"Typical" means how the standard industry forms usually read. Insurers file their own wording, so a dollar figure labeled typical is a teaching baseline and no exam question in this book depends on one that the question does not state. This book describes coverage and never reproduces form text. Statutes were read on nysenate.gov Open Legislation through a summarizing fetch tool on October 15, 2026; the statute text itself was not quoted. Regulations were read on the Cornell LII mirror of 11 NYCRR the same day. New York auto law is a large share of this exam because the state has a no-fault system with its own coverages, its own residual market and its own cancellation rules.
6.1 The Financial Responsibility Law: Limits, Proof and IIES (Required limits; Required proof of insurance; IIES; Auto ID cards)
The rule. A motor vehicle cannot be registered in New York unless the owner shows proof of financial security, and the owner must keep it in force for the whole registration period. (Veh. & Traf. Law 312) Proof is usually an owner's liability policy; the law also allows a financial security bond, a cash or securities deposit, or qualification as a self-insurer. (Veh. & Traf. Law 311(3)) If an officer asks for proof on a public highway and the owner cannot produce it, that failure is presumptive evidence that the vehicle is being operated without it. When coverage ends and nothing replaces it, the owner must surrender the registration certificate and plates. (Veh. & Traf. Law 312)
Required liability limits. The minimum liability limits of an owner's policy are shown below. (Veh. & Traf. Law 311(4)(a), 333)
| Coverage | Minimum |
|---|---|
| Bodily injury, one person | $25,000 |
| Death, one person | $50,000 |
| Bodily injury, two or more persons in one accident | $50,000 |
| Death, two or more persons in one accident | $100,000 |
| Property damage, one accident | $10,000 |
Written as split limits these are usually quoted 25/50/10 for injury, with the death limits of $50,000 and $100,000 stated separately. The death limits are the New York feature: a policy at the injury minimum still has to pay up to $50,000 if one person dies. A tow truck policy is a special case with a $300,000 combined single limit. (Veh. & Traf. Law 311(4)(a))
The insurance identification card. The insurer (or bonding company) issues an Insurance Identification Card in the form the DMV commissioner prescribes. It states that an owner's policy or bond covers the vehicle listed on it. (Veh. & Traf. Law 311(10)) The card is the practical proof a driver carries, but the statute text read for this book does not mention electronic cards, so do not teach that as a New York rule.
IIES. The Insurance Information and Enforcement System matches insurer reports to DMV registrations. The insurer must report the policy to DMV: a notice or confirmation of issuance is due within 7 days for policies issued after January 1, 2001 (14 days is the older figure), and a notice of termination is due not later than 30 days after the cancellation or other termination takes effect. DMV may extend the filing time by up to 7 days (issuance) or 15 days (termination) only on a showing of substantial hardship. (Veh. & Traf. Law 313(2)) A cancellation does not take effect against anyone other than the named insured and household members until the insurer files the notice with DMV or another policy covering the risk is placed. (Veh. & Traf. Law 313(3))
In New York - the termination notice warns about continuous coverage
Every notice of termination must tell the insured that proof of financial security must be maintained continuously throughout the registration period, in type no smaller than 12 point. Notice of cancellation goes by regular mail with a certificate of mailing at least 20 days before cancellation, or 15 days for nonpayment. (Veh. & Traf. Law 313(1)) The Insurance Law adds its own rules in section 6.10.
6.2 Transportation Network Companies (Veh & Traf Article 44-B)
A transportation network company (TNC) connects passengers with drivers through a digital network (an app). A TNC prearranged trip begins when the driver accepts a ride request and ends when the last requesting passenger leaves the vehicle. Taxi, livery and similar for-hire services are outside the definition. (Veh. & Traf. Law 1691)
The TNC must carry financial security that follows the driver's activity. (Veh. & Traf. Law 1693)
| Period | Liability requirement |
|---|---|
| Logged on to the app, no passenger | $75,000 per person, $150,000 per accident for bodily injury or death; $25,000 property damage |
| Engaged in a prearranged trip | $1,250,000 combined limit per occurrence; SUM of $1,250,000 per accident for bodily injury |
In New York - the driver's personal policy and no-fault
The Insurance Law lets the insurer of the vehicle owner's own policy exclude first-party (no-fault) benefits for injury while a TNC driver is operating the vehicle, but the exclusion may not appear in a policy used to meet Article 44-B. Personal policies typically also exclude liability for paid passenger-carrying. (Ins. Law 5103(b)) The producer's job is to tell a ride-share driver in Queens or Rochester that the personal auto policy is not the cover for the app period, and to ask the TNC what it provides.
