Relates to travel insurance; includes loss of baggage or personal effects, interruption or cancellation of trip and damages to accommodations or rental vehicles; lists related provisions.
STATE OF NEW YORK
________________________________________________________________________
3520
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
___________
Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed,
and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to travel insurance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (i) of section 2101 of the insurance law, as
2 added by chapter 408 of the laws of 1990, is amended to read as follows:
3 (i) In this chapter, "limited licensee" shall mean a person authorized
4 to sell certain coverages relating to the rental of motor vehicles, the
5 sale of wireless communications equipment, the rental of self-storage
6 space, or the sale of travel-related products and services, pursuant to
7 the provisions of section two thousand one hundred thirty-one of this
8 article.
9 § 2. Section 2131 of the insurance law, as amended by chapter 582 of
10 the laws of 2003, the section heading and subsections (a), (d), (e),
11 (f), (h) and (i) as amended by chapter 368 of the laws of 2010,
12 subsection (g) as amended by chapter 426 of the laws of 2005, is amended
13 to read as follows:
14 § 2131. Limited license for rental vehicle companies, wireless commu-
15 nications equipment vendors [and], self-service storage companies, and
16 travel insurance agents. (a) The superintendent may issue to a rental
17 vehicle company, a wireless communications equipment vendor, a self-ser-
18 vice storage company, and a travel insurance agent, or to a franchisee
19 of a rental vehicle company, a wireless communications equipment vendor,
20 [or a] self-service storage company, or a travel insurance agent which
21 has complied with the requirements of this section, a limited license
22 authorizing the licensee, known as a "limited licensee" for the purpose
23 of this article, to act as agent, with reference to the kinds of insur-
24 ance specified in this section, of any insurer authorized to write such
25 kinds of insurance in this state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01921-01-9
S. 3520 2
1 (b) The prerequisites for issuance of a limited license under this
2 section shall be the filing with the superintendent of the following:
3 (1) an application, signed by an officer of the applicant, for the
4 limited license in such form or forms, and supplements thereto, and
5 containing such information, as the superintendent may prescribe; and
6 (2) an appointment of a limited licensee by the appointing insurer, in
7 a format approved by the superintendent, no more than fifteen days after
8 the date the agency contract is executed or the first insurance contract
9 is submitted, whichever is later, stating that it has satisfied itself
10 that the named applicant is trustworthy and competent to act as its
11 insurance agent for this limited purpose and that the insurer will
12 appoint such applicant to act as the agent in reference to the doing of
13 such kind or kinds of insurance which are permitted by this section, if
14 the limited license applied for is issued by the superintendent. Such
15 appointment shall be subscribed by an officer or managing agent of such
16 insurer and affirmed as true under the penalties of perjury.
17 (c) In the event that any provision of this chapter is violated, the
18 superintendent may:
19 (1) revoke or suspend a limited license issued under this section in
20 accordance with the provisions of section two thousand one hundred ten
21 of this article; or
22 (2) after notice and hearing impose such other penalties, including
23 suspending the transaction of insurance at specific locations where
24 violations of this article have occurred, as the superintendent deems
25 necessary or convenient to carry out the purposes of this section.
26 (d) The rental vehicle company, wireless communications equipment
27 vendor, [or] self-service storage company, or travel insurance agent, or
28 franchisee licensed pursuant to subsection (a) of this section may act
29 as agent for an authorized insurer only in connection with the sale of
30 insurance in connection with the rental of motor vehicles, the sale or
31 offering for sale of wireless communications equipment, [or] the rental
32 of storage space, or the sale or offering for sale of travel-related
33 products or services, respectively, and only with respect to the follow-
34 ing kinds of insurance:
35 (1) with respect to rental vehicle companies:
36 (A) excess liability insurance that provides coverage to the rental
37 car company or franchisee and renters and other authorized drivers of
38 rental vehicles, in excess of the standard liability limits provided by
39 the rental vehicle company in its rental agreement, for liability aris-
40 ing from the negligent operation of the rental vehicle;
41 (B) accident and health insurance that provides coverage to renters
42 and other vehicle occupants, in excess to the standard first party bene-
43 fits provided pursuant to article fifty-one of this chapter, for acci-
44 dental death and/or dismemberment and for medical expenses resulting
45 from an accident that occurs during the rental period;
46 (C) personal effects insurance that provides coverage to renters and
47 other vehicle occupants for the loss of, or damage to, personal effects
48 that occurs during the rental period;
49 (D) any other coverage which the superintendent may approve as mean-
50 ingful and appropriate in connection with the rental of motor vehicles;
51 or
52 (2) with respect to wireless communications equipment vendors, insur-
53 ance issued to cover the loss, theft, mechanical failure, or malfunction
54 of, or damage to, wireless communications equipment offered as either an
55 individual policy issued to the consumer or as a group policy under
56 which certificates or other evidence of coverage are issued to individ-
S. 3520 3
1 ual consumers who enroll in the program, provided however, that said
2 insurance shall not extend to wireless services or service contracts
3 governed by article seventy-nine of this chapter; or
4 (3) with respect to self-service storage companies, the following
5 coverages offered as either an individual policy issued to the consumer
6 or as a group policy:
7 (A) personal effects insurance that provides coverage to renters of
8 storage spaces at the self-service storage company's facility for the
9 loss of, or damage to, personal property stored at the facility, where
10 the loss or damage occurs at the same facility during the rental period;
11 (B) any other coverage that the superintendent may approve as meaning-
12 ful and appropriate in connection with the rental of storage space.
