STATE OF NEW YORK
        ________________________________________________________________________
                                          5769
                               2017-2018 Regular Sessions
                    IN SENATE
                                     April 28, 2017
                                       ___________
        Introduced  by  Sen.  LANZA  -- 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  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:
     1    Section 1. Subsections (e), (f) and (h) of section 3411 of the  insur-
     2  ance law, subsections (e) and (f) as added by chapter 805 of the laws of
     3  1984, are amended and a new subsection (o) is added to read as follows:
     4    (e)  For  a  renewal of a policy referred to in subsection (d) of this
     5  section, an insurer may require, as a condition of  such  renewal,  that
     6  the  automobile  be  made available for inspection by the insurer or the
     7  insurer's authorized representative,  or  by  the  insured  pursuant  to
     8  subsection (o) of this section.
     9    (f) If an insurer requests an inspection pursuant to subsection (e) of
    10  this  section,  the  insured  shall  make  the  automobile available for
    11  inspection by the insurer or the  insurer's  authorized  representative,
    12  upon  reasonable  notice.  The insurer may also, upon reasonable notice,
    13  allow the insured to complete  the  automobile  inspection  pursuant  to
    14  subsection  (o) of this section. If the insured, upon reasonable notice,
    15  fails to make the automobile available for inspection by the insurer  or
    16  the insurer's authorized representative, or by completing the inspection
    17  pursuant  to  subsection  (o) of this section, the insurer may refuse to
    18  continue such physical damage coverage.
    19    (h) Where an inspection is made pursuant to this section, it shall  be
    20  conducted  by  the  insurer  or [its] the insurer's authorized represen-
    21  tative, or by the insured pursuant to subsection (o)  of  this  section,
    22  and  shall  be recorded on a form prescribed by the superintendent. Such
    23  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.
                                                                   LBD10322-01-7

        S. 5769                             2
     1  insured,  and a copy of such form shall be made available to the insured
     2  upon request.
     3    (o) (1) An insurer may, at its option, comply with subsections (d) and
     4  (e)  of this section by allowing the insured to self-inspect the insured
     5  vehicle  and  self-submit  documentation  establishing  the  inspection,
     6  consistent  with  the requirements of this subsection. An insurer is not
     7  required to comply with subsections (d)  and  (e)  of  this  section  by
     8  allowing the insured to self-inspect the insured vehicle.
     9    (2)  The  self-inspection option available pursuant to this subsection
    10  shall only apply to vehicles insured by personal lines insurance.
    11    (3) The self-inspection option available pursuant to  this  subsection
    12  shall not apply to vehicles insured by the New York Automobile Insurance
    13  Plan.
    14    (4)  To  perform an automobile inspection pursuant to this subsection,
    15  the insured shall, at minimum, submit the  following  documents  to  the
    16  insurer or the insurer's authorized representative:
    17    (i) digital photographs of the insured vehicle; and
    18    (ii)  the  signed,  completed inspection form referenced in subsection
    19  (h) of this section.
    20    (5) An automobile inspection performed pursuant to this subsection  is
    21  deemed  complete  only when the insurer or its authorized representative
    22  has received both the signed, completed inspection form and the required
    23  digital photographs.
    24    (6) Each digital photograph submitted  by  the  insured  shall  be  in
    25  color, clear, and must include metadata that indicates the date and time
    26  that the photograph was taken.
    27    (7) Each digital photograph submitted by the insured shall be in .jpeg
    28  format,  the resolution must he no less than 2048 x 1536 pixels, and the
    29  file size per photo must be no  less  than  two  hundred  kilobytes  nor
    30  greater than five gigabytes.
    31    (8) Each digital photograph submitted by the insured shall be taken no
    32  more  than ten calendar days prior to the date written on the inspection
    33  form, and no more than fourteen calendar days after the date written  on
    34  the  inspection  form.  The  included  metadata  shall confirm that each
    35  digital photograph was taken no more than ten calendar days prior to the
    36  date written on the inspection form, and no more than fourteen  calendar
    37  days after the date written on the inspection form.
