Section 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 insurance for at least  thirty  days,  unless
  sooner  approved  in  writing by the superintendent of insurance, nor if
  within said period of thirty days the superintendent of insurance  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 insurance 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.