Sec. 67.7. Standards for renewal inspections

(a) An insurer may require that a named insured’s automobile be reinspected as a condition of renewing the automobile’s physical damage insurance.

(b) An insurer shall document any renewal inspection requirement in its plan of operations and shall base any such requirement on underwriting criteria that relates to the risk being insured. An insurer shall not apply any renewal inspection requirement in an unfair and discriminatory manner.

(c)

(1) Whenever an inspection of the insured automobile is required upon renewal of the automobile’s physical damage insurance, the insurer shall:

(i) mail, deliver or transmit the Confirmation of Physical Damage Coverage--Notice of Mandatory Photo Inspection Requirement (NYS APD form B) or a substantially equivalent form to the named insured and the producer of record at least 45 but not more than 60 calendar days prior to the annual policy renewal date to provide notification to the named insured that:

(a) an inspection of the insured automobile is required within 30 calendar days from the named insured’s private passenger automobile physical damage insurance annual policy renewal date; and

(b) if the named insured fails to make the insured automobile available for inspection, then the insurer shall suspend the automobile physical damage insurance at 12:01 a.m. on the 31st day after the annual policy renewal date;

(ii) advise the named insured that the insurer or its authorized representative shall provide the named insured with a copy of the inspection report but is not required to supply the named insured with copies of inspection photographs, unless the insurer voluntarily elects to do so and, in which case, the notice should so specify;

(iii) retain proof of mailing of the notification of the renewal inspection requirement in the named insured's policy record; and

(iv) assist the named insured with arranging a renewal inspection at a time and location that is reasonably convenient for the named insured in accordance with the standards set forth in section 67.5(a) of this Part.

(2) If an insurer fails to mail, deliver or transmit timely notice of the renewal inspection requirement to the named insured in accordance with the procedures set forth in paragraph (1) of this subdivision, then upon discovery of that failure, the insurer shall:

(i) promptly mail, deliver or transmit notice of the renewal inspection requirement as required by paragraph (1) of this subdivision; and

(ii) provide automobile physical damage insurance for the insured automobile until the later of 45 calendar days from the date of the delayed notice or 30 calendar days from the named insured’s annual policy renewal date.

(d) If a named insured does not make the insured automobile available for the renewal inspection at least ten calendar days prior to the expiration of the deferral period provided by subdivision (c) of this section, then the insurer shall:

(1) mail, deliver or transmit a second Confirmation of Physical Damage Coverage--Notice of Mandatory Photo Inspection Requirement (NYS APD form B) or a substantially equivalent form to the named insured, producer of record and any lienholders, restating that failure to have the insured automobile inspected prior to the expiration of the deferral period shall result in suspension of the automobile physical damage insurance; and

(2) retain proof of mailing of the second notice to the named insured in the named insured’s policy record.

(e) If the named insured fails to make the insured automobile available for the renewal inspection prior to expiration of the deferral period specified in subdivision (c) of this section, then the insurer shall suspend the automobile physical damage insurance effective at 12:01 a.m. on the day following the last day of the deferral period and in accordance with the requirements of section 67.6 of this Part. If the named insured makes the insured automobile available for the renewal inspection after the insurer suspends the automobile physical damage insurance, then the insurer shall accept the inspection and reinstate the automobile physical damage insurance effective as of the date and time of the renewal inspection pursuant to section 67.6 of this Part.

(f) If the insurer fails to mail or deliver the initial written notice of inspection to the insured in the manner specified in 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) Section 67.5 of this Part shall also apply to renewal inspections.