S T A T E   O F   N E W   Y O R K
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                                  2931

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2011
                               ___________

Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred 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

  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.
                                                           LBD00571-01-1

              

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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.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to  all
insurance policies issued, renewed, altered or modified on or after such
effective date.