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

                                  10617

                          I N  A S S E M B L Y

                              June 8, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
  read once and referred to the Committee on Insurance

AN ACT to amend the insurance law,  in  relation  to  wireless  communi-
  cations equipment insurance

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

  Section 1. Section 2101 of the insurance law is amended  by  adding  a
new subsection (z) to read as follows:
  (Z)  FOR  PURPOSES  OF  SECTION TWO THOUSAND ONE HUNDRED THIRTY-ONE OF
THIS ARTICLE, WITH RESPECT TO WIRELESS COMMUNICATIONS  EQUIPMENT  INSUR-
ANCE:
  (1)  "CUSTOMER"  MEANS  A PERSON WHO PURCHASES WIRELESS COMMUNICATIONS
EQUIPMENT OR SERVICE;
  (2) "ENROLLED CUSTOMER" MEANS A CUSTOMER WHO ELECTS COVERAGE  UNDER  A
WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE POLICY ISSUED TO A VENDOR OF
WIRELESS COMMUNICATIONS EQUIPMENT;
  (3) "LOCATION" MEANS ANY PHYSICAL LOCATION IN THE STATE OF NEW YORK OR
ANY  WEBSITE, CALL CENTER SITE OR SIMILAR LOCATION DIRECTED TO RESIDENTS
OF THE STATE OF NEW YORK;
  (4) "WIRELESS COMMUNICATIONS EQUIPMENT" SHALL MEAN ELECTRONIC  DEVICES
THAT ARE PORTABLE IN NATURE AND THEIR ACCESSORIES;
  (5)(A)  "WIRELESS  COMMUNICATIONS EQUIPMENT INSURANCE" MEANS INSURANCE
PROVIDING COVERAGE FOR THE REPAIR OR REPLACEMENT  OF  WIRELESS  COMMUNI-
CATIONS EQUIPMENT WHICH MAY PROVIDE COVERAGE FOR WIRELESS COMMUNICATIONS
EQUIPMENT AGAINST ANY ONE OR MORE OF THE FOLLOWING CAUSES OF LOSS: LOSS,
THEFT,  INOPERABILITY  DUE TO MECHANICAL FAILURE, MALFUNCTION, DAMAGE OR
OTHER SIMILAR CAUSES OF LOSS. WIRELESS COMMUNICATIONS  EQUIPMENT  INSUR-
ANCE  ALSO  INCLUDES ANY AGREEMENT WHEREBY A PERSON OR ANY LEGAL ENTITY,
IN EXCHANGE FOR CONSIDERATION PAID, AGREES TO  PROVIDE  FOR  THE  FUTURE
REPAIR,  REPLACEMENT  OR PROVISION OF WIRELESS COMMUNICATIONS EQUIPMENT.
IT INCLUDES ANY ARRANGEMENT THAT SEEKS TO PROVIDE SUBSTANTIALLY  SIMILAR
BENEFITS THROUGH OTHER MEANS INCLUDING ARRANGEMENTS THAT CONFER BENEFITS
UPON  CONSUMERS  THAT PURCHASE, INCLUDING INSTALLMENT SALE PURCHASES, OR
LEASE WIRELESS COMMUNICATIONS EQUIPMENT OR WIRELESS SERVICES, REGARDLESS

