§ 2131. Limited license for rental vehicle companies, wireless
communications equipment vendors and self-service storage companies. (a)
The superintendent may issue to a rental vehicle company, a wireless
communications equipment vendor, a self-service storage company or to a
franchisee 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
licensee, 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 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 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
arising 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
benefits provided pursuant to article fifty-one of this chapter, for
accidental 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
meaningful and appropriate in connection with the rental of motor
vehicles; or

(2) with respect to wireless communications equipment vendors,
insurance 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 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

(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
meaningful 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
communications 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;

(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

(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
superintendent for approval prior to use, and which shall meet the
following minimum 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
communications 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
developed 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
article, 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:

(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,
wireless 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.