NY Ins L § 3412 (2021)
2021 New York Laws ISC - Insurance Article 34 - Insurance Contracts-Property/casualty 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.