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A04046 Summary:

BILL NOA04046
 
SAME ASSAME AS S05388
 
SPONSORHyndman
 
COSPNSRArroyo, D'Urso
 
MLTSPNSR
 
Amd 3411, Ins L
 
Authorizes self-submission of vehicle photographs and inspection for auto insurance for personal insurance; not applicable to vehicles insured by the New York automobile insurance plan.
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A04046 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4046
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 31, 2019
                                       ___________
 
        Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
          tee 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:

     1    Section 1. Subsections (e), (f) and (h) of section 3411 of the  insur-
     2  ance law, subsections (e) and (f) as added by chapter 805 of the laws of
     3  1984, are amended and a new subsection (o) is added to read as follows:
     4    (e)  For  a  renewal of a policy referred to in subsection (d) of this
     5  section, an insurer may require, as a condition of  such  renewal,  that
     6  the  automobile  be  made  available  for inspection by the insurer, the
     7  insurer's authorized representative,  or  by  the  insured  pursuant  to
     8  subsection (o) of this section.
     9    (f) If an insurer requests an inspection pursuant to subsection (e) of
    10  this  section,  the  insured  shall  make  the  automobile available for
    11  inspection by the insurer  or the insurer's  authorized  representative,
    12  upon  reasonable  notice.  The insurer may also, upon reasonable notice,
    13  allow the insured to complete  the  automobile  inspection  pursuant  to
    14  subsection  (o) of this section. If the insured, upon reasonable notice,
    15  fails to make the automobile available for inspection  by  the  insurer,
    16  the insurer's authorized representative, or by completing the inspection
    17  pursuant  to  subsection  (o) of this section, the insurer may refuse to
    18  continue such physical damage coverage.
    19    (h) Where an inspection is made pursuant to this section, it shall  be
    20  conducted  by  the  insurer [or its], the insurer's authorized represen-
    21  tative, or by the insured pursuant to subsection (o)  of  this  section,
    22  and  shall  be recorded on a form prescribed by the superintendent. Such
    23  form shall be retained by the insurer with its policy records  for  such
    24  insured,  and a copy of such form shall be made available to the insured
    25  upon request.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06203-01-9

        A. 4046                             2
 
     1    (o) (1) An insurer may, at its option, comply with subsections (d) and
     2  (e) of this section by allowing the insured to self-inspect the  insured
     3  vehicle  and  self-submit  documentation  establishing  the  inspection,
     4  consistent with the requirements of this subsection. An insurer  is  not
     5  required  to  comply  with  subsections  (d)  and (e) of this section by
     6  allowing the insured to self-inspect the insured vehicle.
     7    (2) The self-inspection option available pursuant to  this  subsection
     8  shall only apply to vehicles insured by personal lines insurance.
     9    (3)  The  self-inspection option available pursuant to this subsection
    10  shall not apply to vehicles insured by the New York automobile insurance
    11  plan.
    12    (4) To perform an automobile inspection pursuant to  this  subsection,
    13  the  insured  must,  at  minimum,  submit the following documents to the
    14  insurer or the insurer's authorized representative:
    15    (a) digital photographs of the insured vehicle; and
    16    (b) the signed, completed inspection form referenced in subsection (h)
    17  of this section.
    18    (5) An automobile inspection performed pursuant to this subsection  is
    19  deemed  complete  only when the insurer or its authorized representative
    20  has received both the signed, completed inspection form and the required
    21  digital photographs.
    22    (6) Each digital photograph submitted by the insured must be in color,
    23  clear, and must include metadata that indicates the date and  time  that
    24  the photograph was taken.
    25    (7)  Each digital photograph submitted by the insured must be in .jpeg
    26  format, the resolution must be no less than 2048 x 1536 pixels, and  the
    27  file size per photo must be no less than 200KB but no greater than 5MB.
    28    (8)  Each digital photograph submitted by the insured must be taken no
    29  more than ten calendar days prior to the date written on the  inspection
    30  form,  and no more than fourteen calendar days after the date written on
    31  the inspection form.  The  included  metadata  must  confirm  that  each
    32  digital photograph was taken no more than ten calendar days prior to the
    33  date  written on the inspection form, and no more than fourteen calendar
    34  days after the date written on the inspection form.
    35    (9) The insured must certify the  accuracy  and  completeness  of  the
    36  information  recorded  on  the  inspection form prescribed by the super-
    37  intendent, under penalty of perjury. Any knowing misrepresentation shall
    38  constitute a "fraudulent insurance act"  as  that  term  is  defined  in
    39  subsection (a) of section four hundred three of this chapter.
    40    (10) The insured must certify the authenticity of the signature on the
    41  inspection  report  prescribed  by  the superintendent, under penalty of
    42  perjury. In accordance with section three  hundred  four  of  the  state
    43  technology law, an electronic signature is permissible.
    44    (11)  The  insurer  and/or  its  authorized  representative  must take
    45  reasonable, appropriate steps  necessary  to  ensure  the  security  and
    46  integrity of data that the insured submits pursuant to this subsection.
    47    (12)  If the insured chooses to sign the inspection form with an elec-
    48  tronic signature, the insurer and/or its authorized representative  must
    49  take  reasonable,  appropriate steps necessary to ensure the security of
    50  the electronic signature and verify its authenticity.
    51    (13) The insurer and/or its authorized representative  must  establish
    52  reasonable,   appropriate  procedures  necessary  to  ensure  that  once
    53  inspection forms are signed and submitted, they are, at minimum,  stored
    54  electronically,  in  a  secure  fashion, and are retained by the insurer
    55  and/or its authorized representative for a minimum period of time to  be
    56  determined by the superintendent.

