S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5388
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  self-submission  for
   automobile insurance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subsections (e), (f) and (h) of section 3411 of the  insur-
 ance law, subsections (e) and (f) as added by chapter 805 of the laws of
 1984, are amended and a new subsection (o) is added to read as follows:
   (e)  For  a  renewal of a policy referred to in subsection (d) of this
 section, an insurer may require, as a condition of  such  renewal,  that
 the  automobile  be  made  available  for inspection BY THE INSURER, THE
 INSURER'S AUTHORIZED REPRESENTATIVE,  OR  BY  THE  INSURED  PURSUANT  TO
 SUBSECTION (O) OF THIS SECTION.
   (f) If an insurer requests an inspection pursuant to subsection (e) of
 this  section,  the  insured  shall  make  the  automobile available for
 inspection by the insurer  OR THE INSURER'S  AUTHORIZED  REPRESENTATIVE,
 upon  reasonable  notice.  THE INSURER MAY ALSO, UPON REASONABLE NOTICE,
 ALLOW THE INSURED TO COMPLETE  THE  AUTOMOBILE  INSPECTION  PURSUANT  TO
 SUBSECTION  (O) OF THIS SECTION. If the insured, UPON REASONABLE NOTICE,
 fails to make the automobile available for inspection  BY  THE  INSURER,
 THE INSURER'S AUTHORIZED REPRESENTATIVE, OR BY COMPLETING THE INSPECTION
 PURSUANT  TO  SUBSECTION  (O) OF THIS SECTION, the insurer may refuse to
 continue such physical damage coverage.
   (h) Where an inspection is made pursuant to this section, it shall  be
 conducted  by  the  insurer [or its], THE INSURER'S authorized represen-
 tative, OR BY THE INSURED PURSUANT TO SUBSECTION (O)  OF  THIS  SECTION,
 and  shall  be recorded on a form prescribed by the superintendent. Such
 form shall be retained by the insurer with its policy records  for  such
 insured,  and a copy of such form shall be made available to the insured
 upon request.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06203-01-9

 S. 5388                             2
 
   (O) (1) AN INSURER MAY, AT ITS OPTION, COMPLY WITH SUBSECTIONS (D) AND
 (E) OF THIS SECTION BY ALLOWING THE INSURED TO SELF-INSPECT THE  INSURED
 VEHICLE  AND  SELF-SUBMIT  DOCUMENTATION  ESTABLISHING  THE  INSPECTION,
 CONSISTENT WITH THE REQUIREMENTS OF THIS SUBSECTION. AN INSURER  IS  NOT
 REQUIRED  TO  COMPLY  WITH  SUBSECTIONS  (D)  AND (E) OF THIS SECTION BY
 ALLOWING THE INSURED TO SELF-INSPECT THE INSURED VEHICLE.
   (2) THE SELF-INSPECTION OPTION AVAILABLE PURSUANT TO  THIS  SUBSECTION
 SHALL ONLY APPLY TO VEHICLES INSURED BY PERSONAL LINES INSURANCE.
   (3)  THE  SELF-INSPECTION OPTION AVAILABLE PURSUANT TO THIS SUBSECTION
 SHALL NOT APPLY TO VEHICLES INSURED BY THE NEW YORK AUTOMOBILE INSURANCE
 PLAN.
   (4) TO PERFORM AN AUTOMOBILE INSPECTION PURSUANT TO  THIS  SUBSECTION,
 THE  INSURED  MUST,  AT  MINIMUM,  SUBMIT THE FOLLOWING DOCUMENTS TO THE
 INSURER OR THE INSURER'S AUTHORIZED REPRESENTATIVE:
   (A) DIGITAL PHOTOGRAPHS OF THE INSURED VEHICLE; AND
   (B) THE SIGNED, COMPLETED INSPECTION FORM REFERENCED IN SUBSECTION (H)
 OF THIS SECTION.
   (5) AN AUTOMOBILE INSPECTION PERFORMED PURSUANT TO THIS SUBSECTION  IS
 DEEMED  COMPLETE  ONLY WHEN THE INSURER OR ITS AUTHORIZED REPRESENTATIVE
 HAS RECEIVED BOTH THE SIGNED, COMPLETED INSPECTION FORM AND THE REQUIRED
 DIGITAL PHOTOGRAPHS.
