N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 60-1.5

Current through Register Vol. 46, No. 51, December 18, 2024

Section 60-1.5 - Rental vehicle coverage

Subject to the provisions of this section and notwithstanding other provisions of this Part, every motor vehicle liability insurance policy insuring at time of issuance or renewal less than five private passenger motor vehicles registered in this State shall provide, in the form prescribed by subdivision (h) of this section, separate rental vehicle coverage for the insured's obligation for actual damage to, or loss of, a rental vehicle, including loss of use, rented by the insured in the United States, its territories or possessions, and Canada under a rental agreement with a term of 30 continuous days or less, regardless of where such rental vehicle may be registered, rented or operated.

(a) Rental vehicle coverage shall be added by prescribed endorsement to all such policies issued or renewed in this State on and after April 1, 1989.

(b) All such policyholders shall be sent the notice prescribed by subdivision (i) of this section and shall be informed that, in the event of a premium or a premium increase charged for rental vehicle coverage, the policyholder shall then have an option to reject such coverage within 10 calendar days following receipt of notice that such premium or premium increase will be charged.

(c) The option to reject rental vehicle coverage provided by subdivision (b) of this section shall apply only at new policy issuance and upon initial policy renewal following the insurer's determination to charge or increase a premium for this coverage.

(d) Rental vehicle coverage shall provide protection:

(1) only with respect to rental vehicles operated within the United States, its territories or possessions, and Canada;

(2) regardless of whether the rental vehicle is rented or operated for business or pleasure, unless used for transporting persons or property for hire; and

(3) regardless of fault.

(e) For purposes of this section, the following definitions shall apply:

(1) Insured means named insured or any relative.

(2) Relative means a spouse, child or other person related to the named insured by blood, marriage or adoption (including a ward or foster child), who regularly resides in the insured's household, including any such person who regularly resides in the household, but is temporarily living elsewhere.

(3) Private passenger motor vehicle has the meaning ascribed by section 3440 (a) of the Insurance Law.

(4) Long-term contract, as used by section 3440 (a) of the Insurance Law, means a contract with a term of six months or longer.

(5)Rental vehicle means a vehicle of the type described in section 3440 (a) of the Insurance Law as a private passenger motor vehicle, if:

(i) not used for transporting persons or property for hire other than when the vehicle is used as a transportation network company vehicle pursuant to article 44-B of the Vehicle and Traffic Law; and

(ii) owned by a person engaged in the business of renting or leasing vehicles rented or leased without a driver to persons other than the owner and is registered in the name of such owner. Rental vehicle shall not include a motor vehicle used through a peer-to-peer car sharing program.

(f) The protection provided under rental vehicle coverage shall not be provided elsewhere in the policy.

(g) An insurer may provide rental vehicle coverage broader than that required by this Part, in terms of number or types of vehicles or territorial scope.

(h) The prescribed policy form shall be as follows:

RENTAL VEHICLE COVERAGE ENDORSEMENT

INSURER INSURED POLICY NUMBER

____________

____________

This Rental Vehicle Coverage endorsement applies only to, and is part of, every motor vehicle liability insurance policy that covers less than five private passenger motor vehicles.

For each such policy, this endorsement provides coverage for the insured's obligations in the event of actual damage to, or loss of, any rental vehicle, including loss of use, rented by the insured anywhere in the United States, its territories or possessions, and Canada under a rental agreement with a term no longer than thirty continuous days, regardless of where such rental vehicle may be registered, rented or operated.

Rental Vehicle Coverage shall provide protection regardless of:

(a) fault; and

(b) whether the rental vehicle is rented or operated for business or pleasure, unless used for transporting persons or property for hire.

Definitions:

(a) "Insured" means named insured or any relative;

(b) "Relative" means a spouse, child or other person related to the named insured by blood, marriage or adoption (including a ward or foster child), who regularly resides in the insured's household, including any such person who regularly resides in the household, but who is temporarily living elsewhere;

(c) "Private passenger motor vehicle" means:

(1) a motor vehicle of the private passenger or station wagon type that is owned or hired under a longterm contract by an individual or by an individual and spouse, and is neither used as a public or livery conveyance for passengers nor rented to others without a driver; or

(2) a motor vehicle with a pick-up body, a delivery sedan, panel truck or van, owned by an individual or by an individual and spouse who are residents of the same household, or by a family farm copartnership or a family farm corporation, and not customarily used in the occupation, profession or business of the insured other than farming or ranching, whether or not used in the course of driving to or from work.

(d) "Long-term contract" means a contract with a term of six months or longer.

