OGC Opinion No. 06-07-06

The Office of General Counsel issued the following opinion on July 10, 2006, representing the position of the New York State Insurance Department.

Re: Applicability of Regulation 64 to motor vehicle physical damage losses.

Question Presented:

Does § 216.7 of N.Y. Codes Rules and Regs. tit. 11, pt 216 (2006) (Regulation 64), regarding motor vehicle physical damage claims, apply to claims arising under both commercial motor vehicle insurance policies as well as non-commercial motor vehicle insurance policies?

Conclusion:

Yes, the regulation applies to claims under both commercial and non-commercial motor vehicle insurance policies.

Facts:

No facts were provided; it was a general inquiry.

Analysis:

Section 216.2 of Regulation 64, which addresses applicability of the regulation, states:

This Part shall apply to all insurers licensed to do business in this State. (a) It shall not be applicable to policies of workers" compensation insurance issued pursuant to the provisions of section 1113(a) (15) of the Insurance Law; credit insurance issued pursuant to the provisions of section 1113(a) (17); title insurance issued pursuant to the provisions of section 1113(a) (18); inland marine insurance issued pursuant to the provisions of section 1113(a) (20); unless such insurance is subject to the provisions of section 3425 of the Insurance Law; and ocean marine insurance issued pursuant to the provisions of section 1113(a) (20) and (21). 1

The inquirer was not sure if Regulation 64, specifically section 216.7 ("Standards for prompt, fair and equitable settlement of motor vehicle physical damage claims") applied to both commercial and non-commercial motor vehicle insurance policies. Section 216.2, which is the applicability section of Regulation 64, and section 216.7, which states that "this section is applicable to claims arising under motor vehicle collision and comprehensive coverages," do not make a distinction between commercial and non-commercial motor vehicle insurance policies. Accordingly, section 216.7 of Regulation 64 applies to claims arising under both commercial and non-commercial motor vehicle insurance policies.

For further information you may contact Principal Attorney Paul A. Zuckerman at the New York City Office.

1  N.Y. Codes Rules and Regs. tit. 11, pt 216.2 (2006) (Regulation 64).