.C. 2721 et.seq.). The department shall institute measures to ensure that only authorized persons are permitted to access such information for the purposes specified by this section. Persons who knowingly release or disclose information from such database for a purpose other than those described as authorized by this section or to a person not entitled to receive it shall be guilty of a misdemeanor for each such release or disclosure; and (i) The commissioner may postpone implementation of such pilot database and computer indicator system for a period of time not to exceed eighteen months if he or she determines that the program is not ready for implementation. Should the commissioner determine that such system cannot be implemented during the eighteen months extension, then the commissioner shall report to the legislature the reasons why such program cannot be implemented and request that the law be amended to delay its implementation date. S 314. Acceptance of financial security deposits. 1. All moneys or securities delivered to the commissioner as a financial security deposit shall be placed by the commissioner in the custody of the commissioner of taxation and finance and shall be subject to execution to satisfy any judgment for damages for bodily injury or death, or injury to or destruction of property, arising out of the ownership, maintenance, use or operation of the motor vehicle with respect to which the deposit has been accepted, and subject to the same limits on amounts required by this article for an owner's policy of liability insurance, and if such moneys or securities shall be otherwise subjected to attachment or any execution, the depositor shall immediately furnish such additional moneys or securities, not otherwise subject to attachment or execution, to meet the requirements of this article. 2. The commissioner shall not accept such moneys or securities as a financial security deposit unless accompanied by evidence that there are no unsatisfied judgments against such person registered in the office of the county clerk of the county where such person resides. S 315. Release of financial security bonds or deposits. 1. The commissioner, upon the surrender of the registration and number plates for a motor vehicle for which a financial security bond or deposit was accepted by the commissioner, shall permit the cancellation of any such bond or shall direct that any such deposit be returned by the commissioner of taxation and finance. The commissioner shall not release such bond or deposit in the event any action for damages upon a liability referred to in this article is then pending or any judgment upon any such liability then outstanding and unsatisfied, or in the event the commissioner has received notice that such person has within the period of three months immediately preceding been involved as a driver in any motor vehicle accident. An affidavit of the applicant of non-existence of such facts shall be sufficient evidence thereof in the absence of evidence to the contrary in the records of the bureau. 2. The commissioner, subject to such reasonable regulations as he may establish shall permit the form of proof of financial security acceptable under this article to be substituted for another form of proof of financial security which may already have been accepted by the commissioner as complying with the provisions of this article. S 316. Self-insurers. The commissioner, in his discretion, may upon the application of a person having registered in his name in this state more than twenty-five motor vehicles, 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 vehicles. 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, 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 for each motor vehicle registered in his name 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. Notwithstanding the provisions of any other section, for the purposes of this section, the term "motor vehicle" shall include "snowmobiles" as defined by subdivision six of S 8-0105 of the conservation law. S 317. Expenses of administering article. 1. The total amount of expenses incurred in connection with the administration of this article shall be paid by all insurance carriers which issue policies or contracts of automobile bodily injury insurance risks subject to this article resident or located in this state in accordance with the provisions of this section. 2. Estimate of expenses. (a) The commissioner annually, as soon as practicable, shall estimate the total amount of expenses which shall be incurred during the succeeding fiscal year in connection with the administration of this article. Such expenses, in addition to the direct costs of personal service, shall include the cost of maintenance and operation, the cost of retirement contributions made and workers' compensation premiums paid by the state for or on account of personnel, rentals for space occupied in state-owned or state-leased buildings, the amounts paid to a city, county, town, village or the division of state police for the enforcement of orders issued pursuant to this article and all other direct or indirect costs. (b) The commissioner shall on or before February first assess the total amount of such expenses, as so estimated, pro rata upon all insurance carriers subject to the provisions of this section in proportion to the premiums reported by such carriers to the department of financial services for policies or contracts of automobile bodily injury insurance on risks subject to this article resident or located in this state for the year prior to the previous calendar year. (c) For fiscal years beginning on and after April first, nineteen hundred eighty-three, each such insurance carrier shall make partial payments of the assessment levied against it as follows, one-quarter of the total on March tenth of the preceding fiscal year and one-quarter on June tenth, one-quarter on September tenth, and the balance on December tenth of the fiscal year, or on such other dates as the budget director may prescribe. Provided, however, that the payment due March tenth, nineteen hundred eighty-three