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

                                                           LBD15776-01-6

A. 10617                            2

OF WHETHER THE BENEFITS ARE  PROVIDED  DIRECTLY  OR  INDIRECTLY  TO  THE
CONSUMER,  WHERE  THE  BENEFITS INCLUDE THE REPAIR OR REPLACEMENT OF THE
COVERED DEVICE, THE PROVISION OF A  LOANER  OR  RENTAL  DEVICE,  OR  THE
PAYMENT  OF  INDEMNIFICATION IN THE EVENT OF A LOSS OF A COVERED DEVICE,
AND WHERE THE BENEFITS ARE EXPRESSLY OR  IMPLIEDLY  CONDITIONED  ON  THE
HAPPENING  OF  SOME FORTUITOUS EVENT SUCH AS THE LOSS, THEFT OR PHYSICAL
DAMAGE OF THE COVERED DEVICE, OR IS STRUCTURED AS A REMEDY IN THE  EVENT
OF  SUCH PERILS WITHOUT EXPRESSLY STATING THOSE PERILS AS A CONDITION OF
COVERAGE.
  (B) "WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE" DOES NOT INCLUDE:
  (I) A SERVICE CONTRACT PURSUANT TO ARTICLE SEVENTY-NINE OF THIS  CHAP-
TER  OR  EXTENDED  WARRANTY  PROVIDING  COVERAGE  LIMITED TO THE REPAIR,
REPLACEMENT OR MAINTENANCE OF PROPERTY FOR THE OPERATIONAL OR STRUCTURAL
FAILURE OF PROPERTY DUE TO A DEFECT  IN  MATERIALS,  WORKMANSHIP,  ACCI-
DENTAL DAMAGE FROM HANDLING, POWER SURGES, OR NORMAL WEAR AND TEAR;
  (II)  A  POLICY  OF  INSURANCE COVERING A SELLER'S OR A MANUFACTURER'S
OBLIGATIONS UNDER A WARRANTY; OR
  (III) A HOMEOWNERS', RENTERS', PRIVATE PASSENGER  AUTOMOBILE,  COMMER-
CIAL MULTI-PERIL, OR SIMILAR POLICY.
  (6) "WIRELESS COMMUNICATIONS EQUIPMENT TRANSACTION" MEANS:
  (A) THE SALE OR LEASE OF WIRELESS COMMUNICATIONS EQUIPMENT BY A VENDOR
TO A CUSTOMER; OR
  (B)  THE  SALE  OF  A  SERVICE RELATED TO THE USE OF WIRELESS COMMUNI-
CATIONS EQUIPMENT BY A VENDOR TO A CUSTOMER.
  (7) "SUPERVISING ENTITY" MEANS A BUSINESS ENTITY THAT  IS  A  LICENSED
INSURER OR INSURANCE PRODUCER THAT IS AUTHORIZED BY AN INSURER TO SUPER-
VISE THE ADMINISTRATION OF A WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE
PROGRAM.
  (8)  "VENDOR"  MEANS  A PERSON IN THE BUSINESS OF ENGAGING IN WIRELESS
COMMUNICATIONS EQUIPMENT TRANSACTIONS DIRECTLY OR INDIRECTLY.
  (9) "WIRELESS COMMUNICATIONS SERVICE"  MEANS  TELEPHONIC  AND/OR  DATA
TRANSMISSION  SERVICE  OVER A WIRELESS NETWORK THROUGH WIRELESS COMMUNI-
CATIONS EQUIPMENT.
  S 2. Section 2131 of the insurance law, as amended by chapter  582  of
the  laws  of  2003,  the section heading and subsections (a), (d), (e),
(f), (h) and (i) as amended by chapter 368 of  the  laws  of  2010,  and
subsection (g) as amended by chapter 426 of the laws of 2005, is amended
to read as follows:
  S  2131. Limited license for rental vehicle companies, wireless commu-
nications equipment vendors and self-service storage companies. (a)  The
superintendent  may issue to a rental vehicle company, a wireless commu-
nications equipment vendor, a self-service storage company or to a fran-
chisee of a rental vehicle company, [a wireless communications equipment
vendor,] or a self-service storage company which has complied  with  the
requirements  of  this section, a limited license authorizing the licen-
see, known as a "limited licensee" for the purpose of this  article,  to
act as agent, with reference to the kinds of insurance specified in this
section,  of  any insurer authorized to write such kinds of insurance in
this state.
  (b) [The] EXCEPT AS CONTAINED IN PARAGRAPH THREE  OF  THIS  SUBSECTION
REGARDING  WIRELESS  COMMUNICATIONS  EQUIPMENT VENDORS THE prerequisites
for issuance of a limited license under this section shall be the filing
with the superintendent of the following:
  (1) an application, signed by an officer of  the  applicant,  for  the
limited  license  in  such  form  or forms, and supplements thereto, and
containing such information, as the superintendent may prescribe; and