6.3 The New York Automobile Insurance Plan (Ins. Law 5301-5304)
Purpose. The New York Automobile Insurance Plan (NYAIP), the assigned risk plan, exists so that a person who is in good faith entitled to motor vehicle insurance but cannot get it through ordinary methods is still insured. Insurers licensed to write motor vehicle insurance must participate, and the risks are apportioned equitably among them. The plan is approved by the Superintendent, and amendments proposed by the administering committee need the Superintendent's approval. (Ins. Law 5301)
Eligibility. The statute text read for this book says only "applicants in good faith entitled" who cannot obtain insurance through ordinary methods. Detailed eligibility rules are in the plan of operation.
Coverage. The plan must make available the coverages in section 5303. (Ins. Law 5303)
| Coverage the plan makes available | Amount stated in the statute |
|---|---|
| Liability, bodily injury or death | up to $50,000 one person, $100,000 two or more persons |
| Liability, property damage | up to $10,000 per accident |
| Physical damage | up to $10,000 actual cash value, deductible at least $100 |
| Medical payments | up to $1,000, private passenger vehicles not for hire |
| Supplementary UM/UIM | as defined in section 3420(f) |
| First-party (no-fault) benefits | twice the level in section 5103 |
Rates are set by the plan; except at the minimum VTL limits, they must reflect the loss and expense experience of plan risks.
Binding authority. The statute text read does not state a binding rule; it is in the plan of operation, which was not read for this edition.
6.4 No-Fault: Comprehensive Motor Vehicle Insurance Reparations Act (Ins. Law 5101-5108)
The idea. Under no-fault, an injured person collects economic losses from a first-party source regardless of who caused the accident, and in exchange the right to sue for pain and suffering is limited to serious injuries. The required coverage is Personal Injury Protection (PIP). (Ins. Law 5103) Every owner's liability policy carries the Mandatory Personal Injury Protection Endorsement (New York). (11 NYCRR 65-1.1) (This regulation is "Regulation 68" in the outline's numbering; the outline's Part number is the one that matters.)
Basic economic loss. The mandatory benefit is basic economic loss, up to $50,000 per person per accident: (Ins. Law 5102(a); 11 NYCRR 65-1.1)
| Element | What it pays | Limit |
|---|---|---|
| Medical expense | Necessary medical, hospital, surgical, nursing, dental, ambulance, X-ray, prescription drug, prosthetic, psychiatric, therapy and rehabilitation expense | No time limit if it is ascertainable within one year that further expense may be incurred; fees limited by Ins. Law 5108 |
| Work loss (loss of earnings) | Earnings the person would have performed, plus reasonable cost of services bought in lieu of those the person did for income (substitution services) | $2,000 per month for up to 3 years from the accident |
| Other expenses | Other reasonable and necessary expenses | $25 per day for up to 1 year |
| Death benefit | Paid to the estate | $2,000, in addition to the $50,000 |
Benefits are reduced by 20 percent of the loss of earnings (so work loss pays 80 percent of earnings, subject to the monthly cap), by amounts recovered or recoverable under workers' compensation, Social Security disability or New York disability benefits, and by any deductible. (11 NYCRR 65-1.1) The statute requires that PIP be offered with no deductible or with a family deductible of up to $200. (Ins. Law 5103)
Who is an eligible injured person. (Ins. Law 5103(a); 11 NYCRR 65-1.1)
- The named insured and relatives (household) injured in any motor vehicle accident, including one involving an uninsured vehicle, anywhere in the United States, its territories or Canada. A named insured or relative struck as a pedestrian by a motorcycle is also covered.
- Other people injured in New York in the use of the insured vehicle, while not occupying another motor vehicle (pedestrians and passengers).
- New York residents injured outside New York in the insured vehicle, while not occupying another vehicle.
Exclusions. The endorsement does not apply to injury to a person who (Ins. Law 5103(b); 11 NYCRR 65-1.1): intentionally causes his or her own injury; is operating while intoxicated or impaired by drugs (VTL 1192), except that necessary emergency hospital care is still covered and the insurer may recover from a person finally convicted; is committing a felony or evading arrest, in a race or speed test, or in or operating a vehicle known to be stolen; is repairing or servicing vehicles in a business on the business premises; is occupying a motorcycle; or is injured in or struck by the person's own vehicle that lacked the required coverage.