13 (4) with respect to travel insurance agents, the following coverages,
14 each of which coverage is individually and collectively known as "travel
15 insurance":
16 (A) insurance coverage for personal risks incident to planned travel,
17 including but not limited to:
18 (i) interruption or cancellation of trip or event;
19 (ii) loss of baggage or personal effects;
20 (iii) damages to accommodations or rental vehicle; or
21 (iv) sickness, accident, disability or death occurring during travel.
22 (B) any other coverage that the superintendent may approve as meaning-
23 ful and appropriate in connection with travel.
24 Travel insurance does not include major medical plans, which provide
25 comprehensive medical protection for travelers with trips lasting six
26 months or longer, including for example, those working overseas as an
27 expatriate or military personnel being deployed.
28 (e) No insurance may be issued pursuant to this section unless:
29 (1) with regard to the rental of vehicles only, the rental period of
30 the rental agreement does not exceed thirty consecutive days; and
31 (2) at every location where rental vehicle agreements, wireless commu-
32 nications equipment agreements, or self-service storage agreements are
33 executed, brochures or other written materials are readily available to
34 the prospective consumer that:
35 (A) summarize, clearly and correctly, the material terms of insurance
36 coverage, including the identity of the insurer and, with regard to
37 wireless communications equipment insurance, the agent licensed under
38 subsection (b) of section two thousand one hundred three of this arti-
39 cle;
40 (B) disclose that these policies may provide a duplication of coverage
41 already provided by a renter's personal automobile insurance policy,
42 homeowner's insurance policy, personal liability insurance policy, or
43 other source of coverage;
44 (C) state that the purchase by the consumer of the kinds of insurance
45 specified in this section is not required in order to rent a vehicle, to
46 purchase or lease wireless communications equipment, or to rent storage
47 space;
48 (D) describe the process for filing a claim in the event the consumer
49 elects to purchase coverage;
50 (E) the price, deductible, benefits, exclusions and conditions or
51 other limitations of such policies;
52 (F) disclose that the employee of the rental vehicle company, wireless
53 communications equipment vendor or self-storage company is not qualified
54 or authorized to evaluate the adequacy of the purchaser's existing
55 coverages, unless otherwise licensed; and
S. 3520 4
1 (G) state that the customer may cancel the insurance at any time and
2 any unearned premium will be refunded in accordance with applicable law.
3 (3) evidence of coverage is provided to every consumer who elects to
4 purchase such coverage.
5 (f) Rates and forms for insurance under this section shall be subject
6 to article twenty-three of this chapter. Any brochures used in
7 connection with insurance under this section shall be filed with the
8 superintendent for review and shall include disclosure of the claims
9 filing process, premium, deductible amounts and limits and shall be
10 prominently displayed in the brochure with at least twelve-point type
11 bold headings. Any such brochures shall also be subject to section
12 three thousand one hundred two of this chapter, provided, however, that
13 any policy, certificate or other evidence of insurance coverage, whether
14 or not contained in such brochure, shall not be subject to section three
15 thousand one hundred two of this chapter, but shall be written in a
16 clear and coherent manner and whenever practicable shall use words with
17 common and everyday meaning to facilitate readability and to aid the
18 policyholder in understanding the coverage provided.