A. 10617                            3

  (2) an appointment of a limited licensee by the appointing insurer, in
a format approved by the superintendent, no more than fifteen days after
the date the agency contract is executed or the first insurance contract
is submitted, whichever is later, stating that it has  satisfied  itself
that  the  named  applicant  is  trustworthy and competent to act as its
insurance agent for this limited  purpose  and  that  the  insurer  will
appoint  such applicant to act as the agent in reference to the doing of
such kind or kinds of insurance which are permitted by this section,  if
the  limited  license  applied for is issued by the superintendent. Such
appointment shall be subscribed by an officer or managing agent of  such
insurer and affirmed as true under the penalties of perjury.
  (3) FOR A WIRELESS COMMUNICATIONS EQUIPMENT VENDOR:
  (A)  A  SWORN  APPLICATION  FOR  A LICENSE UNDER THIS CHAPTER WITH THE
SUPERINTENDENT ON FORMS PRESCRIBED AND FURNISHED BY THE SUPERINTENDENT.
  (B) THE APPLICATION SHALL:
  (I)  PROVIDE  THE  NAME,  RESIDENCE  ADDRESS,  AND  OTHER  INFORMATION
REQUIRED  BY THE SUPERINTENDENT FOR AN EMPLOYEE OR OFFICER OF THE VENDOR
THAT IS DESIGNATED BY THE APPLICANT AS THE PERSON  RESPONSIBLE  FOR  THE
VENDOR'S  COMPLIANCE  WITH THE REQUIREMENTS OF THIS CHAPTER. HOWEVER, IF
THE VENDOR DERIVES MORE THAN FIFTY PERCENT OF ITS REVENUE FROM THE  SALE
OF  WIRELESS  COMMUNICATIONS  EQUIPMENT  INSURANCE THE INFORMATION NOTED
ABOVE SHALL BE PROVIDED FOR ALL OFFICERS, DIRECTORS, AND SHAREHOLDERS OF
RECORD HAVING BENEFICIAL OWNERSHIP OF TEN PERCENT OR MORE OF  ANY  CLASS
OF SECURITIES REGISTERED UNDER THE FEDERAL SECURITIES LAW; AND
  (II) THE LOCATION OF THE APPLICANT'S HOME OFFICE.
  (C) ANY VENDOR ENGAGING IN WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE
TRANSACTIONS  MUST  OBTAIN A LICENSE PRIOR TO OFFERING WIRELESS COMMUNI-
CATIONS EQUIPMENT INSURANCE.
  (c) In the event that any provision of this chapter is  violated,  the
superintendent may:
  (1)  revoke  or suspend a limited license issued under this section in
accordance with the provisions of section two thousand one  hundred  ten
of this article; or
  (2)  after  notice  and hearing impose such other penalties, including
suspending the transaction of  insurance  at  specific  locations  where
violations  of  this  article  have  occurred,  OR REQUIRE THE VENDOR OR
LICENSE HOLDER TO IDENTIFY AND SUSPEND OR REVOKE THE ABILITY OF INDIVID-
UAL EMPLOYEES OR AUTHORIZED REPRESENTATIVES TO ACT UNDER THE LICENSE, as
the superintendent deems  necessary  or  convenient  to  carry  out  the
purposes of this section.
  (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, the sale
or offering for sale of wireless communications equipment, or the rental
of storage space, respectively, 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-

A. 10617                            4

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] WIRELESS
COMMUNICATIONS EQUIPMENT INSURANCE as either an individual policy issued
to the consumer or as a group OR MASTER COMMERCIAL INLAND MARINE  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,  the  following
coverages  offered as either an individual policy issued to the consumer
or as a group policy:
  (A) personal effects insurance that provides coverage  to  renters  of
storage  spaces  at  the self-service storage company's facility for the
loss of, or damage to, personal property stored at the  facility,  where
the loss or damage occurs at the same facility during the rental period;
  (B) any other coverage that the superintendent may approve as meaning-
ful 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, wireless commu-
nications equipment agreements, or self-service storage  agreements  are
executed,  brochures or other written materials are readily available to
the prospective consumer that:
  (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
article, THE IDENTITY OF THE  SUPERVISING  ENTITY,  THE  AMOUNT  OF  ANY
APPLICABLE  DEDUCTIBLE  AND HOW IT IS TO BE PAID, BENEFITS OF THE COVER-
AGE, AND KEY TERMS AND CONDITIONS OF COVERAGE SUCH AS  WHETHER  WIRELESS
COMMUNICATIONS  EQUIPMENT  MAY BE REPAIRED OR REPLACED WITH SIMILAR MAKE
AND MODEL RECONDITIONED OR NON-ORIGINAL MANUFACTURER PARTS OR EQUIPMENT;
  (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, 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, AND WITH REGARD TO WIRELESS COMMUNICATIONS
EQUIPMENT INSURANCE, DESCRIBE  HOW  TO  RETURN  WIRELESS  COMMUNICATIONS
EQUIPMENT  AND  THE  MAXIMUM  FEE  OR  FEES  APPLICABLE IN THE EVENT THE
CUSTOMER FAILS TO COMPLY WITH ANY EQUIPMENT RETURN REQUIREMENTS;

