What's happening
This bill exempts historical vehicles and agreed or guaranteed value automobile insurance policies from inspection requirements for physical damage coverage.
Why it matters
Reduces regulatory burden for owners of historical vehicles. by removing inspection requirements, potentially making it easier and less costly to insure and maintain these collectible or antique cars.
Supports collectors and specialty insurers. by exempting cars insured under agreed or guaranteed value policies from inspections, which may encourage more tailored, flexible policies for unique or high-value vehicles.
May speed up the process of obtaining or renewing coverage. for these types of vehicles, since policyholders and insurers can skip the step of arranging and completing a physical inspection.
Reflects recognition that standard inspection protocols may not be appropriate. for vehicles with special status (historical or agreed-value), acknowledging their distinct use, value assessment, and risk profiles compared to everyday vehicles.
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Who cares
Headline styles
Ease Car Insurance Inspections
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to rules
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6695
2017-2018 Regular Sessions
IN SENATE
June 13, 2017
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the insurance law, in relation to creating a limited exception from the requirement to conduct an inspection for purposes of the issuance or renewal of a policy of automobile physical damage insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3411 of the insurance law is amended by adding two new subsections (o) and (p) to read as follows:
(o) This section shall not apply to historical motor vehicles, as defined in schedule G of subdivision seven of section four hundred one of the vehicle and traffic law.
(p) This section shall not apply to a personal automobile physical damage insurance policy that is written on an agreed or guaranteed value basis.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13139-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to creating a limited exception from the requirement to conduct an inspection for purposes of the issuance or renewal of a policy of automobile physical damage insurance
Purpose
To exempt the photo inspection requirement as a prerequisite to receive physical damage insurance coverage for historical vehicles, also known as classic or antique cars.
Summary of provisions
Section 1. Amends Insurance Law section 3411 by adding a new subsection (o) to exempt historical motor vehicles, namely vehicles manufactured more than 25 years ago or deemed by the New York Department of Motor Vehicles (DMV) as a vehicle of historical, classic or exhibition value, from the photo inspection requirements of section 3411 as a prerequisite to obtaining physical damage insurance coverage. This measure also adds a new subsection (p) to exempt any physical damage insurance policy written on an agreed or guaranteed value basis.
Section 2. Is the effective date.
Justification
This bill seeks a very narrow exception to the legal requirement to have all motor vehicles inspected prior to obtaining physical damage insurance, namely in the case of historical motor vehicles or vehicles written on an agreed or guaranteed value basis. In the case of historical vehicles, these are vehicles that are either more than 25 years old or have been designated by DMV as vehicles with unique characteristics and of historical, classic or exhibition value.
Historical vehicles are frequently written on an "Agreed Value" basis. As the term suggests, in these policies after much research the owner and insured reach a very specific total loss value for the vehicle being insured. If it is totaled, that amount is paid in total. The nature of the vehicles being insured in the historical car market requires considerably more underwriting and research then the standard policy. It is very common to require photos as a part of the underwriting process, however, these photos may not satisfy the law's requirements. The public policy rationale for carving out these historical motor vehicles that are written on an "agreed value" policy basis is simple: there is zero dispute in the event of a total loss, and there is simply little to no fraud in this space. The underwriting eligibility requirements include driving limitations, value parameters, garaging requirements, etc. In short, these vehicles are not subject to fraud.
Since some vehicles that are written on an agreed or guaranteed value basis are not historical vehicles, this bill also exempts all vehicles written on this basis from the photo inspection requirements. In general, personal auto policies are not written in that manner due to depreciation, actual cash value and other factors. However, there are those unique and classic vehicles that, while not historical, are written on an agreed/guaranteed value basis whereby in the event of a total loss, the insurer guarantees the policy will pay the full insured amount of the vehicle. It is a reflection of the unique aspect of vehicles being insured under this product. And, further, fraud is virtually nonexistent in this particular insurance policy. This product only appeals to and makes sense for a very small portion of autos and their owners. LEGISLATIVE HISTORY :
New bill.
Fiscal implications
None.
Effective date
This act shall take effect 90 days after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.