19 (g) Any limited license issued under this section shall also authorize
20 any salaried employee or any sales representative authorized by the
21 licensee who, pursuant to subsection (h) of this section, is trained to
22 act individually on behalf, and under the supervision, of the licensee
23 with respect to the kinds of insurance specified in this section.
24 (h) Each company or franchisee licensed pursuant to this section shall
25 conduct a training program, which shall be submitted to the superinten-
26 dent for approval prior to use, and which shall meet the following mini-
27 mum standards:
28 (1) each trainee shall receive basic instruction about the kinds of
29 insurance specified in this section offered for purchase by prospective
30 renters of rental vehicles, purchasers or lessors of wireless communi-
31 cations equipment, or renters of storage space;
32 (2) each trainee shall be instructed with respect to the disclosures
33 required under subsection (e) of this section and to acknowledge to a
34 prospective renter of a rental vehicle, purchaser or lessor of wireless
35 communications equipment, or renter of storage space that purchase of
36 any such insurance specified in this section is not required in order
37 for the consumer to rent a motor vehicle, purchase or lease wireless
38 communications equipment, or rent storage space;
39 (3) each trainee shall be instructed to acknowledge to a prospective
40 consumer of the kinds of insurance specified in this section that the
41 consumer may have insurance policies that already provide the coverage
42 being offered by the rental vehicle company, the wireless communications
43 equipment vendor, or self-service storage company pursuant to this
44 section; and
45 (4) with regard to wireless communications equipment insurance and
46 self-service storage company insurance, training materials may be devel-
47 oped and provided by an agent licensed pursuant to subsection (b) of
48 section two thousand one hundred three of this article.
49 (i) Limited licensees acting pursuant to and under the authority of
50 this section shall comply with all applicable provisions of this arti-
51 cle, except that notwithstanding section two thousand one hundred twenty
52 of this article, a limited licensee pursuant to this section shall not
53 be required to treat premiums collected from consumers purchasing such
54 insurance when renting motor vehicles, purchasing or leasing wireless
55 communications equipment, or renting storage space as funds received in
56 a fiduciary capacity, provided that:
S. 3520 5
1 (1) the insurer represented by the limited licensee has consented in
2 writing, signed by the insurer's officer, that premiums need not be
3 segregated from funds received by the rental vehicle company, wireless
4 communications equipment vendor, or self-storage company on account of
5 vehicle rental, wireless communications equipment purchase or lease, or
6 storage space rental; and
7 (2) the charges for insurance coverage are itemized but not billed to
8 the consumer separately from the charges for rental vehicles, purchase
9 or lease of wireless communications equipment, or storage space rental.
10 (j) No limited licensees under this section shall advertise, represent
11 or otherwise hold itself or any of its employees themselves out as
12 licensed insurance agents or brokers.
13 (k) The superintendent may issue a replacement for a currently in
14 force license which has been lost or destroyed. Before such replacement
15 license shall be issued, there shall be on file in the office of the
16 superintendent a written application for such replacement license,
17 affirming under penalty of perjury that the original license has been
18 lost or destroyed, together with a fee of fifteen dollars.
19 (l) For purposes of this section "wireless communications equipment"
20 shall mean wireless handsets, pagers, personal digital assistants, wire-
21 less telephones or wireless telephone batteries and other wireless
22 devices and accessories related to such devices that are used to access
23 wireless communications services and includes wireless services.
24 (m) Provisions related specifically to travel insurance coverage.
25 (1) Definitions.
26 (A) In this article, a "travel insurance agent" shall mean an agent
27 licensed under section two thousand one hundred three of this article or
28 a limited licensee under subsection (a) of this section that is desig-
29 nated by an insurer as a travel insurance supervising entity as set
30 forth in paragraph four of this subsection.
31 (B) In this article, "offer and disseminate" shall mean providing
32 general information, including a description of the coverage and price,
33 as well as processing the application, collecting premiums, and perform-
34 ing other non-licensable activities permitted by the state.
35 (C) In this article, "travel company" shall mean a business entity
36 that makes, arranges or offers travel services and may offer and dissem-
37 inate travel insurance as a service to its customers on behalf of and
38 under the direction of a travel insurance agent.
