NY State Senate Bill S5889

Current Bill Status Via A3172 - Passed Senate & Assembly

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (8)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 26, 2023	returned to assembly passed senate 3rd reading cal.626 substituted for s5889
Apr 26, 2023	substituted by a3172a
Apr 24, 2023	ordered to third reading cal.626 reported and committed to rules
Mar 21, 2023	referred to insurance

Votes

view votes

Apr 26, 2023 - floor Vote

A3172A

floor

Aye

Nay

Absent

Excused

Abstained

Apr 24, 2023 - Insurance committee Vote

S5889

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Apr 24, 2023 - Rules committee Vote

S5889

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

S5889 (ACTIVE) - Details

See Assembly Version of this Bill:: A3172
Law Section:: Insurance Law
Laws Affected:: Amd §3411, Ins L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1039, A10171
2011-2012: S2496, A2931
2013-2014: S4047, A1305
2015-2016: S4629, A1995
2017-2018: S5768, A1312
2019-2020: S801, A2809
2021-2022: S4312, A4199

S5889 (ACTIVE) - Summary

Provides that an automobile insurer may waive the inspection of a private passenger automobile prior to providing physical damage coverage.

S5889 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5889

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to inspections of private
passenger automobiles prior to the provision of coverage for physical
damage thereto; and providing for the repeal of such provisions upon
expiration thereof

 
PURPOSE:

This bill allows an auto insurer to waive the right to inspect a motor
vehicle prior to issuing an insurance policy if such insurer has filed a
plan of operation to ensure that vehicles covered under such policy have
not sustained physical damage.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 3411 of the insurance law to
permit an auto insurer to waive the physical inspection of an automobile
prior to insuring such vehicle if the insurer has filed a waiver with

the superintendent.

Section two of the bill relates to the effective date and provides for a
sunset of October 1, 2027.

 
JUSTIFICATION:

The prior inspection law was first enacted almost a quarter century ago
to address problems of fraudulent damages to motor vehicles that were
covered after the accident had been sustained. Technology advances and
vehicle tracking systems such as VIN etchings has made it much more
difficult for persons seeking to engage in insurance fraud. While some
may still attempt to purchase policies for phantom vehicles, today's
modern Special Investigation Units (SIU's) are far better equipped to
identify such issues.

The current regulation, as prescribed by section 3411, is complex and
expensive for insurers to comply with, which drives up the overall cost
for all auto insurance in New York.

In addition, under current law, people who have no intention of commit-
ting auto insurance fraud can find at the time of an accident, that they
have lost coverage for such an accident because no auto inspection was
performed. In this situation, the insured has purchased coverage and
paid the premium, but will not be covered if his or her auto sustains
physical property damage simply because the auto was inadvertently not
inspected

 
LEGISLATIVE HISTORY:

2022 - Similar legislation (6028) was vetoed (memo 34)

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law and shall expire and be deemed repealed October
1, 2027. Effective immediately, the addition, amendment and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.

S5889 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5889
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 21, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to inspections of private
   passenger automobiles prior to the provision of coverage for  physical
   damage  thereto;  and providing for the repeal of such provisions upon
   expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  section  heading and subsections (d), (g) and (m) of
 section 3411 of the insurance law are amended to read as follows:
   Automobile physical damage insurance covering private passenger  auto-
 mobiles; standard provisions; [required] inspections; duties of insurers
 and insureds.
   (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 AUTO-
 MOBILES.
   (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, UNLESS THE INSURER HAS WAIVED THE RIGHT TO SUCH AN
 INSPECTION PURSUANT TO A STATEMENT OF OPERATION FILED  WITH  THE  SUPER-
 INTENDENT.   If, at the time of the request for such coverage, the auto-
 mobile is unavailable for inspection because of conditions  of  purchase
 or  other circumstances and is thereafter made available for inspection,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03446-04-3

 S. 5889                             2
 
 the insurer shall promptly inspect the automobile, and  physical  damage
 coverage shall not become effective before the inspection has been made.
   (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  STATE-
 MENT 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 automo-
 bile.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall expire and be deemed repealed Octo-
 ber  1,  2027.  Effective  immediately,  the  addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.

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The New York State Senate

senate Bill S5889

Sponsored By

Current Bill Status Via A3172 - Passed Senate & Assembly

Your Voice

Actions

Votes

Apr 26, 2023 - floor Vote

Floor Vote: Apr 26, 2023

Apr 24, 2023 - Insurance committee Vote

Insurance Committee Vote: Apr 24, 2023

Apr 24, 2023 - Rules committee Vote

Rules Committee Vote: Apr 24, 2023

S5889 (ACTIVE) - Details

S5889 (ACTIVE) - Summary

S5889 (ACTIVE) - Sponsor Memo

S5889 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5889

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Sponsored By

Neil D. Breslin

Current Bill Status Via A3172 - Passed Senate & Assembly

Your Voice

Actions

Votes

Apr 26, 2023 - floor Vote

Floor Vote: Apr 26, 2023

Apr 24, 2023 - Insurance committee Vote

Insurance Committee Vote: Apr 24, 2023

Apr 24, 2023 - Rules committee Vote

Rules Committee Vote: Apr 24, 2023

S5889 (ACTIVE) - Details

S5889 (ACTIVE) - Summary

S5889 (ACTIVE) - Sponsor Memo

S5889 (ACTIVE) - Bill Text download pdf

Comments