N.Y. Insurance Law § 3446: Product or system group insurance policies

§ 3446. Product or system group insurance policies. (a) A group policy

may be issued to a group policyholder, who shall be a manufacturer,

distributor, or installer of a product or system, or a trustee of a

trust established, or participated in, by one or more manufacturers,

distributors, or installers, in accordance with the provisions of this

section.

(b) The group shall consist only of members who have purchased or own

the product or system where the manufacturer, distributor, or installer

has represented that the product or system is designed to prevent loss

or damage to property from a specific cause (other than loss or damage

resulting from defect in materials or workmanship, or wear and tear),

and the policy shall only cover such loss or damage.

(c) The policy, and certificates issued thereunder, may provide

coverage for a kind of insurance authorized by paragraphs four through

twelve, nineteen and twenty of subsection (a) of section one thousand

one hundred thirteen of this chapter, and may be issued or delivered in

this state only by an insurer authorized in this state to write the

coverage.

(d) The coverage shall not be duplicative of coverage under any other

applicable insurance policy.

(e) The insurer must treat in like manner all eligible group members

of the same class.

(f) The premium for the group policy, including certificates

thereunder, shall be paid by the group policyholder from funds

contributed wholly by the group policyholder.

(g) The superintendent may promulgate regulations regarding product

and system group policies, including regulations governing issuance of

certificates to group members; minimum provisions of certificates;

policy cancellation and renewal; minimum number of group members;

payment of premium; and policy dividends, retrospective premium credits,

or retrospective premium refunds; and may establish other reasonable

limitations.

(h) A product or system group policyholder shall comply with the

provisions of section two thousand one hundred twenty-two of this

chapter, in the same manner as an insurance agent or broker, in any

advertisement, sign, pamphlet, circular, card, or other public

announcement referring to coverage under a group policy or certificate.

(i) A product or system group policy or certificate shall not be

subject to section three thousand four hundred twenty-five or section

three thousand four hundred twenty-six of this article.

(j)(1) "Manufacturer" means a person that:

(A) manufactures or produces the product or system and sells it under

its own trade name or label;

(B) does not manufacture or produce the product or system but sells it

under its own trade name or label;

(C) manufactures or produces the product or system and it is sold

under the trade name or label of another person; or

(D) does not manufacture or produce the product or system but,

pursuant to a written contract, licenses the use of its trade name or

label to another person that sells the product or system under the

licensor's trade name or label.

(2) "Manufacturer" shall also include a distributor which is a parent,

affiliate, or subsidiary of a manufacturer.

(3) The holder of a patent shall not be considered a manufacturer

solely because it receives royalties on its patents.