    38    (9)  The  insured  must  certify  the accuracy and completeness of the
    39  information recorded on the inspection form  prescribed  by  the  super-
    40  intendent, under penalty of perjury. Any knowing misrepresentation shall
    41  constitute  a  "fraudulent  insurance  act"  as  defined in section four
    42  hundred three of this chapter.
    43    (10) The insured must certify the authenticity of the signature on the
    44  inspection report prescribed by the  superintendent,  under  penalty  of
    45  perjury.  In  accordance  with  section  three hundred four of the state
    46  technology law, an electronic signature is permissible.
    47    (11) The insurer  and/or  its  authorized  representative  shall  take
    48  reasonable,  appropriate  steps  necessary  to  ensure  the security and
    49  integrity of data that the insured submits pursuant to this subsection.
    50    (12) If the insured chooses to sign the inspection form with an  elec-
    51  tronic signature, the insurer and/or its authorized representative shall
    52  take  reasonable,  appropriate steps necessary to ensure the security of
    53  the electronic signature and verify its authenticity.
    54    (13) The insurer and/or its authorized representative shall  establish
    55  reasonable,   appropriate  procedures  necessary  to  ensure  that  once
    56  inspection forms are signed and submitted, they are, at minimum,  stored

        S. 5769                             3
     1  electronically,  in  a  secure  fashion, and are retained by the insurer
     2  and/or its authorized representative for a minimum period of time to  be
     3  determined by the superintendent.
     4    (14)  If,  upon  inspection  of the insured's digital photographs, the
     5  insurer finds that the insured has failed to comply with the  photograph
     6  submission requirements provided in this subsection or in the applicable
     7  regulations, the insurer shall request further inspection of the vehicle
     8  by the insurer or its authorized representative. Further self-inspection
     9  of  the  vehicle  pursuant  to this subsection is not permitted, and any
    10  subsequent inspection still must be  completed  no  more  than  fourteen
    11  calendar  days  after the effective date of coverage.  The insurer shall
    12  have the right to refuse to continue physical damage coverage until  the
    13  insured completes the subsequent inspection.
    14    (15)  If,  upon  inspection  of the insured's digital photographs, the
    15  insurer identifies inaccuracies or errors in the information recorded on
    16  the inspection form, the insurer shall request further inspection of the
    17  automobile by the insurer  or  its  authorized  representative.  Further
    18  self-inspection  of  the  vehicle  pursuant  to  this  subsection is not
    19  permitted. The insurer shall have the right to refuse to continue  phys-
    20  ical   damage  coverage  until  the  insured  completes  the  subsequent
    21  inspection or inspections.
    22    (16) If, upon inspection of the insured's digital  photographs  and/or
    23  review  of  the  inspection  form  prescribed by the superintendent, the
    24  insurer identifies evidence of a fraudulent insurance act,  the  insurer
    25  may  cancel  or  rescind the insured's physical damage coverage, and may
    26  report such evidence of a fraudulent insurance act  to  law  enforcement
    27  authorities.  In  connection  with  providing  the  inspection form, the
    28  insurer shall also issue a notice to the insured containing the language
    29  prescribed in subsection (d) of section four hundred three of this chap-
    30  ter.
    31    (17) The superintendent may promulgate additional regulations specific
    32  to this subsection.
    33    (18) Unless  the  superintendent  promulgates  additional  regulations
    34  specific  to this subsection, in addition to satisfying the requirements
    35  of this subsection, the insurer and the insured shall also  comply  with
    36  the  applicable  inspection standards prescribed pursuant to part sixty-
    37  seven of title eleven of the  New  York  codes,  rules  and  regulations
    38  except that
    39    (i)  the  insured  must  only submit photographs to the insurer or its
    40  authorized representative electronically using digital media; and
    41    (ii) if the insured electronically  transmits  the  signed,  completed
    42  inspection  report  to the insurer or its authorized representative, the
    43  insured must use an electronic signature.
    44    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    45  have become a law.