Bill Text: NY A08304 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to wireless communications equipment protection plans offered for sale by wireless communication equipment vendors; defines terms; requires certain notices and consumer protections.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced) 2024-04-17 - reported referred to codes [A08304 Detail]
Download: New_York-2023-A08304-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8304--A 2023-2024 Regular Sessions IN ASSEMBLY November 27, 2023 ___________ Introduced by M. of A. WEPRIN, STERN, BLANKENBUSH -- read once and referred to the Committee on Insurance -- recommitted to the Committee on Insurance in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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: 1 Section 1. Section 3449 of the insurance law, as added by chapter 426 2 of the laws of 2005, is amended to read as follows: 3 § 3449. Wireless communications equipment insurance policies. (a) In 4 this section[, the term "policy]: 5 (1) "Policy of wireless communications equipment insurance" means an 6 insurance policy covering the kind of insurance described in [subsection7(1)] paragraph two of subsection (d) of section two thousand one hundred 8 thirty-one of this chapter. 9 (2) "Wireless communications equipment" shall have the same meaning as 10 described in section two thousand one hundred thirty-one of this chap- 11 ter. 12 (3) "Wireless communications equipment protection plan member" means 13 any individual who purchased a wireless communications equipment 14 protection plan and such wireless communications protection equipment 15 plan has not expired or been terminated. 16 (4) "Wireless communications equipment protection plan" means an 17 optional plan offered for sale by a wireless communications equipment 18 vendor licensed pursuant to section two thousand one hundred thirty-one 19 of this chapter and the plan provides: 20 (A) a policy of wireless communications equipment insurance covering 21 the wireless communications equipment under a group policy subject to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13527-05-4A. 8304--A 2 1 this section where the wireless communications equipment vendor is the 2 group policyholder; 3 (B) a service contract subject to article seventy-nine of this chap- 4 ter, provided that the service contract provider or its affiliate recy- 5 cles, reuses, or disposes the wireless communications equipment in 6 accordance with section 27-2303 of the environmental conservation law, 7 as added by chapter seven hundred thirty of the laws of two thousand 8 six; and 9 (C) may include one or more of the following: 10 (i) a wireless communications equipment upgrade program, provided that 11 the program recycles, reuses, or disposes the wireless communications 12 equipment in accordance with section 27-2303 of the environmental 13 conservation law, as added by chapter seven hundred thirty of the laws 14 of two thousand six; 15 (ii) technical support with respect to the wireless communications 16 equipment; and 17 (iii) any other services related to the use of the wireless communi- 18 cations equipment that the superintendent deems to be meaningful and 19 appropriate, in accordance with subsection (h) of this section. 20 (5) "Wireless communications equipment vendor" means a retail seller, 21 manufacturer or distributor of the wireless communications equipment or 22 the entity providing the telecommunications service that is licensed 23 pursuant to section two thousand one hundred thirty-one of this chapter. 24 (b) (1) A group policy of wireless communications equipment insurance, 25 and certificates issued thereunder, may be issued only by an authorized 26 insurer. 27 (2) A group policy of wireless communications equipment insurance may 28 only be issued to a wireless communications equipment vendor. 29 (3) A group policy of wireless communications equipment insurance may 30 be offered on a stand-alone basis or as part of a wireless communi- 31 cations equipment protection plan. 32 (c) Where a group policy of wireless communications equipment insur- 33 ance is provided as part of a wireless communications equipment 34 protection plan, the premium for the group policy, including certif- 35 icates, may be paid by the group policyholder from funds contributed: 36 (1) wholly by the group policyholder; 37 (2) wholly by the wireless communications equipment protection plan 38 members; or 39 (3) jointly by the group policyholder and wireless communications 40 equipment protection plan members. 41 (d) For the purposes of this section, a wireless communications equip- 42 ment protection plan member shall be a certificate holder of wireless 43 communications insurance and a service contract holder as defined in 44 section seven thousand nine hundred two of this chapter. 45 (e) (1) A group policy of wireless communications equipment insurance, 46 and certificates issued thereunder, [of wireless communications equip-47ment insurance] shall not be subject to the provisions of section three 48 thousand four hundred twenty-five or three thousand four hundred twen- 49 ty-six of this article. 