N.Y. Insurance Law § 3411: Automobile physical damage insurance covering private passenger automobiles; standard provisions; required inspections; duties of insurer...

§ 3411. * Automobile physical damage insurance covering private

passenger automobiles; standard provisions; required inspections; duties

of insurers and insureds.

* NB Effective until May 15, 2024

* Automobile physical damage insurance covering private passenger

automobiles; standard provisions; inspections; duties of insurers and

insureds.

* NB Effective May 15, 2024 until October 1, 2027

* Automobile physical damage insurance covering private passenger

automobiles; standard provisions; required inspections; duties of

insurers and insureds.

* NB Effective October 1, 2027

(a) The provisions of this section shall be applicable to all

automobile physical damage insurance policies covering private passenger

automobiles registered in this state, notwithstanding any other

provisions of this chapter.

(b) In this article, "renewal" means the issuance and delivery by an

insurer, at the end of the policy period, of a policy superseding a

policy previously issued and delivered by the same insurer, or the

issuance and delivery of a certificate or notice extending the term of a

policy beyond its policy period or term. Any policy with a policy period

or term of less than one year shall, for the purpose of determining each

renewal date in this section, be considered as if written for a policy

period or term of one year commencing with the annual anniversary date,

and any policy written for a period or term of more than one year or any

policy with no fixed expiration date shall, for the purpose of this

section, be considered as if written for successive policy periods or

terms of one year commencing with the annual anniversary date.

(c) No policy providing automobile physical damage insurance for

private passenger automobiles registered in this state shall be issued,

delivered, or renewed unless it complies with this section.

* (d) A newly issued policy shall not provide coverage for automobile

physical damage perils prior to an inspection of the automobile by the

insurer.

* NB Effective until May 15, 2024

* (d) A newly issued policy shall not provide coverage for automobile

physical damage perils prior to an inspection of the automobile by the

insurer, unless the insurer has waived the right to such inspection

pursuant to a statement of operation filed with the superintendent. In

its statement of operation, an insurer may waive the right to inspect

some or all automobiles. Every statement of operation shall take effect

upon its filing with the superintendent and may cover some or all

automobiles.

* NB Effective May 15, 2024 until October 1, 2027

* (d) A newly issued policy shall not provide coverage for automobile

physical damage perils prior to an inspection of the automobile by the

insurer.

* NB Effective October 1, 2027

(e) For a renewal of a policy referred to in subsection (d) of this

section, an insurer may require, as a condition of such renewal, that

the automobile be made available for inspection.

(f) If an insurer requests an inspection pursuant to subsection (e) of

this section, the insured shall make the automobile available for

inspection by the insurer, upon reasonable notice. If the insured fails

to make the automobile available for inspection, the insurer may refuse

to continue such physical damage coverage.

* (g) If an automobile subject to the provisions of this section is

acquired by the insured as a replacement for or an addition to an

automobile insured for physical damage coverage, and the insured

requests physical damage coverage for the replacement or additional

automobile, such coverage for physical damage shall not be effective

before such inspection is made. If, at the time of the request for such

coverage, the automobile is unavailable for inspection because of

conditions of purchase or other circumstances and is thereafter made

available for inspection, the insurer shall promptly inspect the

automobile, and physical damage coverage shall not become effective

before the inspection has been made.

* NB Effective until May 15, 2024

* (g) If an automobile subject to the provisions of this section is

acquired by the insured as a replacement for or an addition to an

automobile insured for physical damage coverage, and the insured

requests physical damage coverage for the replacement or additional

automobile, such coverage for physical damage shall not be effective

before such inspection is made, unless the insurer has waived the right

to such an inspection pursuant to a statement of operation filed with

the superintendent. If, at the time of the request for such coverage,

the automobile is unavailable for inspection because of conditions of

purchase or other circumstances and is thereafter made available for

inspection, the insurer shall promptly inspect the automobile, and

physical damage coverage shall not become effective before the

inspection has been made.

* NB Effective May 15, 2024 until October 1, 2027

* (g) If an automobile subject to the provisions of this section is

acquired by the insured as a replacement for or an addition to an

automobile insured for physical damage coverage, and the insured

requests physical damage coverage for the replacement or additional

automobile, such coverage for physical damage shall not be effective

before such inspection is made. If, at the time of the request for such

coverage, the automobile is unavailable for inspection because of

conditions of purchase or other circumstances and is thereafter made

available for inspection, the insurer shall promptly inspect the

automobile, and physical damage coverage shall not become effective

before the inspection has been made.

* NB Effective October 1, 2027

(h) Where an inspection is made pursuant to this section, it shall be

conducted by the insurer or its authorized representative and shall be

recorded on a form prescribed by the superintendent. Such form shall be

retained by the insurer with its policy records for such insured, and a

copy of such form shall be made available to the insured upon request.

