S T A T E O F N E W Y O R K
________________________________________________________________________
7748--C
Cal. No. 883
2023-2024 Regular Sessions
I N S E N A T E
November 13, 2023
___________
Introduced by Sens. BRESLIN, ADDABBO -- read twice and ordered printed,
and when printed to be committed to the Committee on Rules -- recom-
mitted to the Committee on Insurance in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported favorably from
said committee, ordered to first and second report, ordered to a third
reading, amended and ordered reprinted, retaining its place in the
order of third reading -- again amended and ordered reprinted, retain-
ing its place in the order of third reading
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 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]:
(1) "POLICY of wireless communications equipment insurance" means an
insurance policy covering the kind of insurance described in [subsection
(1)] PARAGRAPH TWO OF SUBSECTION (D) of section two thousand one hundred
thirty-one of this chapter.
(2) "WIRELESS COMMUNICATIONS EQUIPMENT" SHALL HAVE THE SAME MEANING AS
DESCRIBED IN SECTION TWO THOUSAND ONE HUNDRED THIRTY-ONE OF THIS CHAP-
TER.
(3) "WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN MEMBER" MEANS
ANY INDIVIDUAL WHO PURCHASED A WIRELESS COMMUNICATIONS EQUIPMENT
PROTECTION PLAN AND SUCH WIRELESS COMMUNICATIONS PROTECTION EQUIPMENT
PLAN HAS NOT EXPIRED OR BEEN TERMINATED.
(4) "WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN" MEANS AN
OPTIONAL PLAN OFFERED FOR SALE BY A WIRELESS COMMUNICATIONS EQUIPMENT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13527-06-4
S. 7748--C 2
VENDOR LICENSED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY-ONE
OF THIS CHAPTER AND THE PLAN PROVIDES:
(A) A POLICY OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE COVERING
THE WIRELESS COMMUNICATIONS EQUIPMENT UNDER A GROUP POLICY SUBJECT TO
THIS SECTION WHERE THE WIRELESS COMMUNICATIONS EQUIPMENT VENDOR IS THE
GROUP POLICYHOLDER;
(B) A SERVICE CONTRACT SUBJECT TO ARTICLE SEVENTY-NINE OF THIS CHAP-
TER, PROVIDED THAT THE SERVICE CONTRACT PROVIDER OR ITS AFFILIATE RECY-
CLES, REUSES, OR DISPOSES THE WIRELESS COMMUNICATIONS EQUIPMENT IN
ACCORDANCE WITH SECTION 27-2303 OF THE ENVIRONMENTAL CONSERVATION LAW,
AS ADDED BY CHAPTER SEVEN HUNDRED THIRTY OF THE LAWS OF TWO THOUSAND
SIX; AND
(C) MAY INCLUDE ONE OR MORE OF THE FOLLOWING:
(I) A WIRELESS COMMUNICATIONS EQUIPMENT UPGRADE PROGRAM, PROVIDED THAT
THE PROGRAM RECYCLES, REUSES, OR DISPOSES THE WIRELESS COMMUNICATIONS
EQUIPMENT IN ACCORDANCE WITH SECTION 27-2303 OF THE ENVIRONMENTAL
CONSERVATION LAW, AS ADDED BY CHAPTER SEVEN HUNDRED THIRTY OF THE LAWS
OF TWO THOUSAND SIX;
(II) TECHNICAL SUPPORT WITH RESPECT TO THE WIRELESS COMMUNICATIONS
EQUIPMENT; AND
(III) ANY OTHER SERVICES RELATED TO THE USE OF THE WIRELESS COMMUNI-
CATIONS EQUIPMENT THAT THE SUPERINTENDENT DEEMS TO BE MEANINGFUL AND
APPROPRIATE, IN ACCORDANCE WITH SUBSECTION (H) OF THIS SECTION.
(5) "WIRELESS COMMUNICATIONS EQUIPMENT VENDOR" MEANS A RETAIL SELLER,
MANUFACTURER OR DISTRIBUTOR OF THE WIRELESS COMMUNICATIONS EQUIPMENT OR
THE ENTITY PROVIDING THE TELECOMMUNICATIONS SERVICE THAT IS LICENSED
PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED THIRTY-ONE OF THIS CHAPTER.
(b) (1) A GROUP POLICY OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE,
AND CERTIFICATES ISSUED THEREUNDER, MAY BE ISSUED ONLY BY AN AUTHORIZED
INSURER.
(2) A GROUP POLICY OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE MAY
ONLY BE ISSUED TO A WIRELESS COMMUNICATIONS EQUIPMENT VENDOR.
