N.Y. ISC Law § 3411 — New York Code / Act ISC / Article 34 / Section 3411
Automobile physical damage insurance covering private passenger automobiles; standard provisions; required inspections; duties of insurer...
Status: in_force

§ 3411.  * Automobile physical damage insurance covering private\npassenger automobiles; standard provisions; required inspections; duties\nof insurers and insureds.\n  * NB Effective until May 15, 2024\n  * Automobile physical damage insurance covering private passenger\nautomobiles; standard provisions; inspections; duties of insurers and\ninsureds.\n  * NB Effective May 15, 2024 until October 1, 2027\n  * Automobile physical damage insurance covering private passenger\nautomobiles; standard provisions; required inspections; duties of\ninsurers and insureds.\n  * NB Effective October 1, 2027\n  (a) The provisions of this section shall be applicable to all\nautomobile physical damage insurance policies covering private passenger\nautomobiles registered in this state, notwithstanding any other\nprovisions of this chapter.\n  (b) In this article, "renewal" means the issuance and delivery by an\ninsurer, at the end of the policy period, of a policy superseding a\npolicy previously issued and delivered by the same insurer, or the\nissuance and delivery of a certificate or notice extending the term of a\npolicy beyond its policy period or term. Any policy with a policy period\nor term of less than one year shall, for the purpose of determining each\nrenewal date in this section, be considered as if written for a policy\nperiod or term of one year commencing with the annual anniversary date,\nand any policy written for a period or term of more than one year or any\npolicy with no fixed expiration date shall, for the purpose of this\nsection, be considered as if written for successive policy periods or\nterms of one year commencing with the annual anniversary date.\n  (c) No policy providing automobile physical damage insurance for\nprivate passenger automobiles registered in this state shall be issued,\ndelivered, or renewed unless it complies with this section.\n  * (d) A newly issued policy shall not provide coverage for automobile\nphysical damage perils prior to an inspection of the automobile by the\ninsurer.\n  * NB Effective until May 15, 2024\n  * (d) A newly issued policy shall not provide coverage for automobile\nphysical damage perils prior to an inspection of the automobile by the\ninsurer, unless the insurer has waived the right to such inspection\npursuant to a statement of operation filed with the superintendent. In\nits statement of operation, an insurer may waive the right to inspect\nsome or all automobiles. Every statement of operation shall take effect\nupon its filing with the superintendent and may cover some or all\nautomobiles.\n  * NB Effective May 15, 2024 until October 1, 2027\n  * (d) A newly issued policy shall not provide coverage for automobile\nphysical damage perils prior to an inspection of the automobile by the\ninsurer.\n  * NB Effective October 1, 2027\n  (e) For a renewal of a policy referred to in subsection (d) of this\nsection, an insurer may require, as a condition of such renewal, that\nthe automobile be made available for inspection.\n  (f) If an insurer requests an inspection pursuant to subsection (e) of\nthis section, the insured shall make the automobile available for\ninspection by the insurer, upon reasonable notice. If the insured fails\nto make the automobile available for inspection, the insurer may refuse\nto continue such physical damage coverage.\n  * (g) If an automobile subject to the provisions of this section is\nacquired by the insured as a replacement for or an addition to an\nautomobile insured for physical damage coverage, and the insured\nrequests physical damage coverage for the replacement or additional\nautomobile, such coverage for physical damage shall not be effective\nbefore such inspection is made. If, at the time of the request for such\ncoverage, the automobile is unavailable for inspection because of\nconditions of purchase or other circumstances and is thereafter made\navailable for inspection, the insurer shall promptly inspect the\nautomobile, and physical damage coverage shall not become effective\nbefore the inspection has been made.\n  * NB Effective until May 15, 2024\n  * (g) If an automobile subject to the provisions of this section is\nacquired by the insured as a replacement for or an addition to an\nautomobile insured for physical damage coverage, and the insured\nrequests physical damage coverage for the replacement or additional\nautomobile, such coverage for physical damage shall not be effective\nbefore such inspection is made, unless the insurer has waived the right\nto such an inspection pursuant to a statement of operation filed with\nthe superintendent. If, at the time of the request for such coverage,\nthe automobile is unavailable for inspection because of conditions of\npurchase or other circumstances and is thereafter made available for\ninspection, the insurer shall promptly inspect the automobile, and\nphysical damage coverage shall not become effective before the\ninspection has been made.\n  * NB Effective May 15, 2024 until October 1, 2027\n  * (g) If an automobile subject to the provisions of this section is\nacquired by the insured as a replacement for or an addition to an\nautomobile insured for physical damage coverage, and the insured\nrequests physical damage coverage for the replacement or additional\nautomobile, such coverage for physical damage shall not be effective\nbefore such inspection is made. If, at the time of the request for such\ncoverage, the automobile is unavailable for inspection because of\nconditions of purchase or other circumstances and is thereafter made\navailable for inspection, the insurer shall promptly inspect the\nautomobile, and physical damage coverage shall not become effective\nbefore the inspection has been made.\n  * NB Effective October 1, 2027\n  (h) Where an inspection is made pursuant to this section, it shall be\nconducted by the insurer or its authorized representative and shall be\nrecorded on a form prescribed by the superintendent. Such form shall be\nretained by the insurer with its policy records for such insured, and a\ncopy of such form shall be made available to the insured upon request.