S T A T E O F N E W Y O R K
________________________________________________________________________
3577
2009-2010 Regular Sessions
I N S E N A T E
March 25, 2009
___________
Introduced by Sens. BRESLIN, MONSERRATE, THOMPSON -- read twice and
ordered printed, and when printed to be committed to the Committee on
Insurance
AN ACT to amend the insurance law, in relation to authorizing the issu-
ance of limited licenses to self-service storage companies for the
sale of insurance coverage on personal property stored in self-service
storage spaces
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The section heading and subsections (a), (d), (e), (h) and
(i) of section 2131 of the insurance law, the section heading and
subsections (a), (e), (h) and (i) as amended by chapter 582 of the laws
of 2003, subsection (d) as amended by chapter 426 of the laws of 2005,
are amended to read as follows:
Limited license for rental vehicle companies [and], wireless communi-
cations equipment vendors AND SELF-SERVICE STORAGE COMPANIES.
(a) The superintendent may issue to a rental vehicle company, a wire-
less communications equipment vendor, A SELF-SERVICE STORAGE COMPANY or
to a franchisee of a rental vehicle company [or], a wireless communi-
cations equipment vendor, OR A SELF-SERVICE STORAGE COMPANY which has
complied with the requirements of this section, a limited license
authorizing the licensee, known as a "limited licensee" for the purpose
of this article, to act as agent, with reference to the kinds of insur-
ance specified in this section, of any insurer authorized to write such
kinds of insurance in this state.
(d) The rental vehicle company, wireless communications equipment
vendor, OR SELF-SERVICE STORAGE COMPANY, or franchisee licensed pursuant
to subsection (a) of this section may act as agent for an authorized
insurer only in connection with the rental of motor vehicles [or], the
sale or offering for sale of wireless communications equipment, OR THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08487-01-9
S. 3577 2
RENTAL OF STORAGE SPACE and only with respect to the following kinds of
insurance:
(1) with respect to rental vehicle companies:
(A) excess liability insurance that provides coverage to the rental
car company or franchisee and renters and other authorized drivers of
rental vehicles, in excess of the standard liability limits provided by
the rental vehicle company in its rental agreement, for liability aris-
ing from the negligent operation of the rental vehicle;
(B) accident and health insurance that provides coverage to renters
and other vehicle occupants, in excess to the standard first party bene-
fits provided pursuant to article fifty-one of this chapter, for acci-
dental death and/or dismemberment and for medical expenses resulting
from an accident that occurs during the rental period;
(C) personal effects insurance that provides coverage to renters and
other vehicle occupants for the loss of, or damage to, personal effects
that occurs during the rental period;
(D) any other coverage which the superintendent may approve as mean-
ingful and appropriate in connection with the rental of motor vehicles;
or
(2) with respect to wireless communications equipment vendors, insur-
ance issued to cover the loss, theft, mechanical failure, or malfunction
of, or damage to, wireless communications equipment offered as either an
individual policy issued to the consumer or as a group property and
casualty policy under which certificates or other evidence of coverage
are issued to individual consumers who enroll in the program, provided
however, that said insurance shall not extend to wireless services or
service contracts governed by article seventy-nine of this chapter; OR
(3) WITH RESPECT TO SELF-SERVICE STORAGE COMPANIES:
(A) PERSONAL EFFECTS INSURANCE THAT PROVIDES COVERAGE TO RENTERS OF
STORAGE SPACES AT THE SAME FACILITY FOR THE LOSS OF, OR DAMAGE TO,
PERSONAL EFFECTS THAT OCCURS AT THE SAME FACILITY DURING THE RENTAL
PERIOD;
(B) ANY OTHER COVERAGE WHICH THE SUPERINTENDENT MAY APPROVE AS MEAN-
INGFUL AND APPROPRIATE IN CONNECTION WITH THE RENTAL OF STORAGE SPACE.
