BILL NUMBER:S5747

TITLE OF BILL:
An  act  to  amend  the  insurance  law, in relation to disclosures by
limited licensees

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

SUMMARY OF SPECIFIC PROVISIONS:
The  bill  amends  section  2131  which  sets  forth the requirements,
including disclosures, of limited licensees which can offer  insurance
for wireless communications equipment.

JUSTIFICATION:
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  terms 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.   This
transaction  occurs  at  a  kiosk  or  electronics  store in which the
consumer may purchase wireless communication equipment. The  materials
and  disclosures  required  to  be  provided to the consumer here were
tailored in statute to fit into this unique transaction.

The information necessary to affect whether or  not  to  purchase  the
coverage  is  presented  to  the  consumer by the wireless vendor is a
unique transaction in which only one insurance product is offered, and
the consumer only had to decide whether or not to include the  product
with their purchase of the wireless device. The consumer does not have
to  weigh  competing  products  or  coverage levels. They need to know
terms,  cost,  and  procedure,  all  of  which  is  provided  in   the
disclosures required in §2131.

The  disclosures  provided  in the current law have been identified as
necessary and comprehensive for this type of transaction.

This fast, convenient transaction would be burdened with  a  stack  of
materials   required   to  be  given  to  consumers  yet  lacking  any
information that would benefit them or assist them in making  the  one
decision they make, whether, or not to purchase the one insurance plan
offered  with  their  wireless  communication  device. Thus, this bill
assures that the  current  set  of  disclosures  required  of  limited
licensees  contains the information necessary for the consumer to make
their decision  and  continues  the  ample  and  specifically  devised
disclosure  and  consider  protection already existent in §2131 of the
Insurance Law.

PRIOR LEGISLATIVE HISTORY:


New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.