Source: http://www.dfs.ny.gov/insurance/ogco2007/rg071011.htm
Timestamp: 2017-08-23 06:24:39
Document Index: 446315034

Matched Legal Cases: ['§ 67', '§ 67', '§ 67', '§ 3411', '§ 3411', '§ 67', 'art:\n11', '§ 67', '§ 67', '§ 67', '§ 67', '§ 67']

The Office of General Counsel issued the following opinion on October 29, 2007, representing the position of the New York State Insurance Department.
What documentation may an insurer require in order to waive inspection of a new unused automobile?
Section 67.3(b)(2) of NYCRR, Title 11, Pt. 67 (Regulation 79) sets forth the minimum requirements for an insurer to waive inspection of a new unused automobile. An insurer may require a copy of the bill of sale alone, or a copy of the lease or MV-50 form and a copy of the window sticker or dealer invoice. An insurer may request other combinations of documents, too, provided that the insurer files its inspection procedures, including description of the documentation that it requires in order to waive inspection, with the Superintendent of Insurance pursuant to 11 NYCRR § 67.0(b).
Clarification is requested of 11 NYCRR § 67.3(b)(2), which is cited without interpretation in Office of General Counsel Opinion (“O.G.C.”) No. 02-04-11 (April 8, 2002). Specifically, three methods are set forth by which an insurer may waive inspection of a new unused automobile pursuant to 11 NYCRR § 67.3(b)(2). The first method is with a copy of the bill of sale and a copy of the window sticker or dealer invoice. The second method is with a copy of the lease or MV-50 form and a copy of the window sticker or dealer invoice. The third method is with a copy of the bill of sale alone.
Insurance Law § 3411(d) is relevant to this inquiry. It sets forth an inspection requirement for new motor vehicle insurance policies as follows:
11 NYCRR Pt. 67 implements the provisions of Insurance Law § 3411 and sets forth the standards and procedures for the requisite inspections. 11 NYCRR § 67.1 defines “physical damage insurance” for the purposes of the inspection requirement. It states in pertinent part:
11 NYCRR § 67.3 details the exceptions to the inspection requirement as follows:
However, if an insurer is willing to waive an inspection, it must adhere to Regulation 79. A bill of sale that sets forth a full description of the automobile, including all options and accessories, is one document that may suffice.
An insurer also may waive the inspection if it receives a copy of a lease or an MV-50 form and a copy of the window sticker or dealer invoice, either of which must show the itemized options and equipment, in addition to the total retail price of the vehicle, including any dealer-installed options. Thus, a copy of the window sticker or dealer invoice is only required under 11 NYCRR § 67.3(b)(2) if a copy of a lease or an MV-50 form is used instead of a bill of sale.
11 NYCRR § 67.3(b)(2) does not provide for a manufacturer’s statement of origin (“MSO”) as an acceptable document for the purpose of inspection waivers.
Nevertheless, an insurer may request additional documentation beyond that which is required by Regulation 79, because 11 NYCRR § 67.3(b)(2) only sets forth minimum requirements for an insurer to waive inspection. An insurer may require a copy of a bill of sale and a copy of the window sticker or dealer invoice as set forth in the first method in your inquiry. This is permissible under the Insurance Law and regulations promulgated thereunder, provided that the insurer files its inspection procedures with the Superintendent pursuant to 11 NYCRR § 67.0(b). These procedures must include a description of the documentation that the insurer requires in order to waive inspection. See O.G.C. Opinion No. 07-08-10 (August 29, 2007).
Therefore, all three methods listed in this inquiry may be valid for an insurer to waive inspection, depending on insurer requirements.