for the fiscal year beginning April first, nineteen hundred eighty-three shall not be required to be paid until June tenth, nineteen hundred eighty-three. If the total amount due from any such carrier is less than one hundred dollars, no partial payment shall be made and the total amount due shall be paid on or before September thirtieth of the fiscal year. 3. Final assessment. (a) The commissioner and the department of audit and control annually, as soon as practicable after April first, shall ascertain the total amount of expenses incurred during the preceding fiscal year in connection with the administration of this article. An itemized statement of the expenses so ascertained shall be open to public inspection in the office of the commissioner for thirty days after notice to those liable to be assessed for such expenses. (b) As soon as practicable after January first, each insurance carrier subject to the provisions of this section shall file with the commissioner a report of the total amount of gross direct premiums, less return premiums thereon received during the preceding calendar year for policies or contracts of automobile bodily injury insurance on risks subject to this article resident or located in this state. (c) The commissioner shall then determine the amount of expenses due from each insurance carrier subject to the provisions of this section based upon the final determination of total expenses and the final amount of premiums filed by the insurance carriers and shall notify each such insurance carrier of such assessment. Within thirty days of receipt of such notification each such carrier shall pay the total amount of such assessment less the total amount paid as a result of the estimated assessments. If the total amount of the final assessment is less than the amount already paid, such excess payment shall be refunded to such insurance carrier or at the option of the assessed applied to assessments for the succeeding fiscal year as requested by such insurance carriers. (d) To fully fund such pilot database system and bar code program established pursuant to subdivision four of section three hundred thirteen of this article, the commissioner shall utilize the following three sources of revenue: (1) twenty-five percent of all civil penalties imposed upon persons fined pursuant to paragraph (b) of subdivision one-a of section three hundred eighteen of this article, (2) monies obtained from grants that may be awarded to the commissioner from the motor vehicle theft and insurance fraud prevention fund, and (3) pro rata assessments upon all insurance carriers subject to the provisions of this section in proportion to the premium estimates filed by such carriers. 4. The commissioner shall levy and collect such assessments and pay the same into the state treasury, subject to the provisions of section one hundred twenty-one of the state finance law. S 318. Revocation of registrations, drivers' licenses and non-resident privileges. 1. (a) Except as otherwise provided in this subdivision, the commissioner, upon receipt of evidence that proof of financial security for any motor vehicle, other than a motorcycle or a motor vehicle registered with registration plates of this state issued in the year corresponding to the model year date in which the vehicle was manufactured pursuant to schedule G of subdivision seven of section four hundred one of this chapter, registered in this state is no longer in effect shall suspend the registration of such vehicle and the driver's license of the registrant, in accordance with the provisions of subdivision one-a of this section. (b) Such motor vehicle shall not be registered or reregistered in the name of such person, or in any other name where the commissioner has reasonable grounds to believe that such registration or reregistration will have the effect of defeating the purposes of this article, and no other motor vehicle shall be registered in the name of such person during the period of such suspension. (c) Suspension shall not be made under this subdivision upon the basis of a lapse or termination of insurance if the registration certificate and number plates of the motor vehicle are surrendered prior to the time at which the termination of insurance becomes effective. Such surrender shall be made to such officers of the department as the commissioner shall direct, but the registrant at his option may surrender the registration and number plates to any county clerk who is acting as an agent of the commissioner pursuant to section two hundred five of this chapter. Such county clerk may accept a surrender of registration and number plates and require the payment of a fee of one dollar whether such surrender is made before or after the effective date of termination of insurance. The county clerk shall retain any such fee which may have been collected, and shall return such registration certificates and number plates, or dispose of the same, only as prescribed by the commissioner. For the purposes of this section the expiration of a registration without renewal of such registration shall be deemed to be a surrender of registration as of the date of expiration. (d) Suspension shall not be made under this subdivision upon the basis of a lapse or termination of insurance if the vehicle has been, or will be, prior to the date of such lapse or termination, removed from the United States in North America and the Dominion of Canada for the purpose of international traffic, provided that the owner of such vehicle, prior to the date of such lapse or termination, has filed with the commissioner a statement, in a form prescribed by him, indicating that the vehicle has been, or will be, so removed, and agreeing to notify the commissioner immediately upon return of the vehicle to the United States in North America or the Dominion of Canada. Upon receipt of the foregoing statement the commissioner shall restrict the use of the registration to such international traffic until new proof of financial security has been secured for the vehicle. (e) Suspension need not be made under this subdivision upon the basis of a lapse or termination of insurance if the period of time during which the motor vehicle remained both registered and uninsured was not more than seven days. The commissioner shall promulgate regulations governing the conditions under which suspension action may be withheld pursuant to this paragraph. 