New York State Law
Vehicle and Traffic Law
Consolidated Laws of New York's VTL code
Article 7 - NY Vehicle and Traffic Law
MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
| Section | Description |
|---|---|
| 330 | Commissioner to administer article;may require proof;court review. |
| 331 | Proof required upon certain convictions. |
| 332 | Proof required in the event of certain judgments. |
| 333 | Payments sufficient to satisfy requirements of this article. |
| 334 | Suspension waived upon payment of judgment in installments. |
| 335 | Security and proof required following accident. |
| 336 | Duty of courts to report judgments. |
| 337 | Suspension, duration. |
| 338 | Application to non-resident, other persons. |
| 339 | Owner may give proof for chauffeur or member of family. |
| 340 | Surrender of license and evidences of registration. |
| 341 | Amount of proof required. |
| 342 | Alternate methods of giving proof. |
| 343 | Proof of financial responsibility by certificate showing motor vehicle liability policy obtained. |
| 344 | Certificate furnished by non-resident. |
| 345 | Motor vehicle liability policy. |
| 346 | Proof of financial responsibility not required after February first, nineteen hundred fifty-seven. |
| 348 | Article not to affect other policies. |
| 349 | Filing a bond as proof of financial responsibility. |
| 350 | Money or securities deposited as proof of financial responsibility. |
| 351 | Person having given proof may substitute other proof. |
| 352 | If proof fails commissioner may require other proof. |
| 353 | When commissioner may release proof. |
| 354 | Commissioner to furnish operating record. |
| 355 | Operating without giving proof when proof required. |
| 356 | Forging or without authority signing proof of financial responsibility. |
| 357 | Failing to report convictions and judgments. |
| 358 | Otherwise violating article. |
| 359 | Definitions. |
| 360 | Exceptions. |
| 361 | Self-insurers. |
| 362 | Article not to repeal other motor vehicle laws. |
| 363 | Expenses of administering article. |
| 364 | Uniformity of interpretation. |
| 365 | Short title. |
| 366 | Past application of article. |
| 367 | This article does not prevent other process. |
| 368 | Constitutionality |
S 330. Commissioner to administer article; may require proof; court review. (a) The commissioner shall administer and enforce the provisions of this article. (b) The commissioner is hereby authorized to adopt and enforce such regulations as may be necessary for the administration of this article. (c) Upon any reasonable ground, appearing on the records of the bureau, the commissioner may suspend or revoke the operator's or chauffeur's license of any person and may suspend or revoke any and all of the registration certificates or registration plates for any motor vehicle and may refuse to issue to any such person any new or renewal license or to register in the name of such person any motor vehicle unless and until such person gives proof of his financial responsibility in the future as hereinafter provided in this article. Any person furnishing proof of financial responsibility pursuant to this subdivision may be relieved from continuing to furnish such proof in the discretion of the commissioner provided three years have elapsed since such proof was first furnished during which period such person has not been convicted of, or forfeited bail given on being charged with, any of the offenses specified in subdivision two of section five hundred ten of this chapter and no charges of any of such offenses are pending against such person. The affidavit of such person shall be accepted as proof of the facts therein stated, in the absence of evidence to the contrary before the commissioner. (d) Any person aggrieved by an order or act of the commissioner under this section or under provisions of this article, may maintain a proceeding under article seventy-eight of the civil practice law and rules to review, but the commencement of such a proceeding shall not suspend the order or act unless a stay thereof shall be allowed by said court pending final determination of the review. (e) The provisions of subdivision seven of section five hundred ten of this chapter shall apply to a suspension under this article. S 331. Proof required upon certain convictions. (a) Whenever the commissioner, or other authorized person, under any law of this state suspends or revokes the operator's or chauffeur's license of any person because of the conviction of such person, the commissioner shall also suspend any and all of the registration certificates and registration plates issued for any motor vehicle registered in the name of the person so convicted as owner except that he shall not suspend such evidence of registration, unless otherwise required by law, in the event such owner has previously given, or shall immediately give and thereafter maintain proof of his financial responsibility in the future in the manner hereinafter specified in this article with respect to each and every motor vehicle owned and registered by such person. (b) Such suspensions or revocation shall remain in effect and the commissioner shall not issue to any such person any new or renewal license or register in the name of such person any motor vehicle, until permitted under this chapter and not then unless and until such person gives proof of his financial responsibility in the future as hereinafter provided in this article. Reversal on appeal of any conviction because of which any license or registration has been suspended pursuant to this article shall entitle the holder to the restoration thereof forthwith without proof of financial responsibility. (c) For the purpose of this article the term conviction shall include a forfeiture of bail or collateral deposited to secure a defendant's appearance in court, which forfeiture has not been vacated, upon a charge which upon conviction of the defendant requires or authorizes the commissioner to suspend or revoke the license of such person. S 332. Proof required in the event of certain judgments. (a) The commissioner shall also suspend the operator's or chauffeur's license and any and all of the registration certificates and registration plates issued to any person upon receiving authenticated report as hereinafter provided that such person has failed for a period of fifteen days to satisfy any judgment in amounts and upon a cause of action as hereinafter stated. (b) The