A. 10617                            5

  (E) the price, deductible,  benefits,  exclusions  and  conditions  or
other limitations of such policies;
  (F) disclose that the employee of the rental vehicle company, wireless
communications equipment vendor or self-storage company is not qualified
or  authorized  to  evaluate  the  adequacy  of the purchaser's existing
coverages, unless otherwise licensed; and
  (G) NOTWITHSTANDING ANY LAW, RULE OR REGULATION  A  WIRELESS  COMMUNI-
CATIONS  EQUIPMENT  INSURANCE VENDOR SHALL STATE WHETHER AN EMPLOYEE MAY
EARN COMPENSATION UNDER THE VENDOR'S LIMITED LINES  LICENSE  AS  ALLOWED
UNDER  SUBSECTION  (G) OF THIS SECTION AND THAT PART OF THE PREMIUM PAID
BY THE PURCHASER MAY BE PAID BY THE VENDOR TO AN ADMINISTRATOR; and
  [(G)] (H) state that the customer may cancel the insurance at any time
and any unearned premium will be refunded in accordance with  applicable
law.
  (3)  WITH  RESPECT TO WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE, THE
WRITTEN MATERIALS REQUIRED BY PARAGRAPH TWO OF THIS SUBSECTION SHALL NOT
BE SUBJECT TO FILING OR APPROVAL REQUIREMENTS  WITH  THE  SUPERINTENDENT
PURSUANT TO SUBSECTION (F) OF THIS SECTION.
  [(3)]  (4)  evidence  of  coverage  is  provided to every consumer who
elects to purchase such coverage.
  (f) Rates and forms for insurance under this section shall be  subject
to   article  twenty-three  of  this  chapter.  Any  brochures  used  in
connection with insurance under this section shall  be  filed  with  the
superintendent  for  review  and  shall include disclosure of the claims
filing process, premium, deductible amounts  and  limits  and  shall  be
prominently  displayed  in  the brochure with at least twelve-point type
bold headings.   Any such brochures shall also  be  subject  to  section
three  thousand one hundred two of this chapter, provided, however, that
any policy, certificate or other evidence of insurance coverage, whether
or not contained in such brochure, shall not be subject to section three
thousand one hundred two of this chapter, but  shall  be  written  in  a
clear  and coherent manner and whenever practicable shall use words with
common and everyday meaning to facilitate readability  and  to  aid  the
policyholder in understanding the coverage provided.
  (g) Any limited license issued under this section shall also authorize
any  salaried  employee  or  any  sales representative authorized by the
licensee who, pursuant to subsection (h) of this section, is trained  to
act  individually  on behalf, and under the supervision, of the licensee
with respect to the kinds of insurance specified in this section.
  NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  EMPLOYEES  OR  AUTHORIZED
REPRESENTATIVES  OF  A VENDOR OF WIRELESS COMMUNICATIONS EQUIPMENT SHALL
NOT BE COMPENSATED BASED PRIMARILY ON THE NUMBER OF  CUSTOMERS  ENROLLED
FOR WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE COVERAGE BUT MAY RECEIVE
COMPENSATION  FOR  ACTIVITIES  UNDER  THE LIMITED LINES LICENSE WHICH IS
INCIDENTAL TO THEIR OVERALL COMPENSATION.
  (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, purchasers or lessors of wireless communi-
cations 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, purchaser or lessor of  wireless

A. 10617                            6

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, 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, the wireless communications
equipment vendor, or  self-service  storage  company  pursuant  to  this
section; and
  (4)  with  regard  to  wireless communications equipment insurance and
self-service storage company insurance, training materials may be devel-
oped 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, purchasing or leasing wireless
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, wireless
communications equipment vendor, or self-storage company on  account  of
vehicle  rental, 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, purchase
or lease of wireless communications equipment, or storage space  rental;
AND
  (3) WITH RESPECT TO WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE PREMI-
UMS,  VENDORS  BILLING AND COLLECTING SUCH CHARGES SHALL NOT BE REQUIRED
TO MAINTAIN SUCH FUNDS IN A SEGREGATED ACCOUNT PROVIDED THAT THE  VENDOR
IS AUTHORIZED BY THE INSURER TO HOLD SUCH FUNDS IN AN ALTERNATIVE MANNER
AND  REMITS  SUCH AMOUNTS TO THE SUPERVISING ENTITY WITHIN SIXTY DAYS OF
RECEIPT. ALL FUNDS RECEIVED BY A VENDOR FROM AN  ENROLLED  CUSTOMER  FOR
THE SALE OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE SHALL BE CONSID-
ERED  FUNDS  HELD IN TRUST BY THE VENDOR IN A FIDUCIARY CAPACITY FOR THE
BENEFIT OF THE INSURER. VENDORS MAY RECEIVE COMPENSATION FOR BILLING AND
COLLECTION SERVICES.
  (j) No limited licensees under this section shall advertise, represent
or otherwise hold itself or any  of  its  employees  themselves  out  as
licensed insurance agents or brokers.
  (k)  The  superintendent  may  issue  a replacement for a currently in
force license which has been lost or destroyed. Before such  replacement
license  shall  be  issued,  there shall be on file in the office of the
superintendent a  written  application  for  such  replacement  license,
affirming  under  penalty  of perjury that the original license has been
lost or destroyed, together with a fee of fifteen dollars.
  [(l) For purposes of this section "wireless communications  equipment"
shall mean wireless handsets, pagers, personal digital assistants, wire-
less  telephones  or  wireless  telephone  batteries  and other wireless
devices and accessories related to such devices that are used to  access
wireless communications services and includes wireless services.]

