S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2812
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2019
                                ___________
 
 Introduced by M. of A. ZEBROWSKI, STECK, HEVESI, WEPRIN -- read once and
   referred to the Committee on Insurance
 
 AN  ACT  to  amend  the  insurance  law, in relation to submission by an
   insured of vehicle photographs for purposes of the issuance or renewal
   of a policy of automobile physical damage insurance

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subsections (e), (f) and (h) of section 3411 of the insur-
 ance law, subsections (e) and (f) as added by chapter 805 of the laws of
 1984, are amended and a new subsection (o) is added to read as follows:
   (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 BY THE  INSURER  OR  THE
 INSURER'S  AUTHORIZED  REPRESENTATIVE,  OR  BY  THE  INSURED PURSUANT TO
 SUBSECTION (O) OF THIS SECTION.
   (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 OR THE INSURER'S AUTHORIZED REPRESENTATIVE,
 upon reasonable notice. THE INSURER MAY ALSO,  UPON  REASONABLE  NOTICE,
 ALLOW  THE  INSURED  TO  COMPLETE  THE AUTOMOBILE INSPECTION PURSUANT TO
 SUBSECTION (O) OF THIS SECTION. If the insured, UPON REASONABLE  NOTICE,
 fails  to make the automobile available for inspection BY THE INSURER OR
 THE INSURER'S AUTHORIZED REPRESENTATIVE, OR BY COMPLETING THE INSPECTION
 PURSUANT TO SUBSECTION (O) OF THIS SECTION, the insurer  may  refuse  to
 continue such physical damage coverage.
   (h)  Where an inspection is made pursuant to this section, it shall be
 conducted by the insurer or [its]  THE  INSURER'S  authorized  represen-
 tative,  OR  BY  THE INSURED PURSUANT TO SUBSECTION (O) OF THIS SECTION,
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02148-01-9
              