judgment herein referred to shall mean any judgment in excess of one thousand dollars for damages because of injury to or destruction of property, including loss of use thereof, or any judgment for damages, including damages for care and loss of services, because of bodily injury to or death of any person arising out of the ownership, maintenance, use or operation of any motor vehicle. (c) The commissioner shall take action as required in this section upon receiving proper evidence that any person in another state, the District of Columbia, any district court of the United States, or any province of Canada, has failed for a period of fifteen days to satisfy any judgment in amount as stated in section three hundred thirty-three and upon a cause of action as stated in this section. (d) Any person whose license, registration or non-resident's driving privilege is subject to suspension hereunder, may be relieved from the effect of failure to satisfy such judgment, if such person files with the commissioner proper evidence that a bond or insurance policy as provided for in this article was in force and effect at the time of the accident resulting in the judgment, and was available for the satisfaction of the judgment to the extent provided for in section three hundred thirty-three and that such judgment was so satisfied. S 333. Payments sufficient to satisfy requirements of this article. Every judgment herein referred to shall for the purpose of this article only be deemed satisfied: (a) When twenty-five thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or when fifty thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of death of one person as the result of any one accident; or (b) When subject to such limit of twenty-five thousand dollars because of bodily injury to or fifty thousand dollars because of death of one person, the sum of fifty thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or when one hundred thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of death of two or more persons as the result of any one accident; or (c) When ten thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of injury to or destruction of property of others as a result of any one accident. Payments made in settlement of any claims because of bodily injury, death or property damage arising from a motor vehicle accident shall be credited in reduction of the amounts provided for in this section. S 334. Suspension waived upon payment of judgment in installments. (a) The commissioner shall not suspend a license or registration of a motor vehicle, and shall restore any license or registration suspended following non-payment of a judgment, when the judgment debtor gives proof of his financial responsibility in the future as hereinafter provided, and when the judgment debtor obtains an order from the court in which such judgment was rendered, permitting the payment of such judgment in installments, and while the payment of any said installment is not in default. (b) A judgment debtor upon five days' notice to the judgment creditor may apply to the court in which such judgment was obtained for the privilege of paying such judgment in installments and the court, in its discretion and without prejudice to any other legal remedies which the judgment creditor may have, may so order, fixing the amounts and times of payment of the installments. (c) In the event the judgment debtor fails to pay any installment as permitted by the order of the court, then upon notice of such default the commissioner shall forthwith suspend the license and registration certificates and registration plates of the judgment debtor until such judgment is satisfied as provided in this article. (d) Provided, however, if the judgment creditor consents in writing, in such form as the commissioner may prescribe, that the judgment debtor be allowed license and registration the same may be allowed by the commissioner, in his discretion, notwithstanding default in the payment of such judgment or of any installments thereof, for six months from the date of such consent and thereafter until such consent is revoked in writing, if the judgment debtor furnishes proof of his financial responsibility in the future as hereinafter provided. S 335. Security and proof required following accident. (a) Not less than ten days nor more than sixty days after receipt by him of the report or notice of an accident which has resulted in bodily injury or death, or in damage to the property of any one person in excess of one thousand dollars, the commissioner shall forthwith suspend the license of any person operating, and the registration certificates and registration plates of any person owning, a motor vehicle in any manner involved in such accident unless and until such operator (or chauffeur) or owner or both shall have previously furnished or immediately furnishes security sufficient in the judgment of the commissioner to satisfy any judgment or judgments for damages resulting from such accident as may be recovered against such owner or operator (or chauffeur) by or on behalf of any aggrieved person or his legal representative, and unless and until such owner or operator (or chauffeur) or both shall immediately furnish and thereafter maintain proof of financial responsibility in the future. Where erroneous information with respect to insurance coverage of the owner or operator (or chauffeur) of any such vehicle is furnished to the commissioner, he shall take appropriate action as above provided within sixty days after the receipt by him of correct information with respect to such coverage. This section shall not apply: (1) to such owner or operator (or chauffeur) if such owner had in effect at the time of such accident with respect to such motor vehicle a standard provisions automobile liability policy in form approved by the superintendent of financial services and issued by an insurance company authorized to do business in this state or, if such motor vehicle was not registered in this state or was a motor vehicle which was registered elsewhere than in this state at the effective date of the policy, or the most recent renewal thereof, an automobile liability policy acceptable to the superintendent of financial services as substantially the equivalent of such standard provisions automobile liability policy; (2) to such operator (or chauffeur), if not the owner of such motor vehicle, if there was in effect at the time of such accident such a