What's happening
This bill allows insured individuals to self-inspect and submit electronic photographs for automobile physical damage insurance policy issuance or renewal.
Why it matters
Expands consumer convenience and flexibility. By allowing policyholders to self-inspect and submit electronic photos for auto insurance inspections, this bill could save time, reduce the need for in-person appointments, and speed up the coverage process for renewals and new policies.
Establishes detailed digital standards and security protocols. The bill outlines specific requirements for digital photo submissions (format, resolution, metadata, timeframes) and mandates that insurers use secure systems to store and verify digital data and electronic signatures, enhancing both usability and data protection.
Introduces safeguards against fraud and errors. Policyholders must certify the accuracy and authenticity of their submissions under penalty of perjury, and insurers have the right to demand further inspection or deny coverage if photos or forms are incomplete, inaccurate, or suspected to be fraudulent—helping maintain integrity in the claims process.
Limits and clarifies scope. The self-inspection option is only available for personal lines of insurance (not commercial or New York Automobile Insurance Plan vehicles), and the Superintendent may issue further regulations, allowing for oversight and adaptation as technology and insurance practices evolve.
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Who cares
Personal auto insurance policyholders
They could submit digital vehicle photographs and a signed inspection form instead of an insurer-conducted inspection if their insurer offers the option, subject to photo standards and certifications under penalty of perjury.
Auto insurers and authorized inspection representatives
They could choose to accept self-inspections but would face data-security and recordkeeping requirements and would have to require further inspections when photos fail submission standards or reveal form errors.
New York Automobile Insurance Plan policyholders
Their vehicles would be excluded from the self-inspection option.
State insurance superintendent
The bill would authorize additional self-inspection regulations and require the superintendent to determine the minimum retention period for electronically stored inspection forms.
Headline styles
Allow Photo Car Inspections
Plain English, a few words. Used as the page title.
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.
Let Drivers Submit Car Photos
In Assembly Committee · Insurance · Sponsor Kenneth Zebrowski
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
810
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. LANZA -- 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 submission by an insured of vehicle photographs 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. Subsections (e), (f) and (h) of section 3411 of the insurance law, subsections (e) and (f) as added by chapter 805 of the laws of 1984, are amended and a new subsection (o) is added to read as follows:
(e) For a renewal of a policy referred to in subsection (d) of this section, an insurer may require, as a condition of such renewal, that the automobile be made available for inspection by the insurer or the insurer's authorized representative, or by the insured pursuant to subsection (o) of this section.
(f) If an insurer requests an inspection pursuant to subsection (e) of this section, the insured shall make the automobile available for inspection by the insurer or the insurer's authorized representative, upon reasonable notice. The insurer may also, upon reasonable notice, allow the insured to complete the automobile inspection pursuant to subsection (o) of this section. If the insured, upon reasonable notice, fails to make the automobile available for inspection by the insurer or the insurer's authorized representative, or by completing the inspection pursuant to subsection (o) of this section, the insurer may refuse to continue such physical damage coverage.
(h) Where an inspection is made pursuant to this section, it shall be conducted by the insurer or [its] the insurer's authorized representative, or by the insured pursuant to subsection (o) of this section, and shall be recorded on a form prescribed by the superintendent. Such form shall be retained by the insurer with its policy records for such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02148-01-9
S. 810 2
insured, and a copy of such form shall be made available to the insured upon request.
(o) (1) An insurer may, at its option, comply with subsections (d) and (e) of this section by allowing the insured to self-inspect the insured vehicle and self-submit documentation establishing the inspection, consistent with the requirements of this subsection. An insurer is not required to comply with subsections (d) and (e) of this section by allowing the insured to self-inspect the insured vehicle.
(2) The self-inspection option available pursuant to this subsection shall only apply to vehicles insured by personal lines insurance.
(3) The self-inspection option available pursuant to this subsection shall not apply to vehicles insured by the New York Automobile Insurance Plan.
(4) To perform an automobile inspection pursuant to this subsection, the insured shall, at minimum, submit the following documents to the insurer or the insurer's authorized representative:
(i) digital photographs of the insured vehicle; and
(ii) the signed, completed inspection form referenced in subsection (h) of this section.
(5) An automobile inspection performed pursuant to this subsection is deemed complete only when the insurer or its authorized representative has received both the signed, completed inspection form and the required digital photographs.
(6) Each digital photograph submitted by the insured shall be in color, clear, and must include metadata that indicates the date and time that the photograph was taken.
(7) Each digital photograph submitted by the insured shall be in .jpeg format, the resolution must he no less than 2048 x 1536 pixels, and the file size per photo must be no less than two hundred kilobytes nor greater than five gigabytes.
(8) Each digital photograph submitted by the insured shall be taken no more than ten calendar days prior to the date written on the inspection form, and no more than fourteen calendar days after the date written on the inspection form. The included metadata shall confirm that each digital photograph was taken no more than ten calendar days prior to the date written on the inspection form, and no more than fourteen calendar days after the date written on the inspection form.
(9) The insured must certify the accuracy and completeness of the information recorded on the inspection form prescribed by the superintendent, under penalty of perjury. Any knowing misrepresentation shall constitute a "fraudulent insurance act" as defined in section four hundred three of this chapter.