 A. 2812                             2
 
 insured, and a copy of such form shall be made available to the  insured
 upon request.
   (O) (1) AN INSURER MAY, AT ITS OPTION, COMPLY WITH SUBSECTIONS (D) AND
 (E)  OF THIS SECTION BY ALLOWING THE INSURED TO SELF-INSPECT THE INSURED
 VEHICLE  AND  SELF-SUBMIT  DOCUMENTATION  ESTABLISHING  THE  INSPECTION,
 CONSISTENT  WITH  THE REQUIREMENTS OF THIS SUBSECTION. AN INSURER IS NOT
 REQUIRED TO COMPLY WITH SUBSECTIONS (D)  AND  (E)  OF  THIS  SECTION  BY
 ALLOWING THE INSURED TO SELF-INSPECT THE INSURED VEHICLE.
   (2)  THE  SELF-INSPECTION OPTION AVAILABLE PURSUANT TO THIS SUBSECTION
 SHALL ONLY APPLY TO VEHICLES INSURED BY PERSONAL LINES INSURANCE.
   (3) THE SELF-INSPECTION OPTION AVAILABLE PURSUANT TO  THIS  SUBSECTION
 SHALL NOT APPLY TO VEHICLES INSURED BY THE NEW YORK AUTOMOBILE INSURANCE
 PLAN.
   (4)  TO  PERFORM AN AUTOMOBILE INSPECTION PURSUANT TO THIS SUBSECTION,
 THE INSURED SHALL, AT MINIMUM, SUBMIT THE  FOLLOWING  DOCUMENTS  TO  THE
 INSURER OR THE INSURER'S AUTHORIZED REPRESENTATIVE:
   (I) DIGITAL PHOTOGRAPHS OF THE INSURED VEHICLE; AND
   (II)  THE  SIGNED,  COMPLETED INSPECTION FORM REFERENCED IN SUBSECTION
 (H) OF THIS SECTION.
   (5) AN AUTOMOBILE INSPECTION PERFORMED PURSUANT TO THIS SUBSECTION  IS
 DEEMED  COMPLETE  ONLY WHEN THE INSURER OR ITS AUTHORIZED REPRESENTATIVE
 HAS RECEIVED BOTH THE SIGNED, COMPLETED INSPECTION FORM AND THE REQUIRED
 DIGITAL PHOTOGRAPHS.
   (6) EACH DIGITAL PHOTOGRAPH SUBMITTED  BY  THE  INSURED  SHALL  BE  IN
 COLOR, CLEAR, AND MUST INCLUDE METADATA THAT INDICATES THE DATE AND TIME
 THAT THE PHOTOGRAPH WAS TAKEN.
   (7) EACH DIGITAL PHOTOGRAPH SUBMITTED BY THE INSURED SHALL BE IN .JPEG
 FORMAT,  THE RESOLUTION MUST HE NO LESS THAN 2048 X 1536 PIXELS, AND THE
 FILE SIZE PER PHOTO MUST BE NO  LESS  THAN  TWO  HUNDRED  KILOBYTES  NOR
 GREATER THAN FIVE GIGABYTES.
   (8) EACH DIGITAL PHOTOGRAPH SUBMITTED BY THE INSURED SHALL BE TAKEN NO
 MORE  THAN TEN CALENDAR DAYS PRIOR TO THE DATE WRITTEN ON THE INSPECTION
 FORM, AND NO MORE THAN FOURTEEN CALENDAR DAYS AFTER THE DATE WRITTEN  ON
 THE  INSPECTION  FORM.  THE  INCLUDED  METADATA  SHALL CONFIRM THAT EACH
 DIGITAL PHOTOGRAPH WAS TAKEN NO MORE THAN TEN CALENDAR DAYS PRIOR TO THE
 DATE WRITTEN ON THE INSPECTION FORM, AND NO MORE THAN FOURTEEN  CALENDAR
 DAYS AFTER THE DATE WRITTEN ON THE INSPECTION FORM.
   (9)  THE  INSURED  MUST  CERTIFY  THE ACCURACY AND COMPLETENESS OF THE
 INFORMATION RECORDED ON THE INSPECTION FORM  PRESCRIBED  BY  THE  SUPER-
 INTENDENT, UNDER PENALTY OF PERJURY. ANY KNOWING MISREPRESENTATION SHALL
 CONSTITUTE  A  "FRAUDULENT  INSURANCE  ACT"  AS  DEFINED IN SECTION FOUR
 HUNDRED THREE OF THIS CHAPTER.
   (10) THE INSURED MUST CERTIFY THE AUTHENTICITY OF THE SIGNATURE ON THE
 INSPECTION REPORT PRESCRIBED BY THE  SUPERINTENDENT,  UNDER  PENALTY  OF
 PERJURY.  IN  ACCORDANCE  WITH  SECTION  THREE HUNDRED FOUR OF THE STATE
 TECHNOLOGY LAW, AN ELECTRONIC SIGNATURE IS PERMISSIBLE.
   (11) THE INSURER  AND/OR  ITS  AUTHORIZED  REPRESENTATIVE  SHALL  TAKE
 REASONABLE,  APPROPRIATE  STEPS  NECESSARY  TO  ENSURE  THE SECURITY AND
 INTEGRITY OF DATA THAT THE INSURED SUBMITS PURSUANT TO THIS SUBSECTION.
   (12) IF THE INSURED CHOOSES TO SIGN THE INSPECTION FORM WITH AN  ELEC-
 TRONIC SIGNATURE, THE INSURER AND/OR ITS AUTHORIZED REPRESENTATIVE SHALL
 TAKE  REASONABLE,  APPROPRIATE STEPS NECESSARY TO ENSURE THE SECURITY OF
 THE ELECTRONIC SIGNATURE AND VERIFY ITS AUTHENTICITY.
   (13) THE INSURER AND/OR ITS AUTHORIZED REPRESENTATIVE SHALL  ESTABLISH
 REASONABLE,   APPROPRIATE  PROCEDURES  NECESSARY  TO  ENSURE  THAT  ONCE
 INSPECTION FORMS ARE SIGNED AND SUBMITTED, THEY ARE, AT MINIMUM,  STORED

