What happens if you are in a bike crash in New York with a non-resident operating a vehicle in New York?
The resolution of your claim and your ability to be compensated will depend on whether that insurance company is authorized to conduct business in New York.
If the insured is an unauthorized insurance carrier
who does not do business in New York Vehicle & Traffic Law §318 Subsection 5(a) provides "The Commissioner, upon receipt of evidence that a person other than the owner of the vehicle, has operated upon the public highways of this state a motor vehicle not registered in the state, with knowledge of proof of financial security was not in effect with respect to such vehicle shall revoke the driver's license of such person, or if he is a non-resident, the non-resident privileges of such person."
The revocation of driving privileges to the non-resident is little comfort to the New York crash victim who finds the tortfeasor to be without insurance coverage.
When a non-resident comes into New York operating a vehicle registered and insured in a foreign state, by an authorized carrier New York Insurance Law §5107 provides protection for New York residents injured in a crash with an out-of-state motorist.
New York Insurance Law §5107 provides:
"Every insurer authorized to transact or transacting business in this state, or controlling or controlled by or under common control by or with such an insurer, which sells a policy providing motor vehicle liability insurance coverage or any similar coverage in any state or Canadian province, shall include in each such policy coverage to satisfy the financial security requirements of Article 6 or 8 of the Vehicle & Traffic Law and to provide for the payment of first party benefits pursuant to Subsection (A) of §5103 of this article when a motor vehicle covered by such policy is used or operated in this state."
This statute, commonly known as the New York "Deemer" Provision, unequivocally applies to any policy of insurance underwritten by an authorized insurer in New York.