Section 3411. Automobile physical damage insurance covering private passenger automobiles; standard provisions; required inspections; duties of insurers and insureds

(a) The provisions of this  section  shall  be  applicable to all automobile physical damage insurance policies covering
  private  passenger automobiles registered in this state, notwithstanding
  any other provisions of this chapter.
    (b) In this article, "renewal" means the issuance and delivery  by  an
  insurer,  at  the  end  of  the policy period, of a policy superseding a
  policy previously issued and delivered  by  the  same  insurer,  or  the
  issuance and delivery of a certificate or notice extending the term of a
  policy beyond its policy period or term. Any policy with a policy period
  or term of less than one year shall, for the purpose of determining each
  renewal  date  in this section, be considered as if written for a policy
  period or term of one year commencing with the annual anniversary  date,
  and any policy written for a period or term of more than one year or any
  policy  with  no  fixed  expiration  date shall, for the purpose of this
  section, be considered as if written for successive  policy  periods  or
  terms of one year commencing with the annual anniversary date.
    (c)  No  policy  providing  automobile  physical  damage insurance for
  private passenger automobiles registered in this state shall be  issued,
  delivered, or renewed unless it complies with this section.
    (d)  A  newly  issued policy shall not provide coverage for automobile
  physical damage perils prior to an inspection of the automobile  by  the
  insurer.
    (e)  For  a  renewal of a policy referred to in subsection (d) of this
  section, an insurer may require, as a condition of  such  renewal,  that
  the automobile be made available for inspection.
    (f) If an insurer requests an inspection pursuant to subsection (e) of
  this  section,  the  insured  shall  make  the  automobile available for
  inspection by the insurer, upon reasonable notice. If the insured  fails
  to  make the automobile available for inspection, the insurer may refuse
  to continue such physical damage coverage.
    (g) If an automobile subject to the  provisions  of  this  section  is
  acquired  by  the  insured  as  a  replacement  for or an addition to an
  automobile  insured  for  physical  damage  coverage,  and  the  insured
  requests  physical  damage  coverage  for  the replacement or additional
  automobile, such coverage for physical damage  shall  not  be  effective
  before  such inspection is made. If, at the time of the request for such
  coverage, the  automobile  is  unavailable  for  inspection  because  of
  conditions  of  purchase  or  other circumstances and is thereafter made
  available  for  inspection,  the  insurer  shall  promptly  inspect  the
  automobile,  and  physical  damage  coverage  shall not become effective
  before the inspection has been made.
    (h) Where an inspection is made pursuant to this section, it shall  be
  conducted  by  the insurer or its authorized representative and shall be
  recorded on a form prescribed by the superintendent. Such form shall  be
  retained  by the insurer with its policy records for such insured, and a
  copy of such form shall be made available to the insured upon request.
    (i) Payment of a physical damage claim shall not be  conditioned  upon
  the  repair  of  the  automobile,  provided,  however, the insured shall
  replace  any  inflatable  restraint  system  (airbag),  as  defined   in
  subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of
  the code of federal regulations, that inflated and deployed, or that was
  stolen,  which  is  included  in  a  physical damage or theft claim. The
  insurer may request that the automobile be made available for inspection
  whether or not  the  automobile  is  repaired.    The  results  of  such
  inspection  may form a basis for determining the value of the automobile
  in the event of a subsequent loss.  If the automobile  is  repaired  the

  insurer  shall  request the repair invoice and shall require the insured
  and the automobile repairer to  certify,  under  penalties  of  perjury,
  whether  the  applicable  deductible  has  been  paid  to the automobile
  repairer, whether any repairs have been made and whether the repairs did
  not include all items allowed by the insurer.
    (j)  The  superintendent  may approve policy forms for physical damage
  coverage, for new and renewable business,  which  exclude  coverage  for
  specified items of personal property located in or upon the automobile.
    (k) Each insurer which offers physical damage insurance subject to the
  provisions  of  this  section shall offer such insurance with a standard
  deductible of two hundred  dollars  for  each  occurrence.  The  insured
  shall,  however,  at  the  inception  of  the  policy  or  at the annual
  anniversary date, or at the time of the replacement or  addition  of  an
  automobile,  have  the  option  of  purchasing  a  policy  with a lesser
  deductible, but in no event  may  the  insurer  sell  a  policy  with  a
  deductible  of  less than fifty dollars for fire, theft or comprehensive
  insurance coverages (one hundred  dollars  for  assigned  risk  policies
  issued  pursuant  to  paragraph  two  of  subsection (a) of section five
  thousand three hundred three of this chapter) and  one  hundred  dollars
  for  collision  insurance coverage except that window glass coverage may
  be sold without a deductible.  Each insurer which offers physical damage
  insurance subject to the provisions of this  section  shall  also  offer
  physical  damage coverages with co-insurance or deductible provisions or
  combinations thereof as the superintendent may prescribe, including  but
  not  limited  to  deductibles of two hundred fifty dollars, five hundred
  dollars and one thousand dollars.
    (l) Every insurer subject to the  provisions  of  this  section  shall
  report   to   the   commissioner  of  motor  vehicles  any  evidence  of
  overcharges, improper repairs or  adjustments  or  other  wrongdoing  by
  motor  vehicle  repair  shops,  in  order  that  the department of motor
  vehicles may properly discharge its responsibilities under  the  vehicle
  and  traffic  law  to  protect  consumers  from dishonest, deceptive and
  fraudulent practices in the repair of automobiles, to protect the public
  from improper repairs and to eliminate unqualified motor vehicle  repair
  shops.
    (m) (1) The superintendent, in regulations implementing the provisions
  of  this  section,  shall  also  require  that insurers take appropriate
  action to  ensure  that  there  is  wide  public  dissemination  of  the
  provisions  of  this  section  relating to the rights and obligations of
  insureds and insurers.
    (2) The inspections provided for in this section may be dispensed with
  or  deferred  under  circumstances  specified  in  regulations  of   the
  superintendent.  Such  circumstances may include but are not limited to,
  the insuring of a new automobile, the insuring of  an  automobile  whose
  inspection  would  constitute  a  serious  hardship  to the insurer, the
  insured or an applicant for insurance, and the insuring of an automobile
  for a limited specified period of time.
    (3) Inspections made  pursuant  to  this  section  shall  be  made  at
  locations and times reasonably convenient to the insured. The results of
  any  inspection  may  be  considered  in  determining  the  value of the
  automobile.
    (n) If the superintendent, after notice and hearing,  finds  that  any
  insurer  or  its authorized representative has violated any provision of
  this section, he shall order the payment of a  penalty,  not  to  exceed
  five  hundred  dollars for each such offense. Each issuance, procurement
  or negotiation of a policy of insurance in  violation  of  this  section
  shall be a separate offense.