policy with respect to his operation of motor vehicles not owned by him or, if such motor vehicle was a private passenger motor vehicle, with respect to his operation of private passenger motor vehicles not owned by him or (3) to such owner or operator (or chauffeur) if the liability of such owner or operator (or chauffeur) for damages resulting from such accident is, in the judgment of the commissioner, covered by any other form of liability insurance policy issued by an insurance company authorized to do business in this state or by a bond, provided every such policy or bond mentioned herein is subject, if the accident has resulted in bodily injury, to a limit, exclusive of interest and costs, of twenty-five thousand dollars or death to a limit, exclusive of interest and costs, of fifty 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 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, if the accident has resulted in injury to or destruction of property, to a limit of ten thousand dollars because of injury to or destruction of property of others in any one accident or (4) to such owner or operator if the commissioner shall determine that the failure to have liability coverage as described above was caused solely by the negligence or malfeasance of a person other than the person whose license or registration has been suspended or is subject to suspension, and that the person seeking to avoid such suspension was not aware of the lack of such liability coverage. However, with respect to the provisions of (4) above, the burden of proof shall be upon the person seeking to avoid such suspension action. Provided further, that 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. Upon receipt of notice of such accident, the insurance carrier or surety company which issued such policy or bond shall furnish for filing with the commissioner a written notice that such policy or bond was in effect at the time of such accident or shall notify the commissioner in such manner as he may require in case such policy or bond was not in effect at the time of such accident. In case any such operator (or chauffeur) or owner has no license to operate issued under this chapter or no motor vehicle registered in his name in this state, he shall not be allowed a license or registration until he has complied with this article to the same extent as would be necessary if he had held an operator's or chauffeur's license and a motor vehicle registration issued under this chapter at the time of the accident. (b) Such security, where ordered, shall be in such form and in such amount as the commissioner may require, but in no case in excess of the amount of proof required by section three hundred forty-one of this article. The commissioner may reduce the amount of security ordered in any case within six months after the date of the accident, if, in his judgment, the amount ordered is too large. In case the security originally ordered has been deposited, the excess deposited over the reduced amount ordered shall be returned to the depositor or his personal representative forthwith, notwithstanding the provisions of subdivision (c) of this section. (c) Security furnished in compliance with the requirements of this section shall be placed by the commissioner in the custody of the commissioner of taxation and finance and shall be applicable only to the payment of a judgment against the depositor for damages arising out of the accident in question in an action at law begun not later than one year after the date of such accident or, upon assignment of the depositor, made not later than one year after the date of such accident, to the settlement of a claim arising out of such accident, or upon assignment of the depositor, made after the expiration of one year after the date of such accident, to the settlement of an action at law begun not later than one year after the date of such accident. All of such payments made out of the deposited security shall be made as follows: Payment shall first be made to each of the judgment creditors and to each of the claimants who have agreed to settle their claims, whose damages were evaluated by the commissioner, in an amount not greater than the amount fixed in their respective evaluations. Whenever the commissioner shall be given evidence, satisfactory to him, that the amounts of all claims for damages against the depositor arising out of such accident are fixed, either by judgment or settlement agreement, payment shall be made out of any balance remaining after the first distribution to each of those persons whose judgments or settlement amounts have not been fully paid but whose damages were evaluated by the commissioner, in proportion to the amounts of their respective evaluations unless there is sufficient to make payment in full; and any balance remaining after the first and second distributions are completed shall be paid to those judgment creditors and those claimants who have agreed to settle their claims but whose damages were not evaluated, in proportion to the amounts of their respective judgments or settlement amounts unless there is sufficient to make payment in full. Such deposit, or any balance thereof, shall be returned to the depositor or his personal representative whenever after the expiration of such year, the commissioner shall be given evidence, satisfactory to him, that there is no such action pending and no such judgment unsatisfied or whenever, before the expiration of such year, the commissioner shall be given evidence, satisfactory to him, that there is no such judgment unsatisfied and that there is no existing cause of action against the depositor for damages arising out of such accident. (c-1) After security, furnished in compliance with the requirements of this section, has remained on deposit for five years, the commissioner shall make a determination as to whether the deposit, or any balance thereof, is returnable to the depositor or the person entitled thereto. In the event that such deposit, or any balance thereof, is determined to be returnable, but remains unclaimed by the depositor or the person entitled thereto for a period of one year following the date of such determination, such unclaimed deposit, or any balance thereof, shall be deemed abandoned property subject to the provisions of the abandoned property law. (d) The provisions of subdivision (a) of this section shall not apply to the owner of a motor vehicle operated by one having