senate Bill S5550

Vetoed By Governor
2013-2014 Legislative Session

Provides that wireless communications equipment insurance policies shall not be subject to rules providing for producer compensation transparency

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Archive: Last Bill Status Via A7546 - Vetoed by Governor


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

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Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 18, 2013 tabled
vetoed memo.267
Dec 06, 2013 delivered to governor
Jun 20, 2013 returned to assembly
passed senate
3rd reading cal.1365
substituted for s5550
Jun 20, 2013 substituted by a7546a
Jun 12, 2013 ordered to third reading cal.1365
committee discharged and committed to rules
May 17, 2013 referred to insurance

Votes

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Jun 17, 2013 - Rules committee Vote

S5550
20
1
committee
20
Aye
1
Nay
3
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Rules committee vote details

Jun 12, 2013 - Rules committee Vote

S5550
20
1
committee
20
Aye
1
Nay
3
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Rules committee vote details

S5550 - Bill Details

See Assembly Version of this Bill:
A7546A
Law Section:
Insurance Law
Laws Affected:
Amd §3449, Ins L

S5550 - Bill Texts

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Provides that wireless communications equipment insurance policies shall not be subject to rules providing for producer compensation transparency.

view sponsor memo
BILL NUMBER:S5550

TITLE OF BILL: An act to amend the insurance law, in relation to
wireless communications equipment insurance policies

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
3449 of the Insurance Law to permit promulgation of compensation
disclosure regulations by the department of financial services that
are suitable to wireless communications equipment insurance policies
sales.

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 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.

In 2005, the Insurance Law was amended by adding a section 3449
(Chapter 426 of the Laws of 2005) that requires certain notice periods
when a wireless equipment policy is cancelled and allows an insurer to
automatically terminate a policy when a customer terminated service
with a carrier or when equipment insurance benefits are exhausted.
Section 3449 also empowers the superintendent of financial services to
promulgate regulations regarding wireless communications equipment
insurance policies.

JUSTIFICATION: Wireless communications equipment policy transactions
are relatively low cost, low risk transactions that should have
concise disclosures of key issues that communicate to consumer's the
key information most relevant to their purchase decision. Any
compensation disclosure should reflect the simple nature of such
transactions. These transactions are distinct from traditional
insurance transactions, such as those for coverage of life, homes,
cars and disabilities in that they are low cost and require the use of
simple commitments, coverage of certain clearly delineated losses by a
consumer, comprehensible notice, delineated billing, and cancellation
and refund rights. Additionally, these transactions are not
complicated by various offers from the equipment seller of competing
insurance products. This bill will allow the department of financial
services to provide for a suitable compensation regulatory treatment
while maintaining the set of disclosures necessary for a consumer to
make an informed insurance purchasing decision, namely the key terms,
costs, and procedures of the wireless equipment insurance product as
already provided for by the Legislature.

PRIOR LEGISLATIVE HISTORY: New bill


FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  5550

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 17, 2013
                               ___________

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  wireless  communi-
  cations equipment insurance policies

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

  Section 1. Subsection (e) of section 3449 of  the  insurance  law,  as
added by chapter 426 of the laws of 2005, is amended to read as follows:
  (e)  The  superintendent may promulgate regulations regarding policies
of wireless  communications  equipment  insurance,  including,  but  not
limited  to,  regulations governing policy terms and conditions, and may
establish other reasonable  limitations;  PROVIDED,  HOWEVER,  THAT  THE
PROVISIONS  OF  PART THIRTY OF TITLE ELEVEN OF THE NEW YORK STATE CODES,
RULES AND REGULATIONS, RELATING TO PRODUCER  COMPENSATION  TRANSPARENCY,
SHALL NOT APPLY TO SUCH POLICIES.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11044-01-3

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