DFS-07-15-00004-P Mandatory Underwriting Inspection Requirement for Private Passenger Automobiles

2/18/15 N.Y. St. Reg. DFS-07-15-00004-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 7

February 18, 2015

RULE MAKING ACTIVITIES

DEPARTMENT OF FINANCIAL SERVICES

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. DFS-07-15-00004-P

Mandatory Underwriting Inspection Requirement for Private Passenger Automobiles

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rulemaking to amend Part 67 of Title 11 NYCRR.

Statutory authority:

Financial Services Law, sections 202 and 302; Insurance Law, sections 301, 3411, 5303 and art. 53

Subject:

Mandatory Underwriting Inspection Requirement for Private Passenger Automobiles.

Purpose:

Revise requirements regarding the inspection of private passenger automobiles for physical damage coverage.

Text of proposed rule:

The heading of Section 67.2 is amended to read as follows:

§ 67.2 Mandatory inspection [requirements] requirement for private passenger automobiles.

Section 67.3(d)(1) is amended to read as follows:

(d)(1) When an insurer waives an inspection pursuant to subdivision (a)(2) of this section[:

(i)], the insurer shall request that the named insured submit a copy of the lease agreement that sets forth a full description of the automobile at the time of lease or rental[; and

(ii) condition payment of any physical damage loss upon the insurer’s receipt of the relevant documents set forth in subparagraph (i) of this paragraph].

Section 67.4(e)(1)(i) and (ii) are amended to read as follows:

(i) immediately require the named insured to sign the ACKNOWLEDGEMENT OF REQUIREMENT FOR PHOTO INSPECTION (NYS APD form D), contained in section [67.13] 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 [67.13] 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.

Section 67.5(c) is amended to read as follows:

(c) The inspection shall be recorded on the prescribed AUTOMOBILE INSURANCE INSPECTION REPORT (NYS APD form A) contained in section [67.13] 67.12 of this Part.

Section 67.6(a) is amended to read as follows:

(a) If the named insured fails to make the insured automobile available for the mandatory inspection prior to expiration of the deferral period specified in section 67.4(b) of this Part, then automobile physical damage insurance on the insured automobile shall be suspended at 12:01 a.m. of the day following the [tenth] fourteenth calendar day after the effective date of coverage.

Section 67.6(c) is amended to read as follows:

(c) After an insurer suspends a named insured’s automobile physical damage insurance, the insurer shall mail, deliver or transmit [-]the prescribed CONFIRMATION OF SUSPENSION OF PHYSICAL DAMAGE COVERAGE (NYS APD form C) contained in section [67.13] 67.12 of this Part, or a substantially equivalent form, to the named insured, with a copy to the producer of record and any lienholders, no later than 20 calendar days after the effective date of automobile physical damage insurance suspension.

Section 67.7(c)(1)(i)(b) is amended to read as follows:

(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 [30th] thirty-first day after the annual policy renewal date;

Section 67.7(e) is amended to read as follows:

(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 [pursuant to] 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.

Section 67.8(a)(1) is amended to read as follows:

(1) the [ten-calendar-day] fourteen-calendar-day deferral period for new business provided by section 67.4 of this Part shall be mandatory; and

Text of proposed rule and any required statements and analyses may be obtained from:

Camielle Barclay, NYS Department of Financial Services, One State Street, New York, NY 10004, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

This amendment deletes duplicative language that exists in another provision of the regulation, and makes technical corrections and amendments in order to comport with other provisions in the regulation. Therefore, no person or entity is likely to object.

Accordingly, this rulemaking is determined to be a consensus rulemaking, as defined in State Administrative Procedure Act (“SAPA”) § 102(11), and is proposed pursuant to SAPA § 202(1)(b)(i). Therefore, this rulemaking is exempt from the requirement to file a Regulatory Impact Statement, Regulatory Flexibility Analysis for Small Businesses and Local Governments, and Rural Area Flexibility Analysis.

Job Impact Statement

This amendment deletes duplicative language that exists in another provision of the regulation, and makes technical corrections and amendments in order to comport with other provisions in the regulation. Amendment of the rule will not adversely impact job or employment opportunities in New York State, or have any adverse impact on self-employment opportunities, because the revision imposes no new or additional requirements on any entity subject to the rule.