S T A T E   O F   N E W   Y O R K
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                                  5363

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 13, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to travel insurance

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (i)  of section 2101 of the insurance law, as
added by chapter 408 of the laws of 1990, is amended to read as follows:
  (i) In this chapter, "limited licensee" shall mean a person authorized
to sell certain coverages relating to the rental of motor vehicles,  THE
SALE  OF  WIRELESS  COMMUNICATIONS EQUIPMENT, THE RENTAL OF SELF-STORAGE
SPACE, OR THE SALE OF TRAVEL-RELATED PRODUCTS AND SERVICES, pursuant  to
the  provisions  of  section two thousand one hundred thirty-one of this
article.
  S 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,
subsection (g) as amended by chapter 426 of the laws of 2005, is amended
to read as follows:
  S  2131. Limited license for rental vehicle companies, wireless commu-
nications equipment vendors [and], self-service storage  companies,  AND
TRAVEL  INSURANCE  AGENTS.  (a) The superintendent may issue to a rental
vehicle company, a wireless communications equipment vendor, a self-ser-
vice storage company, AND A TRAVEL INSURANCE AGENT, or to  a  franchisee
of a rental vehicle company, a wireless communications equipment vendor,
[or  a]  self-service storage company, OR A TRAVEL INSURANCE AGENT which
has complied with the requirements of this section,  a  limited  license
authorizing  the licensee, known as a "limited licensee" for the purpose
of this article, to act as agent, with reference to the kinds of  insur-
ance  specified in this section, of any insurer authorized to write such
kinds of insurance in this state.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11045-03-5

              

S. 5363                             2

  (b) 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.
  (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 TRAVEL INSURANCE AGENT, or
franchisee  licensed  pursuant to subsection (a) of this section may act
as agent for an authorized insurer only in connection with THE  SALE  OF
INSURANCE  IN  CONNECTION WITH the rental of motor vehicles, the sale or
offering for sale of wireless communications equipment, [or] the  rental
of  storage  space,  OR  THE SALE OR OFFERING FOR SALE OF TRAVEL-RELATED
PRODUCTS OR SERVICES, respectively, and only with respect to the follow-
ing 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 as either an
individual policy issued to the consumer or  as  a  group  policy  under
which  certificates or other evidence of coverage are issued to individ-

S. 5363                             3

ual 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.
  (4) WITH RESPECT TO TRAVEL INSURANCE AGENTS, THE FOLLOWING  COVERAGES,
EACH OF WHICH COVERAGE IS INDIVIDUALLY AND COLLECTIVELY KNOWN AS "TRAVEL
INSURANCE":
  (A)  INSURANCE COVERAGE FOR PERSONAL RISKS INCIDENT TO PLANNED TRAVEL,
INCLUDING BUT NOT LIMITED TO:
  (I) INTERRUPTION OR CANCELLATION OF TRIP OR EVENT;
  (II) LOSS OF BAGGAGE OR PERSONAL EFFECTS;
  (III) DAMAGES TO ACCOMMODATIONS OR RENTAL VEHICLE; OR
  (IV) SICKNESS, ACCIDENT, DISABILITY OR DEATH OCCURRING DURING TRAVEL.
  (B) ANY OTHER COVERAGE THAT THE SUPERINTENDENT MAY APPROVE AS MEANING-
FUL AND APPROPRIATE IN CONNECTION WITH TRAVEL.
  TRAVEL INSURANCE DOES NOT INCLUDE MAJOR MEDICAL PLANS,  WHICH  PROVIDE
COMPREHENSIVE  MEDICAL  PROTECTION  FOR TRAVELERS WITH TRIPS LASTING SIX
MONTHS OR LONGER, INCLUDING FOR EXAMPLE, THOSE WORKING  OVERSEAS  AS  AN
EXPATRIATE OR MILITARY PERSONNEL BEING DEPLOYED.
  (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 arti-
cle;
  (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;
  (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