A. 10617                            7

  S 3. Section 3449 of the insurance law, as added by chapter 426 of the
laws of 2005, is amended to read as follows:
  S  3449.  Wireless communications equipment insurance policies. (a) In
this section, the term  "policy  of  wireless  communications  equipment
insurance"  means  an  insurance  policy  covering the kind of insurance
described in subsection [(1)] (Z) of section two  thousand  one  hundred
[thirty-one] ONE of this chapter.
  (b)  (1)  A group policy, and certificates issued thereunder, of wire-
less communications equipment insurance shall  not  be  subject  to  the
provisions  of  section three thousand four hundred twenty-five or three
thousand four hundred twenty-six of this article.
  (2) An insurer shall not terminate or otherwise change the  terms  and
conditions of a group policy of wireless communications equipment insur-
ance,  and  certificates  issued  thereunder,  except upon providing the
policyholder and certificate holders with at least [sixty]  THIRTY  days
notice. If the insurer changes the terms and conditions, then the insur-
er  shall  provide  the policyholder with a LETTER NOTIFYING THEM OF THE
CHANGES, A revised policy [or], endorsement and each certificate  holder
with  a  revised  certificate  or  endorsement,  an  updated brochure or
facsimile thereof, OR OTHER EVIDENCE INDICATING A CHANGE  IN  THE  TERMS
AND CONDITIONS HAS OCCURRED, and an explanation of the changes.
  (3)  Notwithstanding  paragraph two of this subsection, an insurer may
terminate a certificate upon fifteen days notice for[:
  (A) nonpayment of premium; or
  (B)] discovery of fraud or material misrepresentation in obtaining the
certificate or in the presentation of a claim thereunder.
  (4) Notwithstanding paragraph two of this subsection, an  insurer  may
automatically terminate a certificate if the certificate holder:
  (A) ceases to have active telecommunications service with the wireless
communications equipment vendor; [or]
  (B) NONPAYMENT OF PREMIUM; OR
  (C)  exhausts  the  aggregate  limit  of  liability, if any, under the
certificate and the insurer sends notice of termination to  the  certif-
icate  holder  within [fifteen] THIRTY business days after exhaustion of
the limit. However, if notice is not timely sent, coverage shall contin-
ue notwithstanding the aggregate limit of liability  until  the  insurer
sends notice of termination to the certificate holder.
  (5)  Notwithstanding the provisions of subparagraph [(B)] (C) of para-
graph four of this subsection, upon the request of a certificate holder,
the certificate holder's coverage shall be  eligible  for  reinstatement
not  more  than  twelve  months  following the date of exhaustion of the
coverage limit in accordance with the terms of the policy and subject to
the enrollment criteria then applicable to prospective certificate hold-
ers generally.
  (6) Where the group policy is  terminated  by  the  policyholder,  the
policyholder  shall  mail  or deliver written notice to each certificate
holder advising the certificate holder of the termination of  the  group
policy  and  the effective date of termination. The written notice shall
be mailed or delivered to the certificate holder at  least  thirty  days
prior to the termination.
  (c) [Whenever notice is required pursuant to this section, it shall be
in   writing  and  mailed  or  delivered  to  the  policyholder  at  the
policyholder's mailing address and to affected  certificate  holders  at
the  certificate  holders' last known mailing addresses on file with the
insurer.] WHENEVER NOTICE OR CORRESPONDENCE WITH RESPECT TO A POLICY  OF
WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE IS REQUIRED PURSUANT TO THIS