1-a. (a) The suspension of a registration provided in subdivision one of this section shall take effect on the date specified in the order of suspension and shall remain in effect until the registration certificate and number plates of the motor vehicle have been surrendered to the commissioner and thereafter for a period of time equal to the time from the date of termination of financial security to the date of such surrender or to the date upon which subsequent financial security was obtained or to the date on which the registrant no longer had an insurable interest in the vehicle. (b) Notwithstanding the provisions of paragraph (a) of this subdivision, an order of suspension issued pursuant to paragraph (a) or (e) of this subdivision may be terminated if the registrant pays to the commissioner a civil penalty in the amount of eight dollars for each day up to thirty days for which financial security was not in effect, plus ten dollars for each day from the thirty-first to the sixtieth day for which financial security was not in effect, plus twelve dollars for each day from the sixty-first to the ninetieth day for which financial security was not in effect. Of each eight dollar penalty, six dollars will be deposited in the general fund and two dollars in the miscellaneous special revenue fund - compulsory insurance account. Of each ten dollar penalty collected, six dollars will be deposited in the general fund, two dollars will be deposited in the miscellaneous special revenue fund - compulsory insurance account, and two dollars shall be deposited in the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law and the dedicated mass transportation fund established pursuant to section eighty-nine-c of the state finance law and distributed according to the provisions of subdivision (d) of section three hundred one-j of the tax law. Of each twelve dollar penalty collected, six dollars will be deposited into the general fund, two dollars will be deposited into the miscellaneous special revenue fund - compulsory insurance account, and four dollars shall be deposited in the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law and the dedicated mass transportation fund established pursuant to section eighty-nine-c of the state finance law and distributed according to the provisions of subdivision (d) of section three hundred one-j of the tax law. The foregoing provision shall apply only once during any thirty-six month period and only if the registrant surrendered the certificate of registration and number plates to the commissioner not more than ninety days from the date of termination of financial security or submits to the commissioner new proof of financial security which took effect not more than ninety days from the termination of financial security. (c) No number plates shall be returned to the registrant until proof of financial security is submitted to the commissioner. (d) The provisions of this subdivision relating to termination of suspension upon payment of a civil penalty shall be applicable to a registrant only one time during any three year period. (e) If a registrant has not surrendered his certificate of registration and number plates or obtained financial security within ninety days from the date of termination of financial security, the commissioner shall suspend the driver's license of any such registrant. Such suspension shall take effect on the date specified in such order and shall remain in effect from the date of surrender of such license and thereafter for the period of time of the suspension of the registrant's registration. (g) Any civil penalty paid pursuant to paragraph (b) of this subdivision shall be separate and distinct from any civil penalty assessed pursuant to subdivision five of section three hundred nineteen of this chapter. 2. (a) The commissioner upon receipt of evidence that the owner of a motor vehicle registered in this state, or an unregistered motor vehicle, has operated, or permitted such motor vehicle to be operated upon the public highways of this or any other state while proof of financial security was not in effect with respect to such vehicle, shall revoke the registration, if any, of the vehicle and the driver's license, if any, of such owner. (b) Such motor vehicle shall not be registered in the name of such person, or in any other name where the commissioner has reasonable grounds to believe that such registration will have the effect of defeating the purpose of this article, and no other motor vehicle shall be registered in the name of such person, nor any driver's license issued to such person, for a period of one year from the date of such revocation. 3. (a) The commissioner, upon receipt of evidence that a person, other than the owner, has operated upon the public highways of this state a motor vehicle registered in this state, or an unregistered motor vehicle, with knowledge that proof of financial security was not in effect with respect to such vehicle, shall revoke the driver's license of such person, or if he is a non-resident, the non-resident driving privileges of such person. (b) No new driver's license shall be issued, or non-resident driving privilege restored to such person for a period of one year from the date of such revocation. (c) This subdivision shall not apply to any person who at the time of operation of such motor vehicle had in effect an operator's policy of liability insurance, as hereinafter defined, with respect to his operation of such vehicle or 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. 