obtained possession or control thereof without the expressed or implied consent of such owner, 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; or to either the owner or operator of a motor vehicle involved in an accident wherein no damage or injury was caused to other than the person or property of such owner or operator. (e) In lieu of deposit of security when required pursuant to the provisions of this section the commissioner may accept a written agreement, executed and acknowledged by the person required to deposit security and any person who has sustained bodily injury, including death, or damage to his property, or his legal representative, providing for the payment of an agreed amount in installments, with respect to the claims of such person for injuries or damages resulting from the accident. In the event of default in payment of any installment under such agreement, then upon notice of such default the commissioner shall forthwith suspend the license and registration certificates and registration plates of the person in default until release has been filed with the commissioner indicating that the entire agreed amount has been paid. But in no case shall such agreement be used in lieu of proof of maintenance of financial responsibility in the future required pursuant to the provisions of this section. S 336. Duty of courts to report judgments. The clerk of the court, or the court where it has no clerk, shall, upon written request of the judgment creditor or his attorney, forward to the commissioner a certified copy of transcript of any judgment for damages, the rendering and non-payment of which judgment requires the commissioner to suspend the operator's or chauffeur's license and/or the registrations in the name of the judgment debtor hereunder, such copy or transcript to be forwarded to the commissioner immediately upon the expiration of fifteen days after such judgment has become final by expiration without appeal of the time within which appeal might have been perfected or by final affirmance on appeal, and has not been otherwise stayed, or satisfied. S 337. Suspension, duration. (a) The suspension required in sections three hundred thirty-two, three hundred thirty-four and three hundred thirty-five (e) shall remain in effect, the motor vehicle in any manner involved in such accident shall not be registered in the name of the person whose license and/or registration certificate was so suspended, or in any other name where the commissioner has reasonable grounds to believe that such registration 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 nor any new licenses issued to such person unless and until such judgment is satisfied or stayed or is discharged in bankruptcy and the judgment debtor gives proof of financial responsibility in the future as required pursuant to section three hundred thirty-five except under the conditions as stated in sections three hundred thirty-three and three hundred thirty-four. (b) The suspension required in section three hundred thirty-five shall remain in effect, the motor vehicle in any manner involved in such accident shall not be registered in the name of the person whose license and/or registration certificate was so suspended, or in any other name where the commissioner has reasonable grounds to believe that such registration 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 nor any new licenses issued to such person, unless and until such person complies with the requirement with respect to furnishing security, or unless and until such person has obtained a release, or a favorable judgment in an action at law to recover damages resulting from such accident or unless such person shall have satisfied in the manner herein provided any judgment rendered against such person in such an action, or unless such judgment rendered against such person is discharged in bankruptcy, and at all events until such person gives and thereafter maintains proof of his financial responsibility. Provided, however, that any person whose license or registration became subject to suspension or has been suspended pursuant to subdivision (a) of section three hundred thirty-five, whether or not such person has furnished security and proof of financial responsibility, shall be relieved from furnishing or maintaining proof of financial responsibility if (1) one year has elapsed since the date of the accident, (2) nine months have elapsed since the date of compliance with any suspension order made against such person because of such accident, (3) such person has neither paid nor agreed in writing to pay anything for damages resulting from such accident, (4) no suit for damages because thereof has been brought against such person and (5) such person is not required to furnish or maintain proof of financial responsibility for some reason other than for having been involved in such accident. If a suit or suits for damages resulting from such accident shall have been brought and such suit or suits shall have resulted in a judgment or judgments, the successful person in such suit or suits shall be relieved from furnishing or maintaining proof of financial responsibility forthwith provided such person is not required to furnish or maintain such proof for reasons other than for having been involved in such accident and, in case such person has furnished security because of having been involved in such accident, it shall be returned to such person or the personal representative of such person forthwith notwithstanding the provisions of subdivision (c) of section three hundred thirty-five. The fact of having been involved in such accident shall not bar the issuance of license and registration to a person who has been relieved from furnishing or maintaining proof of financial responsibility pursuant to the provisions of this paragraph. (c) A discharge in bankruptcy following the rendering of any such judgment shall not relieve the judgment debtor from any of the requirements of this article unless otherwise provided in subdivisions (a) and (b) of this section. S 338. Application to non-resident, other persons. (a) Whenever, by the laws of this state, the commissioner has the power to suspend or revoke a license if the operator or chauffeur were a resident, the commissioner shall have similar power to suspend or revoke the license or to forbid the operation of a motor vehicle in this state owned by such operator or chauffeur if the operator or chauffeur