senate Bill S6463

Vetoed By Governor
2011-2012 Legislative Session

Requires wireless communications equipment vendors offering insurance on such equipment to disclose whether they pay a commission to the equipment retailer

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Archive: Last Bill Status - Vetoed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2012 vetoed memo.187
Dec 05, 2012 delivered to governor
Jun 19, 2012 returned to senate
passed assembly
ordered to third reading cal.655
substituted for a9313
May 30, 2012 referred to insurance
delivered to assembly
passed senate
Apr 30, 2012 advanced to third reading
Apr 26, 2012 2nd report cal.
Apr 25, 2012 1st report cal.567
Feb 13, 2012 referred to insurance

Votes

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Co-Sponsors

S6463 - Bill Details

See Assembly Version of this Bill:
A9313
Law Section:
Insurance Law
Laws Affected:
Amd §2131, Ins L

S6463 - Bill Texts

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Requires wireless communications equipment vendors offering insurance on such equipment to disclose whether they pay a commission to the wireless communications equipment retailer.

view sponsor memo
BILL NUMBER:S6463

TITLE OF BILL: An act to amend the insurance law, in relation to
disclosures by limited licensees which are wireless communications
equipment vendors

PURPOSE OR GENERAL IDEA OF BILL: To clarify the disclosure requirements
for wireless communications equipment insurance companies.

SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill amends section
2131 of the insurance law to explicitly require that when a commission
is earned for the sale of wireless communications equipment insurance
that the receipt of such commission be disclosed.

Section two further amends section 2131 of the insurance law by clarify-
ing that the term "commission" means a payment to an insurance salesper-
son that is based only on a consumer's decision to enroll in a wireless
equipment insurance program. Section two further provides that such
wireless communications equipment insurance program sales are to be
regulated by the simple process established in this bill.

EXISTING LAW: The wireless communications vendor ("wireless vendor") is
licensed as a "limited licensee" under Section 2131 of the Insurance
Law. As required under § 2131(e) (2), when the wireless vendor offers
the purchaser of wireless communications equipment the option of
purchasing wireless communications equipment insurance, the wireless
vendor makes available to the purchaser written materials summarizing
the material teens of the insurance coverage, including the name of the
insurer and the agent licensed under section 2103(b) of the Insurance
Law. Additionally, such materials indicate that this product may be a
duplication of coverage already provided by a renter's, homeowner's,
automobile, or other liability insurance.

JUSTIFICATION: This bill maintains the set of disclosures required of
limited licensees regarding disclosure necessary for the consumer to
make an informed insurance purchasing decision, namely the terms, costs,
and procedures of the insurance product. This bill will further benefit
consumers who seek wireless communications equipment insurance by estab-
lishing a salesperson commission disclosure requirement that ensures the
speed and convenience of these common and simple transactions.

The information necessary to affect whether or not to purchase wireless
equipment insurance is limited. The insurance transactions are not
complicated by various offers from the equipment seller of competing
insurance products. Consumers will be offered a simple and complete
product, along with the insurance product's terms, costs, and procedures
as required by § 2131, as well as a disclosure when a salesperson
receives a commission for a sale.

PRIOR LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: On the 30th day after becoming law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6463

                            I N  S E N A T E

                            February 13, 2012
                               ___________

Introduced  by  Sen.  LIBOUS -- 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 disclosures by limited
  licensees which are wireless communications equipment vendors

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  (E)  of  paragraph  2  of subsection (e) of
section 2131 of the insurance law, as amended by chapter 368 of the laws
of 2010, is amended to read as follows:
  (E) the price, deductible,  benefits,  exclusions  and  conditions  or
other  limitations of such policies, AND, WITH REGARD TO WIRELESS COMMU-
NICATIONS EQUIPMENT POLICIES, DISCLOSE, WHEN A COMMISSION IS PAID  TO  A
RETAIL  REPRESENTATIVE, PROVIDED THAT A COMMISSION IS TO BE SO PAID, AND
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR  REGULATION  TO  THE
CONTRARY  REGARDING  PRODUCER  COMPENSATION, THE DISCLOSURES REQUIRED BY
THIS SUBPARAGRAPH SHALL BE DEEMED TO BE IN FULL COMPLIANCE WITH ANY SUCH
LAW, RULE OR REGULATION;
  S 2. Section 2131 of the insurance law is amended by  adding  two  new
subsections (m) and (n) to read as follows:
  (M)  FOR  PURPOSES  OF THIS SECTION, WITH RESPECT TO INSURANCE OFFERED
AND PROVIDED TO WIRELESS COMMUNICATIONS EQUIPMENT VENDORS,  "COMMISSION"
SHALL  MEAN  THE PROVISION BY A WIRELESS COMMUNICATIONS EQUIPMENT VENDOR
TO A RETAIL REPRESENTATIVE OF MONETARY  REMUNERATION,  WHICH  IS  SOLELY
CONTINGENT  UPON  A CONSUMER'S DECISION TO ENROLL IN A WIRELESS COMMUNI-
CATION EQUIPMENT VENDOR INSURANCE POLICY.
  (N) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS SECTION,  THE  PROVISIONS
OF  PART THIRTY OF TITLE ELEVEN OF NEW YORK STATE CODES, RULES AND REGU-
LATIONS, AND ANY OTHER LAW, RULE OR REGULATION REGARDING  DISCLOSURE  OF
PRODUCER  COMPENSATION SHALL NOT APPLY TO WIRELESS COMMUNICATIONS EQUIP-
MENT POLICIES.
  S 3. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14507-01-2

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