   (6) EACH DIGITAL PHOTOGRAPH SUBMITTED BY THE INSURED MUST BE IN COLOR,
 CLEAR, AND MUST INCLUDE METADATA THAT INDICATES THE DATE AND  TIME  THAT
 THE PHOTOGRAPH WAS TAKEN.
   (7)  EACH DIGITAL PHOTOGRAPH SUBMITTED BY THE INSURED MUST BE IN .JPEG
 FORMAT, THE RESOLUTION MUST BE NO LESS THAN 2048 X 1536 PIXELS, AND  THE
 FILE SIZE PER PHOTO MUST BE NO LESS THAN 200KB BUT NO GREATER THAN 5MB.
   (8)  EACH DIGITAL PHOTOGRAPH SUBMITTED BY THE INSURED MUST BE TAKEN NO
 MORE THAN TEN CALENDAR DAYS PRIOR TO THE DATE WRITTEN ON THE  INSPECTION
 FORM,  AND NO MORE THAN FOURTEEN CALENDAR DAYS AFTER THE DATE WRITTEN ON
 THE INSPECTION FORM.  THE  INCLUDED  METADATA  MUST  CONFIRM  THAT  EACH
 DIGITAL PHOTOGRAPH WAS TAKEN NO MORE THAN TEN CALENDAR DAYS PRIOR TO THE
 DATE  WRITTEN ON THE INSPECTION FORM, AND NO MORE THAN FOURTEEN CALENDAR
 DAYS AFTER THE DATE WRITTEN ON THE INSPECTION FORM.
   (9) THE INSURED MUST CERTIFY THE  ACCURACY  AND  COMPLETENESS  OF  THE
 INFORMATION  RECORDED  ON  THE  INSPECTION FORM PRESCRIBED BY THE SUPER-
 INTENDENT, UNDER PENALTY OF PERJURY. ANY KNOWING MISREPRESENTATION SHALL
 CONSTITUTE A "FRAUDULENT INSURANCE ACT"  AS  THAT  TERM  IS  DEFINED  IN
 SUBSECTION (A) OF SECTION FOUR HUNDRED THREE OF THIS CHAPTER.
   (10) THE INSURED MUST CERTIFY THE AUTHENTICITY OF THE SIGNATURE ON THE
 INSPECTION  REPORT  PRESCRIBED  BY  THE SUPERINTENDENT, UNDER PENALTY OF
 PERJURY. IN ACCORDANCE WITH SECTION THREE  HUNDRED  FOUR  OF  THE  STATE
 TECHNOLOGY LAW, AN ELECTRONIC SIGNATURE IS PERMISSIBLE.
   (11)  THE  INSURER  AND/OR  ITS  AUTHORIZED  REPRESENTATIVE  MUST TAKE
 REASONABLE, APPROPRIATE STEPS  NECESSARY  TO  ENSURE  THE  SECURITY  AND
 INTEGRITY OF DATA THAT THE INSURED SUBMITS PURSUANT TO THIS SUBSECTION.
   (12)  IF THE INSURED CHOOSES TO SIGN THE INSPECTION FORM WITH AN ELEC-
 TRONIC SIGNATURE, THE INSURER AND/OR ITS AUTHORIZED REPRESENTATIVE  MUST
 TAKE  REASONABLE,  APPROPRIATE STEPS NECESSARY TO ENSURE THE SECURITY OF
 THE ELECTRONIC SIGNATURE AND VERIFY ITS AUTHENTICITY.
   (13) THE INSURER AND/OR ITS AUTHORIZED REPRESENTATIVE  MUST  ESTABLISH
 REASONABLE,   APPROPRIATE  PROCEDURES  NECESSARY  TO  ENSURE  THAT  ONCE
 INSPECTION FORMS ARE SIGNED AND SUBMITTED, THEY ARE, AT MINIMUM,  STORED
 ELECTRONICALLY,  IN  A  SECURE  FASHION, AND ARE RETAINED BY THE INSURER
 AND/OR ITS AUTHORIZED REPRESENTATIVE FOR A MINIMUM PERIOD OF TIME TO  BE
 DETERMINED BY THE SUPERINTENDENT.