 A. 2812                             3
 
 ELECTRONICALLY,  IN  A  SECURE  FASHION, AND ARE RETAINED BY THE INSURER
 AND/OR ITS AUTHORIZED REPRESENTATIVE FOR A MINIMUM PERIOD OF TIME TO  BE
 DETERMINED BY THE SUPERINTENDENT.
   (14)  IF,  UPON  INSPECTION  OF THE INSURED'S DIGITAL PHOTOGRAPHS, THE
 INSURER FINDS THAT THE INSURED HAS FAILED TO COMPLY WITH THE  PHOTOGRAPH
 SUBMISSION REQUIREMENTS PROVIDED IN THIS SUBSECTION OR IN THE APPLICABLE
 REGULATIONS, THE INSURER SHALL REQUEST FURTHER INSPECTION OF THE VEHICLE
 BY THE INSURER OR ITS AUTHORIZED REPRESENTATIVE. FURTHER SELF-INSPECTION
 OF  THE  VEHICLE  PURSUANT  TO THIS SUBSECTION IS NOT PERMITTED, AND ANY
 SUBSEQUENT INSPECTION STILL MUST BE  COMPLETED  NO  MORE  THAN  FOURTEEN
 CALENDAR  DAYS  AFTER THE EFFECTIVE DATE OF COVERAGE.  THE INSURER SHALL
 HAVE THE RIGHT TO REFUSE TO CONTINUE PHYSICAL DAMAGE COVERAGE UNTIL  THE
 INSURED COMPLETES THE SUBSEQUENT INSPECTION.
   (15)  IF,  UPON  INSPECTION  OF THE INSURED'S DIGITAL PHOTOGRAPHS, THE
 INSURER IDENTIFIES INACCURACIES OR ERRORS IN THE INFORMATION RECORDED ON
 THE INSPECTION FORM, THE INSURER SHALL REQUEST FURTHER INSPECTION OF THE
 AUTOMOBILE BY THE INSURER  OR  ITS  AUTHORIZED  REPRESENTATIVE.  FURTHER
 SELF-INSPECTION  OF  THE  VEHICLE  PURSUANT  TO  THIS  SUBSECTION IS NOT
 PERMITTED. THE INSURER SHALL HAVE THE RIGHT TO REFUSE TO CONTINUE  PHYS-
 ICAL   DAMAGE  COVERAGE  UNTIL  THE  INSURED  COMPLETES  THE  SUBSEQUENT
 INSPECTION OR INSPECTIONS.
   (16) IF, UPON INSPECTION OF THE INSURED'S DIGITAL  PHOTOGRAPHS  AND/OR
 REVIEW  OF  THE  INSPECTION  FORM  PRESCRIBED BY THE SUPERINTENDENT, THE
 INSURER IDENTIFIES EVIDENCE OF A FRAUDULENT INSURANCE ACT,  THE  INSURER
 MAY  CANCEL  OR  RESCIND THE INSURED'S PHYSICAL DAMAGE COVERAGE, AND MAY
 REPORT SUCH EVIDENCE OF A FRAUDULENT INSURANCE ACT  TO  LAW  ENFORCEMENT
 AUTHORITIES.  IN  CONNECTION  WITH  PROVIDING  THE  INSPECTION FORM, THE
 INSURER SHALL ALSO ISSUE A NOTICE TO THE INSURED CONTAINING THE LANGUAGE
 PRESCRIBED IN SUBSECTION (D) OF SECTION FOUR HUNDRED THREE OF THIS CHAP-
 TER.
   (17) THE SUPERINTENDENT MAY PROMULGATE ADDITIONAL REGULATIONS SPECIFIC
 TO THIS SUBSECTION.
   (18) UNLESS  THE  SUPERINTENDENT  PROMULGATES  ADDITIONAL  REGULATIONS
 SPECIFIC  TO THIS SUBSECTION, IN ADDITION TO SATISFYING THE REQUIREMENTS
 OF THIS SUBSECTION, THE INSURER AND THE INSURED SHALL ALSO  COMPLY  WITH
 THE  APPLICABLE  INSPECTION STANDARDS PRESCRIBED PURSUANT TO PART SIXTY-
 SEVEN OF TITLE ELEVEN OF THE  NEW  YORK  CODES,  RULES  AND  REGULATIONS
 EXCEPT THAT
   (I)  THE  INSURED  MUST  ONLY SUBMIT PHOTOGRAPHS TO THE INSURER OR ITS
 AUTHORIZED REPRESENTATIVE ELECTRONICALLY USING DIGITAL MEDIA; AND
   (II) IF THE INSURED ELECTRONICALLY  TRANSMITS  THE  SIGNED,  COMPLETED
 INSPECTION  REPORT  TO THE INSURER OR ITS AUTHORIZED REPRESENTATIVE, THE
 INSURED MUST USE AN ELECTRONIC SIGNATURE.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.