2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3411 - Automobile Physical Damage Insurance Covering Private Passenger Automobiles; Standard Provisions; Inspections; Duties of Insurers and Insured

§  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.