What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides that an automobile insurer may waive the inspection of a private passenger automobile prior to providing physical damage coverage
In Assembly Committee · Insurance · Sponsor Kenneth Zebrowski
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4629
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
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 titled a plan of operation to ensure that vehicles covered under such policy have not sustained physical damage.
Read the full memo (605 words)
Summary of provisions
Section 1: Amends Insurance Law section 3411 to permit an auto insurer to waive the physical inspection of an automobile prior to insuring such a vehicle. In addition, an insured can receive coverage after sustaining an accident without first having the vehicle inspected if such insurance carrier has filed a plan of operation with the Superintendent of Insurance.
Existing law
Under current law, all motor vehicles must be inspected prior to being covered under an auto insurance policy.
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. Since 1984, mandatory equipment can be verified by standardized Vehicle Identification Numbers (VIN) adopted by the auto industry in the 1980's. Fraudulent policies purchased after an accident has taken place can easily be identified through today's new computer technology that pinpoints where and when a call was made and when a vehicle had been in an accident or repaired. 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 that their counterparts of the 1970's.
The magnitude of this aspect of auto insurance fraud is not large enough to warrant the cost and unintended consequences of the existing law. 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 committing 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 inspected.
The intent of this bill is simply to remove the burden from the Department of crafting a one size fits all solution to reform this requirement that all vehicles must be physically inspected. It allows each insurer to either comply with the existing physical inspection laws or, if it wants to, to develop its own plan of operation to ensure that it does not cover autos after a physical damage claim has been sustained. For example, an insurer may require physical inspections for auto that are valued over a certain monetary threshold or rely more on new technologies that can identify those vehicles that have already sustained physical damages.
Legislative history
2014: S4047 Referred to Insurance / A.1305 Referred to Insurance 2012: S.2496 - Referred to Insurance / A. 2931 - Referred to Insurance. 2011: S.2496 - Referred to Insurance / A. 2931 Referred to Insurance. 2010: S.1039 - Referred to Insurance / A.10171 Referred to Insurance. 2009: S.1039 - Referred to Insurance. 2008: S.2023 - Referred to Insurance. 2007: S.2023 - Referred to Insurance.
Fiscal implications
None.
Effective date
January first, next succeeding the date upon which it shall have become law, and apply to policies issued or renewed after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.