is a non-resident. And whenever by the laws of this state the commissioner has the power to suspend or revoke the registration certificates and registration plates if the owner were a resident, the commissioner shall have similar power to forbid the operation within this state of any motor vehicle if the owner is a non-resident. (b) All of the provisions of this article shall apply to any person who is not a resident of this state under the same circumstances as they would apply to a resident; and, in such event, such a non-resident shall not operate any motor vehicle in this state nor shall any motor vehicle owned by him be operated in this state, unless and until such non-resident or the owner of the motor vehicle, if another person, has complied with the requirements of this article with respect to furnishing security and giving proof of financial responsibility in the future. (c) Upon conviction of a non-resident or in case of any unsatisfied judgment rendered against a non-resident which conviction or unsatisfied judgment results in suspension of such non-resident's driving privileges in this state and/or the prohibition of the operation within this state of any motor vehicle owned by such non-resident, the commissioner shall transmit a certified copy of any record of any such conviction or any such unsatisfied judgment or any other action pursuant to this article resulting in suspension of a non-resident's driving privileges in this state and/or the prohibition of the operation within this state of any motor vehicle owned by such non-resident to the motor vehicle commissioner or officer performing the functions of a commissioner in the state in which such non-resident resides. In case a non-resident's failure to comply with the provisions of section three hundred thirty-five results in suspension of such non-resident's rights and privileges in this state and/or prohibition of the operation within the state of any motor vehicle owned by such non-resident, the commissioner shall transmit a certified copy of the record of such action to the motor vehicle commissioner or officer performing the functions of the commissioner in the state in which such non-resident resides, if the law of such other state provides for action in relation thereto similar to that provided for in subdivision (d) of this section. (d) The commissioner shall take action as required anywhere in this article, upon receiving proper evidence that any resident of this state, has in any other state had his driving privileges suspended and/or the operation of any motor vehicle owned by him prohibited pursuant to a law of such other state providing for such suspension or prohibition because of a conviction or because of an unsatisfied judgment which would require the commissioner to suspend a non-resident's driving privileges had such a conviction or judgment been rendered in this state against a non-resident, provided, however, that no suspension or prohibition shall be effective until twenty days have elapsed from the date upon which notice of suspension shall have been mailed to the operator or owner during which period such operator or owner shall be permitted to submit evidence of satisfaction of the judgment or other evidence relating thereto. Upon receipt of a certification that the operating privilege of a resident of this state has been suspended, revoked or cancelled in any such other state pursuant to a law providing for its suspension, revocation or cancellation for failure to deposit security for the payment of a judgment as may arise out of a motor vehicle accident under circumstances which would require the commissioner to suspend a non-resident's operating privilege had the accident occurred in this state, the commissioner shall suspend the license of such resident if he was the operator, and all of his registrations if he was the owner of a motor vehicle involved in such accident. Such suspension shall continue until such resident furnishes evidence of his compliance with the law of such other state relating to the deposit of such security. (e) The word "state" when used in this section 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. S 339. Owner may give proof for chauffeur or member of family. Whenever the commissioner determines that any person required to give proof or furnish security under this article, or under certain provisions of article three previously numbered article six-a of this chapter, as added by chapter six hundred ninety-five of the laws of nineteen hundred twenty-nine and repealed by chapter eight hundred seventy-two of the laws of nineteen hundred forty-one, is or later becomes a chauffeur or motor vehicle operator, however designated, in the employ of an owner of a motor vehicle, or is or later becomes a member of the immediate family or household of the owner of a motor vehicle, the commissioner shall accept proof of financial responsibility given by such owner in lieu of proof by such person to permit such person to operate a motor vehicle for which the owner has given proof as herein provided. In case such person is one who is furnished proof of financial responsibility by his employer, he shall not be required to furnish security. The commissioner shall designate the restrictions imposed by this section on the face of such person's operator's or chauffeur's license. If the owner of a motor vehicle is one who is required to furnish coverage for the vehicle under section three hundred seventy of this chapter, or one whose vehicles are operated under a permit or a certificate of convenience and necessity issued pursuant to the public service law or is a self-insurer, proof by the owner on behalf of another as provided by this section may be made if there is filed with the commissioner satisfactory evidence that such owner has complied with the law with respect to his liability for damage caused by the operation of his vehicles by providing the required insurance or other coverage or that he is a self-insurer. S 340. Surrender of license and evidences of registration. (a) Any person whose operator's or chauffeur's license or registration certificates or registration plates have been suspended as provided in this article and have not been reinstated shall immediately return every such license, registration certificate and registration plates held by such person to the commissioner. Any person wilfully failing to comply with this requirement is guilty of a