Bill Text: NY A03172 | 2023-2024 | General Assembly | Amended

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

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Passed) 2023-11-17 - signed chap.638 [A03172 Detail]

Download: New_York-2023-A03172-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3172--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 2, 2023
                                       ___________

        Introduced by M. of A. ZEBROWSKI, GUNTHER, BRONSON, WEPRIN, STECK, HUNT-
          ER,  STIRPE,  WALLACE,  RA,  DURSO  --  Multi-Sponsored by -- M. of A.
          THIELE -- read once and referred to  the  Committee  on  Insurance  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        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:

     1    Section  1.  The  section  heading and subsections (d), (g) and (m) of
     2  section 3411 of the insurance law are amended to read as follows:
     3    Automobile physical damage insurance covering private passenger  auto-
     4  mobiles; standard provisions; [required] inspections; duties of insurers
     5  and insureds.
     6    (d)  A  newly  issued policy shall not provide coverage for automobile
     7  physical damage perils prior to an inspection of the automobile  by  the
     8  insurer,  unless  the  insurer  has  waived the right to such inspection
     9  pursuant to a statement of operation filed with the  superintendent.  In
    10  its  statement  of  operation, an insurer may waive the right to inspect
    11  some or all automobiles. Every statement of operation shall take  effect
    12  upon  its filing with the superintendent and may cover some or all auto-
    13  mobiles.
    14    (g) If an automobile subject to the  provisions  of  this  section  is
    15  acquired  by the insured as a replacement for or an addition to an auto-
    16  mobile insured for physical damage coverage, and  the  insured  requests
    17  physical  damage  coverage for the replacement or additional automobile,
    18  such coverage for physical damage shall not  be  effective  before  such
    19  inspection  is  made, unless the insurer has waived the right to such an
    20  inspection pursuant to a statement of operation filed  with  the  super-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03446-02-3
        A. 3172--A                          2

     1  intendent.   If, at the time of the request for such coverage, the auto-
     2  mobile is unavailable for inspection because of conditions  of  purchase
     3  or  other circumstances and is thereafter made available for inspection,
     4  the  insurer  shall promptly inspect the automobile, and physical damage
     5  coverage shall not become effective before the inspection has been made.
     6    (m) (1) The superintendent, in regulations implementing the provisions
     7  of this section, shall  also  require  that  insurers  take  appropriate
     8  action  to  ensure  that  there  is  wide  public  dissemination  of the
     9  provisions of this section relating to the  rights  and  obligations  of
    10  insureds and insurers.
    11    (2) The inspections provided for in this section may be dispensed with
    12  or  deferred by an insurer under circumstances specified in their state-
    13  ment of operation filed with the superintendent or in regulations of the
    14  superintendent. Such circumstances may include but are not  limited  to,
    15  the  insuring  of  a new automobile, the insuring of an automobile whose
    16  inspection would constitute a  serious  hardship  to  the  insurer,  the
    17  insured or an applicant for insurance, and the insuring of an automobile
    18  for a limited specified period of time.
    19    (3)  Inspections  made  pursuant  to  this  section  shall  be made at
    20  locations and times reasonably convenient to the insured. The results of
    21  any inspection may be considered in determining the value of the automo-
    22  bile.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law and shall expire and be deemed repealed Octo-
    25  ber 1, 2027.  Effective  immediately,  the  addition,  amendment  and/or
    26  repeal  of  any  rule  or regulation necessary for the implementation of
    27  this act on its effective date are authorized to be made  and  completed
    28  on or before such effective date.