New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter B - Property and Casualty Insurance
Part 67 - Underwriting Inspection Requirement for Private Passenger Automoblies
Section 67.3 - Waiver of the inspection requirement
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 67.3
Current through Register Vol. 46, No. 39, September 25, 2024
Except where an insurer has submitted a statement waiving its right to inspections for all automobiles, the following shall apply:
(a) Mandatory waivers. An insurer shall waive an inspection of:
(1) a
temporary substitute automobile; and
(2) an automobile that is leased for less
than six months.
(b) Optional waivers. An insurer may waive an inspection for any automobile, including:
(1) where an
automobile is at least seven model years old on the effective date of
automobile physical damage insurance;
(2) where a new, unused automobile is
purchased, leased or transferred from a new automobile dealer;
(3) for an additional or replacement
automobile, where the named insured has been continuously insured for
automobile insurance with the same insurer or another insurer under common
control or ownership for at least two years;
(4) where a nonowned automobile is insured
under a policy providing automobile physical damage insurance issued by an
insurer that has inspected the automobile in accordance with the provisions of
this Part;
(5) for an automobile
insured under a policy that provides automobile physical damage insurance for
five or more automobiles;
(6) where
a licensed insurance producer transfers a book of business from one insurer to
another insurer or insurers, provided that the named insured elected to
transfer coverage to the new insurer from the previous insurer and the previous
insurer had inspected the insured automobile in accordance with the provisions
of this Part;
(7) when a licensed
independent insurance agent transfers an individual named insured's coverage to
another insurer, provided that the licensed independent insurance agent
represents both insurers, the insured automobile was physically inspected by
the previous insurer in accordance with the provisions of this Part and the
named insured elected to transfer coverage to the new insurer from the previous
insurer;
(8) when one insurer has
agreed to accept the majority of another insurer's book of automobile physical
damage insurance business covering private passenger automobiles registered in
New York State, provided that the named insured elected to transfer coverage to
the new insurer from the previous insurer provided that the previous insurer
had inspected the insured automobile in accordance with the provisions of this
Part and supplies the new insurer with a copy of the inspection report that was
completed on its behalf;
(9) where
an insurer voluntarily writes a named insured's coverage in accordance with a
program approved by the superintendent, which is designed to reduce the number
of persons insured through the NYAIP, provided that the insurer assigned by the
NYAIP physically inspected the insured automobile in accordance with the
provisions of this Part and supplies the new insurer with a copy of the
inspection report that was completed on its behalf and the coverage with the
new insurer becomes effective immediately after the termination of coverage
with the insurer assigned by the NYAIP;
(10) where an insurer has agreed to write a
named insured's private passenger automobile physical damage insurance, which
is otherwise terminating with another insurer under common control or ownership
and where the terminating insurer inspected the insured automobile in
accordance with the provisions of this Part; or
(11) under a new policy, where the named
insured's automobile has been continuously insured for automobile physical
damage insurance by the insurer issuing the new policy or any other insurer
without a lapse in coverage provided that the insurer actually inspected the
automobile within the previous two years in accordance with the provisions of
this Part.
(c) An insurer shall set forth the procedures for implementing any inspection waiver for certain automobiles, including a waiver required pursuant to subdivision (a) of this section, in the insurer's plan of operations. An insurer shall base the inspection waiver, and any exceptions to the waiver, on underwriting criteria uniformly applied.
(d)
(1) When an insurer waives an inspection
pursuant to paragraph (a)(2) of this section, the insurer may request that the
named insured submit a copy of the lease agreement that sets forth a full
description of the automobile at the time of lease or rental.
(2) When an insurer waives an inspection
pursuant to paragraph (b)(2) of this section, the insurer may request that the
named insured submit:
(i) a copy of the window
sticker or advanced dealer shipping notice (invoice) showing the total retail
price of the insured automobile including an itemized list of all factory and
dealer installed options, accessories and equipment installed on or within the
automobile at the time of sale, lease or transfer; and
(ii) a copy of the:
(a) bill of sale or lease agreement that sets
forth a full description of the automobile, including all factory and dealer
installed options, accessories and equipment installed on or within the
automobile at the time of sale, lease or transfer; or
(b) MV-50 form provided by the New York State
Department of Motor Vehicles, which establishes transfer of ownership from the
new automobile dealer to the named insured.
(3) When an insurer waives an inspection
pursuant to paragraph (a)(2) or (b)(2) of this section, the insurer may:
(i) condition payment of any physical damage
loss upon the insurer's receipt of the relevant documents set forth in
paragraph (1) or (2) of this subdivision;
(ii) not suspend coverage during the initial
annual policy term due to the named insured's failure to provide the required
documents; and
(iii) require an
inspection of the insured automobile as a condition of renewal of the private
passenger automobile physical damage insurance, pursuant to the provisions of
section 67.7(c) of this
Part, if the insurer cannot obtain a copy of the documents required by
paragraph (1) or (2) of this subdivision at least 60 calendar days prior to the
first annual renewal date.
(4)
(i) An
insurer may require as a condition of waiving an inspection pursuant to
paragraph (b)(4), (6), (7), (8), (9), (10) or (11) of this section that the
previous insurer's authorized representative actually inspected the named
insured's automobile.
(ii) When an
insurer waives an inspection pursuant to paragraph (b)(4), (6), (7), (8), (9),
(10), or (11) of this section, the insurer may:
(a) document the insurer's reason to believe
that the automobile was inspected by the previous insurer in accordance with
this Part, as well as the source of that information;
(b) request, within 10 days of the start of
coverage, confirmation that the inspection was completed and applicable
photographs were taken, and a copy of the completed inspection report and
applicable photographs from the previous insurer, insurance agent, third-party
such as the photo inspection vendor or insured, unless the insurer already has
in its possession a copy of the inspection report and applicable
photographs;
(c) not suspend
coverage during the term of the initial annual policy period due to the
previous insurer's failure to provide a copy of the previously completed
inspection report and applicable photographs; and
(d) require an inspection of the insured
automobile as a condition of renewal of private passenger automobile physical
damage insurance pursuant to the provisions of section
67.7(c) of this
Part, if the insurer does not obtain a copy of the inspection report and
applicable photographs from the previous insurer at least 60 calendar days
prior to the first annual renewal date.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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