S. 5363                             4

  (G)  state  that the customer may cancel the insurance at any time and
any unearned premium will be refunded in accordance with applicable law.
  (3)  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.
  (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
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:

S. 5363                             5

  (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.
  (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.
  (M) PROVISIONS RELATED SPECIFICALLY TO TRAVEL INSURANCE COVERAGE.
  (1) DEFINITIONS.
  (A)  IN  THIS  ARTICLE, A "TRAVEL INSURANCE AGENT" SHALL MEAN AN AGENT
LICENSED UNDER SECTION TWO THOUSAND ONE HUNDRED THREE OF THIS ARTICLE OR
A LIMITED LICENSEE UNDER SUBSECTION (A) OF THIS SECTION THAT  IS  DESIG-
NATED  BY  AN  INSURER  AS  A TRAVEL INSURANCE SUPERVISING ENTITY AS SET
FORTH IN PARAGRAPH FOUR OF THIS SUBSECTION.
  (B) IN THIS ARTICLE, "OFFER  AND  DISSEMINATE"  SHALL  MEAN  PROVIDING
GENERAL  INFORMATION, INCLUDING A DESCRIPTION OF THE COVERAGE AND PRICE,
AS WELL AS PROCESSING THE APPLICATION, COLLECTING PREMIUMS, AND PERFORM-
ING OTHER NON-LICENSABLE ACTIVITIES PERMITTED BY THE STATE.
  (C) IN THIS ARTICLE, "TRAVEL COMPANY" SHALL  MEAN  A  BUSINESS  ENTITY
THAT MAKES, ARRANGES OR OFFERS TRAVEL SERVICES AND MAY OFFER AND DISSEM-
INATE  TRAVEL  INSURANCE  AS A SERVICE TO ITS CUSTOMERS ON BEHALF OF AND
UNDER THE DIRECTION OF A TRAVEL INSURANCE AGENT.
  (2) REQUIREMENTS. NOTWITHSTANDING ANY OTHER PROVISION OF LAW:
  (A) A TRAVEL COMPANY MAY OFFER AND  DISSEMINATE  TRAVEL  INSURANCE  ON
BEHALF  OF  AND  UNDER  THE  LICENSE  OF A TRAVEL INSURANCE AGENT IF THE
FOLLOWING CONDITIONS ARE MET:
  (I) THE TRAVEL INSURANCE AGENT OR TRAVEL COMPANY PROVIDES TO  PURCHAS-
ERS OF TRAVEL INSURANCE:
  (1)  A  DESCRIPTION OF THE MATERIAL TERMS OR THE ACTUAL MATERIAL TERMS
OF THE INSURANCE COVERAGE;
  (2) A DESCRIPTION OF THE PROCESS FOR FILING A CLAIM;
  (3) A DESCRIPTION OF THE REVIEW OR CANCELLATION PROCESS FOR THE TRAVEL
INSURANCE POLICY; AND
  (4) THE IDENTITY AND CONTACT INFORMATION OF  THE  INSURER  AND  TRAVEL
INSURANCE AGENT.
  (II) AT THE TIME OF LICENSURE, THE TRAVEL INSURANCE AGENT SHALL ESTAB-
LISH AND MAINTAIN A REGISTER ON A FORM PRESCRIBED BY THE SUPERINTENDENT,
OF EACH TRAVEL COMPANY THAT OFFERS TRAVEL INSURANCE ON THE TRAVEL INSUR-
ANCE AGENT'S BEHALF. THE REGISTER SHALL BE MAINTAINED AND UPDATED BY THE
TRAVEL  INSURANCE AGENT AND SHALL INCLUDE THE NAME, ADDRESS, AND CONTACT