A. 10617                            8

SECTION OR IS OTHERWISE REQUIRED BY LAW, IT SHALL BE IN WRITING AND SENT
WITHIN  THE TIME PRESCRIBED BY LAW, IF ANY, SPECIFIED WITHIN THE STATUTE
OR REGULATION REQUIRING THE NOTICE  OR  CORRESPONDENCE.  NOTWITHSTANDING
ANY  OTHER  PROVISION  OF  LAW,  NOTICES  AND CORRESPONDENCE MAY BE SENT
EITHER BY MAIL OR BY ELECTRONIC MEANS AS SET FORTH IN  THIS  SUBSECTION.
IF  THE  NOTICE  OR  CORRESPONDENCE  IS  MAILED, IT SHALL BE SENT TO THE
VENDOR OF WIRELESS COMMUNICATIONS  EQUIPMENT  AT  THE  VENDOR'S  MAILING
ADDRESS  SPECIFIED FOR SUCH PURPOSE AND TO ITS AFFECTED ENROLLED CUSTOM-
ERS' LAST KNOWN MAILING ADDRESS ON FILE WITH THE INSURER. THE INSURER OR
VENDOR OF WIRELESS COMMUNICATIONS EQUIPMENT, AS THE CASE MAY  BE,  SHALL
MAINTAIN PROOF OF MAILING IN A FORM AUTHORIZED OR ACCEPTED BY THE UNITED
STATES  POSTAL SERVICE OR OTHER COMMERCIAL MAIL DELIVERY SERVICE. IF THE
NOTICE OR CORRESPONDENCE IS SENT BY ELECTRONIC MEANS, IT SHALL  BE  SENT
TO THE VENDOR OF WIRELESS COMMUNICATIONS EQUIPMENT AT THE VENDOR'S ELEC-
TRONIC  MAIL  ADDRESS  SPECIFIED  FOR  SUCH  PURPOSE AND TO ITS AFFECTED
ENROLLED CUSTOMERS' LAST KNOWN ELECTRONIC MAIL ADDRESS  AS  PROVIDED  BY
EACH  ENROLLED  CUSTOMER  TO  THE INSURER OR VENDOR OF WIRELESS COMMUNI-
CATIONS EQUIPMENT, AS THE CASE MAY BE. FOR PURPOSES OF THIS  SUBSECTION,
AN  ENROLLED  CUSTOMER'S  PROVISION OF AN ELECTRONIC MAIL ADDRESS TO THE
INSURER OR VENDOR OR WIRELESS COMMUNICATIONS EQUIPMENT, AS THE CASE  MAY
BE,  SHALL  BE  DEEMED  CONSENT TO RECEIVE NOTICES AND CORRESPONDENCE BY
ELECTRONIC MEANS. THE  INSURER  OR  VENDOR  OF  WIRELESS  COMMUNICATIONS
EQUIPMENT,  AS  THE  CASE MY BE, SHALL MAINTAIN PROOF THAT THE NOTICE OR
CORRESPONDENCE WAS SENT. Every notice of termination shall  specify  the
reason or reasons for termination.
  (d)  (1)  Notwithstanding  subsection  (c) of this section, an insurer
shall not be required to give notice of termination to  the  certificate
holder  if  the  insurer  has been advised by either the policyholder or
another insurer that substantially similar coverage  has  been  obtained
from the other insurer without lapse of coverage.
  (2) A policyholder shall not be required to give notice of termination
to  a  certificate  holder  if  substantially  similar coverage has been
obtained from another insurer without lapse of coverage.
  (e) NOTICE OR CORRESPONDENCE REQUIRED BY  THIS  SECTION  OR  OTHERWISE
REQUIRED  BY  LAW  MAY BE SENT ON BEHALF OF AN INSURER OR VENDOR, AS THE
CASE MAY BE, BY THE SUPERVISING ENTITY APPOINTED BY THE INSURER.
  (F) NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, WIRELESS  COMMUNI-
CATIONS  EQUIPMENT INSURANCE MAY BE OFFERED ON A MONTH TO MONTH OR OTHER
PERIODIC BASIS AS A GROUP OR  MASTER  COMMERCIAL  INLAND  MARINE  POLICY
ISSUED TO A VENDOR OF PORTABLE ELECTRONICS FOR ITS ENROLLED CUSTOMERS.
  (G)  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.
  S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law.