        A. 4046                             3
 
     1    (14)  If,  upon  inspection  of the insured's digital photographs, the
     2  insurer finds that the insured has failed to comply with the  photograph
     3  submission requirements provided in this subsection or in the applicable
     4  regulations,  the insurer must request further inspection of the vehicle
     5  by the insurer or its authorized representative. Further self-inspection
     6  of  the  vehicle  pursuant  to this subsection is not permitted, and any
     7  subsequent inspection or inspections still must  be  completed  no  more
     8  than  fourteen  calendar  days after the effective date of coverage. The
     9  insurer shall have the right  to  refuse  to  continue  physical  damage
    10  coverage  until  the  insured  completes  the  subsequent  inspection or
    11  inspections.
    12    (15) If, upon inspection of the  insured's  digital  photographs,  the
    13  insurer identifies inaccuracies or errors in the information recorded on
    14  the inspection form, the insurer must  request further inspection of the
    15  automobile  by  the  insurer  or  its authorized representative. Further
    16  self-inspection of the  vehicle  pursuant  to  this  subsection  is  not
    17  permitted.  The insurer shall have the right to refuse to continue phys-
    18  ical  damage  coverage  until  the  insured  completes  the   subsequent
    19  inspection or inspections.
    20    (16)  If,  upon inspection of the insured's digital photographs and/or
    21  review of the inspection form  prescribed  by  the  superintendent,  the
    22  insurer  identifies  evidence of a fraudulent insurance act, the insurer
    23  may cancel or rescind the insured's physical damage  coverage,  and  may
    24  report  such  evidence  of a fraudulent insurance act to law enforcement
    25  authorities. In connection  with  providing  the  inspection  form,  the
    26  insurer  must also issue a notice to the insured containing the language
    27  prescribed in subsection (e) of section four hundred three of the insur-
    28  ance law.
    29    (17) The superintendent may promulgate additional regulations specific
    30  to this subsection.
    31    (18) Unless  the  superintendent  promulgates  additional  regulations
    32  specific  to this subsection, in addition to satisfying the requirements
    33  of this subsection, the insurer and the insured must  also  comply  with
    34  the applicable inspection standards prescribed pursuant to 11 NYCRR § 67
    35  except that:
    36    a.  The  insured  must  only  submit photographs to the insurer or its
    37  authorized representative electronically using digital media; and
    38    b. If the  insured  electronically  transmits  the  signed,  completed
    39  inspection  report  to the insurer or its authorized representative, the
    40  insured must use an electronic signature.
    41    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    42  have become a law. Effective immediately, the addition, amendment and/or
    43  repeal  of  any  rule  or regulation necessary for the implementation of
    44  this act on its effective date are authorized to be made  and  completed
    45  on or before such effective date.
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