S. 5363                             6

INFORMATION OF THE TRAVEL COMPANY AND AN OFFICER OR PERSON  WHO  DIRECTS
OR  CONTROLS  THE  TRAVEL COMPANY'S OPERATIONS, AND THE TRAVEL COMPANY'S
FEDERAL TAX IDENTIFICATION NUMBER.  THE  TRAVEL  INSURANCE  AGENT  SHALL
SUBMIT  SUCH REGISTER TO THE SUPERINTENDENT UPON REASONABLE REQUEST. THE
TRAVEL INSURANCE AGENT SHALL ALSO CERTIFY THAT THE TRAVEL COMPANY REGIS-
TER COMPLIES WITH 18 USC 1033.
  (III) THE TRAVEL INSURANCE AGENT HAS DESIGNATED ONE OF  ITS  EMPLOYEES
WHO  IS A LICENSED INDIVIDUAL AGENT AS THE PERSON (A "DESIGNATED RESPON-
SIBLE PRODUCER" OR "DRP") RESPONSIBLE FOR THE TRAVEL  INSURANCE  AGENT'S
COMPLIANCE  WITH THE TRAVEL INSURANCE LAWS, RULES AND REGULATIONS OF THE
STATE.
  (IV) THE DRP, PRESIDENT, SECRETARY, TREASURER, AND ANY  OTHER  OFFICER
OR PERSON WHO DIRECTS OR CONTROLS THE TRAVEL INSURANCE AGENT'S INSURANCE
OPERATIONS  COMPLY  WITH  THE  FINGERPRINTING REQUIREMENTS APPLICABLE TO
INSURANCE AGENTS IN THE RESIDENT STATE OF THE TRAVEL INSURANCE AGENT.
  (V) THE TRAVEL INSURANCE AGENT HAS PAID ALL APPLICABLE INSURANCE AGENT
LICENSING FEES AS SET FORTH IN APPLICABLE STATE LAW.
  (VI) THE TRAVEL INSURANCE AGENT REQUIRES EACH EMPLOYEE AND  AUTHORIZED
REPRESENTATIVE  OF  THE TRAVEL COMPANY WHOSE DUTIES INCLUDE OFFERING AND
DISSEMINATING TRAVEL INSURANCE TO RECEIVE A PROGRAM  OF  INSTRUCTION  OR
TRAINING  THAT  SHALL,  AT MINIMUM, CONTAIN INSTRUCTIONS ON THE TYPES OF
INSURANCE OFFERED, ETHICAL SALES PRACTICES, AND REQUIRED DISCLOSURES  TO
PROSPECTIVE CUSTOMERS.
  (B)  ANY  TRAVEL  COMPANY  OFFERING AND DISSEMINATING TRAVEL INSURANCE
SHALL MAKE AVAILABLE TO PROSPECTIVE PURCHASERS BROCHURES OR OTHER  WRIT-
TEN MATERIALS THAT:
  (I)  PROVIDE  THE  IDENTITY AND CONTACT INFORMATION OF THE INSURER AND
THE TRAVEL INSURANCE AGENT;
