S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5889
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              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:
 
   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.
                                                            LBD03446-04-3
              

 S. 5889                             2
 
 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.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall expire and be deemed repealed Octo-
 ber  1,  2027.  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.