New York State
MANDATORY UNDERWRITING INSPECTION REQUIREMENTS FOR
PRIVATE
PASSENGER AUTOMOBILES
PART 67: (Regulation 79)
(Statutory authority: Insurance Law, §§ 21, 63, 167.d, 201, 301, 3411, 5303)
Section
67.0 Preamble
67.1
Definitions
67.2
Mandatory inspection requirements for private passenger
automobiles insured under a new policy or endorsement or insured as an
additional or replacement vehicle effective on and after December 1, 1977.
67.3
Waivers of mandatory inspection
67.4
Deferral of mandatory inspections: standards for deferrals
67.5
Standards for inspections
67.6
Standards for suspensions
67.7
Renewal inspection – standards
67.8
Standards for inspection of assignments by the New York
automobile insurance plan.
67.9
Required amendatory endorsements
67.10
Permissible premium adjustments
67.11
Forms
Historical Note
Part (§§ 67.0-67.8) filed Oct. 7, 1977: repealed. new filed
April 15, 1982 eff. June 1, 1982.
Section 67.0 Preamble
(a) Section
167-d, now Section 3411 of the Insurance Law, which was added by chapter 892 of
the Laws of 1977, contains inspection requirements applicable to the issuance
and renewal of automobile physical damage coverage effective, on and after
December 1, 1977.
(b) It shall be
the responsibility of every insurer which issues and delivers automobile
physical damage insurance in this State and of the New York automobile
insurance plan (“the plan”) to establish and maintain inspection procedures
which fully comply with Section 3411, as implemented by the provisions of this
Part. On or before December 1, 1977, each such insurer and the plan shall file
with the Superintendent of Insurance, for his review, a statement describing in
detail its plan of operation for establishing and adequately maintaining an
inspection system. Any amendments to the plan of operation shall take effect
upon filing with the superintendent.
Failure to adhere to the provisions of Section 3411 and this Part shall
subject the violator to the penalty provisions of the Insurance Law, including
Section 3411(n).
Historical Note
Sec. filed Oct 7, 1977:
repealed. new filed April 15, 1982: amd. filed Jan. 31. 1986 eff. Feb 1. 1986.
Amended (a) and (b)
67.1 Definitions
The following shall govern the
construction of the terms used in this Part:
(a)
Private passenger automobile shall be defined as all owned or
leased 4-wheeled motor vehicles including: station wagons, jeep-type vehicles,
pick-up trucks, panel trucks, delivery sedans and vans, except vehicles
weighing more than 6,500 pounds unloaded. This definition shall apply solely to
the mandatory inspection requirement for private passenger automobiles
contained in Section 3411 of the Insurance Law.
(b)
Insured means the named insured (as defined in the policy) or
an applicant for automobile physical damage insurance.
(c)
Automobile physical damage insurance means a policy providing
one or more of the following insurance coverages:
(i)
collision;
(i)
comprehensive;
(i)
fire or theft
(d)
Nonowned automobile means a private passenger automobile in
the possession of the insured or being operated by the insured which is neither
owned by nor furnished for the regular use of either the named insured or any
relative (as defined in the policy), other than a temporary substitute
automobile.
(e)
Temporary substitute automobile means any private passenger
automobile, not owned by the named insured, while temporarily used with the
permission of the owner as a substitute for the owned automobile, when the
latter is withdrawn from normal use because of breakdown, repair, servicing,
loss or destruction.
(f)
Certificate of mailing means a notice by regular mail, with a
certificate of mailing, properly endorsed by the United States Postal Service.
(g)
Inspection service means any person or legal entity registered
with the Insurance Department to perform the inspections required by this Part.
Such inspections service shall maintain a record of the name, address and
signature of all persons authorized by such service to perform the required
inspection prior to such person performing any inspection pursuant to this
Part.
(h)
Authorized representative means, in this State, any person,
legal entity or inspection service, other than the insured, licensed or
registered in any capacity by the New York Insurance Department or, outside of
this State, any person or legal entity, other than the insured, licensed or
registered by the insurance department of the state in which the inspection
will be conducted. All authorized
representatives must be designated in writing by the insurer. The competency
and trustworthiness of the authorized representative in the conduct of the
inspection provided for in this Part shall be the responsibility of the
insurer.
(i) Book
of business means all automobile insurance written by one producer with one
insurer.
Historical Note
Sec. filed Oct 7, 1977: amd.
filed June 26, 1980: repealed. new filed April 15, 1982: amd. filed Jan. 31,
1986 eff. Feb.1, 1986. Amended (a).