  (II) EXPLAIN THAT THE PURCHASE OF TRAVEL INSURANCE IS NOT REQUIRED  IN
ORDER TO PURCHASE ANY OTHER PRODUCT OR SERVICE FROM THE TRAVEL COMPANY;
  (III)  EXPLAIN  THAT  THE TRAVEL INSURANCE COVERAGE IS NOT INTENDED TO
DUPLICATE ANY OTHER INSURANCE COVERAGE THE PURCHASER MIGHT HAVE, BUT THE
PURCHASER MAY WISH TO COMPARE THE TERMS OF COVERAGE WITH EXISTING  POLI-
CIES; AND
  (IV) EXPLAIN THAT AN UNLICENSED TRAVEL COMPANY IS PERMITTED TO PROVIDE
GENERAL  INFORMATION  ABOUT THE INSURANCE OFFERED BY THE TRAVEL COMPANY,
INCLUDING A DESCRIPTION OF THE COVERAGE AND PRICE, BUT IS NOT  QUALIFIED
OR  AUTHORIZED  TO ANSWER TECHNICAL QUESTIONS ABOUT THE TERMS AND CONDI-
TIONS OF THE INSURANCE OFFERED BY THE TRAVEL COMPANY OR TO EVALUATE  THE
ADEQUACY OF THE CUSTOMER'S EXISTING INSURANCE COVERAGE.
  (C)  A TRAVEL COMPANY EMPLOYEE OR AUTHORIZED REPRESENTATIVE WHO IS NOT
LICENSED AS AN INSURANCE AGENT MAY NOT:
  (I) EVALUATE OR INTERPRET THE TECHNICAL TERMS,  BENEFITS,  AND  CONDI-
TIONS OF THE OFFERED TRAVEL INSURANCE COVERAGE;
  (II)  EVALUATE  OR PROVIDE ADVICE CONCERNING A PROSPECTIVE PURCHASER'S
EXISTING INSURANCE COVERAGE; OR
  (III) HOLD HIMSELF, HERSELF, OR ITSELF  OUT  AS  A  LICENSED  INSURER,
LICENSED AGENT, OR INSURANCE EXPERT.
  (3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A TRAVEL COMPANY WHOSE
INSURANCE-RELATED  ACTIVITIES, AND THOSE OF ITS EMPLOYEES AND AUTHORIZED
REPRESENTATIVES, ARE LIMITED TO OFFERING AND DISSEMINATING TRAVEL INSUR-
ANCE ON BEHALF OF AND UNDER THE DIRECTION OF A  TRAVEL  INSURANCE  AGENT
MEETING THE CONDITIONS STATED IN THIS SUBSECTION, IS AUTHORIZED TO DO SO
AND RECEIVE RELATED COMPENSATION, UPON REGISTRATION BY THE TRAVEL INSUR-
ANCE  AGENT  AS  DESCRIBED  IN  THIS  SECTION. NO EMPLOYEE OF THE TRAVEL
COMPANY MAY BE COMPENSATED BASED PRIMARILY ON THE  NUMBER  OF  CUSTOMERS

