S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    207
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00052-01-9

 A. 207                              2
 
 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
 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.
   §  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

 A. 207                              3
 
 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
   (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

 A. 207                              4

 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-
 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;

 A. 207                              5
 
   (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;
   (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

 A. 207                              6
 
 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
 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.

 A. 207                              7
 
   [(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.]
   § 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.
   (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.

 A. 207                              8
 
   (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
 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.
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.