67.2 Mandatory inspection requirements for private passenger
automobiles insured under a new policy or endorsement or insured as an
additional or replacement vehicle effective, on or after December 1, 1977.
(a)
No new policy or endorsement insuring a private passenger
automobile shall be issued in this State to provide coverage for automobile
physical damage unless the insurer has inspected the automobile.
(b)
Automobile physical damage coverage shall not be effective on
an additional or replacement private passenger automobile until the insurer has
inspected the automobile.
Historical Note
Sec. filed Oct 7. 1977: repealed. new filed April 15, 1982
eff. June 1, 1982.
67.3 Waivers of mandatory
inspection
(a)
An insurer shall waive or dispense with a mandatory inspection
of:
(1)
a temporary substitute automobile; and
(2) an automobile, which is leased for less than
six months, provided the
insurer receives the lease or
rental agreement containing a description of
the leased automobile including its
condition. Payment of a physical
damage loss shall be conditioned
upon receipt of the lease or rental
agreement.
(b)
An insurer may waive or dispense with a mandatory inspection
under any of the following circumstances:
(1)
During calendar year 1982, all 1975 and older model year
vehicles. On January 1, 1983, and on each January 1st thereafter,
the applicable model year shall be moved forward by one year. For example: in
1982 an insurer must inspect 1976 and newer model year vehicles and in 1983 an
insurer must inspect 1977 and newer model year vehicles. An insurer may, in its
filed plan of operation, elect to inspect specific vehicles included within
this waiver. Such exceptions to this
optional waiver must be based on underwriting criteria uniformly applied.
(2)
Where a new, unused automobile is purchased or leased from a
franchised automobile dealership and the insurer is provided with either a copy
of the bill of sale which contains a full description of such automobile,
including all options and accessories, or a copy of the lease or MV-50 form,
provided by the Department of Motor Vehicles, which establishes transfer of ownership
from the dealer to the customer and a copy of the window sticker or advanced
dealer shipping notice (invoice) showing the itemized options and equipment in
additional to the total retail price of the vehicle on which will be added any
dealer installed options installed on the vehicle at the time of sale or lease.
The physical damage coverage on such new, unused automobile shall not be
suspended during the term of the policy due to the insured’s failure to provide
the required document(s). Payment of a claim shall be conditioned upon receipt
of the insurer of such document(s) and no physical damage loss occurring after
the effective date of coverage shall be payable until the document(s) are
provided to the insurer. If the above document(s) are not submitted by the
insured 60 days prior to the annual renewal date, the insurer upon renewal of
the automobile physical damage insurance must require a physical inspection,
pursuant to the provisions of Section 67.7, of this Part.
(3) For an
additional and/or replacement vehicle, where the named insured has been
continuously insured for automobile insurance, with the same insurer, or
affiliate, for four or more policy years.
An insurer may, in its filed plan of operation, elect to inspect
specified vehicles included within this waiver. Such exceptions to this
optional waiver must be based on underwriting criteria uniformly applied.
(4) Where a
nonowned automobile is insured under a policy providing automobile physical
damage insurance issued by an insurer, which has inspected such automobile in
accordance with the provisions of this Part.
(5) Where the
insured automobile is insured under a commercially rated policy, which insures
five or more motor vehicles.
(6) Where a
producer is transferring a book of business from one insurer to other
insurer(s).
(7) When an
individual insured’s coverage is being transferred by an independent insurance
agent (as defined in Section 2101(b) of the Insurance Law) to a new insurer and
said agent provides the new insurer with a copy of the inspection report
completed on behalf of the previous insurer, provided the independent agent
represents both insurers, and the insured vehicle was physically inspected by
the previous insurer.
(8) When one
insurer has agreed to accept the majority of another insurer’s book of
automobile physical damage insurance written in New York State and an
individual insured has elected to transfer coverage to the new insurer from the
previous insurer, which had inspected the insured automobile in accordance with
the provisions of this Part, provided that the previous insurer supplies the
new insurer with a copy of the inspection report that was completed on its
behalf.
(9) Where an
individual insured’s coverage is being voluntarily written by an insurer in
accordance with a program, approved by the superintendent, that is designed to
reduce the number of persons insured pursuant to the provisions of Article 53
of the Insurance Law, provided that the insured vehicle was physically
inspected by the insurer assigned by the New York Automobile Insurance Plan
(NYAIP) and that such insurer supplies the new insurer with a copy of the
inspection report that was completed on its behalf. Such coverage must be
effective with the new insurer immediately after the termination of the coverage
with the insurer assigned by the NYAIP.
