N.Y. Insurance Law § 3412: Automobile physical damage insurance covering private passenger automobiles; salvage; total losses; thefts; duties of insurers

§ 3412. Automobile physical damage insurance covering private

passenger automobiles; salvage; total losses; thefts; duties of

insurers. (a) Notwithstanding any other provision of this chapter, the

provisions of this section shall be applicable to all physical damage

losses incurred on policies covering private passenger automobiles

registered in this state for model year nineteen hundred seventy-three

or later.

(b) In accordance with regulations of the superintendent insurers

shall, except where the insured is permitted to retain the automobile as

part of the claim settlement, take possession of any salvage and the

certificate of title, properly endorsed to them of private automobiles

whenever a loss is determined by the insurer to be a total loss or a

constructive total loss. Insurers, in disposing of the salvage, shall

fully comply with the requirements of section four hundred twenty-nine

of the vehicle and traffic law. An insurer shall also have the right,

where a claim is filed for the replacement of an inflated and deployed

or stolen inflatable restraint system (air bag), 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, to inspect the vehicle for which the

claim is being filed to verify that the air bag did inflate and deploy

or was stolen. The insurer shall also have the right to take possession

of a deployed airbag.

(c) Except with respect to vehicles recovered after a theft loss has

been paid and which meet the criteria set forth in subdivision two of

section four hundred thirty of the vehicle and traffic law, insurers

shall not, directly or indirectly, transfer within or without this state

any vehicle for salvage, except to a governmental agency, an automobile

dealer, a vehicle dismantler, or a scrap processor licensed, registered

or certified in accordance with the provisions of the vehicle and

traffic law, or any such person meeting licensing, registration or

certification requirements of the state in which such person does

business. An insurer or its agents shall not purchase salvage vehicles

or used major component parts of motor vehicles except from a registered

vehicle dismantler or an automobile dealer.

(d) Insurers shall report private passenger automobiles involved in

total losses, including the vehicle identification number and such other

information as may be required, to a central organization engaged in

automobile loss prevention as designated by the superintendent, in

accordance with regulations of the superintendent. The central

organization shall also be responsible for recording any special vehicle

identification number issued by the commissioner of motor vehicles

pursuant to subdivision two of section four hundred thirty-one of the

vehicle and traffic law and in accordance with regulations of the

superintendent.

(e) Prior to the payment of total losses, insurers shall comply with

verification procedures in accordance with regulations of the

superintendent.

(f) Police and other law enforcement agencies charged with the

investigation of automobile thefts shall promptly report to the owner of

the automobile and the central organization designated by the

superintendent, all locations of private passenger automobiles reported

stolen or found to be abandoned. In accordance with regulations of the

superintendent, the central organization shall be responsible for

receiving and recording such reports, and shall promptly transmit such

information to the insurer of the automobile physical damage coverage.

(g) All policies providing automobile physical damage coverage shall

include a provision authorizing the insurer to take the insured motor

vehicle into custody for safekeeping, when notified that the motor

vehicle reported stolen or found to be abandoned has been located.

(h) (1) The central organization designated by the superintendent and

each insurer authorized to issue automobile comprehensive insurance

policies covering losses incurred to private passenger vehicles shall

upon request of any appropriate law enforcement agency or insurance

organization engaged in automobile loss prevention release information

in its possession resulting from an investigation conducted by it

pertaining to such comprehensive loss, including information as such

agency or organization deems related to its investigation. Should a

central organization or the insurer be of the opinion that the loss was

caused by any criminal or fraudulent act of any person or organization,

or that an improper action occurred in the disposition of automobiles

subject to the provisions of this section, it shall notify the

appropriate law enforcement agency or insurance organization engaged in

automobile loss prevention of that opinion, and it shall notify the

department of financial services or department of motor vehicles of any

improper action of their respective licensees or registrants.

(2) Any information or evidence furnished pursuant to this subsection

shall be held in confidence by the appropriate agency or insurance

organization engaged in automobile loss prevention, until such

information is required to be released pursuant to a criminal

proceeding, or if such agency or organization shall be served a summons

or subpoena to testify as to any information or evidence in its

possession regarding such automobile comprehensive loss in any civil

action where an insured or other person is seeking recovery under a

policy against an insurer for such loss.