N.Y. Insurance Law § 3451: Identity theft group insurance policies

* § 3451. Identity theft group insurance policies. (a)(1) An identity

theft group insurance policy, and certificates thereunder, may be issued

or delivered in this state only in accordance with the provisions of

this section.

(2) An identity theft group insurance policy, and certificates

thereunder, may be issued only by an authorized insurer.

(3) The policy may be issued to:

(A) an employer, or a trustee or trustees of the fund established by

an employer, which employer or trustee shall be deemed the policyholder,

where the policy insures the employees of the employer;

(B) a labor union, or a trustee or trustees of a fund established by a

labor union, which labor union or trustee shall be deemed the

policyholder, where the policy insures the members of the labor union;

(C) a trustee of a trust established, or participated in, by two or

more employers or labor unions, or by one or more employers and one or

more labor unions, which the trustee shall be deemed the policyholder,

where the policy insures the employees of the employers, and the members

of the labor unions;

(D) a sponsor, where the policy insures account group members, as the

terms are defined in subsection (a) of section three thousand four

hundred forty-two of this article;

(E) an association, or to a trustee or trustees of a fund established,

created, or maintained for the benefit of one or more associations,

which the association or trustee shall be deemed the policyholder; where

all the eligible members of the association or associations have the

same profession, trade, or occupation, and the association or

associations have been organized and maintained in good faith for

purposes principally other than that of obtaining insurance, and have

been in active existence for at least two years, and where the policy

insures the members of the associations;

(F) a business that sells services or products designed to prevent, or

to minimize the effects of stolen identity events, which the business

shall be deemed to be the policyholder, where the policy insures the

persons that purchase the services or products;

(G) any other business or association that has in its possession

individuals' personal identification information, where the policy

insures the individuals whose information the business or association

possesses; or

(H) any other entity where the superintendent has determined in a

regulation that the members are engaged in a common enterprise, or have

an economic or social affinity or relationship, and that the issuance of

the policy would not be contrary to the best interests of the public.

(4) For purposes of this section, the term "employer" shall include

subsidiaries or affiliates of the employer.

(b) The group shall consist only of natural persons, hereinafter

referred to as group members, as specified in paragraph three of

subsection (a) of this section, and may also include a member of the

group member's immediate family or household or, where the group

policyholder is a sponsor, an authorized user, as the terms are defined

in subsection (a) of section three thousand four hundred forty-two of

this chapter.

(c)(1) The policy shall cover losses and expenses incurred because of

stolen identity events, as defined in subparagraph (E) of paragraph

seven of subsection (a) of section one thousand one hundred thirteen of

this chapter.

(2) An insurer shall treat in a like manner all eligible group members

of the same class.

(3) Except for groups as described in subparagraph (F) of paragraph

three of subsection (a) of this section, a group member shall not be

required to purchase any product or service to be eligible for the

coverage.

(d) 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 group members; or (3) jointly by

the group policyholder and the group members, except that with regard to

subparagraph (G) of paragraph three of subsection (a) of this section,

the premium for the group policy shall be paid from funds contributed

wholly by the group policyholder.

(e) A group identity theft insurance policy or certificate issued

thereunder, shall not be subject to section three thousand four hundred

twenty-five or section three thousand four hundred twenty-six of this

article. The following requirements shall apply with regard to

cancellation, nonrenewal, or conditional renewal of coverage:

(1) Unless the group policy provides for a longer policy period, the

policy shall be issued or renewed for a one-year policy period.

(2) A group policy, or any certificate thereunder, may be cancelled by

an insurer only if cancellation is based upon one or more of the reasons

set forth in paragraph one of subsection (c) of section three thousand

four hundred twenty-six of this article, provided, however, that an act

or omission by a group member shall not constitute the basis for

cancellation of the policy and provided further, that coverage for an

individual group member shall terminate upon termination of the member's

employment by, or other affiliation with, the group policyholder that

constitutes membership in the group.

(3) An insurer's cancellation, nonrenewal, or conditional renewal of a

group policy, or any certificate issued thereunder, shall not become

effective until at least forty-five days, or twenty days if based upon

non-payment of premium, after the insurer mails or delivers written

notice of the cancellation or nonrenewal to the group policyholder at

the mailing address shown in the policy and to affected certificate

holders at each certificate holder's last known mailing address. If so

authorized by the insurer, the group policyholder may mail or deliver

the notice to the certificate holder on behalf of the insurer. For

purposes of this section, the term "conditional renewal" shall mean a

renewal that is conditioned upon change of limits, change in type of

coverage, reduction or elimination of coverage, increased deductible or

addition of exclusion, or increased premiums in excess of ten percent

(exclusive of any premium increase generated as a result of increased

exposure units or as a result of experience rating, loss rating,

retrospective rating, or audit).

(4) Every notice of cancellation, nonrenewal, or conditional renewal

shall set forth the specific reason or reasons for cancellation,

nonrenewal, or conditional renewal.

(5) A group policyholder may cancel the group policy for any reason

upon thirty days written notice to the insurer and each affected group

member. A group policyholder shall not be required to give notice to a

group member if substantially similar coverage has been obtained from

another insurer without lapse of coverage.

(6) If prior to the effective date of cancellation, nonrenewal, or

conditional renewal of the group policy, or cancellation, nonrenewal,

conditional renewal or termination of a certificate, whether initiated

by the insurer, group policyholder, or by the group member, with respect

to the group member's certificate, a group member sustains an identity

theft loss, the loss shall remain covered in accordance with the

coverage provided under the policy, notwithstanding the cancellation,

nonrenewal, conditional renewal, or termination.

(f) The superintendent may promulgate regulations pertaining to

identity theft group insurance, including regulations regarding:

payments of dividends or retrospective premium refunds; minimum

provisions; minimum number of group members; and other reasonable

limitations.

* NB There are 2 § 3451's