S. 5363                             7

WHO PURCHASE TRAVEL INSURANCE COVERAGE BUT NOTHING IN THIS ARTICLE SHALL
PROHIBIT  PAYMENT  OF  COMPENSATION TO A TRAVEL COMPANY OR ITS EMPLOYEES
FOR ACTIVITIES AS  A  REGISTRANT  UNDER  THE  TRAVEL  INSURANCE  AGENT'S
LICENSE  THAT  IS  INCIDENTAL  TO THE OVERALL COMPENSATION OF THE TRAVEL
COMPANY OR ITS EMPLOYEES.
  (4) AS THE INSURER'S SUPERVISING DESIGNEE, THE TRAVEL INSURANCE  AGENT
IS  RESPONSIBLE FOR THE ACTS OF THE TRAVEL COMPANY AND SHALL USE REASON-
ABLE MEANS TO ENSURE COMPLIANCE BY THE TRAVEL COMPANY WITH THIS ARTICLE.
  (5) TRAVEL INSURANCE MAY BE PROVIDED UNDER  AN  INDIVIDUAL,  GROUP  OR
MASTER  POLICY,  AND  MAY BE FILED UNDER AN INLAND MARINE LINE OF INSUR-
ANCE, PURSUANT TO SUBPARAGRAPH (B) OF PARAGRAPH TWENTY OF SUBSECTION (A)
OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER, AS LONG AS
ANY HEALTH BENEFITS OFFERED ARE NOT OFFERED ON A STAND-ALONE  BASIS  AND
ARE INCIDENTAL TO OTHER PROPERTY AND CASUALTY TRAVEL COVERAGES.
  (6) (A) THE TRAVEL INSURANCE AGENT AND ANY TRAVEL COMPANY OFFERING AND
DISSEMINATING  TRAVEL INSURANCE UNDER A TRAVEL INSURANCE AGENT'S LICENSE
SHALL BE SUBJECT TO (I) THE UNFAIR TRADE PRACTICES RULES AND ENFORCEMENT
PROVISIONS OF ARTICLE TWENTY-FOUR OF THIS CHAPTER  AND  (II)  ANY  OTHER
ENFORCEMENT PROVISIONS APPLICABLE TO INSURANCE PRODUCERS GENERALLY.
  (B) IF THE SUPERINTENDENT DETERMINES THAT A TRAVEL COMPANY, OR A TRAV-
EL  COMPANY'S EMPLOYEE HAS VIOLATED ANY PROVISION OF THIS ARTICLE OR ANY
OTHER PROVISION OF THIS CHAPTER, THE SUPERINTENDENT MAY:
  (I) DIRECT THE LIMITED LINES TRAVEL INSURANCE PRODUCER TO IMPLEMENT  A
CORRECTIVE ACTION PLAN WITH THE TRAVEL COMPANY.
  (II)  DIRECT THE LIMITED LINES TRAVEL INSURANCE PRODUCER TO REVOKE THE
AUTHORIZATION OF THE TRAVEL COMPANY TO TRANSACT TRAVEL INSURANCE ON  ITS
BEHALF  AND  UNDER  ITS  LICENSE AND TO REMOVE THE TRAVEL COMPANY'S NAME
FROM ITS REGISTER.
  (C) IF THE SUPERINTENDENT DETERMINES THAT A TRAVEL COMPANY, OR A TRAV-
EL COMPANY'S EMPLOYEE HAS VIOLATED A PROVISION IN THIS  ARTICLE  OR  ANY
OTHER  PROVISION OF THIS CHAPTER, THE SUPERINTENDENT, AFTER NOTICE AND A
HEARING, MAY:
  (I) SUSPEND OR REVOKE THE LICENSE OF THE LIMITED LINES  TRAVEL  INSUR-
ANCE PRODUCER AS AUTHORIZED UNDER THIS CHAPTER.
  (II)  IMPOSE  A  MONETARY  FINE  ON THE LIMITED LINES TRAVEL INSURANCE
PRODUCER.
  S 3. Subsection (a) of section 3452 of the insurance law, as added  by
chapter 318 of the laws of 2008, is amended to read as follows:
  (a)(1)  A  group  property  travel  insurance policy, and certificates
thereunder, may be issued or delivered in this state only in  accordance
with the provisions of this section.
  (2)  A group property travel insurance policy, and certificates there-
under, may be issued only by an authorized insurer.
  (3) The policy may be issued to:
  (A) any railroad company, steamship company, carrier  by  air,  public
bus  carrier,  or  other common carrier of passengers OR TRAVEL COMPANY,
which shall be deemed the policyholder, where  the  policy  insures  its
passengers OR TRAVEL CUSTOMERS; or
  (B) any other group where the superintendent has determined in a regu-
lation  that  the members are engaged in a common enterprise, or have an
economic or social affinity or relationship, and that  the  issuance  of
the policy would not be contrary to the best interests of the public.
  (4) The TRAVEL INSURANCE policy may provide coverage [for trip cancel-
lation,  trip  interruption, baggage, and personal effects] AS SPECIFIED
IN PARAGRAPH FOUR OF SUBSECTION (D) OF SECTION TWO THOUSAND ONE  HUNDRED
THIRTY-ONE  OF THIS CHAPTER, when limited to a specific trip. The policy

S. 5363                             8

shall be sold in connection with transportation provided by  the  common
carrier  or TRAVEL COMPANY OR, with respect to other groups as permitted
by the superintendent in accordance with subparagraph (B)  of  paragraph
three  of  this  subsection, subject to such limitations provided in the
regulation promulgated by the superintendent.
  (5) Coverage under the policy shall be limited to the  group  member's
risks with respect to a particular trip.
  (6)  A person shall not be required to purchase any product or service
to be eligible for group property travel insurance coverage, or required
to purchase coverage as a condition of becoming a passenger or  a  group
member.
  S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law.