4. (a) The commissioner, upon receipt of evidence that the owner of a motor vehicle not registered in this state has operated or permitted such motor vehicle to be operated upon the public highways of this state while proof of financial security was not in effect with respect to such vehicle, shall revoke such person's privilege to operate any motor vehicle in this state and the privilege of the operation within this state of any motor vehicle owned by him. (b) Such non-resident privileges shall not be restored for a period of one year from the date of such revocation. 5. (a) The commissioner, upon receipt of evidence that a person, other than the owner of the vehicle, has operated upon the public highways of this state a motor vehicle not registered in this state, with knowledge that proof of financial security was not in effect with respect to such vehicle shall revoke the driver's license of such person, or if he is a non-resident, the non-resident privileges of such person. (b) No new driver's license shall be issued, or non-resident privilege restored to such person for a period of one year from the date of such revocation. (c) This subdivision shall not apply to any person who at the time of operation of such motor vehicle had in effect an operator's policy of liability insurance, as hereinafter defined, with respect to his operation of such motor vehicle or 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. 6. Notice of revocation pursuant to this section may be given to the owner of a vehicle registered in this state or to a driver licensed in this state, by mailing the same to such owner or licensee at the address contained in the certificate of registration for the vehicle owned by such person or to the address contained on his or her driving license or to the current address provided by the United States postal service. 7. Failure of such owner or licensee to deliver a certificate of registration, number plates or driver's license to the commissioner after revocation thereof or as otherwise provided in section three hundred twelve shall constitute a misdemeanor. 8. An operator's policy of liability insurance, as used in this section, shall mean a policy issued by an insurance carrier duly authorized to transact business in the state which 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, subject to the same minimum provisions and approval required by subdivision four of section three hundred eleven of this chapter, with respect to an owner's policy of liability insurance. With respect to a non-resident, such policy may also be issued by a non-admitted insurance carrier provided the requirements of this article with respect to issuance of an owner's policy of liability insurance by such carrier have been met. 9. (a) If a motor vehicle has been involved in an accident, and its registration or the driver's license of its operator, or both, have been revoked pursuant to this section, then neither such vehicle nor any other motor vehicle shall be registered or reregistered in the name of its owner or of any other person legally responsible for its use, nor shall any driver's license be issued to such owner, person or operator until one year has passed since the date of such revocation and, as the case may be, the commissioner has received the payments and evidence required by paragraph (c) below. (b) If a motor vehicle not registered in this state is involved in an accident in this state and the privilege of its operation within this state has been revoked, then neither its owner, any person legally responsible for its use nor its operator shall exercise the privilege of the operation of such vehicle within this state or the privilege of operation within this state of any motor vehicle, until one year has passed since the date of revocation and, as the case may be, the commissioner has received the payments and evidence as required in (c) below. (c) The payments and evidence referred to in paragraphs (a) and (b) above shall be evidence, satisfactory to the commissioner, (1) That no cause of action based upon such accident against such owner, person legally responsible or operator has been commenced within a period of one year from the date of the accident or a release thereof has been given to such owner, person or operator, or (2) That no judgment arising out of such cause of action for amounts within the limits stated in paragraph (a) of subdivision four of section three hundred eleven against such owner, person or operator remains unsatisfied, except that such registration and licensing privileges may be restored on compliance with the procedures permitting the payment of a judgment in installments provided in section three hundred thirty-four and (3) That all civil penalties required to be paid to the department pursuant to the provisions of subdivision five of section three hundred nineteen of this chapter have been paid. 10. The provisions of subdivision seven of section five hundred ten of this chapter shall apply to a revocation under this article. 11. (a) Where the license or privileges of any person, or the registration of a motor vehicle registered in his name, has been suspended or revoked under article six of this chapter, and the motor vehicle accident indemnification corporation or an insurer has paid any amount towards satisfaction of a judgment against such person, or has obtained a judgment against such person as a result of payments made to third parties such license, privileges or registration shall be suspended, or the suspension or revocation thereof shall be continued, as provided in this subdivision. (b) If the license, privileges or registration of such person has not been restored, the suspension or revocation thereof shall be continued pending the satisfaction of the requirements of paragraph (d) of this subdivision. (c) If the license, privileges or registration of such person has been restored, the commissioner shall suspend such license or privilege, and may suspend such registration, pending the satisfaction of the requirements of paragraph (d) of this subdivision. (d) Such suspensions and revocations shall be continued until such person has repaid to the corporation or to such insurer any amount so paid by it together with interest thereon at six per centum per annum from the date of such payment, unless such person submits to the procedure provided for the payment of judgments in installments under section three hundred thirty-four of this chapter. (e) A discharge in bankruptcy shall not relieve a person of the penalties and disabilities provided in this article. 