Apr 15, 2015

How do New York's new automobile photo inspection regulations affect me?

PIANY's work with Carco Group Inc. and the New York State Department of Financial Services over this past year has resulted in an adopted regulation to govern automobile photo inspections. This new regulation will make it easier for agents and policyholders to comply with mandatory photo inspection rules. Historically, PIANY has advocated for the elimination of this requirement; however, enacting these substantial changes will benefit both consumers and agents.

PIANY took the initiative to amend the regulation, by holding multiple meetings with various stakeholders and top staff at the NYDFS and engaged carrier and other producer groups to coordinate the effort to have this regulation adopted.

Changes effective April 1, 2015

The new regulation makes the following changes, which took effect April 1, 2015:

• increases the inspection deferral period from five to 14 calendar days [Section 67.4(b)];
• reduces the minimum time frame from four years to two years for an insured to be eligible for an inspection waiver for an additional and/or replacement automobile, when the insured has been continuously insured for automobile insurance with the same insurer or another insurer under common control or ownership [Section 67.3(b)(3)];
• allows an inspection waiver when an insured under a new policy had the automobile continuously insured for physical damage coverage by a previous insurer that inspected the automobile within the prior two years [Section 67.3(b)(11)];
• extends the coverage for replacement automobiles from three to five calendar days when continuously insured at least 12 months for physical damage coverage on another vehicle with that insurer [Section 67.4(i)(1)];
• recognizes the use of new technology (e.g., digital photography, electronic storage and retrieval of inspection reports and photographs, use of email) [Section 67.5];
•  expands the current renewal inspection notice requirement from 33 days prior to renewal date to at least 45 days, but no more than 60 calendar days, prior to the annual policy renewal date in order to track with Insurance Law Section 3425 [Section 67.7(c)(1)(i)]; and
• amends the definitions to clarify the types of vehicles subject to the inspection requirement and establishes definitions for a new, unused automobile, durable medium and new automobile dealer [Section 67.1].

The proposed rule also includes nonsubstantive technical changes designed to clarify various provisions in the regulation.

For an in-depth review of this new regulation, click here and here.