Bill Text: NY A08304 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8304

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    November 27, 2023
                                       ___________

        Introduced by M. of A. WEPRIN -- 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:

     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] chapter:
     5    (1)  "Policy  of wireless communications equipment insurance" means an
     6  insurance policy covering the kind of insurance described in [subsection
     7  (1)] paragraph two of subsection (d) of section two thousand one hundred
     8  thirty-one of this chapter.
     9    (2)  "Wireless  communication  equipment  protection  plan"  means  an
    10  optional  plan  offered  for  sale by a wireless communication equipment
    11  vendor licensed pursuant to section two thousand one hundred  thirty-one
    12  of this chapter and the plan provides:
    13    (A)  wireless communications equipment insurance covering the wireless
    14  communication equipment under a group policy  subject  to  this  section
    15  where  the  wireless communication equipment vendor is the group policy-
    16  holder;
    17    (B) a service contract subject to article seventy-nine of  this  chap-
    18  ter,  provided that the service contract provider or its affiliate recy-
    19  cles, reuses, or  disposes  the  wireless  communications  equipment  in
    20  accordance  with  section 27-2303 of the environmental conservation law,
    21  as added by chapter seven hundred thirty of the  laws  of  two  thousand
    22  six; and
    23    (C) may include one or more of the following:
    24    (i) a wireless communications equipment upgrade program, provided that
    25  the  program  recycles,  reuses, or disposes the wireless communications

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13527-01-3
        A. 8304                             2

     1  equipment in  accordance  with  section  27-2303  of  the  environmental
     2  conservation law as added by chapter seven hundred thirty of the laws of
     3  two thousand six;
     4    (ii) technical support with respect to the wireless communication; and
     5    (iii)  any  other services related to the use of the wireless communi-
     6  cations equipment that the superintendent deems  to  be  meaningful  and
     7  appropriate, in accordance with subsection (g) of this section.
     8    (3) "Wireless communication equipment vendor" means the retail seller,
     9  manufacturer  or  distributor of the wireless communication equipment or
    10  the entity providing the telecommunications service.
    11    (b) (1) A group policy, and certificates  issued  thereunder,  may  be
    12  issued only by an authorized insurer.
    13    (2)  The  group policy may only be issued to a wireless communications
    14  equipment vendor licensed pursuant to section two thousand  one  hundred
    15  thirty-one of this chapter that sold or manufactured the wireless commu-
    16  nication equipment or provides telecommunications service for the equip-
    17  ment.
    18    (3)  The group policy may be offered on a stand-alone basis or as part
    19  of a wireless communication equipment protection plan.
    20    (c) Where the group policy is provided as part of a wireless  communi-
    21  cation  equipment  protection  plan,  the  premium for the group policy,
    22  including certificates, may be paid by the group policyholder from funds
    23  contributed:
    24    (1) wholly by the group policyholder;
    25    (2) wholly by the group members; or
    26    (3) jointly by the group policyholder and group members.
    27    (d) (1) A group policy, and certificates issued thereunder,  of  wire-
    28  less  communications  equipment  insurance  shall  not be subject to the
    29  provisions of section three thousand four hundred twenty-five  or  three
    30  thousand four hundred twenty-six of this article.
    31    (2)  An  insurer shall not terminate or otherwise change the terms and
    32  conditions of a group policy of wireless communications equipment insur-
    33  ance, and certificates issued  thereunder,  except  upon  providing  the
    34  policyholder and certificate holders with at least sixty days notice. If
    35  the  insurer  changes  the  terms and conditions, then the insurer shall
    36  provide the policyholder with a revised policy or endorsement  and  each
    37  certificate holder with a revised certificate or endorsement, an updated
    38  brochure or facsimile thereof and an explanation of the changes.
    39    (3)  Notwithstanding  paragraph two of this subsection, an insurer may
    40  terminate a certificate upon fifteen days notice for:
    41    (A) nonpayment of premium; or
    42    (B) discovery of fraud or material misrepresentation in obtaining  the
    43  certificate or in the presentation of a claim thereunder.
    44    (4)  Notwithstanding  paragraph two of this subsection, an insurer may
    45  automatically terminate a certificate if the certificate holder:
    46    (A) ceases to have active telecommunications service with the wireless
    47  communications equipment vendor; or
    48    (B) exhausts the aggregate limit  of  liability,  if  any,  under  the
    49  certificate  and  the insurer sends notice of termination to the certif-
    50  icate holder within fifteen business days after exhaustion of the limit.
    51  However, if notice is not timely sent, coverage shall continue  notwith-
    52  standing the aggregate limit of liability until the insurer sends notice
    53  of termination to the certificate holder.
    54    (5)  Notwithstanding  paragraph two of this subsection, an insurer may
    55  automatically terminate a certificate upon  termination  of  a  wireless
    56  communication  equipment  protection  plan program when the insurance is
        A. 8304                             3

     1  provided as part of such a plan program and the certificate  holder  had
     2  been  provided  clear  and express notice in the plan documents when the
     3  plan was initially purchased that the insurance will cease  upon  termi-
     4  nation  of the wireless communication equipment protection plan program;
     5  however, the insurer may give  the  certificate  holder  the  option  to
     6  continue  the wireless communication insurance coverage on an individual
     7  basis.
     8    (6) Notwithstanding the provisions of subparagraph  (B)  of  paragraph
     9  four  of  this subsection, upon the request of a certificate holder, the
    10  certificate holder's coverage shall be eligible  for  reinstatement  not
    11  more than twelve months following the date of exhaustion of the coverage
    12  limit  in  accordance  with  the  terms of the policy and subject to the
    13  enrollment criteria then applicable to prospective  certificate  holders
    14  generally.
    15    [(6)]  (7)  Where  the group policy is terminated by the policyholder,
    16  the policyholder shall mail or deliver written notice  to  each  certif-
    17  icate  holder  advising the certificate holder of the termination of the
    18  group policy and the effective date of termination. The  written  notice
    19  shall  be  mailed or delivered to the certificate holder at least thirty
    20  days prior to the termination.
    21    [(c)] (e) Whenever notice is required pursuant  to  this  section,  it
    22  shall  be  in writing and mailed or delivered to the policyholder at the
    23  policyholder's mailing address and to affected  certificate  holders  at
    24  the  certificate  holders' last known mailing addresses on file with the
    25  insurer. Every notice of termination shall specify the reason or reasons
    26  for termination.
    27    [(d)] (f) (1) Notwithstanding subsection [(c)] (e) of this section, an
    28  insurer shall not be required to  give  notice  of  termination  to  the
    29  certificate holder if the insurer has been advised by either the policy-
    30  holder  or  another insurer that substantially similar coverage has been
    31  obtained from the other insurer without lapse of coverage.
    32    (2) A policyholder shall not be required to give notice of termination
    33  to a certificate holder  if  substantially  similar  coverage  has  been
    34  obtained from another insurer without lapse of coverage.
    35    [(e)]  (g)  The  superintendent  may  promulgate regulations regarding
    36  policies of wireless communications equipment insurance, including,  but
    37  not  limited  to,  regulations  governing  policy  terms and conditions,
    38  treatment of dividends, and may establish other reasonable limitations.
    39    § 2. This act shall take effect on the one hundred eightieth day after
    40  it shall have become a law.