Sec. 67.4. Deferral of the mandatory inspection requirement

(a) Unless an insurer either waives an inspection as required or permitted by section 67.3 of this Part or immediately inspects the automobile, upon a named insured's request for private passenger automobile physical damage insurance, an insurer shall, at the time of the insured’s request, notify the named insured of the New York mandatory physical damage inspection requirement.

(b) At the insurer’s option, the automobile may be inspected prior to the effective date of coverage but no more than 10 days prior to the effective date or defer the inspection for 14 calendar days after the effective date.

(c) The notification specified in subdivision (a) of this section shall advise the named insured:

(1) of one or more inspection locations where the inspection may be completed during the 14-day deferral period;

(2) of the potential consequences of the named insured’s failure to make the insured automobile available for inspection; and

(3) that coverage will be suspended at 12:01 a.m. on the day following the 10th day after the effective date of coverage if the mandatory inspection is not timely completed.

(d) An insurer’s failure to comply with the notice requirements contained in this subdivision shall not relieve the insurer of its obligation to inspect.

(e) If an insurer defers the inspection requirement as permitted by this section, then the insurer shall:

(1)

(i) immediately require the named insured to sign the Acknowledgement of Requirement for Photo Inspection (NYS APD form D), contained in section 67.12 of this Part, or a substantially equivalent form, and retain a copy of the signed acknowledgement in the named insured’s policy record; or

(ii) mail, deliver or otherwise transmit the Confirmation of Physical Damage Coverage – Notice of Mandatory Photo Inspection Requirement (NYS APD form B), contained in section 67.12 of this Part, or a substantially equivalent form, to the named insured and the producer of record and retain a copy of the confirmation notice and proof of mailing thereof in the named insured’s policy record;

(2) retain documentation in the named insured’s policy record to verify that the insurer notified the named insured of the inspection requirement as provided in this section.

(f) If an insurer notifies the named insured of the inspection requirement in person or by telephone, then the insurer shall maintain a record of the name of the person giving notice of the inspection requirement and the inspection locations provided to the named insured.

(g) If an insurer notifies the named insured through an automated telephone voice response system or electronically via the internet, then the insurer shall:

(1) verify that the named insured consented to receive electronic notification;

(2) verify that the named insured acknowledged receipt of the electronic or automated telephone voice response system notification; and

(3) maintain a record of the inspection locations selected by or provided to the named insured.

(h) If the named insured failed to acknowledge receipt of the electronic or automated telephone voice response system notification or failed to select one or more inspection locations, then the insurer shall notify the named insured of the inspection requirement in person or by telephone.

(i)

(1) If an insurer has continuously provided automobile physical damage insurance for a named insured’s automobile for at least 12 months and the named insured acquires ownership of an automobile that is intended to replace a currently insured automobile described in the policy, then the insurer may extend the same type and level of automobile physical damage insurance to the replacement automobile without a coverage request from the named insured for five calendar days from the day that the named insured acquired the replacement automobile. The time frames and notification requirements specified in this section shall commence at the conclusion of the five-calendar-day period.

(2) An insurer that makes an election pursuant to paragraph (1) of this subdivision shall file an appropriate policy endorsement with the superintendent pursuant to Insurance Law section 2307(b) and shall furnish a copy of such endorsement to all of its insureds who have physical damage coverage.