(3) A GROUP POLICY OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE MAY
BE OFFERED AS PART OF A WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION
PLAN, PROVIDED THAT THE WIRELESS COMMUNICATIONS EQUIPMENT VENDOR AT THE
SAME TIME ALSO OFFERS THE WIRELESS COMMUNICATION EQUIPMENT INSURANCE
FROM THE SAME INSURER ON A STAND-ALONE BASIS. THE STAND-ALONE WIRELESS
COMMUNICATION EQUIPMENT INSURANCE COVERAGE MAY BE ISSUED EITHER ON A
GROUP OR INDIVIDUAL BASIS.
(C) WHERE A GROUP POLICY OF WIRELESS COMMUNICATIONS EQUIPMENT INSUR-
ANCE IS PROVIDED AS PART OF A WIRELESS COMMUNICATIONS EQUIPMENT
PROTECTION PLAN, THE PREMIUM FOR THE GROUP POLICY, INCLUDING CERTIF-
ICATES, MAY BE PAID BY THE GROUP POLICYHOLDER FROM FUNDS CONTRIBUTED:
(1) WHOLLY BY THE GROUP POLICYHOLDER;
(2) WHOLLY BY THE WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN
MEMBERS; OR
(3) JOINTLY BY THE GROUP POLICYHOLDER AND WIRELESS COMMUNICATIONS
EQUIPMENT PROTECTION PLAN MEMBERS.
(D) FOR THE PURPOSES OF THIS SECTION, A WIRELESS COMMUNICATIONS EQUIP-
MENT PROTECTION PLAN MEMBER SHALL BE A CERTIFICATE HOLDER OF WIRELESS
COMMUNICATIONS INSURANCE AND A SERVICE CONTRACT HOLDER AS DEFINED IN
SECTION SEVEN THOUSAND NINE HUNDRED TWO OF THIS CHAPTER.
(E) (1) A group policy OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE,
and certificates issued thereunder, [of wireless communications equip-
ment insurance] shall not be subject to the provisions of section three
S. 7748--C 3
thousand four hundred twenty-five or three thousand four hundred twen-
ty-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, WHETHER OFFERED ON A STAND-AL-
ONE BASIS OR AS PART OF A WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION
PLAN, except upon providing the policyholder and certificate holders
with at least sixty days notice. If the insurer changes the terms and
conditions, then the insurer shall provide the policyholder with a
revised policy or endorsement and each certificate holder with a revised
certificate or endorsement, an updated brochure or facsimile thereof 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 PARAGRAPH TWO OF THIS SUBSECTION, AN INSURER MAY
TERMINATE A CERTIFICATE OF WIRELESS COMMUNICATIONS EQUIPMENT INSURANCE
UPON THE TERMINATION OF A WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION
PLAN BY A WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN MEMBER WHEN
THE INSURANCE IS PROVIDED AS PART OF SUCH A PLAN PROGRAM AND THE WIRE-
LESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN MEMBER HAD BEEN PROVIDED
CLEAR AND EXPRESS NOTICE IN THE PLAN DOCUMENTS WHEN THE PLAN WAS
INITIALLY PURCHASED THAT THE CERTIFICATE OF WIRELESS COMMUNICATIONS
EQUIPMENT INSURANCE WILL CEASE UPON TERMINATION OF THE WIRELESS COMMUNI-
CATIONS EQUIPMENT PROTECTION PLAN PROGRAM. THE INSURER SHALL GIVE THE
WIRELESS COMMUNICATIONS EQUIPMENT PROTECTION PLAN MEMBER THE OPTION TO
PURCHASE A POLICY OF WIRELESS COMMUNICATIONS INSURANCE ON A STAND-ALONE
BASIS.
(6) 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)] (7) Where the group policy OF A WIRELESS COMMUNICATIONS EQUIP-
MENT INSURANCE, WHETHER OFFERED ON A STAND-ALONE BASIS OR AS PART OF A
WIRELESS COMMUNICATIONS PROTECTION EQUIPMENT PLAN, is terminated by the
policyholder, the policyholder shall mail or deliver written notice to
each certificate holder advising the certificate holder of the termi-
nation 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.
S. 7748--C 4
[(c)] (F) 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 OR DELIVERED BY ELECTRONIC MEANS PURSUANT TO SECTION THREE THOU-
SAND FOUR HUNDRED FIFTY-EIGHT OF THIS CHAPTER. Every notice of termi-
nation shall specify the reason or reasons for termination.
[(d)] (G) (1) Notwithstanding subsection [(c)] (F) 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 policy-
holder 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)] (H) The superintendent may promulgate regulations regarding
policies of wireless communications equipment insurance, including, but
not limited to, regulations governing policy terms and conditions, THE
INCLUSION OF SUCH POLICIES IN WIRELESS COMMUNICATIONS EQUIPMENT
PROTECTION PLANS, TREATMENT OF DIVIDENDS, and may establish other
reasonable limitations.
§ 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