misdemeanor. (b) The commissioner is hereby authorized to take possession of any license, registration certificate or registration plates upon the suspension thereof under the provisions of this article or to direct any peace officer, acting pursuant to his special duties or police officer to take possession thereof and to return the same to the office of the commissioner. S 341. Amount of proof required. Proof of financial responsibility shall mean proof of ability to respond in damages for liability thereafter incurred, arising out of the ownership, maintenance or use of a motor vehicle, in the amount of twenty-five thousand dollars because of bodily injury to or fifty thousand dollars because of death of any one person, and subject to said limit respecting one person, in the amount 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 in the amount of ten thousand dollars because of injury to or destruction of property in any one accident. Such proof in such amounts shall be furnished for each motor vehicle registered by such person. S 342. Alternate methods of giving proof. Proof of financial responsibility when required under this article may be given by the following alternate method; either by proof that a policy or policies of motor vehicle liability insurance have been obtained and are in full force and effect, or that a bond has been duly executed, or that deposit has been made of money or securities, all as hereinafter provided. S 343. Proof of financial responsibility by certificate showing motor vehicle liability policy obtained. (a) Proof of financial responsibility may be made by filing with the commissioner the written certificate of any insurance carrier duly authorized to do business in this state, certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility. Such certificate shall give the effective date of such motor vehicle liability policy, which date shall be the same date as the effective date of the certificate and shall designate by explicit description or by appropriate reference all motor vehicles covered thereby, unless the policy is issued to a person who is not the owner of a motor vehicle. (b) No motor vehicle shall be or continue to be registered in the name of any person required to file proof of financial responsibility unless such motor vehicle is so designated in such a certificate. (c) When a person has been required to furnish proof of a financial responsibility and there has been in effect a motor vehicle liability policy for his benefit for a period of three years, during which period such person or any vehicle registered in his name has not been involved in any accident upon which a report is required pursuant to section six hundred five hereof, such person may file in lieu thereof, the written certificate of any insurance carrier duly authorized to do business in this state, certifying that there is in effect a standard provisions automobile liability policy in form approved by the superintendant of financial services with a limit of liability no less than provided in subdivision (a) of section three hundred thirty-five of this law. S 344. Certificate furnished by non-resident. (a) The non-resident owner of a foreign vehicle may give proof of financial responsibility by filing with the commissioner a written certificate or certificates of an insurance carrier authorized to transact business in the state, District of Columbia, or territory or lands in continental United States under the exclusive jurisdiction of the United States, or a province of Canada in which the motor vehicle or motor vehicles described in such certificate is registered, or if such non-resident does not own a motor vehicle, then in the state, District of Columbia, or territory or lands in continental United States under the exclusive jurisdiction of the United States, or province of Canada in which the insured resides and otherwise conforming to the provisions of this article, and the commissioner shall accept the same upon condition that said insurance carrier complies with the following provisions of this section. (1) Said insurance carrier shall execute a power of attorney authorizing the commissioner to accept service on its behalf of notice or process in any action arising out of a motor vehicle accident in this state. (2) Said insurance carrier shall duly adopt a resolution which shall be binding upon it, declaring that its policies shall be deemed to be varied to comply with the law of this state relating to the terms of motor vehicle liability policies issued herein. (3) Said insurance carrier shall also agree to accept as final and binding any judgment of any court of competent jurisdiction in this state duly rendered in any action arising out of a motor vehicle accident. (4) Said insurance carrier shall also agree to pay any assessment for expenses of administration of this article levied against it as provided in section three hundred sixty-three of this chapter. (b) If any foreign insurance carrier which has qualified to furnish proof of financial responsibility as hereinbefore required defaults in any said undertakings or agreements, the commissioner shall not thereafter accept any certificate of said carrier, whether theretofore filed or thereafter tendered as proof of financial responsibility so long as such default continues. S 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. S 346. Proof of financial responsibility not required after February first, nineteen hundred fifty-seven. Notwithstanding any other provision of law, no person, on and after February first, nineteen hundred fifty-seven, shall be required to file or maintain proof of financial responsibility pursuant to this article. S 348. Article not to affect other policies. (a) This article shall not be held to apply to or affect policies of automobile insurance against liability which may now or hereafter be required by any other law of this state, and such policies, if endorsed to conform to the requirements of this article shall be accepted as proof of financial responsibility when required under this article. (b) This article shall not be held to apply to or affect policies insuring solely the insured named in the policy against liability resulting from the maintenance, or use by persons in the insured's employ or in his behalf of motor vehicles not owned by the insured. S 349. Filing a bond as proof of financial responsibility. (a) A person required to give proof of financial responsibility