(e) No insurance may be issued pursuant to this section unless:
(1) with regard to the rental of vehicles only, the rental period of
the rental agreement does not exceed thirty consecutive days; and
(2) at every location where rental vehicle agreements [or], wireless
communications equipment agreements, OR SELF-SERVICE STORAGE AGREEMENTS
are executed, brochures or other written materials are readily available
to the prospective consumer which:
(A) summarize, clearly and correctly, the material terms of insurance
coverage, including the identity of the insurer and, with regard to
wireless communications equipment insurance, the agent licensed under
subsection (b) of section two thousand one hundred three of this arti-
cle;
(B) disclose that these policies may provide a duplication of coverage
already provided by a renter's personal automobile insurance policy,
homeowner's insurance policy, personal liability insurance policy, or
other source of coverage;
(C) state that the purchase by the consumer of the kinds of insurance
specified in this section is not required in order to rent a vehicle
[or], to purchase or lease wireless communications equipment, OR TO RENT
STORAGE SPACE;
(D) describe the process for filing a claim in the event the consumer
elects to purchase coverage;
S. 3577 3
(E) the price, deductible, benefits, exclusions and conditions or
other limitations of such policies;
(F) disclose that the employee of the wireless communications equip-
ment vendor is not qualified or authorized to evaluate the adequacy of
the purchaser's existing coverages, unless otherwise licensed; and
(G) state that the customer may cancel the insurance at any time and
any unearned premium will be refunded in accordance with applicable law.
(3) evidence of coverage is provided to every consumer who elects to
purchase such coverage.
(h) Each company or franchisee licensed pursuant to this section shall
conduct a training program, which shall be submitted to the superinten-
dent for approval prior to use, and which shall meet the following mini-
mum standards:
(1) each trainee shall receive basic instruction about the kinds of
insurance specified in this section offered for purchase by prospective
renters of rental vehicles [or], purchasers or lessors of wireless
communications equipment, OR RENTERS OF STORAGE SPACE;
(2) each trainee shall be instructed with respect to the disclosures
required under subsection (e) of this section and to acknowledge to a
prospective renter of a rental vehicle [or], purchaser or lessor of
wireless communications equipment, OR RENTER OF STORAGE SPACE that
purchase of any such insurance specified in this section is not required
in order for the consumer to rent a motor vehicle [or], purchase or
lease wireless communications equipment, OR RENT STORAGE SPACE;
(3) each trainee shall be instructed to acknowledge to a prospective
consumer of the kinds of insurance specified in this section that the
consumer may have insurance policies that already provide the coverage
being offered by the rental vehicle company [or], the wireless communi-
cations equipment vendor, OR SELF-SERVICE STORAGE COMPANY pursuant to
this section; and
(4) with regard to wireless communications equipment insurance only,
training materials may be developed and provided by an agent licensed
pursuant to subsection (b) of section two thousand one hundred three of
this article.
(i) Limited licensees acting pursuant to and under the authority of
this section shall comply with all applicable provisions of this arti-
cle, except that notwithstanding section two thousand one hundred twenty
of this article, a limited licensee pursuant to this section shall not
be required to treat premiums collected from consumers purchasing such
insurance when renting motor vehicles [or], purchasing or leasing wire-
less communications equipment, OR RENTING STORAGE SPACE as funds
received in a fiduciary capacity, provided that:
(1) the insurer represented by the limited licensee has consented in
writing, signed by the insurer's officer, that premiums need not be
segregated from funds received by the rental vehicle company [or], wire-
less communications equipment vendor, OR SELF-SERVICE STORAGE COMPANY on
account of vehicle rental [or], wireless communications equipment
purchase or lease, OR STORAGE SPACE RENTAL; and
(2) the charges for insurance coverage are itemized but not billed to
the consumer separately from the charges for rental vehicles [or],
purchase or lease of wireless communications equipment, OR STORAGE SPACE
RENTAL.
S 2. This act shall take effect immediately.
