STATE OF NEW YORK
________________________________________________________________________
5889
2023-2024 Regular Sessions
IN SENATE
March 21, 2023
___________
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to inspections of private
passenger automobiles prior to the provision of coverage for physical
damage thereto; and providing for the repeal of such provisions upon
expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The section heading and subsections (d), (g) and (m) of
2 section 3411 of the insurance law are amended to read as follows:
3 Automobile physical damage insurance covering private passenger auto-
4 mobiles; standard provisions; [required] inspections; duties of insurers
5 and insureds.
6 (d) A newly issued policy shall not provide coverage for automobile
7 physical damage perils prior to an inspection of the automobile by the
8 insurer, unless the insurer has waived the right to such inspection
9 pursuant to a statement of operation filed with the superintendent. In
10 its statement of operation, an insurer may waive the right to inspect
11 some or all automobiles. Every statement of operation shall take effect
12 upon its filing with the superintendent and may cover some or all auto-
13 mobiles.
14 (g) If an automobile subject to the provisions of this section is
15 acquired by the insured as a replacement for or an addition to an auto-
16 mobile insured for physical damage coverage, and the insured requests
17 physical damage coverage for the replacement or additional automobile,
18 such coverage for physical damage shall not be effective before such
19 inspection is made, unless the insurer has waived the right to such an
20 inspection pursuant to a statement of operation filed with the super-
21 intendent. If, at the time of the request for such coverage, the auto-
22 mobile is unavailable for inspection because of conditions of purchase
23 or other circumstances and is thereafter made available for inspection,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03446-04-3
S. 5889 2
1 the insurer shall promptly inspect the automobile, and physical damage
2 coverage shall not become effective before the inspection has been made.
3 (m) (1) The superintendent, in regulations implementing the provisions
4 of this section, shall also require that insurers take appropriate
5 action to ensure that there is wide public dissemination of the
6 provisions of this section relating to the rights and obligations of
7 insureds and insurers.
8 (2) The inspections provided for in this section may be dispensed with
9 or deferred by an insurer under circumstances specified in their state-
10 ment of operation filed with the superintendent or in regulations of the
11 superintendent. Such circumstances may include but are not limited to,
12 the insuring of a new automobile, the insuring of an automobile whose
13 inspection would constitute a serious hardship to the insurer, the
14 insured or an applicant for insurance, and the insuring of an automobile
15 for a limited specified period of time.
16 (3) Inspections made pursuant to this section shall be made at
17 locations and times reasonably convenient to the insured. The results of
18 any inspection may be considered in determining the value of the automo-
19 bile.
20 § 2. This act shall take effect on the one hundred eightieth day after
21 it shall have become a law and shall expire and be deemed repealed Octo-
22 ber 1, 2027. Effective immediately, the addition, amendment and/or
23 repeal of any rule or regulation necessary for the implementation of
24 this act on its effective date are authorized to be made and completed
25 on or before such effective date.