may file with the commissioner a bond meeting the requirements of this section. (b) Such bond shall be executed by the person giving such proof and by a surety company duly authorized to transact business in this state. (c) The commissioner shall not accept any such bond unless it is conditioned for payments in amounts and under the same circumstances as would be required in a motor vehicle liability policy furnished by the person giving such proof under this article. (d) No such bond shall be cancelled unless ten days' prior written notice of cancellation is given the commissioner but cancellation of such bond shall not prevent recovery thereon with respect to any right or cause of action arising prior to the date of cancellation. (e) If a final judgment rendered against the principal on the bond filed with the commissioner as provided in this article shall not be satisfied within fifteen days after its rendition, the judgment creditor may, for his own use and benefit and at his sole expense, bring an action on said bond in the name of the state against the company or persons executing such bond. S 350. Money or securities deposited as proof of financial responsibility. (a) A person may give proof of financial responsibility by delivering to the commissioner one hundred fifty thousand dollars in cash, or securities, such as may legally be purchased by savings banks or for trust funds, of a market value of one hundred fifty thousand dollars. (b) All money or securities so delivered to the commissioner 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 mentioned in this article within the limits of coverage and subject to the limits on amounts required by this article for motor vehicle liability policies, 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 subjected to attachment or execution, to meet the requirements of this section. (c) The commissioner shall not accept such money or securities 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 351. Person having given proof may substitute other proof. The commissioner shall cancel any bond or return any certificate of insurance, or the commissioner shall direct and the department of taxation and finance shall return any money or securities, to the person entitled thereto upon the substitution and acceptance of other adequate proof of financial responsibility pursuant to this article. S 352. If proof fails commissioner may require other proof. Whenever any proof of financial responsibility filed by any person under the provisions of this article no longer fulfills the purpose for which required, the commissioner shall, for the purpose of this article, require other proof of financial responsibility as required by this article, and shall suspend the operator's or chauffeur's license, and registration certificates and registration plates of such person pending such proof. S 353. When commissioner may release proof. The commissioner shall upon request consent to the cancellation of any bond or insurance policy or return to the person entitled thereto any money or securities, deposited pursuant to this article as proof of financial responsibility, or waive the requirement of filing proof of financial responsibility in any of the following events: (1) In the event of the death of the person on whose behalf such proof was filed, or the permanent incapacity of such person to operate a motor vehicle; or (2) In the event the person who has given proof of financial responsibility surrenders his operator's or chauffeur's license, registration certificates and registration plates to the commissioner, but the commissioner shall not release such proof 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 the non-existence of such facts shall be sufficient evidence thereof in the absence of evidence to the contrary in the records of the bureau. Whenever any person to whom proof has been surrendered, as provided in this section, applies for an operator's or chauffeur's license or the registration of a motor vehicle, any such application shall be refused unless the applicant shall reestablish such proof. S 354. Commissioner to furnish operating record. The commissioner shall upon request furnish any insurance carrier or any person an abstract of the operating record of any person subject to the provisions of this article, which abstract shall include enumeration of any convictions of such person of a violation of any provision of any statute relating to the operation of a motor vehicle or any accidents in which a motor vehicle driven by such person has been involved during the current calendar year and the three calendar years preceding that in which the request for the operating record is received and if specifically requested shall also fully designate the motor vehicles, if any, registered in the name of such person and the name of the insurer insuring such motor vehicle, for the registration year in which the request for the operating record is received. A request for an abstract of an operating record shall be subject to the provisions of section two hundred two of this chapter. S 355. Operating without giving proof when proof required. Any person whose operator's or chauffeur's license or registration certificate or other privilege to operate a motor vehicle has been suspended or revoked, restoration thereof or the issuance of a new license or registration being contingent upon the furnishing of proof of financial responsibility, and who during such suspension or revocation or in the absence of full authorization from the commissioner shall drive any motor vehicle upon any highway or knowingly permits any motor vehicle owned by such person to be operated by another upon any highway except as permitted hereunder, shall be guilty of a misdemeanor and upon conviction thereof shall be subject to the penalties provided by section five hundred eleven of this chapter. S 356. Forging or without authority signing proof of financial responsibility. Any person who shall forge, or without authority, sign any evidence of ability to respond in damages as required by the commissioner in the administration of this article, and any non-resident who shall operate a motor vehicle in this state from whom the privilege of operating any motor vehicle has been withdrawn as provided herein, shall be fined not more than one thousand dollars or imprisoned not more than thirty days or both. S 357. Failing to report convictions and judgments. Any person