(i) Payment of a physical damage claim shall not be conditioned upon

the repair of the automobile, provided, however, the insured shall

replace any inflatable restraint system (airbag), as defined in

subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of

the code of federal regulations, that inflated and deployed, or that was

stolen, which is included in a physical damage or theft claim. The

insurer may request that the automobile be made available for inspection

whether or not the automobile is repaired. The results of such

inspection may form a basis for determining the value of the automobile

in the event of a subsequent loss. If the automobile is repaired the

insurer shall request the repair invoice and shall require the insured

and the automobile repairer to certify, under penalties of perjury,

whether the applicable deductible has been paid to the automobile

repairer, whether any repairs have been made and whether the repairs did

not include all items allowed by the insurer.

(j) The superintendent may approve policy forms for physical damage

coverage, for new and renewable business, which exclude coverage for

specified items of personal property located in or upon the automobile.

(k) Each insurer which offers physical damage insurance subject to the

provisions of this section shall offer such insurance with a standard

deductible of two hundred dollars for each occurrence. The insured

shall, however, at the inception of the policy or at the annual

anniversary date, or at the time of the replacement or addition of an

automobile, have the option of purchasing a policy with a lesser

deductible, but in no event may the insurer sell a policy with a

deductible of less than fifty dollars for fire, theft or comprehensive

insurance coverages (one hundred dollars for assigned risk policies

issued pursuant to paragraph two of subsection (a) of section five

thousand three hundred three of this chapter) and one hundred dollars

for collision insurance coverage except that window glass coverage may

be sold without a deductible. Each insurer which offers physical damage

insurance subject to the provisions of this section shall also offer

physical damage coverages with co-insurance or deductible provisions or

combinations thereof as the superintendent may prescribe, including but

not limited to deductibles of two hundred fifty dollars, five hundred

dollars and one thousand dollars.

(l) Every insurer subject to the provisions of this section shall

report to the commissioner of motor vehicles any evidence of

overcharges, improper repairs or adjustments or other wrongdoing by

motor vehicle repair shops, in order that the department of motor

vehicles may properly discharge its responsibilities under the vehicle

and traffic law to protect consumers from dishonest, deceptive and

fraudulent practices in the repair of automobiles, to protect the public

from improper repairs and to eliminate unqualified motor vehicle repair

shops.

* (m) (1) The superintendent, in regulations implementing the

provisions of this section, shall also require that insurers take

appropriate action to ensure that there is wide public dissemination of

the provisions of this section relating to the rights and obligations of

insureds and insurers.

(2) The inspections provided for in this section may be dispensed with

or deferred under circumstances specified in regulations of the

superintendent. Such circumstances may include but are not limited to,

the insuring of a new automobile, the insuring of an automobile whose

inspection would constitute a serious hardship to the insurer, the

insured or an applicant for insurance, and the insuring of an automobile

for a limited specified period of time.

(3) Inspections made pursuant to this section shall be made at

locations and times reasonably convenient to the insured. The results of

any inspection may be considered in determining the value of the

automobile.

* NB Effective until May 15, 2024

* (m) (1) The superintendent, in regulations implementing the

provisions of this section, shall also require that insurers take

appropriate action to ensure that there is wide public dissemination of

the provisions of this section relating to the rights and obligations of

insureds and insurers.

(2) The inspections provided for in this section may be dispensed with

or deferred by an insurer under circumstances specified in their

statement of operation filed with the superintendent or in regulations

of the superintendent. Such circumstances may include but are not

limited to, the insuring of a new automobile, the insuring of an

automobile whose inspection would constitute a serious hardship to the

insurer, the insured or an applicant for insurance, and the insuring of

an automobile for a limited specified period of time.

(3) Inspections made pursuant to this section shall be made at

locations and times reasonably convenient to the insured. The results of

any inspection may be considered in determining the value of the

automobile.

* NB Effective May 15, 2024 until October 1, 2027

* (m) (1) The superintendent, in regulations implementing the

provisions of this section, shall also require that insurers take

appropriate action to ensure that there is wide public dissemination of

the provisions of this section relating to the rights and obligations of

insureds and insurers.

(2) The inspections provided for in this section may be dispensed with

or deferred under circumstances specified in regulations of the

superintendent. Such circumstances may include but are not limited to,

the insuring of a new automobile, the insuring of an automobile whose

inspection would constitute a serious hardship to the insurer, the

insured or an applicant for insurance, and the insuring of an automobile

for a limited specified period of time.

(3) Inspections made pursuant to this section shall be made at

locations and times reasonably convenient to the insured. The results of

any inspection may be considered in determining the value of the

automobile.

* NB Effective October 1, 2027

(n) If the superintendent, after notice and hearing, finds that any

insurer or its authorized representative has violated any provision of

this section, he shall order the payment of a penalty, not to exceed

five hundred dollars for each such offense. Each issuance, procurement

or negotiation of a policy of insurance in violation of this section

shall be a separate offense.