 S. 5388                             3
 
   (14)  IF,  UPON  INSPECTION  OF THE INSURED'S DIGITAL PHOTOGRAPHS, THE
 INSURER FINDS THAT THE INSURED HAS FAILED TO COMPLY WITH THE  PHOTOGRAPH
 SUBMISSION REQUIREMENTS PROVIDED IN THIS SUBSECTION OR IN THE APPLICABLE
 REGULATIONS,  THE INSURER MUST REQUEST FURTHER INSPECTION OF THE VEHICLE
 BY THE INSURER OR ITS AUTHORIZED REPRESENTATIVE. FURTHER SELF-INSPECTION
 OF  THE  VEHICLE  PURSUANT  TO THIS SUBSECTION IS NOT PERMITTED, AND ANY
 SUBSEQUENT INSPECTION OR INSPECTIONS STILL MUST  BE  COMPLETED  NO  MORE
 THAN  FOURTEEN  CALENDAR  DAYS AFTER THE EFFECTIVE DATE OF COVERAGE. THE
 INSURER SHALL HAVE THE RIGHT  TO  REFUSE  TO  CONTINUE  PHYSICAL  DAMAGE
 COVERAGE  UNTIL  THE  INSURED  COMPLETES  THE  SUBSEQUENT  INSPECTION OR
 INSPECTIONS.
   (15) IF, UPON INSPECTION OF THE  INSURED'S  DIGITAL  PHOTOGRAPHS,  THE
 INSURER IDENTIFIES INACCURACIES OR ERRORS IN THE INFORMATION RECORDED ON
 THE INSPECTION FORM, THE INSURER MUST  REQUEST FURTHER INSPECTION OF THE
 AUTOMOBILE  BY  THE  INSURER  OR  ITS AUTHORIZED REPRESENTATIVE. FURTHER
 SELF-INSPECTION OF THE  VEHICLE  PURSUANT  TO  THIS  SUBSECTION  IS  NOT
 PERMITTED.  THE INSURER SHALL HAVE THE RIGHT TO REFUSE TO CONTINUE PHYS-
 ICAL  DAMAGE  COVERAGE  UNTIL  THE  INSURED  COMPLETES  THE   SUBSEQUENT
 INSPECTION OR INSPECTIONS.
   (16)  IF,  UPON INSPECTION OF THE INSURED'S DIGITAL PHOTOGRAPHS AND/OR
 REVIEW OF THE INSPECTION FORM  PRESCRIBED  BY  THE  SUPERINTENDENT,  THE
 INSURER  IDENTIFIES  EVIDENCE OF A FRAUDULENT INSURANCE ACT, THE INSURER
 MAY CANCEL OR RESCIND THE INSURED'S PHYSICAL DAMAGE  COVERAGE,  AND  MAY
 REPORT  SUCH  EVIDENCE  OF A FRAUDULENT INSURANCE ACT TO LAW ENFORCEMENT
 AUTHORITIES. IN CONNECTION  WITH  PROVIDING  THE  INSPECTION  FORM,  THE
 INSURER  MUST ALSO ISSUE A NOTICE TO THE INSURED CONTAINING THE LANGUAGE
 PRESCRIBED IN SUBSECTION (E) OF SECTION FOUR HUNDRED THREE OF THE INSUR-
 ANCE LAW.
   (17) THE SUPERINTENDENT MAY PROMULGATE ADDITIONAL REGULATIONS SPECIFIC
 TO THIS SUBSECTION.
   (18) UNLESS  THE  SUPERINTENDENT  PROMULGATES  ADDITIONAL  REGULATIONS
 SPECIFIC  TO THIS SUBSECTION, IN ADDITION TO SATISFYING THE REQUIREMENTS
 OF THIS SUBSECTION, THE INSURER AND THE INSURED MUST  ALSO  COMPLY  WITH
 THE APPLICABLE INSPECTION STANDARDS PRESCRIBED PURSUANT TO 11 NYCRR § 67
 EXCEPT THAT:
   A.  THE  INSURED  MUST  ONLY  SUBMIT PHOTOGRAPHS TO THE INSURER OR ITS
 AUTHORIZED REPRESENTATIVE ELECTRONICALLY USING DIGITAL MEDIA; AND
   B. IF THE  INSURED  ELECTRONICALLY  TRANSMITS  THE  SIGNED,  COMPLETED
 INSPECTION  REPORT  TO THE INSURER OR ITS AUTHORIZED REPRESENTATIVE, THE
 INSURED MUST USE AN ELECTRONIC SIGNATURE.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.