|SAME AS||No Same As|
|Amd §3411, Ins L|
|Removes and amends certain requirements for inspection of vehicles for purposes of physical damage coverage.|
|02/08/2017||referred to insurance|
|01/03/2018||referred to insurance|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5407 SPONSOR: DiPietro
TITLE OF BILL: An act to amend the insurance law, in relation to required inspections for automobile physical damage insurance covering private passenger automobiles   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to amend insurance law 3411 to allow insurance companies discretion in determining when a vehicle inspection is required.   SUMMARY OF SPECIFIC PROVISIONS: The bill amends the current insurance law 3411 by allowing for automo- bile insurance companies to determine when a photo inspection is required in cases of physical damage.   JUSTIFICATION: The current law, put in place 25 years ago, was written in an effort to reduce fraudulent claims. In recent years technology has made the photo requirement obsolete. Naturally, a photo requirement is a financial burden to the insurer who must pay a third party to make an appointment and document the vehicle information as well as take a photo of the vehicle. Not only is this a burden to the insurance agency, the photo requirement is also an inconvenience to the person who is purchasing coverage, who must take the time to have the vehicle inspected.   LEGISLATIVE HISTORY: A9492- 2015/16   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 5407 2017-2018 Regular Sessions IN ASSEMBLY February 8, 2017 ___________ Introduced by M. of A. DiPIETRO -- read once and referred to the Commit- tee on Insurance AN ACT to amend the insurance law, in relation to required inspections for automobile physical damage insurance covering private passenger automobiles The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 3411 of the insurance law, subsections (e) and (f) 2 as added by chapter 805 of the laws of 1984 and subsection (i) as 3 amended by chapter 161 of the laws of 1996, is amended to read as 4 follows: 5 § 3411. Automobile physical damage insurance covering private passen- 6 ger automobiles; standard provisions; [ required inspections;] duties of 7 insurers and insureds. (a) The provisions of this section shall be 8 applicable to all automobile physical damage insurance policies covering 9 private passenger automobiles registered in this state, notwithstanding 10 any other provisions of this chapter. 11 (b) In this article, "renewal" means the issuance and delivery by an 12 insurer, at the end of the policy period, of a policy superseding a 13 policy previously issued and delivered by the same insurer, or the issu- 14 ance and delivery of a certificate or notice extending the term of a 15 policy beyond its policy period or term. Any policy with a policy period 16 or term of less than one year shall, for the purpose of determining each 17 renewal date in this section, be considered as if written for a policy 18 period or term of one year commencing with the annual anniversary date, 19 and any policy written for a period or term of more than one year or any 20 policy with no fixed expiration date shall, for the purpose of this 21 section, be considered as if written for successive policy periods or 22 terms of one year commencing with the annual anniversary date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05923-01-7A. 5407 2 1 (c) [ No policy providing automobile physical damage insurance for2 private passenger automobiles registered in this state shall be issued,3 delivered, or renewed unless it complies with this section.4 (d) A newly issued policy shall not provide coverage for automobile5 physical damage perils prior to an inspection of the automobile by the6 insurer.7 (e) For a renewal of a policy referred to in subsection (d) of this8 section, an insurer may require, as a condition of such renewal, that9 the automobile be made available for inspection.10 (f)] If an insurer requests an inspection [ pursuant to subsection (e)11 of this section], the insured shall make the automobile available for 12 inspection by the insurer, upon reasonable notice. If the insured fails 13 to make the automobile available for inspection, the insurer may refuse 14 to continue such physical damage coverage. 15 [ (g) If an automobile subject to the provisions of this section is16 acquired by the insured as a replacement for or an addition to an auto-17 mobile insured for physical damage coverage, and the insured requests18 physical damage coverage for the replacement or additional automobile,19 such coverage for physical damage shall not be effective before such20 inspection is made. If, at the time of the request for such coverage,21 the automobile is unavailable for inspection because of conditions of22 purchase or other circumstances and is thereafter made available for23 inspection, the insurer shall promptly inspect the automobile, and phys-24 ical damage coverage shall not become effective before the inspection25 has been made.26 (h)] (d) Where an inspection is made pursuant to this section, it 27 shall be conducted by the insurer or its authorized representative and 28 shall be recorded on a form prescribed by the superintendent. Such form 29 shall be retained by the insurer with its policy records for such 30 insured, and a copy of such form shall be made available to the insured 31 upon request. 