Relates to wireless communications equipment protection plans offered for sale by wireless communication equipment vendors; defines terms; requires certain notices and consumer protections.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8304B
SPONSOR: Weprin TITLE OF BILL:
An act to amend the insurance law, in relation to wireless communi-
cations equipment insurance
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to authorize the sale of wireless communi-
cations equipment protection plans by licensed wireless communication
equipment vendors.
SUMMARY OF SPECIFIC PROVISIONS:
This bill would authorize licensed wireless communication equipment
vendors to sell policies of wireless communication equipment insurance
with service contracts under wireless communications equipment
protection plans, along with optional equipment upgrade programs, tech-
nical support, and other services the superintendent deems to be mean-
ingful and appropriate.
JUSTIFICATION:
Now more than ever, New Yorkers rely upon wireless communication equip-
ment to operate their daily lives and remain connected to work, family,
friends, and emergency services. Given the reliance upon and cost asso-
ciated with these devices, New Yorkers need access to comprehensive
protection plans that ensure timely and full repairs or replacements of
their devices in the face of a loss, mechanical breakdown, or theft.
Currently, New Yorkers must buy insurance, covering loss and theft, and
service contracts, covering mechanical breakdown and accidental damages,
separately to get full coverage. This legislation brings New York in
alignment with the rest of the country by allowing companies to offer
New Yorkers a comprehensive and all-encompassing wireless communication
equipment protection plan, that includes all the benefits and coverages
of both an insurance policy and service contract component at one clear
and straightforward price. This will allow for more options at time of
purchase and the comprehensive coverage New Yorkers seek.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become a
law.
STATE OF NEW YORK
________________________________________________________________________
8304--B
2023-2024 Regular Sessions
IN ASSEMBLY
November 27, 2023
___________
Introduced by M. of A. WEPRIN, STERN, BLANKENBUSH -- read once and
referred to the Committee on Insurance -- recommitted to the Committee
on Insurance in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- reported and referred to the Committee on Codes
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the insurance law, in relation to wireless communi-
cations equipment insurance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3449 of the insurance law, as added by chapter 426
2 of the laws of 2005, is amended to read as follows:
3 § 3449. Wireless communications equipment insurance policies. (a) In
4 this section[, the term "policy]:
5 (1) "Policy of wireless communications equipment insurance" means an
6 insurance policy covering the kind of insurance described in [subsection
7 (1)] paragraph two of subsection (d) of section two thousand one hundred
8 thirty-one of this chapter.
9 (2) "Wireless communications equipment" shall have the same meaning as
10 described in section two thousand one hundred thirty-one of this chap-
11 ter.
12 (3) "Wireless communications equipment protection plan member" means
13 any individual who purchased a wireless communications equipment
14 protection plan and such wireless communications protection equipment
15 plan has not expired or been terminated.
16 (4) "Wireless communications equipment protection plan" means an
17 optional plan offered for sale by a wireless communications equipment
18 vendor licensed pursuant to section two thousand one hundred thirty-one
19 of this chapter and the plan provides:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13527-07-4
A. 8304--B 2
1 (A) a policy of wireless communications equipment insurance covering
2 the wireless communications equipment under a group policy subject to
3 this section where the wireless communications equipment vendor is the
4 group policyholder;
5 (B) a service contract subject to article seventy-nine of this chap-
6 ter, provided that the service contract provider or its affiliate recy-
7 cles, reuses, or disposes the wireless communications equipment in
8 accordance with section 27-2303 of the environmental conservation law,
9 as added by chapter seven hundred thirty of the laws of two thousand
10 six; and
11 (C) may include one or more of the following:
12 (i) a wireless communications equipment upgrade program, provided that
13 the program recycles, reuses, or disposes the wireless communications
14 equipment in accordance with section 27-2303 of the environmental
15 conservation law, as added by chapter seven hundred thirty of the laws
16 of two thousand six;
17 (ii) technical support with respect to the wireless communications
18 equipment; and
19 (iii) any other services related to the use of the wireless communi-
20 cations equipment that the superintendent deems to be meaningful and
21 appropriate, in accordance with subsection (h) of this section.
22 (5) "Wireless communications equipment vendor" means a retail seller,
23 manufacturer or distributor of the wireless communications equipment or
24 the entity providing the telecommunications service that is licensed
25 pursuant to section two thousand one hundred thirty-one of this chapter.
26 (b) (1) A group policy of wireless communications equipment insurance,
27 and certificates issued thereunder, may be issued only by an authorized
28 insurer.
29 (2) A group policy of wireless communications equipment insurance may
30 only be issued to a wireless communications equipment vendor.
31 (3) A group policy of wireless communications equipment insurance may
32 be offered as part of a wireless communications equipment protection
33 plan, provided that the wireless communications equipment vendor at the
34 same time also offers the wireless communication equipment insurance
35 from the same insurer on a stand-alone basis. The stand-alone wireless
36 communication equipment insurance coverage may be issued either on a
37 group or individual basis.
