Sec. 60-1.1. Mandatory provisions

An “owner's policy of liability insurance”, as defined in section 311 of the Vehicle and Traffic Law, shall contain in substance the following minimum provisions or provisions which are equally or more favorable to the insured and judgment creditors, so far as such provisions relate to judgment creditors:

(a) Insurance against loss from the liability imposed by law upon the insured for damages, including damages for care and loss of services, because of bodily injury, sickness, disease or death sustained by any person and because of injury to or destruction of property, including the loss of use thereof, caused by accident and arising out of the ownership, maintenance, use or operation of a specific motor vehicle or motor vehicles within the State of New York, or elsewhere in the United States, in North America or Canada, subject to limits, exclusive of interest and costs, with respect to each such motor vehicle of $25,000 because of bodily injury, sickness or disease of any one person who does not die as a result of any one accident and $50,000 because of bodily injury, sickness or disease of any one person who dies as the result of any one accident; and, subject to said limits for any one person, to limits of $50,000 because of bodily injury, sickness or disease of two or more persons who do not die as the result of any one accident and $100,000 because of bodily injury, sickness or disease of two or more persons who die as the result of any one accident; and to a total limit of $10,000 because of injury to or destruction of property of one or more persons or organizations as the result of any one accident; provided that a motor vehicle and a trailer or trailers attached thereto shall be held to be one motor vehicle as respects such limits of liability.

(b) With respect to such insurance as is afforded, the insurer, subject to the policy terms shall: defend any suit, with the right to make such investigation, negotiation and settlement as it deems expedient; pay all premiums on attachment bonds and appeal bonds; pay all expenses incurred by the company, all costs taxed against the insured in any such suit, and all interest accruing after entry of judgment until the insurer has paid or tendered or deposited in court such part of such judgment as does not exceed the applicable policy limits; pay expenses incurred by the insured for first aid to others at the time of accident; and reimburse the insured for reasonable expenses other than loss of earnings, incurred at the company's request. The amounts so incurred under this subdivision, except settlement of claims and suits, shall be payable by the company in addition to the applicable policy limits.

(c) A provision insuring as “insured”:

(1) the named insured and, if an individual, his or her spouse if a resident of the same household with respect to the motor vehicle or vehicles;

(2) any other person using the motor vehicle with the permission of the named insured or such spouse provided his or her actual operation or (if he or she is not operating) his or her other actual use thereof is within the scope of such permission; and

(3) any other person or organization but only with respect to his, her or its liability because of acts or omissions of an insured within paragraph (1) or (2) of this subdivision. As respects any person or organization other than the named insured or such spouse the policy need not apply:

(i) to any person or organization, or to any agent or employee thereof, employed or otherwise engaged in operating an automobile sales agency, repair shop, service station, storage garage or public parking place, with respect to any accident arising out of the maintenance or use of a motor vehicle in connection therewith;

(ii) to any employee with respect to injury, sickness, disease or death of a fellow employee injured in the course of his or her employment in an accident arising out of the maintenance or use of the motor vehicle in the business of their common employer; or

(iii) to any person or organization, or to any agent or employee thereof, with respect to bodily injury, sickness, disease or death, or injury to or destruction of property arising out of the loading or unloading of the motor vehicle. The insurance shall apply separately to each insured against whom claim is made or suit is brought, provided the inclusion of more than one insured shall not operate to increase the limits of the insurer's liability.

(d)

(1) A provision that, if the named insured is an individual or husband or wife and the policy affords insurance with respect to a private passenger automobile owned by either, such policy shall afford bodily injury and property damage liability insurance for:

(i) any other private passenger automobile of which the named insured acquires ownership provided it replaces the automobile described in the policy or the company insures all automobiles owned by the named insured or his spouse on the delivery date; or

(ii) any automobile, used with the permission of the owner, and not owned by the named insured or his spouse or any resident of the same household, which is temporarily substituted for the said automobile while withdrawn from service because of breakdown, servicing, repair, loss or destruction; or

(iii) the incidental use in other than a business or occupation of such insured or his spouse of automobiles not owned by such named insured or a member of his household, nor furnished or available for their regular use, provided the actual operation or other actual use thereof is with the permission of the owner and is within the scope of such permission.

(2) Such a provision need not apply:

(i) to any accident arising out of the maintenance or use of an automobile by a person employed or otherwise engaged in the business of an automobile sales agency, repair shop, service station, storage garage or public parking place; or

(ii) with respect to a newly acquired automobile, to any loss against which the named insured or his spouse has other valid and collectible insurance.

(e) A provision that when a motor vehicle is used or operated in any other state or Canadian province, a policy currently in effect or hereafter issued shall provide at least the minimum amount and kind of coverage which is required in such cases under the laws of such other jurisdiction. Any policy not containing such provision shall nevertheless be deemed to provide such coverage. This provision is not intended to create a duplication of coverage or benefits to the extent that a New York insured carries additional coverages under any automobile or motor vehicle insurance policy or is covered under an automobile or motor vehicle policy of a resident of the jurisdiction wherein an injury occurs.

(f) A provision that assault and battery shall be deemed an accident unless committed by or at the direction of the insured. (Not required if policy is written on an occurrence basis in which event the policy shall be subject to an exclusion pertaining to bodily injury or property damage caused intentionally by or at the direction of the insured.)

(g) Either of the following provisions:

(1) The insurer shall not be liable for a greater proportion of the loss than the applicable limit of liability of the policy bears to the total applicable limit of liability of all other valid and collectible insurance covering the insured against such loss; provided, however, with respect to an automobile, other than a newly acquired automobile, for which insurance is provided under subdivision (d) of this section, the insurance shall be excess insurance over any other valid and collectible insurance.

(2) The insurance afforded by this policy is primary insurance, except when stated to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the insured has other insurance which is stated to be applicable to the loss on an excess or contingent basis, the amount of the company's liability under this policy shall not be reduced by the existence of such other insurance. When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess or contingent, the company shall not be liable under this policy for a greater proportion of the loss than that stated in the applicable contribution provision below:

(i) Contribution by equal shares. If all of such other valid and collectible insurance provides for contribution by equal shares, the company shall not be liable for a greater proportion of such loss than would be payable if each insurer contributes an equal share until the share of each insurer equals the lowest applicable limit of liability under any one policy or the full amount of the loss is paid, and with respect to any amount of loss not so paid the remaining insurers then continue to contribute equal shares of the remaining amount of the loss until each such insurer has paid its limit in full or the full amount of the loss is paid.

(ii) Contribution by limits. If any of such other insurance does not provide for contribution by equal shares, the company shall not be liable for a greater proportion of such loss than the applicable limit of liability under this policy for such loss bears to the total applicable limit of liability of all valid and collectible insurance against such loss.

With respect to the maintenance or use of hired automobiles and nonowned automobiles, this insurance shall apply only as excess insurance over any other valid and collectible insurance available to the insured.

(h) A provision that if the insurer cancels the policy, at least 20 days prior written notice must be mailed or delivered to the named insured, except where the cancellation is for nonpayment of premium in which case 15 days notice of cancellation by the insurer shall be sufficient.