(10) Where an insurer has agreed to write an
individual insured’s coverage,
which is otherwise terminating
with another insurer under common
control or ownership with the
terminating insurer and where the
terminating insurer had
inspected the insured motor vehicle in
accordance with the provisions
of this Part.
(c) If a
mandatory inspection is waived pursuant to paragraph (7), (8), (9) or (10) of
this subdivision and if the new insurer does not receive a copy of the
inspection report 60 days prior to the first annual renewal date, the insurer,
upon renewal of the automobile physical damage insurance, must be a physical
inspection pursuant to the provisions of Section 67.7 of this Part.
Historical Note
Sec. filed Oct. 7, 1977.
amd. filed Jan. 31, 1978: repealed. new filed April 15. 1982: amd. filed March
17, 1988 eff. April 15, 1988. Amended (b). Amended January 21, 1997, eff.
February 5, 1997, added par. 8,9, 10 and (c).
67.4 Deferral of mandatory inspections: standards for
deferrals.
(a)
Upon an insured’s request for coverage for automobile physical
damage insurance on an additional or replacement vehicle the insurer shall
provide coverage immediately and shall defer the mandatory inspection for the
five calendar days following the effective date of coverage, if the insurer is
required, pursuant to Section 3425 of the Insurance Law, to provide automobile
physical damage coverage on an additional or replacement automobile.
(b)
An insurer may defer the mandatory inspection under any of the
following circumstances:
(1) On new business for five calendar days
following the effective date of
coverage.
(2) On
replacement vehicles, an insurer may provide the same type of level of physical
damage coverage, which covered the replaced automobile, without a request for
coverage by the insured. Such automatic coverage prior to the insured’s request
for coverage shall be for a period of three days, including the day on which
the automobile is acquired. The three-day period shall be extended by one day
for each Saturday, Sunday, or any New York State legal holiday falling within
the period. The insurer’s election shall apply only to automobiles replacing
covered automobiles which were insured by the insurer for physical damage
coverage for at least the 12-month period preceding the replacement date and
must apply to all private passenger automobile insurance, including New York
automobile insurance plan policies, written by such insurer. An insurer, which
makes an election pursuant to this clause, shall file an appropriate policy
endorsement with the superintendent and furnish a copy of such endorsement to
all of its insureds that have physical damage coverage.
(c)
(1) For inspection of new business for which the five-day
deferral has been
granted, and for additions and
replacements, to an existing policy, unless
the inspection and the inspection
report form are completed immediately
upon the request for coverage, an
insurer shall either immediately confirm
physical damage coverage and remind
the insured of the inspection
requirement on a prescribed
confirmation letter or immediately obtain the
prescribed acknowledgements signed
by the insured (applicant). Insurers
must use the prescribed CONFIRMATION OF PHYSCIAL DAMAGE
COVERAGE--NOTICE OF MANDATORY PHOTO
INSPECTION
REQUIREMENT letter (NYS APD form
B), with a copy thereof to the
producer of record, or the
prescribed ACKNOWLEGEMENT OF
REQUIREMETN FOR PHOTO
INSPECTION (NYS APD form D),
contained in Section 67.11 of this
Part. A copy of the notice (form B)
addressed to the insured, and
Certificate of Mailing thereof, or the
completed acknowledgement
(form D) shall be retained by the insurer in
the insured’s policy record.
The insurer shall, at the time coverage is
effected, furnish the insured
with an inspection site where the inspection
can be conducted during the five
calendar day period. The location of an
inspection site or sites and the
consequences of the insured’s failure to
obtain a timely inspection
shall be furnished immediately to the insured
either in person or by telephone.
Documentation of such verbal notice,
including name of the person giving
the notice and the identity of the
sites(s) provided must be contained
in the insured’s policy record.
(2) When an insurer does not grant a deferral for
new business as permitted by
Section 67.4(b)(1) of this Part,
it shall arrange for the inspection to take
place within five calendar days
after the request for coverage. The insurer
shall,
at the time coverage requested, furnish the insured with an
inspection site where the inspection can be conducted during the five
calendar day period. The location of an inspection site or sites and the
consequences of the insured’s failure to obtain a timely inspection
shall be
furnished immediately to the insured either in person or by telephone.
Documentation of such verbal notice, including the name of the person
giving
the notice and the identity of the site(s) provided must be contained
in the
insured’s policy record.