50 (2) An insurer shall not terminate or otherwise change the terms and 51 conditions of a group policy of wireless communications equipment insur- 52 ance, and certificates issued thereunder, whether offered on a stand-al- 53 one basis or as part of a wireless communications equipment protection 54 plan, except upon providing the policyholder and certificate holders 55 with at least sixty days notice. If the insurer changes the terms and 56 conditions, then the insurer shall provide the policyholder with aA. 8304--A 3 1 revised policy or endorsement and each certificate holder with a revised 2 certificate or endorsement, an updated brochure or facsimile thereof and 3 an explanation of the changes. 4 (3) Notwithstanding paragraph two of this subsection, an insurer may 5 terminate a certificate upon fifteen days notice for: 6 (A) nonpayment of premium; or 7 (B) discovery of fraud or material misrepresentation in obtaining the 8 certificate or in the presentation of a claim thereunder. 9 (4) Notwithstanding paragraph two of this subsection, an insurer may 10 automatically terminate a certificate if the certificate holder: 11 (A) ceases to have active telecommunications service with the wireless 12 communications equipment vendor; or 13 (B) exhausts the aggregate limit of liability, if any, under the 14 certificate and the insurer sends notice of termination to the certif- 15 icate holder within fifteen business days after exhaustion of the limit. 16 However, if notice is not timely sent, coverage shall continue notwith- 17 standing the aggregate limit of liability until the insurer sends notice 18 of termination to the certificate holder. 19 (5) Notwithstanding paragraph two of this subsection, an insurer may 20 terminate a certificate of wireless communications equipment insurance 21 upon the termination of a wireless communications equipment protection 22 plan by a wireless communications equipment protection plan member when 23 the insurance is provided as part of such a plan program and the wire- 24 less communications equipment protection plan member had been provided 25 clear and express notice in the plan documents when the plan was 26 initially purchased that the certificate of wireless communications 27 equipment insurance will cease upon termination of the wireless communi- 28 cations equipment protection plan program. The insurer may give the 29 wireless communications equipment protection plan member the option to 30 purchase a policy of wireless communications insurance on a stand-alone 31 basis. 32 (6) Notwithstanding the provisions of subparagraph (B) of paragraph 33 four of this subsection, upon the request of a certificate holder, the 34 certificate holder's coverage shall be eligible for reinstatement not 35 more than twelve months following the date of exhaustion of the coverage 36 limit in accordance with the terms of the policy and subject to the 37 enrollment criteria then applicable to prospective certificate holders 38 generally. 39 [(6)] (7) Where the group policy of a wireless communications equip- 40 ment insurance, whether offered on a stand-alone basis or as part of a 41 wireless communications protection equipment plan, is terminated by the 42 policyholder, the policyholder shall mail or deliver written notice to 43 each certificate holder advising the certificate holder of the termi- 44 nation of the group policy and the effective date of termination. The 45 written notice shall be mailed or delivered to the certificate holder at 46 least thirty days prior to the termination. 47 [(c)] (f) Whenever notice is required pursuant to this section, it 48 shall be in writing and mailed or delivered to the policyholder at the 49 policyholder's mailing address and to affected certificate holders at 50 the certificate holders' last known mailing addresses on file with the 51 insurer or delivered by electronic means pursuant to section three thou- 52 sand four hundred fifty-eight of this chapter. Every notice of termi- 53 nation shall specify the reason or reasons for termination. 54 [(d)] (g) (1) Notwithstanding subsection [(c)] (f) of this section, an 55 insurer shall not be required to give notice of termination to the 56 certificate holder if the insurer has been advised by either the policy-A. 8304--A 4 1 holder or another insurer that substantially similar coverage has been 2 obtained from the other insurer without lapse of coverage. 3 (2) A policyholder shall not be required to give notice of termination 4 to a certificate holder if substantially similar coverage has been 5 obtained from another insurer without lapse of coverage. 6 [(e)] (h) The superintendent may promulgate regulations regarding 7 policies of wireless communications equipment insurance, including, but 8 not limited to, regulations governing policy terms and conditions, the 9 inclusion of such policies in wireless communications equipment 10 protection plans, treatment of dividends, and may establish other 11 reasonable limitations. 12 § 2. This act shall take effect on the one hundred eightieth day after 13 it shall have become a law.