required to forward to the commissioner a record of a conviction or a judgment for damages as provided in section three hundred thirty-six, who wilfully fails or neglects to do so, shall be punished by a fine of not less than ten dollars for each separate offense. S 358. Otherwise violating article. Any person who violates any provision of this article for which another penalty is not prescribed by law shall be punished by imprisonment for not more than ninety days or by a fine of not less than one hundred dollars or more than one thousand dollars or both. S 359. Definitions. The following words and phrases when used in this article shall, for the purpose of this article, have the following meanings: (a) The singular shall include the plural; the masculine shall include the feminine and neuter, as requisite. (b) Commissioner. The commissioner of motor vehicles of this state. (c) Department. The department of motor vehicles of this state acting directly or through its duly authorized officers and agents. (d) Person. Shall include individuals, firms, partnerships, associations, corporations, receivers, referees, trustees, assignees for the benefit of creditors; executors and administrators; and shall include the owner of any motor vehicle as requisite; but shall not include the state or any political subdivision thereof. (g) Owner. A person who holds the legal title of a motor vehicle; or in the event a motor vehicle is subject to a security interest, or lease with the right of purchase upon performance of conditions stated in the lease and with an immediate right of possession vested in the debtor or lessee, then such debtor or lessee shall be deemed the owner for the purpose of this act. (h) Insured. The person in whose name there is issued a motor vehicle liability policy, as defined in this article, and any other person insured under the terms of such policy. (i) Judgment. Any judgment, except a judgment rendered against this state or any political subdivision thereof or any municipality therein, which shall have become final by expiration without appeal of the time within which appeal might have been perfected, or by final affirmance on appeal, rendered by a court of competent jurisdiction of any state, any province of Canada, the Dominion of Canada, the District of Columbia, or the United States. (j) Non-resident. Every person who is not a resident of this state. (k) Motor vehicle. As used in this article, 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, self-propelled combines, self-propelled corn and hay harvesting machines, tractors used exclusively for agricultural purposes and self-propelled caterpillar or crawler-type equipment while being operated on the contract site. S 360. Exceptions. This article, except sections three hundred thirty-nine and three hundred fifty-nine, 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 except as may be provided in section three hundred seventy; to any motor vehicle operated under permit or a certificate of convenience and necessity issued pursuant to the public service law or pursuant to section fifty-a of such law; nor to any motor vehicle owned by the United States, the state or any political subdivision thereof. S 361. Self-insurers. (a) This article, except sections three hundred thirty-nine and three hundred fifty-nine, shall not apply to any person having registered in his name in this state more than twenty-five motor vehicles if such person shall obtain from the commissioner a certificate of self-insurance as provided for in subdivision (b) of this section. (b) The commissioner may, in his discretion, upon the application of such a person, 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, as hereinbefore described, obtained against such person, arising out of the ownership, maintenance, use or operation of any of such person's motor vehicles. (c) Upon due notice and hearing, the commissioner, may, in his discretion and upon reasonable grounds, cancel a certificate of self-insurance. S 362. Article not to repeal other motor vehicle laws. This article shall in no respect be considered as a repeal of any of the provisions of this chapter (except article six) or of other laws relating to the registration, numbering and regulation of motor vehicles; the licensing and regulation of chauffeurs and operators; the use of the public highways by motor vehicles and the accessories used upon them and their incidents; the speed of motor vehicles upon the public highways; or the punishment for the violations of such provisions, but shall be construed as supplemental thereto. S 363. 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 costs of maintence 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 or 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, 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 director of the budget 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, partial payments shall not be made and the total amount shall be paid on or before September thirtieth of the fiscal year. 3. Final assessment. (a) The commissioner and the comptroller 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 carrier. 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 364. Uniformity of interpretation. This article shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states, the District of Columbia, or territory or lands in continental United States under the exclusive jurisdiction of the United States, or provinces of Canada, which enact it. S 365. Short title. This article may be cited as the New York motor vehicle safety-responsibility act. S 366. Past application of article. This article, except section three hundred thirty-nine thereof, shall not apply to any judgment in a civil action or cause of action arising out of an accident occurring prior to the effective date of this article. S 367. This article does not prevent other process. This article shall not be construed to prevent the plaintiff in any action at law from relying for security upon the other processes provided by law. S 368. Constitutionality. If any part or parts of this article shall be held unconstitutional, such unconstitutionality shall not affect the validity of the remaining parts of this article. The legislature hereby declares that it would have passed the remaining parts of this article if it had known that such part or parts thereof would be declared unconstitutional. 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.