N.Y. Insurance Law § 2131: Limited license for rental vehicle companies, peer-to-peer car sharing program administrators, wireless communications equipment vendors ...

§ 2131. Limited license for rental vehicle companies, peer-to-peer car

sharing program administrators, wireless communications equipment

vendors and self-service storage companies. (a) The superintendent may

issue to a rental vehicle company, a peer-to-peer car sharing program

administrator, 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, peer-to-peer car sharing program

administrator, 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 sharing of a shared

vehicle, 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 and peer-to-peer car

sharing program administrators:

(A) excess liability insurance that provides coverage to the rental

car company or franchisee and renters and other authorized drivers of

rental vehicles, or that provides coverage to the peer-to-peer car

sharing program administrator, shared vehicles owners, or shared vehicle

drivers, or a combination thereof, in excess of the standard liability

limits provided by the rental vehicle company in its rental agreement or

the peer-to-peer car sharing program agreement pursuant to article forty

of the general business law, for liability arising from the negligent

operation of the rental vehicle or the shared vehicle;

(B) accident and health insurance that provides coverage to renters

and other vehicle occupants, or that provides coverage to shared vehicle

owners, shared vehicle drivers, or a combination thereof, 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 or during the peer-to-peer car sharing period;

(C) personal effects insurance that provides coverage to renters and

other vehicle occupants or to shared vehicle owners or shared vehicle

drivers, or a combination thereof, and other vehicle occupants, for the

loss of, or damage to, personal effects that occurs during the rental

period or peer-to-peer car sharing period;

(D) any other coverage that the superintendent may approve as

meaningful and appropriate in connection with the rental of motor

vehicles or the sharing of a shared vehicle; 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, and with regard to a peer-to-peer car

sharing program administrator, the administrator provides written

materials, 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

share a shared 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,

peer-to-peer car sharing program administrator, 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 or other written

materials 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 or other written

materials with at least twelve-point type bold headings. Any such

brochures or other written materials 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, shared vehicle owners, shared vehicle

drivers, 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, shared vehicle owner, shared

vehicle driver, 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, share a shared 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, as applicable; 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, sharing a shared

vehicle, 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,

peer-to-peer car sharing program administrator, wireless communications

equipment vendor, or self-storage company on account of vehicle rental,

sharing of a shared vehicle, 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, shared

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.

(m) For purposes of this section, "peer-to-peer car sharing program

administrator", "peer-to-peer car sharing period", "shared vehicle",

"shared vehicle driver", and "shared vehicle owner" shall have the

meanings set forth in section nine hundred of the general business law.