(10) The insured must certify the authenticity of the signature on the inspection report prescribed by the superintendent, under penalty of perjury. In accordance with section three hundred four of the state technology law, an electronic signature is permissible.
(11) The insurer and/or its authorized representative shall take reasonable, appropriate steps necessary to ensure the security and integrity of data that the insured submits pursuant to this subsection.
(12) If the insured chooses to sign the inspection form with an electronic signature, the insurer and/or its authorized representative shall take reasonable, appropriate steps necessary to ensure the security of the electronic signature and verify its authenticity.
(13) The insurer and/or its authorized representative shall establish reasonable, appropriate procedures necessary to ensure that once inspection forms are signed and submitted, they are, at minimum, stored
S. 810 3
electronically, in a secure fashion, and are retained by the insurer and/or its authorized representative for a minimum period of time to be determined by the superintendent.
(14) If, upon inspection of the insured's digital photographs, the insurer finds that the insured has failed to comply with the photograph submission requirements provided in this subsection or in the applicable regulations, the insurer shall request further inspection of the vehicle by the insurer or its authorized representative. Further self-inspection of the vehicle pursuant to this subsection is not permitted, and any subsequent inspection still must be completed no more than fourteen calendar days after the effective date of coverage. The insurer shall have the right to refuse to continue physical damage coverage until the insured completes the subsequent inspection.
(15) If, upon inspection of the insured's digital photographs, the insurer identifies inaccuracies or errors in the information recorded on the inspection form, the insurer shall request further inspection of the automobile by the insurer or its authorized representative. Further self-inspection of the vehicle pursuant to this subsection is not permitted. The insurer shall have the right to refuse to continue physical damage coverage until the insured completes the subsequent inspection or inspections.
(16) If, upon inspection of the insured's digital photographs and/or review of the inspection form prescribed by the superintendent, the insurer identifies evidence of a fraudulent insurance act, the insurer may cancel or rescind the insured's physical damage coverage, and may report such evidence of a fraudulent insurance act to law enforcement authorities. In connection with providing the inspection form, the insurer shall also issue a notice to the insured containing the language prescribed in subsection (d) of section four hundred three of this chapter.
(17) The superintendent may promulgate additional regulations specific to this subsection.
(18) Unless the superintendent promulgates additional regulations specific to this subsection, in addition to satisfying the requirements of this subsection, the insurer and the insured shall also comply with the applicable inspection standards prescribed pursuant to part sixtyseven of title eleven of the New York codes, rules and regulations except that
(i) the insured must only submit photographs to the insurer or its authorized representative electronically using digital media; and
(ii) if the insured electronically transmits the signed, completed inspection report to the insurer or its authorized representative, the insured must use an electronic signature.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
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 submission by an insured of vehicle photographs for purposes of the issuance or renewal of a policy of automobile physical damage insurance
Purpose
This bill allows an auto insurer to allow policyholders submit self-tak- en photos to meet the requirement to inspect a motor vehicle prior to issuing an insurance policy
Summary of provisions
Section 1: Amends Insurance Law section 3411 to permit an auto insurer to allow policyholders to submit self-taken photos to meet the require- ment for the physical inspection of an automobile prior to providing physical damage coverage for such a vehicle.
Section 2: Provides that the act shall take effect on the sixtieth day after it shall have become a law.
Existing law
Under current law, unless exempted pursuant to the provisions of Regu- lation 79 (11 NYCRR 67), all motor vehicles must be inspected prior to being covered under an auto insurance policy which provides physical damage coverage.
Justification
The current inspection law was first enacted in 1977 and, at that time, it was a state of the art fraud protection tool. Since this requirement is now forty years old, it should be modernized so as to make meeting the requirement more convenient for consumers through the use of tech- nology. This bill would allow insurers to offer their policyholders the option to meet the inspection requirement through taking a photo of their vehicle themselves and submitting it electronically, rather than burdening consumers by requiring them to interrupt their busy work and family schedules to take their vehicle to an inspection location to have the required photo taken and form completed.
Making this process more convenient is particularly important due to the dire consequences associated with a policyholder failing to secure the inspection. Currently, when a policyholder fails to secure the inspection, the insurer is required to strip physical damage coverage. In many cases, consumers are unaware that their coverage has been stripped despite, the numerous required notices and disclosures required pursuant to Regulation 79. This can result in consumers learning that they have no physical damage coverage only after a substantial loss when their claim is rejected. Obviously, this outcome is highly negative for the consumer, but it is also highly negative for the insurer who now has a very unhappy policyholder with no coverage even though they thought that they purchased coverage. It has been estimated that as many as 200,000 consumers have had their physical damage coverage suspended annually as a result of failing to secure the required photo inspection. By making modernizing this requirement and making it more convenient for consumers through the self-photo option, this bill may reduce the inci- dence of insurers being required to strip physical damage coverage and the incidence of uncovered losses.
Legislative history
2018: S.5769 - Referred to Insurance/A.7681- Referred to Insurance 2017: S.5769 - Referred to Insurance/A.7681- Referred to Insurance
Fiscal implications
None.
Effective date
Sixtieth day 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.