New York State Assembly

 
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A03172 Summary:

A03172 Actions:

A03172 Committee Votes:

Committee:INSURANCE   Chair:Weprin      
DATE:03/22/2023AYE/NAY:21/2  Action: Favorable refer to committee Rules        
Weprin
Aye
Blankenbush
Aye
Cook
Aye
Hawley
Aye
Pretlow
Aye
Palmesano
Aye
Lavine
Aye
Gandolfo
Nay
Steck
Aye
Curran
Aye
Dilan
Aye
Jensen
Aye
Hunter
Aye
Blumencranz
Aye
Rosenthal
Absent
Bendett
Aye
Stern
Nay
Jacobson
Aye
Meeks
Aye
Forrest
Aye
Anderson
Aye
Cruz
Aye
Bores
Aye
Lunsford
Aye

Committee:RULES   Chair:Pretlow      
DATE:03/22/2023AYE/NAY:26/3  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Nay
Dinowitz
Aye
Brabenec
Nay
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Nay
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Excused
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A03172 Floor Votes:

A03172 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A3172A
 
SPONSOR: Zebrowski

 
TITLE OF BILL:
 
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
 
 
PURPOSE:
 
This bill allows an auto insurer to waive the right to inspect a motor
vehicle prior to issuing an insurance policy if such insurer has filed a
plan of operation to ensure that vehicles covered under such policy have
not sustained physical damage.
 
 
SUMMARY OF PROVISIONS:
 
Section one of the bill amends section 3411 of the insurance law to
permit an auto insurer to waive the physical inspection of an automobile
prior to insuring such vehicle if the insurer has filed a waiver with
the superintendent.
 
Section two of the bill relates to the effective date and'provides for a
sunset of October 1, 2027.
 
 
JUSTIFICATION:
 
The prior inspection law was first enacted almost a quarter century ago
to address problems of fraudulent damages to motor vehicles that were
covered after the accident had been sustained. Technology advances and
vehicle tracking systems such as VIN etchings has made it much more
difficult for persons seeking to engage in insurance fraud. While some
may still attempt to purchase policies for phantom vehicles, today's
modern Special Investigation Units (SIU's) are far better equipped to
identify such issues.
 
The current regulation, as prescribed by section 3411, is complex and
expensive for insurers to comply with, which drives up the overall cost
for all auto insurance in New York.
 
In addition, under current law, people who have no intention of commit-
ting auto insurance fraud can find at the time of an accident, that they
have lost coverage for such an accident because no auto inspection was
performed. In this situation, the insured has purchased coverage and
paid the premium, but will not be covered if his or her auto sustains
physical property damage simply because the auto was inadvertently not
 
 
 
 
 
 
 
 
 
 
 

A03172 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3172--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 2, 2023
                                       ___________
 
        Introduced by M. of A. ZEBROWSKI, GUNTHER, BRONSON, WEPRIN, STECK, HUNT-
          ER,  STIRPE,  WALLACE,  RA,  DURSO  --  Multi-Sponsored by -- M. of A.
          THIELE -- read once and referred to  the  Committee  on  Insurance  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        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:
 
     1    Section  1.  The  section  heading and subsections (d), (g) and (m) of
     2  section 3411 of the insurance law are amended to read as follows:
     3    Automobile physical damage insurance covering private passenger  auto-
     4  mobiles; standard provisions; [required] inspections; duties of insurers
     5  and insureds.
     6    (d)  A  newly  issued policy shall not provide coverage for automobile
     7  physical damage perils prior to an inspection of the automobile  by  the
     8  insurer,  unless  the  insurer  has  waived the right to such inspection
     9  pursuant to a statement of operation filed with the  superintendent.  In
    10  its  statement  of  operation, an insurer may waive the right to inspect
    11  some or all automobiles. Every statement of operation shall take  effect
    12  upon  its filing with the superintendent and may cover some or all auto-
    13  mobiles.
    14    (g) If an automobile subject to the  provisions  of  this  section  is
    15  acquired  by the insured as a replacement for or an addition to an auto-
    16  mobile insured for physical damage coverage, and  the  insured  requests
    17  physical  damage  coverage for the replacement or additional automobile,
    18  such coverage for physical damage shall not  be  effective  before  such
    19  inspection  is  made, unless the insurer has waived the right to such an
    20  inspection pursuant to a statement of operation filed  with  the  super-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03446-02-3
        A. 3172--A                          2
 
     1  intendent.   If, at the time of the request for such coverage, the auto-
     2  mobile is unavailable for inspection because of conditions  of  purchase
     3  or  other circumstances and is thereafter made available for inspection,
     4  the  insurer  shall promptly inspect the automobile, and physical damage
     5  coverage shall not become effective before the inspection has been made.
     6    (m) (1) The superintendent, in regulations implementing the provisions
     7  of this section, shall  also  require  that  insurers  take  appropriate
     8  action  to  ensure  that  there  is  wide  public  dissemination  of the
     9  provisions of this section relating to the  rights  and  obligations  of
    10  insureds and insurers.
    11    (2) The inspections provided for in this section may be dispensed with
    12  or  deferred by an insurer under circumstances specified in their state-
    13  ment of operation filed with the superintendent or in regulations of the
    14  superintendent. Such circumstances may include but are not  limited  to,
    15  the  insuring  of  a new automobile, the insuring of an automobile whose
    16  inspection would constitute a  serious  hardship  to  the  insurer,  the
    17  insured or an applicant for insurance, and the insuring of an automobile
    18  for a limited specified period of time.
    19    (3)  Inspections  made  pursuant  to  this  section  shall  be made at
    20  locations and times reasonably convenient to the insured. The results of
    21  any inspection may be considered in determining the value of the automo-
    22  bile.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law and shall expire and be deemed repealed Octo-
    25  ber 1, 2027.  Effective  immediately,  the  addition,  amendment  and/or
    26  repeal  of  any  rule  or regulation necessary for the implementation of
    27  this act on its effective date are authorized to be made  and  completed
    28  on or before such effective date.

A03172 LFIN:

 
NO LFIN

A03172 Chamber Video/Transcript: