§ 345 — Motor vehicle liability policy

§ 345. Motor vehicle liability policy. (a) A "motor vehicle liability\npolicy" as said term is used in this article shall mean an owner's or an\noperator's policy of liability insurance certified as provided in\nsection three hundred forty-three or section three hundred forty-four as\nproof of financial responsibility, and issued except as otherwise\nprovided in section three hundred forty-four, by an insurance carrier\nduly authorized to transact business in this state to or for the benefit\nof the person named therein as insured.\n (b) Such owner's policy of liability insurance\n (1) Shall designate by explicit description or by appropriate\nreference, all motor vehicles with respect to which coverage is thereby\nintended to be granted.\n (2) Shall insure as insured the person named therein and any other\nperson using or responsible for the use of any such motor vehicle or\nmotor vehicles with the consent, express or implied, of such named\ninsured.\n (3) Shall insure the insured or such other person against loss from\nthe liability imposed by law for damages, including damages for care and\nloss of services because of bodily injury to or death of any person and\ninjury to or destruction of property arising out of the ownership,\nmaintenance, use, or operation of such motor vehicle or motor vehicles\nwithin the state of New York, or elsewhere in the United States in North\nAmerica or the Dominion of Canada, subject to a limit, exclusive of\ninterest and cost, with respect to each such motor vehicle, except a tow\ntruck, of twenty-five thousand dollars because of bodily injury to or\nfifty thousand dollars because of death of one person in any one\naccident and, subject to said limit for one person, to a limit of fifty\nthousand dollars because of bodily injury to or one hundred thousand\ndollars because of death of two or more persons in any one accident, and\nto a limit of ten thousand dollars because of injury to or destruction\nof property of others in any one accident. The limit, exclusive of\ninterest and costs, with respect to a tow truck shall be a combined\nsingle limit of three hundred thousand dollars because of bodily injury\nof death to one or more persons or because of injury or destruction of\nproperty of others in any one accident, and to a limit of twenty-five\nthousand dollars because of damage to a vehicle in the care, custody and\ncontrol of the insured.\n (c) Such operator's policy of liability insurance shall insure the\nperson named therein as insured against loss from the liability imposed\nupon him by law for damages, including damages for care and loss of\nservices, because of bodily injury to or death of any person and injury\nto or destruction of property arising out of the use by him of any motor\nvehicle not owned by him, within the same territorial limits and subject\nto the same limits of liability as are set forth above with respect to\nan owner's policy of liability insurance.\n (d) Such motor vehicle liability policy shall provide for the name and\naddress of the named insured, the coverage afforded by the policy, the\npremium charged therefor, the policy period and the limits of liability,\nand shall contain an agreement that the insurance thereunder is provided\nin accordance with the coverage defined in this article as respects\nbodily injury and death or property damage or both and is subject to all\nthe provisions of this article.\n (e) Such motor vehicle liability policy shall not insure any liability\non account of bodily injury to or death of an employee of the insured\nfor which benefits are payable under any workmen's compensation law. Nor\nis any such policy required to insure any liability on account of (1)\ndamage to property of others in charge of the insured or of his agents\nor employees (2) bodily injury to or death of the insured, or (3) except\nas provided in paragraphs one and two of subsection (g) of section three\nthousand four hundred twenty of the insurance law, bodily injury to or\ndeath of the spouse of the insured, or for injury to property of the\nspouse of the insured; and any insurance of any such liability afforded\nby such a policy shall be subject to the provisions of subsection (f) of\nthis section.\n (f) Such motor vehicle liability policy may, however, grant any lawful\ncoverage in excess of or in addition to the coverage herein specified\nand such excess or additional coverage shall not be subject to the\nprovisions of this article.\n (g) Several policies of one or more insurance carriers which together\nmeet the requirements of this section shall be termed "motor vehicle\nliability policy" within the meaning of this article.\n (h) No motor vehicle liability policy shall be issued or delivered in\nthis state until a copy of the form of policy shall have been on file\nwith the superintendent of financial services for at least thirty days,\nunless sooner approved in writing by the superintendent of financial\nservices, nor if within said period of thirty days the superintendent of\nfinancial services shall have notified the carrier in writing that in\nhis opinion, specifying the reasons therefor, the form of policy does\nnot comply with the laws of this state. The superintendent of financial\nservices shall approve any form of policy which discloses the name and\naddress of the insured, the coverage afforded by such policy, the\npremium charged therefor, the policy period, the limit of liability and\nthe agreement that the insurance thereunder is provided in accordance\nwith the coverage defined in this section and is subject to all the\nprovisions of this article.\n (i) Every motor vehicle liability policy shall be subject to the\nfollowing provisions which need not be contained therein:\n (1) The liability of any company under a motor vehicle liability\npolicy shall become absolute whenever loss or damage covered by said\npolicy occurs, and the satisfaction by the insured of a final judgment\nfor such loss or damage shall not be a condition precedent to the right\nor duty of the carrier to make payment on account of such loss or\ndamage. No such policy shall be cancelled or annulled as respects any\nloss or damage by any agreement between the carrier and the insured\nafter the said insured has become responsible for such loss or damage,\nand any such cancellation or annullment shall be void. If the death of\nthe insured shall occur after the insured has become liable during the\npolicy period for loss or damage covered by the policy, the policy shall\nnot be deemed terminated by such death with respect to such liability\nand the company shall be liable thereunder in the same manner and to the\nsame extent as though death had not occurred. Upon the recovery of a\nfinal judgment against any person for any such loss or damage, if the\njudgment debtor or the decedent whom he represents was at the accrual of\nthe cause of action insured against liability therefor under a motor\nvehicle liability policy, the judgment creditor shall be entitled to\nhave the insurance money applied to the satisfaction of the judgment.\nBut the policy may provide that the insured, or any other person covered\nby the policy, shall reimburse the company for payments made on account\nof any accident, claim or suit involving a breach of the terms,\nprovisions or conditions of the policy; and further, if the policy shall\nprovide for limits in excess of the limits designated in this section,\nthe insurance carrier may plead against such judgment creditor, with\nrespect to the amount of such excess limits of liability, any defenses\nwhich it may be entitled to plead against the insured. Any such policy\nmay further provide for the prorating of the insurance thereunder with\nother applicable valid and collectible insurance. If the death,\ninsolvency or bankruptcy of the insured shall occur within the policy\nperiod, the policy during the unexpired portion of such period shall\ncover the legal representatives of the insured. No statement made by the\ninsured or on his behalf, and no violation of the terms of the policy,\nshall operate to defeat or avoid the policy so as to bar recovery within\nthe limits provided in subdivision (b) of this section.\n (2) The policy, the written application therefor (if any) and any\nrider or endorsement, which shall not conflict with the provisions of\nthis article, shall constitute the entire contract between the parties.\n (3) Any insurance carrier authorized to issue motor vehicle liability\npolicies as provided for in this article may, pending the issue of such\na policy, execute an agreement, to be known as a binder; or may, in lieu\nof such a policy issue an indorsement to an existing policy; each of\nwhich shall be construed to provide indemnity or protection in like\nmanner and to the same extent as such a policy. The provisions of this\nsection shall apply to such binders and endorsements.\n