EIGHTH AMENDMENT TO REGULATION NO. 64
(11 NYCRR 216)
UNFAIR CLAIMS SETTLEMENT PRACTICES
AND CLAIM COST CORTROL MEASURES
I, Neil D. Levin, Superintendent of Insurance of the State of New York, pursuant to the authority granted by sections 201, 301, 2601, 3411 and 3412 of the Insurance Law, do hereby promulgate the following eighth amendment to Part 216 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation 64), to take effect upon publication in the State Register.
(ALL MATERIAL IS NEW)
Paragraphs (16), (17), (18) and (19) of Sections 216.7(b) are renumbered (17), (18), (19) and (20) respectively and a new paragraph (16) is added to read as follows:
(16) Salvage vehicle branding. (i) This paragraph shall be applicable to claims involving vehicles that are eight model years or newer on the date of the loss.
(ii) If the insurer determines that the cost to repair a damaged vehicle exceeds seventy-five percent of the vehicles actual cash value and if the insurer does not take possession of the vehicle for disposition as salvage, the insurer shall require the vehicle owner to provide the title to the insurer. The insurer may withhold the entire claim payment, but must withhold at least fifty percent of its claim payment, after application of any deductible, until receipt of the title. The vehicle owner shall be advised by the insurer that the title is being requested in order to comply with subdivision (c) of Section 20.20 of the Regulations of the Commissioner of Motor Vehicles and that the title will be branded as "REBUILT SALVAGE" and will be returned to the owner by the Department of Motor Vehicles.
(iii) As soon as reasonably practicable, but no later than ten business days after receipt of the title from the vehicle owner, the insurer shall forward the title to the New York State Department of Motor Vehicles, Title Bureau, Empire State Plaza, Albany, NY 12228.
(iv) For the purpose of determining the vehicles actual cash value pursuant to this paragraph, an insurer shall use the methods prescribed in subparagraph (c)(1)(i) or (iii) of this section; the value of repair parts shall be determined by using the current published retail cost of the original equipment manufacturer parts or the actual retail cost of the repair parts included on the insurers repair estimate; and the labor cost shall be computed based upon hourly labor rate and time allocations that are consistent with the insurers repair estimates in the community where the repairs are performed.
I, Neil D. Levin, Superintendent of Insurance of the State of New York, do hereby certify that the foregoing is the eighth amendment to 11 NYCRR 216 (Regulation 64), promulgated by me on August 11, 1999, pursuant to the authority granted by Sections 201, 301, 2601, 3411 and 3412 of the Insurance Law, to take effect upon publication in the State Register.
Pursuant to the provisions of the State Administrative Procedure Act, prior notice of the proposed amendment was published in the State Register on November 25, 1998. A revised proposed amendment was published in the State Register on May 5, 1999. No other publication or prior notice is required by statute.
Neil D. Levin
Superintendent of Insurance
|August 11, 1999|