38 (c) Where a group policy of wireless communications equipment insur-
39 ance is provided as part of a wireless communications equipment
40 protection plan, the premium for the group policy, including certif-
41 icates, may be paid by the group policyholder from funds contributed:
42 (1) wholly by the group policyholder;
43 (2) wholly by the wireless communications equipment protection plan
44 members; or
45 (3) jointly by the group policyholder and wireless communications
46 equipment protection plan members.
47 (d) For the purposes of this section, a wireless communications equip-
48 ment protection plan member shall be a certificate holder of wireless
49 communications insurance and a service contract holder as defined in
50 section seven thousand nine hundred two of this chapter.
51 (e) (1) A group policy of wireless communications equipment insurance,
52 and certificates issued thereunder, [of wireless communications equip-
53 ment insurance] shall not be subject to the provisions of section three
54 thousand four hundred twenty-five or three thousand four hundred twen-
55 ty-six of this article.
A. 8304--B 3
1 (2) An insurer shall not terminate or otherwise change the terms and
2 conditions of a group policy of wireless communications equipment insur-
3 ance, and certificates issued thereunder, whether offered on a stand-al-
4 one basis or as part of a wireless communications equipment protection
5 plan, except upon providing the policyholder and certificate holders
6 with at least sixty days notice. If the insurer changes the terms and
7 conditions, then the insurer shall provide the policyholder with a
8 revised policy or endorsement and each certificate holder with a revised
9 certificate or endorsement, an updated brochure or facsimile thereof and
10 an explanation of the changes.
11 (3) Notwithstanding paragraph two of this subsection, an insurer may
12 terminate a certificate upon fifteen days notice for:
13 (A) nonpayment of premium; or
14 (B) discovery of fraud or material misrepresentation in obtaining the
15 certificate or in the presentation of a claim thereunder.
16 (4) Notwithstanding paragraph two of this subsection, an insurer may
17 automatically terminate a certificate if the certificate holder:
18 (A) ceases to have active telecommunications service with the wireless
19 communications equipment vendor; or
20 (B) exhausts the aggregate limit of liability, if any, under the
21 certificate and the insurer sends notice of termination to the certif-
22 icate holder within fifteen business days after exhaustion of the limit.
23 However, if notice is not timely sent, coverage shall continue notwith-
24 standing the aggregate limit of liability until the insurer sends notice
25 of termination to the certificate holder.
26 (5) Notwithstanding paragraph two of this subsection, an insurer may
27 terminate a certificate of wireless communications equipment insurance
28 upon the termination of a wireless communications equipment protection
29 plan by a wireless communications equipment protection plan member when
30 the insurance is provided as part of such a plan program and the wire-
31 less communications equipment protection plan member had been provided
32 clear and express notice in the plan documents when the plan was
33 initially purchased that the certificate of wireless communications
34 equipment insurance will cease upon termination of the wireless communi-
35 cations equipment protection plan program. The insurer shall give the
36 wireless communications equipment protection plan member the option to
37 purchase a policy of wireless communications insurance on a stand-alone
38 basis.
39 (6) Notwithstanding the provisions of subparagraph (B) of paragraph
40 four of this subsection, upon the request of a certificate holder, the
41 certificate holder's coverage shall be eligible for reinstatement not
42 more than twelve months following the date of exhaustion of the coverage
43 limit in accordance with the terms of the policy and subject to the
44 enrollment criteria then applicable to prospective certificate holders
45 generally.
46 [(6)] (7) Where the group policy of a wireless communications equip-
47 ment insurance, whether offered on a stand-alone basis or as part of a
48 wireless communications protection equipment plan, is terminated by the
49 policyholder, the policyholder shall mail or deliver written notice to
50 each certificate holder advising the certificate holder of the termi-
51 nation of the group policy and the effective date of termination. The
52 written notice shall be mailed or delivered to the certificate holder at
53 least thirty days prior to the termination.
54 [(c)] (f) Whenever notice is required pursuant to this section, it
55 shall be in writing and mailed or delivered to the policyholder at the
56 policyholder's mailing address and to affected certificate holders at
A. 8304--B 4
1 the certificate holders' last known mailing addresses on file with the
2 insurer or delivered by electronic means pursuant to section three thou-
3 sand four hundred fifty-eight of this chapter. Every notice of termi-
4 nation shall specify the reason or reasons for termination.
5 [(d)] (g) (1) Notwithstanding subsection [(c)] (f) of this section, an
6 insurer shall not be required to give notice of termination to the
7 certificate holder if the insurer has been advised by either the policy-
8 holder or another insurer that substantially similar coverage has been
9 obtained from the other insurer without lapse of coverage.
10 (2) A policyholder shall not be required to give notice of termination
11 to a certificate holder if substantially similar coverage has been
12 obtained from another insurer without lapse of coverage.
13 [(e)] (h) The superintendent may promulgate regulations regarding
14 policies of wireless communications equipment insurance, including, but
15 not limited to, regulations governing policy terms and conditions, the
16 inclusion of such policies in wireless communications equipment
17 protection plans, treatment of dividends, and may establish other
18 reasonable limitations.
19 § 2. This act shall take effect on the one hundred eightieth day after
20 it shall have become a law.