Claim steps and times. These are exam favorites, from the endorsement and the claim regulation. (11 NYCRR 65-1.1, 65-3.8; Ins. Law 5106)
| Step | Time |
|---|---|
| Written notice of the accident | as soon as practicable, no later than 30 days after the accident, unless reasonable justification |
| Proof of claim, health service expenses | as soon as practicable, no later than 45 days after the services are rendered |
| Proof of claim, work loss and other expenses | no later than 90 days after the loss is incurred or the services are rendered |
| Insurer sends the application for benefits | within 5 business days of notice (each business day of delay shortens the 30-day pay period) |
| Insurer pays or denies | within 30 calendar days after proof of claim |
A claim not paid within 30 days after proof is overdue and bears interest at 2 percent per month; a claimant who recovers an overdue claim may recover a reasonable attorney's fee within limits the Superintendent sets. (Ins. Law 5106) The claimant may choose arbitration under simplified procedures. An arbitrator's award can be reviewed by a master arbitrator, and if the master arbitrator's award is $5,000 or more (excluding interest and attorney's fees), either side may take the dispute to court for a new determination. (Ins. Law 5106) The endorsement also gives the insurer a lien on a recovery in the injured person's suit, and the injured person may not settle that suit for $50,000 or less without the insurer's consent or court approval. (Ins. Law 5104(b); 11 NYCRR 65-1.1) Where there are two or more sources of mandatory no-fault benefits for one accident, the insurer pays its share rather than the full limit, and duplicate benefits for the same element of loss are not allowed.
Optional Basic Economic Loss (OBEL). OBEL adds $25,000 on top of the $50,000, for a total of $75,000. It is available only after the first $50,000 is used, and the injured person chooses how to apply it: to basic economic loss generally, to loss of earnings, or to psychiatric, physical or occupational therapy and rehabilitation. The election is made after the person has incurred $30,000 of basic economic loss and received the required notices. If the person does not respond within 15 calendar days after the second notice is mailed, OBEL is treated as applied to all elements of basic economic loss. An election cannot be changed once made. (11 NYCRR 65-1.2)
Additional PIP. Additional personal injury protection is an optional endorsement that pays extended economic loss: basic economic loss from an accident in the United States or Canada that is not recovered under a New York policy, the difference between basic economic loss and the same loss computed without the time and dollar limits, and an additional death benefit in the amount shown in the declarations. Its dollar limits are chosen in the declarations; none is fixed by regulation. It applies to the named insured and relatives, and to occupants of the insured vehicle. (11 NYCRR 65-1.3)
Tort limitation (verbal threshold). In an action between covered persons for negligence in the use of a motor vehicle in New York, there is no right to recover non-economic loss (pain and suffering and similar non-monetary detriment) except for a serious injury, and basic economic loss is not recoverable in the suit because no-fault already pays it. (Ins. Law 5104(a), 5102(c)) Serious injury means a personal injury that results in (Ins. Law 5102(d)):
- death;
- dismemberment;
- significant disfigurement;
- a fracture;
- loss of a fetus;
- permanent loss of use of a body organ, member, function or system;
- permanent consequential limitation of use of a body organ or member;
- significant limitation of use of a body function or system.
(The former 90-of-180-days category was removed by the 2026 budget legislation, Part EE of Chapter 58 of the Laws of 2026, for actions commenced after late May 2026; the live text of section 5102(d), read verbatim on October 15, 2026, no longer lists it. The effective date comes from law-firm summaries.)
Loss above basic economic loss (for example earnings beyond the $50,000 cap) stays recoverable. Property damage is outside no-fault; it is paid under the liability and collision coverages. Where the injured person was at fault and was driving uninsured, driving while impaired (convicted), or committing a felony, non-economic loss for a serious injury is capped at $100,000 (except in wrongful-death actions). (Ins. Law 5104(d))
Out-of-state vehicles. A policy covering a vehicle used in another state or Canadian province must provide at least that jurisdiction's required coverage, and a non-resident's policy is read to include first-party benefits when the vehicle is used in New York. (Ins. Law 5103(e), 5107)