Historical Note
Sec. filed Oct. 7, 1977:
amds. filed Dec. 30, 1977; Jan 31, 1978: March 3, 1980: repealed. new filed
April 15, 1982 amd. filed Jan. 31, 1986 eff. Feb. 1, 1986. Amended (a).
67.5
Standards for inspection
(a) Inspections
required or permitted pursuant to this Part shall be made by a designated
authorized representative of the insurer at a time and place reasonably
convenient to the insured. A reasonably convenient time shall include, in
addition to customary business hours, sufficient early morning, evening and
weekend hours. In a city with a population of 100,000 or more and in
Westchester County, Nassau County, Suffolk County and New York City, a
reasonably convenient place shall not be more than 10 miles from the place
where the automobile is principally garaged.
In all other areas, a reasonably convenient place shall not be more than
25 miles from the place where the automobile is principally garaged.
(b) If the
insured acquires an additional or replacement automobile outside of New York
State, and such automobile will be located outside New York State until after
the expiration of the deferral period permitted by this Part, the insurer shall
arrange to conduct the inspection by an authorized representative during the
deferral period at a place which shall not be more than 50 miles from the
temporary location.
(c) (1)
Any inspection authorization forms issued by the insurer to the insured, for
presentation to the inspector,
shall not contain the vehicle identification
number (VIN) of the vehicle to be
inspected.
(2) The inspection shall
be recorded on the prescribed AUTOMOBILE
INSURANCE INSPECTION REPORT (NYS
APD form A), contained in
Section 67.11 of this Part. Two color photographs, taken as directed on
the
inspection report, shall be attached
thereto. In addition, a color photograph
must be attached showing a
close-up (using a special camera attachment if
necessary), of the Environmental
Protection Agency (EPA) sticker, located on
the driver’s side doorjamb. The
photograph must be of sufficient clarity that
the information contained on the
EPA sticker is legible. The inspection may
take additional photographs
showing any damaged areas, which shall also be
attached to the report. The report and photographs shall be retained
by the
insurer in the insured’s policy
record for six year from the date of inspection,
except as provided in subdivision (f) of
this section. A copy of the report,
without photographs, shall be
given to the insured by the insurer.
(d) There shall
be no charge to the insured for the cost of any inspection.
(e) The
competency and trustworthiness of the inspector in the conduct of the
inspections provided for in this Part shall be the responsibility of the
insurer.
(f) An
insurer shall utilize authorized representatives or inspection services, who
shall:
(1) verify the
accuracy, completeness and signature of the inspector for each inspection
report in writing;
(2) utilize
sequentially numbered inspection reports and maintain a control system on such
reports;
(3) retain and
supply to an insurer, upon request, a copy of any inspection report which was
completed within three years of the date of inspection and;
(4) provide an
optional service, on an additional fee basis, to insurers whereby the
inspection reports, including photos, are retained by the authorized
representative or inspection service. In addition, the authorized
representative or inspection service shall:
i.
maintain original inspection reports and photographs in such a
manner as to facilitate rapid retrieval, and for at least six years from the
date of inspection; and
ii.
upon the request of an insurer, mail or deliver the inspection
report to the insurer so that it is received within two business days of such
request.
(g) (1)
The inspection report shall be used by the insurer to document previous
damage, prior condition, options
and mileage of the automobile pursuant to
the standards for settlement of
automobile physical damage claims prescribed
in Section 216.7 of this Title.
(2)
A copy of the inspection report and photographs must be
utilized and made a part of the insurer’s claim file, in the settlement of all
unrecovered theft claims. The inspection report must be part of the claim file
regardless of whether or not the loss payment is reduced based on the
information contained therein. Such inspection report must come from the
insured’s policy record.
Historical Note
Sec. filed Oct. 7, 1977:
amds. filed: Jan 31, 1978: June 26, 1980: repealed. new filed April 15, 1982.
amds. filed: Jan. 31, 1986: March 17, 1988 eff. April 15, 1988. Amended (c)(2).
67.6
Standards for suspensions
(a) If the
mandatory inspection is not conducted prior to the expiration of the five
calendar day deferral period specified in Section 67.4 of this Part, automobile
physical damage coverage on the automobile shall be suspended at 12:01 a.m., of
the day following the fifth calendar day, and such suspension shall continue
until the inspection is effected. The insurer, however, must inspect the
automobile and reinstate coverage for automobile physical damage if the insured
thereafter requests an inspection. Any such reinstatement shall be effective at
the time of the inspection and, for the purpose of Section 167-a or 167-aa of
the Insurance Law shall not be considered new business.
