New York Laws
Article 34 - Insurance Contracts-Property/casualty
3412 - Automobile Physical Damage Insurance Covering Private Passenger Automobiles; Salvage; Total Losses; Thefts; Duties of Insurers.

(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
department of financial services 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.

Structure New York Laws