N.Y. Insurance Law § 3453*2: Self-service storage company group insurance policies

* § 3453. Self-service storage company group insurance policies. (a)

For purposes of this section, unless the context requires otherwise:

(1) "Self-service storage company group policy" means a group policy,

including certificates issued to the group members, where the group

policyholder is a self-service storage company and the policy provides

insurance to group members of the type described in paragraph three of

subsection (d) of section two thousand one hundred thirty-one of this

chapter.

(2) "Group member" means a person who rents storage space from a

self-service storage company and who is insured under the self-service

storage company group policy.

(3) "Certificate" or "certificate of insurance" means any policy,

contract, or other evidence of insurance, or rider or endorsement

thereto, issued to a group member under a self-service storage company

group policy.

(b) A self-service storage company group policy or certificate may be

issued or issued for delivery in this state only in compliance with the

provisions of this section.

(c) Coverage under a self-service storage company group policy shall

extend only to group members.

(d) A self-service storage company group policy may provide only the

insurance coverages described in paragraph three of subsection (d) of

section two thousand one hundred thirty-one of this chapter.

(e) The premium for the self-service storage company group policy,

including certificates, shall be paid wholly by the group members if the

group policyholder is licensed pursuant to section two thousand one

hundred thirty-one of this chapter. In all other cases, such premium 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 group members.

(f)(1) Any policy dividend, retrospective premium credit, or

retrospective premium refund in respect of premiums paid by the group

policyholder may:

(A) be applied to reduce the premium contribution of the group

policyholder, but not in excess of the proportion to its contribution;

or

(B) be retained by the group policyholder.

(2) Any policy dividend, retrospective premium credit, or

retrospective premium refund not distributed under paragraph one of this

subsection shall be:

(A) applied to reduce future premiums and, accordingly, future

contributions, of existing or future group members, or both; or

(B) paid or refunded to those group members insured on the date the

payment or refund is made to the group policyholder, if distributed by

the group policyholder, or on the date of mailing, if distributed

directly by the insurer, subject to the following requirements:

(i) the insurer shall be responsible for determining the allocation of

the payment or refund to the group members;

(ii) if the group policyholder distributes the payment or refund, the

insurer shall be responsible for audit to ascertain that the payment or

refund is actually made in accordance with the allocation procedure; and

(iii) if the group policyholder fails to make the payment or refund,

the insurer shall make the payment or refund directly or use the method

provided in subparagraph (A) of this paragraph.

(3) Notwithstanding paragraphs one and two of this subsection, if a

dividend accrues upon termination of coverage under a self-service

storage company group policy, the premium for which was paid out of

funds contributed by group members specifically for the coverage, the

dividend shall be paid or refunded by the group policyholder to the

group members insured on the date the payment or refund is made to the

group policyholder, net of reasonable expenses incurred by the group

policyholder in paying or refunding the dividend to such group members.

(4) For the purposes of this subsection, "dividend" means a return by

an insurer to a group policyholder of excess premiums paid by that group

policyholder in light of favorable loss experience, including

retrospective premium credits or retrospective premium refunds. The term

"dividend" does not include reimbursements or fees received by a group

policyholder in connection with the operation or administration of a

self- service storage company group policy, including administrative

reimbursements, fees for services provided by the group policyholder, or

transactional service fees.

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

of the same class.

(h) A self-service storage company group policy or certificate shall

not be eligible for placement by an excess line broker licensed pursuant

to article twenty-one of this chapter.

(i) (1) The insurer shall be responsible for the mailing or delivery

of a certificate of insurance to each group member insured under the

self-service storage company group policy. The insurer shall also be

responsible for the mailing or delivery to each group member of an

amended certificate of insurance, or endorsement to the certificate,

whenever there is a change of limits; change in type of coverage;

addition, reduction, or elimination of coverage; or addition of

exclusion, under the self-service storage company group policy or

certificate.

(2) The certificate shall contain in substance all material terms and

conditions of coverage afforded to the group member, unless the

self-service storage company group policy is incorporated by reference

and a copy of the group policy accompanies the certificate.