(b) Whenever
automobile physical damage coverage is suspended, the insurer shall, between
the 20th and 30th calendar day after the effective date
of such suspension, mail to the insured, the producer of record, and any lien
holders a prescribed CONFIRMATION OF SUSPENSION OF PHYSICAL DAMAGAE COVERAGE
(NYS APD form C contained in Section 67.11 of this Part). The insurer shall
obtain a certificate of mailing of the confirmation to the insured. Whenever
there is a suspension of physical damage coverage for more than 10 days, the
insurer shall make a pro rata premium adjustment (return premium or credit)
which shall be mailed to the insured no later than 45 days after the effective
date of the suspension.
(c) If the
automobile is not inspected pursuant to this Part due to the fault of the
insurer, or the insurer fails to give the oral notice required by Section
67.4(c) of this Part or mail or deliver the CONFIRMATION OF PHYSICAL DAMAGE
COVERAGE—NOTICE OF MANDATORY PHOTO INSPECTION REQUIREMENT (NYS APD form B) or
obtain the ACKNOWLEDGEMENT OF REQUIREMENTS FOR PHOTO INSPECTION (NYS APD form
D), contained in Section 67.11 of this Part, physical damage coverage on the
automobile shall not lapse. The failure
of the insurer to act promptly does not relieve it of its obligation to
inspect. An insurer’s failure to comply with the provisions of subdivision (b)
of this section does not restore physical damage coverage, but shall subject
the insurer to a penalty pursuant to Section 3411(n) of the Insurance Law.
Historical Note
Sec. filed Oct. 7, 1977:
repealed. new filed April 15, 1982: amd. filed Jan. 31, 1986 eff. Feb. 1, 1986.
Amended (c).
67.7 Renewal inspection – standards.
(a)
After the mandatory inspection is conducted pursuant to
Section 67.2 of this Part, the insurer may require that the insured automobile
be reinspected as a condition of any or all, subsequent annual renewals of
automobile physical damage coverage.
(b)
Deferral of renewal inspection. An insurer shall continue
coverage for automobile physical damage for 30 calendar days after the renewal
date if it requires a renewal inspection pursuant to subdivision (a) of this
section.
(c)
Whenever a renewal is conditioned upon inspection, the insurer
shall mail or deliver a written notice of the inspection requirement to the
insured at least 33 days prior to the renewal date. The insured’s policy record
shall reflect the mailing of such notice.
If the insured has not responded to the notice of inspection, the
insurer shall at least 10 days prior to the expiration of the above 30-day
deferral period, mail a second notice of inspection to the insured, to the
producer of record, and any lien holders, restating that failure to have the
automobile inspected prior to the expiration of the deferral period will result
in suspension of physical damage coverage. A certificate of mailing of the
second notice to the insured shall be retained by the insurer. The insurer shall
assist the insured in arranging a convenient appointment for the required
inspection. The written notice of the
inspection requirement shall clearly inform the insured that failure to comply
with the inspection requirement will result in the suspension of automobile
physical damage coverage. The notice shall also state that a copy of the
inspection report will be given to the insured.
(d)
If the insured automobile required to be inspected upon
renewal is temporarily located outside of New York State when the required
notice of inspection is mailed to the insured, and such automobile will
continue to be located outside New York State until the expiration of the
deferral period permitted by this Part, the insurer shall arrange to conduct
the inspection by an authorized representative before the expiration of the
deferral period at a place which shall not be more than 50 miles from the
temporary location.
(e)
Suspension of coverage.
If the insured fails to have the insured automobile inspected before the
expiration of the 30 day calendar deferral period prescribed in
subdivision (b) of this section,
physical damage coverage on the insured automobile shall be suspended effective
at 12:01 a.m. on the day following the last day of the deferral and the
suspension shall continue until such inspection is effected. The insurer, however, must reinstate
coverage for automobile physical damage if the insured thereafter completes the
inspection. Any such reinstatement
shall be effective at the time of the inspection and, for the purposes of
Section 3425 of the Insurance Law, shall not be considered new business.
(f)
If the insurer fails to mail or deliver the initial written
notice of inspection to the insured in the manner specified in the subdivision
(c) of this section, it shall, nevertheless, give written notice of the
inspection requirement, and automobile physical damage coverage shall continue
without the required inspection past the renewal date for up to 33 days from
the date of the delayed notice.
(g)
An insurer shall make every effort to conduct a renewal
inspection permitted by this Part in advance of the normal inspection period
for such risk, in order to mitigate any hardship to the insured, which would
otherwise result.
