Bill Text: NY S05889 | 2023-2024 | General Assembly | Introduced

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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: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-04-26 - SUBSTITUTED BY A3172A [S05889 Detail]

Download: New_York-2023-S05889-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5889

                               2023-2024 Regular Sessions

                    IN SENATE

                                     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:

     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-
    21  intendent.   If, at the time of the request for such coverage, the auto-
    22  mobile is unavailable for inspection because of conditions  of  purchase
    23  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

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