What's happening
This bill exempts historical vehicles and agreed or guaranteed value auto insurance policies from inspection requirements before coverage.
Why it matters
Reduces barriers for classic car owners. By exempting historical vehicles from pre-insurance inspections, the bill makes it easier and less cumbersome for collectors and enthusiasts to insure antique or classic cars, potentially encouraging preservation and responsible ownership.
Recognizes unique insurance policy types. The exemption for agreed or guaranteed value policies acknowledges that these contracts already set a predetermined payout amount, making physical inspections less critical for determining claim values and reducing redundancy in the insurance process.
Streamlines insurance processes. By removing inspection requirements in these specific cases, the bill could simplify the workflow for insurance companies and clients, potentially resulting in faster policy issuance and renewals for affected vehicles.
Addresses niche but important market segments. This legislation responds to the distinct needs of historical vehicle owners and those with specialized insurance, offering targeted regulatory relief without broadly affecting consumer protections for standard vehicle insurance.
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Who cares
Headline styles
Ease Car Insurance Inspections
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3635
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
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.
LBD09801-01-9
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 auto- mobile 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 insur- ance, namely in the case of historical motor vehicles or vehicles writ- ten 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 consid- erably 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 gener- al, personal auto policies are not written in that manner due to depre- ciation, 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
S6695 of 2017-18.
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.