(h)
If an automobile is not inspected pursuant to this Part due to
the fault of the insurer, physical damage coverage on the automobile shall not
lapse.
(i)
The provisions of Section 67.5(a), (c)-(g) and 67.6(b) of this
Part shall also be applicable to renewal inspections.
Historical Note
Sec. filed Oct. 7, 1977;
repealed, new filed April 15, 1982; amd. filed Jan. 31, 1986 eff. Feb. 1, 1986.
Amended (e).
67.8
Standards for inspection of assignments by the New York automobile insurance
plan.
The standards for
conducting inspections contained in this Part shall be applicable to new
assignments by the plan effective, on or after December 1, 1977, except that
the five-calendar-day deferral period for new business provided by Section
67.4(b)(1) of this Part shall be mandatory and not permissive. The plan shall
have the same rights and obligations as an insurer to arrange for and complete
inspections required by Section 3411 of the Insurance Law and this Part. The
plan shall forward the completed prescribed AUTOMOBILE INSURANCE INSPECTION
REPORT to the designated insurer, which shall accept and be bound by such
inspection. However, the inspection requirement may be waived by the plan only
for new, unused vehicles purchased from an authorized dealer in accordance with
Section 67.3(b)(2) of this Part.
Historical Note
Sec. filed Oct. 7, 1977;
repealed. new filed: Jan. 31, 1978: April 15, 1982: amds. filed: Jan. 31, 1986;
March 17, 1988 eff. April 15, 1988.
67.9 Required amendatory endorsements.
(a)
For all policies providing automobile physical damage coverage
issued or renewed to be effective, on and after December 1, 1977, insurers may
adopt any one of the following procedures:
(1)
amend the policy by adding thereto the endorsements as set out
in subdivisions (c) and (d) of this section, which are hereby deemed approved
upon filing with the Insurance Department.
(2)
submit for Insurance Department approval the insurer’s own
substantively similar endorsements; or
(3)
submit for Insurance Department approval the insurer’s basic
policy form incorporating the substance of the endorsement set out in
subdivision (c) of this section.
(b)
An insurer, which adopts any of the above procedures, may
subsequently submit filings under any of the other procedures.
(c)
New York mandatory inspection endorsement for physical damage
coverage. Notwithstanding any conflicting provisions contained in the
automobile physical damage coverage of this policy, it is agreed that the
following conditions are added:
(1)
The company or its authorized representative has the right to
inspect any private passenger automobile, including a nonowned automobile,
insured or intended to be insured under this policy before physical damage
coverage shall be effective, except to the extent that this right is prescribed
and limited by New York State Insurance Department Regulation No. 79 (11 NYCRR
Part 67) implementing Section 3411 of the New York Insurance Law.
(2)
During the term of the policy coverage for an additional or
replacement private passenger automobile shall not become effective until the
insured notifies the company and requests coverage for the automobile.
(3)
When an inspection is required by the company the insured
shall cooperate and make the automobile available for inspection.
(d) New York
mandatory automobile repairs endorsement for physical damage. It is agreed that
payment of a physical damage loss shall not be conditioned upon the repair of
the automobile. However, the company shall be entitled to the following:
(1) a completed
“Certificate of Automobile Repairs” as prescribed by the New York State
Insurance Department;
(2) if the
automobile is repaired, an itemized repair invoice prepared by the automobile
repairer; and
(3) an
inspection of the automobile, whether or not the automobile is repaired.
Historical
Note
Sec. filed Jan. 31, 1978:
repealed. new filed April 15, 1982; amd. filed Jan. 31, 1986 eff. Feb. 1, 1986.
Amended (c) (1).
67.10 Permissible premium adjustments
a)
The Insurance Department has determined that it is reasonable
for insurers to give premium reductions when an inspection made pursuant to
this Part discloses that previous damage or prior condition of the automobile
would result in a reduction in the amount payable for settlement of an
automobile physical damage claim in the event of a total loss. Insurers may file revised premium rates,
which would be effective under such circumstances, to reduce their fire, theft
or comprehensive premium rates as follows:
|
Diminution of
Value
|
Reduction
Permitted
|
|
|
|
|
Under $500
|
None
|
|
$501-750
|
5%
|
|
$751-1,000
|
7-1/2%
|
|
$1,001 or more
|
10%
|
b)
The Insurance Department will approve rate filing containing
the foregoing reductions. Insurers may offer greater reductions than those
shown above, upon filing such proposed reductions for department review.
