Current through Register Vol. 46, No. 39, September 25, 2024
(a) Unless an
insurer either waives an inspection or immediately inspects the automobile,
upon a named insured's request for private passenger automobile physical damage
insurance, an insurer shall, at the time of the insured's request, notify the
named insured of the physical damage inspection requirement.
(b) At the insurer's option, the automobile
may be inspected prior to the effective date of coverage but no more than ten
days prior to the effective date or defer the inspection for 14 calendar days
after the effective date.
(c) The
notification specified in subdivision (a) of this section shall advise the
named insured:
(1) of one or more inspection
locations where the inspection may be completed during the fourteen-day
deferral period;
(2) of the
potential consequences of the named insured's failure to make the insured
automobile available for inspection; and
(3) that coverage will be suspended at 12:01
a.m. on the day following the fourteenth day after the effective date of
coverage if the mandatory inspection is not timely completed.
(d) An insurer's failure to comply
with the notice requirements contained in this subdivision shall not relieve
the insurer of its obligation to inspect.
(e) If an insurer defers the inspection
requirement as permitted by this section, then the insurer shall:
(1)
(i)
immediately require the named insured to sign the ACKNOWLEDGEMENT OF
REQUIREMENT FOR PHOTO INSPECTION (NYS APD form D), contained in section
67.12 of this Part, or a
substantially equivalent form, and retain a copy of the signed acknowledgement
in the named insured's policy record; or
(ii) mail, deliver or otherwise transmit the
CONFIRMATION OF PHYSICAL DAMAGE COVERAGE - NOTICE OF MANDATORY PHOTO INSPECTION
REQUIREMENT (NYS APD form B), contained in section
67.12 of this Part, or a
substantially equivalent form, to the named insured and the producer of record
and retain a copy of the confirmation notice and proof of mailing thereof in
the named insured's policy record.
(2) retain documentation in the named
insured's policy record to verify that the insurer notified the named insured
of the inspection requirement as provided in this section.
(f) If an insurer notifies the named insured
of the inspection requirement in person or by telephone, then the insurer shall
maintain a record of the name of the person giving notice of the inspection
requirement and the inspection locations provided to the named
insured.
(g) If an insurer notifies
the named insured through an automated telephone voice response system or
electronically via the internet, then the insurer shall:
(1) verify that the named insured consented
to receive electronic notification;
(2) verify that the named insured
acknowledged receipt of the electronic or automated telephone voice response
system notification; and
(3)
maintain a record of the inspection locations selected by or provided to the
named insured.
(h) If
the named insured failed to acknowledge receipt of the electronic or automated
telephone voice response system notification or failed to select one or more
inspection locations, then the insurer shall notify the named insured of the
inspection requirement in person or by telephone.
(i)
(1) If
an insurer has continuously provided automobile physical damage insurance for a
named insured's automobile for at least 12 months and the named insured
acquires ownership of an automobile that is intended to replace a currently
insured automobile described in the policy, then the insurer may extend the
same type and level of automobile physical damage insurance to the replacement
automobile without a coverage request from the named insured for five calendar
days from the day that the named insured acquired the replacement automobile.
The time frames and notification requirements specified in this section shall
commence at the conclusion of the five-calendar-day period.
(2) An insurer that makes an election
pursuant to this subdivision (i)(1) of this section shall file an appropriate
policy endorsement with the superintendent pursuant to Insurance Law section
2307(b) and shall furnish a copy of such endorsement to all of its insureds who
have physical damage coverage.