12. (a) If the owner or operator of a motor vehicle in any manner involved in an accident occurring in this state resulting in death or bodily injuries to any person fails to produce satisfactory evidence as proof of financial security within forty-eight hours after the accident, the motor vehicle shall be subject to impoundment and any peace officer, acting pursuant to his special duties, or any police officer is authorized to impound and store such motor vehicle. If said motor vehicle is subject to impoundment and is not so impounded, the owner or his representative shall cause said motor vehicle to be stored in a public garage or storage place in this state as selected by the owner or representative and shall continue such storage for the period of time provided in this section. The aforementioned storage shall constitute "impoundment" within the meaning of this section. The cost of storage of any such impounded motor vehicle shall be borne by the owner. So long as the impoundment is in force no person shall remove the impounded vehicle or permit it to be removed from its place of impoundment except upon the order of the commissioner. (b) Immediately upon impoundment, the owner or his representative shall: 1. Notify the bailee of the impounded motor vehicle of the fact that the same is stored as an impounded vehicle, 2. Notify the commissioner in writing of the street address and city or municipality where said motor vehicle is stored, and 3. If the owner is a resident of this state, return the registration certificate and registration plates with respect to such motor vehicle to the commissioner. If the owner or his representative fails to store said motor vehicle as required by subdivision (a) and fails to return such registration certificate and registration plates, the commissioner is authorized to direct any peace officer acting pursuant to his special duties, or police officer to impound and store said motor vehicle at the expense of the owner and to take possession of the registration certificate and registration plates and return the same to the commissioner of motor vehicles. (c) The impoundment shall continue until (1) there is a final disposition of the claim for death or bodily injury of the person, resulting from the accident in which said motor vehicle was involved, by payment of a judgment or settlement by the owner, or by a final judgment in his favor, or (2) one year has elapsed since the date of the accident and no filing has been made pursuant to section five thousand two hundred eight of the insurance law, or (3) a release of the motor vehicle upon order of the commissioner. The commissioner may order the release of said motor vehicle upon the depositing with the commissioner of taxation and finance of security or a bond in such form and amount as may be approved by the commissioner. If said motor vehicle is not released from impoundment after the lapse of one year, the commissioner may dispose of it by public sale and remit the proceeds from the sale to the commissioner of taxation and finance to be held pending the final disposition of the claim. (d) If repairs to an impounded motor vehicle are desired by the owner, he, with the permission of the commissioner, may authorize the motor vehicle to be taken to such repair shop or garage as he may select for the purpose of having it repaired at the owner's expense. Upon completion of such repairs, the motor vehicle shall be impounded as provided in subdivision (a). Where the commissioner is satisfied by such evidence as he deems sufficient, that any motor vehicle is so damaged that it cannot be restored to operable condition, he may, in his discretion, upon such conditions as he deems proper, consent to the release of said motor vehicle from impoundment. (e) No owner of a motor vehicle subject to impoundment hereunder shall transfer title to said motor vehicle nor his interest therein unless he furnishes to the commissioner security, in an amount which the commissioner is satisfied is equivalent to the value of said vehicle or his interest therein. (f) Nothing herein contained shall affect the rights or remedies of any person holding a prior valid lien on an impounded vehicle, including the right to take possession, existing at the effective date of this section or the right of the bailee to a lien for storage of the impounded vehicle; provided, that such person shall, after the sale of such vehicle for the satisfaction of any liens thereon, remit to the commissioner as deposits of security under this article on behalf of the former owner or purchaser of such vehicle any sums which such owner or purchaser would otherwise be entitled to receive. (g) Any person who wilfully violates any of the provisions of this subdivision shall, in addition to any other penalty provided by law, be liable to the people of this state for a penalty in an amount not less than one hundred dollars nor more than one thousand dollars for each violation. 13. (a) Subject to the provisions of paragraph (b), no revocation or suspension order shall be issued pursuant to this section, or if such revocation or suspension order has been issued, it shall be terminated, if the commissioner shall determine that the person involved was not aware of the fact that financial security was not in effect and the failure to have such financial security in effect was caused solely by the negligence or malfeasance of a person other than such person. (b) The burden of proving lack of knowledge that financial security was not in effect and that such failure resulted solely from the negligence or malfeasance of another shall be upon the person seeking to avoid revocation or suspension action. 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. 