S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6872
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2019
                                ___________
 
 Introduced  by  M. of A. COOK -- 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.
   (B) "WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE" DOES NOT INCLUDE:
   (I) A SERVICE CONTRACT AS THAT TERM IS DEFINED BY ARTICLE SEVENTY-NINE
 OF THIS CHAPTER;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08054-01-9
              

 A. 6872                             2
 
   (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]
   (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. 6872                             3
 
   (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, 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-
 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

 A. 6872                             4
 
   (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;
   (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.

 A. 6872                             5
 
   (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 ON THE NUMBER OF CUSTOMERS ENROLLED  FOR  WIRE-
 LESS  COMMUNICATIONS EQUIPMENT INSURANCE COVERAGE BUT MAY BE ELIGIBLE TO
 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
 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

 A. 6872                             6
 
 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,
 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.

 A. 6872                             7
 
   (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)  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 business days after exhaustion of the limit.
 However,  if notice is not timely sent, coverage shall continue notwith-
 standing the aggregate limit of liability until the insurer sends notice
 of termination to the certificate holder.
   (5) Notwithstanding the provisions of subparagraph  (B)  of  paragraph
 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  holders
 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. 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.

 A. 6872                             8
 
   (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.