S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6612
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13079-01-7

 S. 6612                             2
 
 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
 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 AS THAT TERM IS DEFINED BY ARTICLE SEVENTY-NINE
 OF THIS CHAPTER;
   (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.
   § 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:
   §  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]

 S. 6612                             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)  THE  PREREQUISITES  FOR  ISSUANCE OF A LIMITED LICENSE UNDER THIS
 SECTION FOR A WIRELESS COMMUNICATIONS  EQUIPMENT  VENDOR  SHALL  BE  THE
 FILING   OF  A  SWORN  APPLICATION  WITH  THE  SUPERINTENDENT  ON  FORMS
 PRESCRIBED AND FURNISHED BY THE SUPERINTENDENT WHICH SHALL:
   (A)  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
   (B) THE LOCATION OF THE APPLICANT'S HOME OFFICE; AND
   (4) 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-

 S. 6612                             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;

 S. 6612                             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
   (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.
   (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
 communications equipment, or renter of storage space  that  purchase  of

 S. 6612                             6
 
 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. ANY CHARGE TO THE ENROLLED CUSTOMER FOR COVERAGE
 THAT IS NOT INCLUDED IN THE COST ASSOCIATED WITH THE PURCHASE  OR  LEASE
 OF  WIRELESS COMMUNICATIONS EQUIPMENT OR RELATED SERVICES SHALL BE SEPA-
 RATELY ITEMIZED ON THE ENROLLED CUSTOMER'S BILL. IF THE INSURANCE COVER-
 AGE IS INCLUDED WITH THE PURCHASE OR LEASE  OF  WIRELESS  COMMUNICATIONS
 EQUIPMENT OR RELATED SERVICES THE VENDOR SHALL CLEARLY AND CONSPICUOUSLY
 DISCLOSE TO THE ENROLLED CUSTOMER THAT THE COVERAGE IS INCLUDED WITH THE
 WIRELESS  COMMUNICATIONS  EQUIPMENT  OR  RELATED  SERVICES.  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,

 S. 6612                             7
 
 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]
 NOTWITHSTANDING  ANY  LAW,  RULE,  OR  REGULATION  TO THE CONTRARY, WITH
 RESPECT TO WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE, THE ONLY DISCLO-
 SURES AND MATERIALS REQUIRED IN THE PROVISION OF SUCH INSURANCE SHALL BE
 THE ITEMS REQUIRED BY THIS SECTION.
   § 3. Section 3449 of the insurance law, as added by chapter 426 of the
 laws of 2005, is amended to read as follows:
   § 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.

 S. 6612                             8
 
   (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. 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.
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.