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.
LBD05923-01-7
A. 5407 2
1 (c) [No policy providing automobile physical damage insurance for
2 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 automobile
5 physical damage perils prior to an inspection of the automobile by the
6 insurer.
7 (e) For a renewal of a policy referred to in subsection (d) of this
8 section, an insurer may require, as a condition of such renewal, that
9 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 is
16 acquired by the insured as a replacement for or an addition to an auto-
17 mobile insured for physical damage coverage, and the insured requests
18 physical damage coverage for the replacement or additional automobile,
19 such coverage for physical damage shall not be effective before such
20 inspection is made. If, at the time of the request for such coverage,
21 the automobile is unavailable for inspection because of conditions of
22 purchase or other circumstances and is thereafter made available for
23 inspection, the insurer shall promptly inspect the automobile, and phys-
24 ical damage coverage shall not become effective before the inspection
25 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 4.1.5.1 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 dispensed
27 with or deferred under circumstances specified in regulations of the
28 superintendent. Such circumstances may include but are not limited to,
29 the insuring of a new automobile, the insuring of an automobile whose
30 inspection would constitute a serious hardship to the insurer, the
31 insured or an applicant for insurance, and the insuring of an automobile
32 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.