S T A T E   O F   N E W   Y O R K
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                                  9492

                          I N  A S S E M B L Y

                             March 10, 2016
                               ___________

Introduced by M. of A. DiPIETRO -- read once and referred to the Commit-
  tee on Insurance

AN  ACT  to amend the insurance law, in relation to required inspections
  for automobile physical damage insurance  covering  private  passenger
  automobiles

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 3411 of the insurance law, subsections (e) and  (f)
as  added  by  chapter  805  of  the  laws of 1984 and subsection (i) as
amended by chapter 161 of the laws  of  1996,  is  amended  to  read  as
follows:
  S  3411. Automobile physical damage insurance covering private passen-
ger automobiles; standard provisions; [required inspections;] duties  of
insurers  and  insureds.  (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 issu-
ance  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14370-01-6

              

A. 9492                             2

  (d) A newly issued policy shall not provide  coverage  for  automobile
physical  damage  perils prior to an inspection of the automobile by the
insurer.
  (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  auto-
mobile  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 phys-
ical  damage  coverage  shall not become effective before the inspection
has been made.
  (h)] (D) 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)]  (E) 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 subpara-
graph  (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)] (F) 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  automo-
bile.
  [(k)]  (G) 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 deduct-
ible, 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 pursu-

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ant 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 combina-
tions 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)] (H) Every insurer subject to  the  provisions  of  this  section
shall report to the commissioner of motor vehicles any evidence of over-
charges,  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 prac-
tices in the repair of automobiles, to protect the public from  improper
repairs and to eliminate unqualified motor vehicle repair shops.
  [(m)]  (I)  (1)  The  superintendent,  in regulations implementing the
provisions of this section, shall also require that insurers take appro-
priate 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 automo-
bile.
  [(n)] (J) 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.
  S 2. This act shall take effect immediately.