(3) If coverage afforded to the group member is excess of other

applicable insurance coverage, the certificate shall contain a notice

advising the group member that, if the member has other insurance

coverage, specified coverages under the self-service storage company

group policy will be excess over the other insurance.

(j) A group policyholder shall comply with the provisions of section

two thousand one hundred twenty-two of this chapter, in the same manner

as an agent or broker, in any advertisement, sign, pamphlet, circular,

card, or other public announcement referring to coverage under a

self-service storage company group policy or certificate.

(k) A self-service storage company 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. The

following requirements shall apply in regard to termination of coverage:

(1) (A) A self-service storage company group policy or certificate may

be cancelled by an insurer only if cancellation is based on one or more

of the reasons set forth in subparagraphs (A) through (D) or (F) through

(H) of 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 that would constitute the basis for

cancellation of an individual certificate shall not constitute the basis

for cancellation of the self-service storage company group policy.

(B) Where the premium is derived wholly from funds contributed by the

group policyholder, an individual certificate may be cancelled by the

insurer only if cancellation is based on one or more of the reasons set

forth in subparagraph (B), (C) or (H) of paragraph one of subsection (c)

of section three thousand four hundred twenty-six of this article.

(2) (A) An insurer's cancellation of a self-service storage company

group policy, including all certificates, shall not become effective

until fifteen days after the insurer mails or delivers written notice of

cancellation to the group policyholder at the mailing address shown in

the policy.

(i) Where all or part of the premium is derived from funds contributed

by a group member specifically for the coverage, written notice of

cancellation of the self-service storage company group policy shall also

be mailed or delivered by the insurer to the group member at the group

member's mailing address.

(ii) Where none of the premium is derived from funds contributed by a

group member specifically for the coverage, the group policyholder shall

mail or deliver written notice to the group member advising the group

member of the cancellation of the self-service storage company group

policy and the effective date of cancellation. The written notice shall

be mailed or delivered by the group policyholder within ninety days

after receiving notice of cancellation from the insurer.

(B) An insurer's cancellation of an individual certificate shall not

become effective until fifteen days after the insurer mails or delivers

written notice of cancellation to the group member at the group member's

mailing address and to the group policyholder at the mailing address

shown in the self-service storage company group policy.

(C) (i) A group policyholder may cancel a self-service storage company

group policy, including all certificates, or any individual certificate,

for any reason upon thirty days written notice to the insurer and each

group member; and

(ii) The group policyholder shall mail or deliver written notice to

each affected group member of the group policyholder's cancellation of

the self-service storage company group policy or certificate and the

effective date of cancellation. Such written notice shall be mailed or

delivered to the group member's mailing address at least thirty days

prior to the effective date of the cancellation.

(3) (A) Unless a self-service storage company group policy provides

for a longer policy period, the policy and all certificates shall be

issued or renewed for a one-year policy period.

(B) The group policyholder shall be entitled to renew the self-service

storage company group policy and all certificates upon timely payment of

the premium billed to the group policyholder for the renewal, unless:

(i) the insurer mails or delivers to the group policyholder and all

group members written notice of nonrenewal, or conditional renewal; and

(ii) the written notice is mailed or delivered at least thirty, but

not more than one hundred twenty days prior to the expiration date

specified in the policy or, if no date is specified, the next

anniversary date of the policy.

(4) Where the self-service storage company group policy is nonrenewed

by the group policyholder, the group policyholder shall mail or deliver

written notice to each group member advising the group member of

nonrenewal of the self-service storage company group policy and the

effective date of nonrenewal. The written notice shall be mailed or

delivered by the group policyholder at least thirty days prior to the

nonrenewal.

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

shall contain the specific reason or reasons for cancellation,

nonrenewal, or conditional renewal.

(6) (A) An insurer shall not be required under this subsection to give

notice to a group member if the insurer has been advised by either the

group policyholder or another insurer that substantially similar

coverage has been obtained from the other insurer without lapse of

coverage.

(B) A group policyholder shall not be required under this subsection

to give notice to a group member if substantially similar coverage has

been obtained from another insurer without lapse of coverage.

* NB There are 3 § 3453's