Single Use of Vehicle to Carry Passengers “For Hire” Did Not Justify Excluding Vehicle from Coverage Under the “For Hire” Exclusion

The Second Department determined that an insurer, GEICO, was not justified in disclaiming coverage of a vehicle under a “for hire” exclusion.  The evidence demonstrated, at most, that the vehicle was carrying passengers “for hire” on one occasion only (at the time of the accident), and was therefore not subject to the “for hire” exclusion:

Pursuant to regulations issued by New York State Department of Financial Services, an insurer may exclude, from an automobile owner’s policy of liability insurance, coverage for claims arising “while the motor vehicle is used as a public or livery conveyance” (11 NYCRR 60-1.2[a]). GEICO’s disclaimer was based on an exclusion contained in its policy relating to “any vehicle used to carry passengers or goods for hire [except a] vehicle used in an ordinary carpool on a ride sharing or cost sharing basis.” Exclusions from coverage are “construed strictly against the insurer” … . In accordance with this rule of strict construction, a “single use of a vehicle for hire has been held not to make out use as a public livery or conveyance'” … . The facts adduced at the hearing warranted the conclusion that, while GEICO’s insured might have been employing his mini-van to transport a passenger “for hire” at the time of the accident, his use of the vehicle for such purpose entailed a “single isolated use” that was “not tantamount to its employment as a public or livery conveyance'” … . Matter of New York Cent. Mut. Fire Ins. Co. v Byfield, 2015 NY Slip Op 01805, 2nd Dept 3-4-15