2006 New York Code - Automobile Physical Damage Insurance Covering Private Passenger Automobiles; Salvage; Total Losses; Thefts; Duties Of Insurers.

 
    §   3412.   Automobile  physical  damage  insurance  covering  private
  passenger  automobiles;  salvage;  total  losses;  thefts;   duties   of
  insurers.  (a)  Notwithstanding any other provision of this chapter, the
  provisions of this section shall be applicable to  all  physical  damage
  losses  incurred  on  policies  covering  private  passenger automobiles
  registered in this state for model year nineteen  hundred  seventy-three
  or later.
    (b)  In  accordance  with  regulations  of the superintendent insurers
  shall, except where the insured is permitted to retain the automobile as
  part of the claim settlement, take possession of  any  salvage  and  the
  certificate  of  title, properly endorsed to them of private automobiles
  whenever a loss is determined by the insurer to be a  total  loss  or  a
  constructive  total  loss.  Insurers, in disposing of the salvage, shall
  fully comply with the requirements of section four  hundred  twenty-nine
  of  the  vehicle  and traffic law. An insurer shall also have the right,
  where a claim is filed for the replacement of an inflated  and  deployed
  or   stolen  inflatable  restraint  system  (air  bag),  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, to inspect the vehicle  for  which  the
  claim  is  being filed to verify that the air bag did inflate and deploy
  or was stolen. The insurer shall also have the right to take  possession
  of a deployed airbag.
    (c)  Except  with respect to vehicles recovered after a theft loss has
  been paid and which meet the criteria set forth in  subdivision  two  of
  section  four  hundred  thirty  of the vehicle and traffic law, insurers
  shall not, directly or indirectly, transfer within or without this state
  any vehicle for salvage, except to a governmental agency, an  automobile
  dealer,  a vehicle dismantler, or a scrap processor licensed, registered
  or certified in accordance  with  the  provisions  of  the  vehicle  and
  traffic  law,  or  any  such  person  meeting licensing, registration or
  certification requirements of  the  state  in  which  such  person  does
  business.  An  insurer or its agents shall not purchase salvage vehicles
  or used major component parts of motor vehicles except from a registered
  vehicle dismantler or an automobile dealer.
    (d) Insurers shall report private passenger  automobiles  involved  in
  total losses, including the vehicle identification number and such other
  information  as  may  be  required, to a central organization engaged in
  automobile loss prevention  as  designated  by  the  superintendent,  in
  accordance   with   regulations   of  the  superintendent.  The  central
  organization shall also be responsible for recording any special vehicle
  identification number issued  by  the  commissioner  of  motor  vehicles
  pursuant  to  subdivision  two of section four hundred thirty-one of the
  vehicle and traffic law  and  in  accordance  with  regulations  of  the
  superintendent.
    (e)  Prior  to the payment of total losses, insurers shall comply with
  verification  procedures  in  accordance   with   regulations   of   the
  superintendent.
    (f)  Police  and  other  law  enforcement  agencies  charged  with the
  investigation of automobile thefts shall promptly report to the owner of
  the  automobile  and  the  central  organization   designated   by   the
  superintendent,  all locations of private passenger automobiles reported
  stolen or found to be abandoned. In accordance with regulations  of  the
  superintendent,  the  central  organization  shall  be  responsible  for
  receiving and recording such reports, and shall promptly  transmit  such
  information to the insurer of the automobile physical damage coverage.
    (g)  All  policies providing automobile physical damage coverage shall
  include a provision authorizing the insurer to take  the  insured  motor
  vehicle  into  custody  for  safekeeping,  when  notified that the motor
  vehicle reported stolen or found to be abandoned has been located.
    (h)  (1) The central organization designated by the superintendent and
  each insurer authorized  to  issue  automobile  comprehensive  insurance
  policies  covering  losses  incurred to private passenger vehicles shall
  upon request of any appropriate  law  enforcement  agency  or  insurance
  organization  engaged  in automobile loss prevention release information
  in its possession  resulting  from  an  investigation  conducted  by  it
  pertaining  to  such  comprehensive  loss, including information as such
  agency or organization deems related  to  its  investigation.  Should  a
  central  organization or the insurer be of the opinion that the loss was
  caused by any criminal or fraudulent act of any person or  organization,
  or  that  an  improper action occurred in the disposition of automobiles
  subject  to  the  provisions  of  this  section,  it  shall  notify  the
  appropriate  law enforcement agency or insurance organization engaged in
  automobile loss prevention of that opinion,  and  it  shall  notify  the
  insurance  department  or  department  of motor vehicles of any improper
  action of their respective licensees or registrants.
    (2) Any information or evidence furnished pursuant to this  subsection
  shall  be  held  in  confidence  by  the appropriate agency or insurance
  organization  engaged  in  automobile  loss   prevention,   until   such
  information   is   required  to  be  released  pursuant  to  a  criminal
  proceeding, or if such agency or organization shall be served a  summons
  or  subpoena  to  testify  as  to  any  information  or  evidence in its
  possession regarding such automobile comprehensive  loss  in  any  civil
  action  where  an  insured  or  other person is seeking recovery under a
  policy against an insurer for such loss.