\n  (i) Payment of a physical damage claim shall not be conditioned upon\nthe repair of the automobile, provided, however, the insured shall\nreplace any inflatable restraint system (airbag), as defined in\nsubparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of\nthe code of federal regulations, that inflated and deployed, or that was\nstolen, which is included in a physical damage or theft claim. The\ninsurer may request that the automobile be made available for inspection\nwhether or not the automobile is repaired. The results of such\ninspection may form a basis for determining the value of the automobile\nin the event of a subsequent loss. If the automobile is repaired the\ninsurer shall request the repair invoice and shall require the insured\nand the automobile repairer to certify, under penalties of perjury,\nwhether the applicable deductible has been paid to the automobile\nrepairer, whether any repairs have been made and whether the repairs did\nnot include all items allowed by the insurer.\n  (j) The superintendent may approve policy forms for physical damage\ncoverage, for new and renewable business, which exclude coverage for\nspecified items of personal property located in or upon the automobile.\n  (k) Each insurer which offers physical damage insurance subject to the\nprovisions of this section shall offer such insurance with a standard\ndeductible of two hundred dollars for each occurrence. The insured\nshall, however, at the inception of the policy or at the annual\nanniversary date, or at the time of the replacement or addition of an\nautomobile, have the option of purchasing a policy with a lesser\ndeductible, but in no event may the insurer sell a policy with a\ndeductible of less than fifty dollars for fire, theft or comprehensive\ninsurance coverages (one hundred dollars for assigned risk policies\nissued pursuant to paragraph two of subsection (a) of section five\nthousand three hundred three of this chapter) and one hundred dollars\nfor collision insurance coverage except that window glass coverage may\nbe sold without a deductible. Each insurer which offers physical damage\ninsurance subject to the provisions of this section shall also offer\nphysical damage coverages with co-insurance or deductible provisions or\ncombinations thereof as the superintendent may prescribe, including but\nnot limited to deductibles of two hundred fifty dollars, five hundred\ndollars and one thousand dollars.\n  (l) Every insurer subject to the provisions of this section shall\nreport to the commissioner of motor vehicles any evidence of\novercharges, improper repairs or adjustments or other wrongdoing by\nmotor vehicle repair shops, in order that the department of motor\nvehicles may properly discharge its responsibilities under the vehicle\nand traffic law to protect consumers from dishonest, deceptive and\nfraudulent practices in the repair of automobiles, to protect the public\nfrom improper repairs and to eliminate unqualified motor vehicle repair\nshops.\n  * (m) (1) The superintendent, in regulations implementing the\nprovisions of this section, shall also require that insurers take\nappropriate action to ensure that there is wide public dissemination of\nthe provisions of this section relating to the rights and obligations of\ninsureds and insurers.\n  (2) The inspections provided for in this section may be dispensed with\nor deferred under circumstances specified in regulations of the\nsuperintendent. Such circumstances may include but are not limited to,\nthe insuring of a new automobile, the insuring of an automobile whose\ninspection would constitute a serious hardship to the insurer, the\ninsured or an applicant for insurance, and the insuring of an automobile\nfor a limited specified period of time.\n  (3) Inspections made pursuant to this section shall be made at\nlocations and times reasonably convenient to the insured. The results of\nany inspection may be considered in determining the value of the\nautomobile.\n  * NB Effective until May 15, 2024\n  * (m) (1) The superintendent, in regulations implementing the\nprovisions of this section, shall also require that insurers take\nappropriate action to ensure that there is wide public dissemination of\nthe provisions of this section relating to the rights and obligations of\ninsureds and insurers.\n  (2) The inspections provided for in this section may be dispensed with\nor deferred by an insurer under circumstances specified in their\nstatement of operation filed with the superintendent or in regulations\nof the superintendent. Such circumstances may include but are not\nlimited to, the insuring of a new automobile, the insuring of an\nautomobile whose inspection would constitute a serious hardship to the\ninsurer, the insured or an applicant for insurance, and the insuring of\nan automobile for a limited specified period of time.\n  (3) Inspections made pursuant to this section shall be made at\nlocations and times reasonably convenient to the insured. The results of\nany inspection may be considered in determining the value of the\nautomobile.\n  * NB Effective May 15, 2024 until October 1, 2027\n  * (m) (1) The superintendent, in regulations implementing the\nprovisions of this section, shall also require that insurers take\nappropriate action to ensure that there is wide public dissemination of\nthe provisions of this section relating to the rights and obligations of\ninsureds and insurers.\n  (2) The inspections provided for in this section may be dispensed with\nor deferred under circumstances specified in regulations of the\nsuperintendent. Such circumstances may include but are not limited to,\nthe insuring of a new automobile, the insuring of an automobile whose\ninspection would constitute a serious hardship to the insurer, the\ninsured or an applicant for insurance, and the insuring of an automobile\nfor a limited specified period of time.\n  (3) Inspections made pursuant to this section shall be made at\nlocations and times reasonably convenient to the insured. The results of\nany inspection may be considered in determining the value of the\nautomobile.\n  * NB Effective October 1, 2027\n  (n) If the superintendent, after notice and hearing, finds that any\ninsurer or its authorized representative has violated any provision of\nthis section, he shall order the payment of a penalty, not to exceed\nfive hundred dollars for each such offense. Each issuance, procurement\nor negotiation of a policy of insurance in violation of this section\nshall be a separate offense.\n