(e)Rental vehicle means a vehicle of the type described in subdivision (c) of this section, if:

(1) not used for transporting persons or property for hire (except if the insured does so solely as a transportation network company driver pursuant to article 44-B of the Vehicle and Traffic Law); and

(2) owned by a person engaged in the business of renting or leasing vehicles rented or leased without a driver to persons other than the owner and is registered in the name of such owner. Rental vehicle shall not include a motor vehicle used through a peer-to-peer car sharing program.

Priority of payment

(a) In no event shall payment be made under this endorsement duplicating payment made by this policy, another policy or another insurer for the same claim.

(b) If more than one policy could cover the claim, payment or the claim shall be made in the following order of priority:

(1) the policy with respect to which the person is a named insured;

(2) if the person is not a named insured on any policy, the policy with respect to which the person is an insured; and

(3) where two or more policies provide coverage of equal priority, the policy or insurer with respect to which the claim is first submitted.

(c) An inquiry about coverage or notification of damage to, or loss of, a rental vehicle shall constitute submission of a claim.

Exclusions:

No Rental Vehicle Coverage shall be provided:

(a) arising beyond the geographic limitations of the policy to which Rental Vehicle Coverage is endorsed;

(b) to an insured who has committed fraud in connection with damage to, or loss of, a rental vehicle, including loss of use; or

(c) for damage to, or loss of, a rental vehicle, including loss of use, which the rental vehicle company is precluded from recovering from the insured:

(1) pursuant to the terms of the rental agreement; or

(2) due to the prohibitions of section 396-z of the General Business Law or similar statutory provisions of other jurisdictions.

Subrogation:

(a) In the event or any payment under this endorsement, the insurer is subrogated to the extent of such payments to the rights of the person to whom, or for whose benefit, such payments were made.

(b) Such person shall execute and deliver instruments and papers and do whatever else is necessary to secure such subrogation rights, and shall not act in a manner that may prejudice such rights.

(c) Subrogation shall not be pursued against any person who operated the rental vehicle with the insured's permission.

(i) The notice prescribed herein shall be sent to all policyholders, with motor vehicle liability insurance policies covering less than five private passenger motor vehicles, commencing February 24, 2003, upon policy renewal or new policy issuance, and shall be sent again if the insurer at any time thereafter determines to charge or increase a premium for rental vehicle coverage, giving affected policyholders an option to reject this coverage, except to those who previously exercised such option.

(j) An insurer shall include the following exclusion (d) in the Rental Vehicle Coverage Endorsement form as follows:

(1) If the policy does not provide liability coverage while the motor vehicle is used by a transportation network company driver who is logged onto the transportation network company's digital network but is not engaged in a transportation network company prearranged trip or while the driver provides a transportation network company prearranged trip:

(d) while the rental vehicle is used by a transportation network company driver who is logged onto the transportation network company's digital network but is not engaged in a transportation network company prearranged trip or while the driver provides a transportation network company prearranged trip;

(2) If the policy does not provide liability coverage while the motor vehicle is used by a transportation network company driver who is logged onto the transportation network company's digital network but is not engaged in a transportation network company prearranged trip:

(d) while the rental vehicle is used by a transportation network company driver who is logged onto the transportation network company's digital network but is not engaged in a transportation network company prearranged trip; or

(3) If the policy does not provide liability coverage while the motor vehicle is used by a transportation network company driver who provides a transportation network company prearranged trip:

(d) while the rental vehicle is used by a transportation network company driver who provides a transportation network company prearranged trip.

RENTAL VEHICLE COVERAGE

NOTICE TO POLICYHOLDERS

**Rental Vehicle Coverage Premium Charge YES: ________ NO: ________

**If YES, Amount of Rental Vehicle Coverage Premium: $ ________

The Rental Vehicle Coverage endorsement to this policy provides protection in the event of damage to, or loss of, a rental vehicle, including loss of use, as described in the endorsement.

Rental Vehicle Coverage is mandated by New York State law to reduce problems that confront consumers and leave them vulnerable to major unanticipated costs when dealing with rental vehicle companies.

This Rental Vehicle Coverage protects you whenever rental vehicles are rented and operated anywhere within the United States, its territories or possessions, and Canada.

In the event that a premium is at any time charged or increased for Rental Vehicle Coverage, you have the right to reject this coverage and not pay such charge, if you so inform your insurer within ten calendar days after you receive notice that such a premium charge or increase will be made for Rental Vehicle Coverage.

Please review the Rental Vehicle Coverage endorsement itself. If, as indicated at the top of this notice, there is a premium charge or increase and you wish to reject Rental Vehicle Coverage--or you simply wish to obtain additional information regarding this coverage--please contact your insurance agent or broker, or call our toll-free telephone number: 800-[insert number].

N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 60-1.5

Amended New York State Register October 25, 2017/Volume XXXIX, Issue 43, eff. 10/25/2017

Amended New York State Register February 8, 2023/Volume XLV, Issue 06, eff. 2/8/2023