32 [ (i)] (e) Payment of a physical damage claim shall not be conditioned 33 upon the repair of the automobile, provided, however, the insured shall 34 replace any inflatable restraint system (airbag), as defined in subpara- 35 graph (b) of S 184.108.40.206 of standard 208 of part 571 of title 49 of the 36 code of federal regulations, that inflated and deployed, or that was 37 stolen, which is included in a physical damage or theft claim. The 38 insurer may request that the automobile be made available for inspection 39 whether or not the automobile is repaired. The results of such 40 inspection may form a basis for determining the value of the automobile 41 in the event of a subsequent loss. If the automobile is repaired the 42 insurer shall request the repair invoice and shall require the insured 43 and the automobile repairer to certify, under penalties of perjury, 44 whether the applicable deductible has been paid to the automobile 45 repairer, whether any repairs have been made and whether the repairs did 46 not include all items allowed by the insurer. 47 [ (j)] (f) The superintendent may approve policy forms for physical 48 damage coverage, for new and renewable business, which exclude coverage 49 for specified items of personal property located in or upon the automo- 50 bile. 51 [ (k)] (g) Each insurer which offers physical damage insurance subject 52 to the provisions of this section shall offer such insurance with a 53 standard deductible of two hundred dollars for each occurrence. The 54 insured shall, however, at the inception of the policy or at the annual 55 anniversary date, or at the time of the replacement or addition of an 56 automobile, have the option of purchasing a policy with a lesser deduct-A. 5407 3 1 ible, but in no event may the insurer sell a policy with a deductible of 2 less than fifty dollars for fire, theft or comprehensive insurance 3 coverages (one hundred dollars for assigned risk policies issued pursu- 4 ant to paragraph two of subsection (a) of section five thousand three 5 hundred three of this chapter) and one hundred dollars for collision 6 insurance coverage except that window glass coverage may be sold without 7 a deductible. Each insurer which offers physical damage insurance 8 subject to the provisions of this section shall also offer physical 9 damage coverages with co-insurance or deductible provisions or combina- 10 tions thereof as the superintendent may prescribe, including but not 11 limited to deductibles of two hundred fifty dollars, five hundred 12 dollars and one thousand dollars. 13 [ (l)] (h) Every insurer subject to the provisions of this section 14 shall report to the commissioner of motor vehicles any evidence of over- 15 charges, improper repairs or adjustments or other wrongdoing by motor 16 vehicle repair shops, in order that the department of motor vehicles may 17 properly discharge its responsibilities under the vehicle and traffic 18 law to protect consumers from dishonest, deceptive and fraudulent prac- 19 tices in the repair of automobiles, to protect the public from improper 20 repairs and to eliminate unqualified motor vehicle repair shops. 21 [ (m)] (i) (1) The superintendent, in regulations implementing the 22 provisions of this section, shall also require that insurers take appro- 23 priate action to ensure that there is wide public dissemination of the 24 provisions of this section relating to the rights and obligations of 25 insureds and insurers. 26 (2) [ The inspections provided for in this section may be dispensed27 with or deferred under circumstances specified in regulations of the28 superintendent. Such circumstances may include but are not limited to,29 the insuring of a new automobile, the insuring of an automobile whose30 inspection would constitute a serious hardship to the insurer, the31 insured or an applicant for insurance, and the insuring of an automobile32 for a limited specified period of time.33 (3)] Inspections made pursuant to this section shall be made at 34 locations and times reasonably convenient to the insured. The results of 35 any inspection may be considered in determining the value of the automo- 36 bile. 37 [ (n)] (j) If the superintendent, after notice and hearing, finds that 38 any insurer or its authorized representative has violated any provision 39 of this section, he shall order the payment of a penalty, not to exceed 40 five hundred dollars for each such offense. Each issuance, procurement 41 or negotiation of a policy of insurance in violation of this section 42 shall be a separate offense. 43 § 2. This act shall take effect immediately.