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

                                  1305

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  ZEBROWSKI,  MAISEL, GUNTHER, GALEF, BRONSON,
  WEPRIN, TITONE -- Multi-Sponsored by -- M. of A. GABRYSZAK, THIELE  --
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00421-01-3

A. 1305                             2

or  other circumstances and is thereafter made available for inspection,
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.