N.Y. Insurance Law § 3449: Wireless communications equipment insurance policies

§ 3449. Wireless communications equipment insurance policies. (a) In

this section:

(1) "Policy of wireless communications equipment insurance" means an

insurance policy covering the kind of insurance described in 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

chapter.

(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

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

chapter, provided that the service contract provider or its affiliate

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; 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

communications 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

insurance is provided as part of a wireless communications equipment

protection plan, the premium for the group policy, including

certificates, 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

equipment 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, shall not be subject to the

provisions of section three thousand four hundred twenty-five or three

thousand four hundred twenty-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

insurance, and certificates issued thereunder, whether offered on a

stand-alone 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

certificate holder within fifteen business days after exhaustion of the

limit. However, if notice is not timely sent, coverage shall continue

notwithstanding 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

wireless 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

communications 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.

(7) Where the group policy of a wireless communications equipment

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

termination 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.

(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

thousand four hundred fifty-eight of this chapter. Every notice of

termination shall specify the reason or reasons for termination.

(g) (1) Notwithstanding subsection (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 policyholder 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.

(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.