14. No registration and/or license, which has been revoked pursuant to this section because the holder was convicted of driving without insurance in violation of subdivision one of section three hundred nineteen of this chapter, shall be restored until all civil penalties, required to be paid to the department pursuant to the provisions of subdivision five of section three hundred nineteen of this chapter, have been paid. 15. Notwithstanding any provisions of this section, a restricted use license or privilege of operating a motor vehicle in this state may be issued to a person who has had his license or such privilege revoked or suspended pursuant to any provision of this section in accordance with article twenty-one-A of this chapter. S 319. Penalties. 1. Any owner of a motor vehicle registered in this state, or an unregistered motor vehicle, who shall operate such motor vehicle or permit it to be operated in this state without having in full force and effect the financial security required by the provisions of this chapter and any other person who shall operate in this state any motor vehicle registered in this state, or an unregistered motor vehicle, with the knowledge that the owner thereof does not have in full force and effect such proof of financial security, except a person who, at the time of operation of such motor vehicle, had in effect an operator's policy of liability insurance, as defined in section three hundred eighteen, with respect to his operation of such vehicle shall be guilty of a traffic infraction and upon conviction may be fined not less than one hundred fifty dollars or more than one thousand five hundred dollars or may be imprisoned for not more than fifteen days or both. In addition to the penalties herein set forth, such person, upon conviction, shall also become liable for payment to the department of the civil penalty provided in subdivision five of this section. 2. When the production of an insurance identification card is required by any provision of this chapter, no person shall produce an insurance identification card which indicates insurance coverage which is not in effect. In any prosecution or proceeding alleging a violation of this subdivision, it shall be an affirmative defense that the person so charged did not have knowledge that the insurance indicated on such card was not in effect. A violation of this subdivision shall be a misdemeanor. 3. Every person who operates a vehicle registered in this state, or a vehicle required to be registered in this state, shall, when required by the commissioner's regulations, produce an insurance identification card when requested by any peace officer, acting pursuant to his special duties, police officer or magistrate. The failure to so produce such a card shall be presumptive evidence that such person was operating the vehicle without having in effect financial security required by the provisions of this chapter. 4. Where the commissioner finds, other than by means of the receipt of a certificate of conviction, that a person has violated any provision of subdivision one of this section, such person shall become liable for payment to the department of the civil penalty provided in subdivision five of this section. However, the enforcement of such civil penalty, and of any revocation order based upon such finding, shall be stayed at the request of the person against whom such civil penalty and revocation order has been issued until after a hearing, provided such person was not both the operator and the owner of the motor vehicle which was being operated without the required financial security being in effect. After such hearing, the stay of enforcement of the civil penalty and revocation order shall be vacated unless it is found by a preponderance of the evidence that such person, (a) if he was the operator and not the owner of the motor vehicle, had no knowledge that the financial security required for such motor vehicle was not in effect; or (b) if he was the owner and not the operator of the motor vehicle, that he did not permit, either expressly or impliedly, the operation of such motor vehicle. 5. The civil penalty for a violation of subdivision one of this section shall be seven hundred fifty dollars. S 320. Notice to other jurisdictions. The commissioner shall transmit a certified copy of any record of any conviction under this article or of any action taken pursuant to this article resulting in revocation of a non-resident's privilege to operate a motor vehicle in this state or the privilege of the operation within this state of any motor vehicle owned by him to the motor vehicle commissioner or officer performing similar functions in the state in which such non-resident resides. S 321. Exceptions. 1. This article shall not apply to any motor vehicle for the operation of which security is required to be furnished under section three hundred seventy of this chapter, including those for which a certificate is issued pursuant to section three hundred seventy-one of this chapter or under a similar law in another state except as may be provided in section three hundred seventy; to any motor vehicle operated under a permit or a certificate of convenience and necessity issued pursuant to the transportation law, or under a permit or certificate issued by the public utility regulatory agency of another state; nor to any vehicle for which a permit or certificate is in force pursuant to the interstate commerce act nor to any motor vehicle owned by the United States, any state or any political subdivisions of any state. 2. Provided, however, that any motor vehicle exempted in subdivision one of this section from the provisions of any portion of this article shall be subject to the provisions of article fifty-one of the insurance law. Top of Page
The laws of the State of New York are consistently amended, repealed and/or entirely rewritten. This site strives to publish the current laws; however, official reporters should be consulted for the most up-to-date statutory language. No warranties, express or implied, or representations as to the accuracy of content on this website are made. This website and its owners assume no liability or responsibility for any error or omission in the information contained in the website or the operation of the website.