39 (2) Requirements. Notwithstanding any other provision of law:
40 (A) A travel company may offer and disseminate travel insurance on
41 behalf of and under the license of a travel insurance agent if the
42 following conditions are met:
43 (i) The travel insurance agent or travel company provides to purchas-
44 ers of travel insurance:
45 (1) A description of the material terms or the actual material terms
46 of the insurance coverage;
47 (2) A description of the process for filing a claim;
48 (3) A description of the review or cancellation process for the travel
49 insurance policy; and
50 (4) The identity and contact information of the insurer and travel
51 insurance agent.
52 (ii) At the time of licensure, the travel insurance agent shall estab-
53 lish and maintain a register on a form prescribed by the superintendent,
54 of each travel company that offers travel insurance on the travel insur-
55 ance agent's behalf. The register shall be maintained and updated by the
56 travel insurance agent and shall include the name, address, and contact
S. 3520 6
1 information of the travel company and an officer or person who directs
2 or controls the travel company's operations, and the travel company's
3 federal tax identification number. The travel insurance agent shall
4 submit such register to the superintendent upon reasonable request. The
5 travel insurance agent shall also certify that the travel company regis-
6 ter complies with 18 USC 1033.
7 (iii) The travel insurance agent has designated one of its employees
8 who is a licensed individual agent as the person (a "designated respon-
9 sible producer" or "DRP") responsible for the travel insurance agent's
10 compliance with the travel insurance laws, rules and regulations of the
11 state.
12 (iv) The DRP, president, secretary, treasurer, and any other officer
13 or person who directs or controls the travel insurance agent's insurance
14 operations comply with the fingerprinting requirements applicable to
15 insurance agents in the resident state of the travel insurance agent.
16 (v) The travel insurance agent has paid all applicable insurance agent
17 licensing fees as set forth in applicable state law.
18 (vi) The travel insurance agent requires each employee and authorized
19 representative of the travel company whose duties include offering and
20 disseminating travel insurance to receive a program of instruction or
21 training that shall, at minimum, contain instructions on the types of
22 insurance offered, ethical sales practices, and required disclosures to
23 prospective customers.
24 (B) Any travel company offering and disseminating travel insurance
25 shall make available to prospective purchasers brochures or other writ-
26 ten materials that:
27 (i) Provide the identity and contact information of the insurer and
28 the travel insurance agent;
29 (ii) Explain that the purchase of travel insurance is not required in
30 order to purchase any other product or service from the travel company;
31 (iii) Explain that the travel insurance coverage is not intended to
32 duplicate any other insurance coverage the purchaser might have, but the
33 purchaser may wish to compare the terms of coverage with existing poli-
34 cies; and
35 (iv) Explain that an unlicensed travel company is permitted to provide
36 general information about the insurance offered by the travel company,
37 including a description of the coverage and price, but is not qualified
38 or authorized to answer technical questions about the terms and condi-
39 tions of the insurance offered by the travel company or to evaluate the
40 adequacy of the customer's existing insurance coverage.
41 (C) A travel company employee or authorized representative who is not
42 licensed as an insurance agent may not:
43 (i) Evaluate or interpret the technical terms, benefits, and condi-
44 tions of the offered travel insurance coverage;
45 (ii) Evaluate or provide advice concerning a prospective purchaser's
46 existing insurance coverage; or
47 (iii) Hold himself, herself, or itself out as a licensed insurer,
48 licensed agent, or insurance expert.
49 (3) Notwithstanding any other provision of law, a travel company whose
50 insurance-related activities, and those of its employees and authorized
51 representatives, are limited to offering and disseminating travel insur-
52 ance on behalf of and under the direction of a travel insurance agent
53 meeting the conditions stated in this subsection, is authorized to do so
54 and receive related compensation, upon registration by the travel insur-
55 ance agent as described in this section. No employee of the travel
56 company may be compensated based primarily on the number of customers
S. 3520 7
1 who purchase travel insurance coverage but nothing in this article shall
2 prohibit payment of compensation to a travel company or its employees
3 for activities as a registrant under the travel insurance agent's
4 license that is incidental to the overall compensation of the travel
5 company or its employees.
6 (4) As the insurer's supervising designee, the travel insurance agent
7 is responsible for the acts of the travel company and shall use reason-
8 able means to ensure compliance by the travel company with this article.
9 (5) Travel insurance may be provided under an individual, group or
10 master policy, and may be filed under an inland marine line of insur-
11 ance, pursuant to subparagraph (B) of paragraph twenty of subsection (a)
12 of section one thousand one hundred thirteen of this chapter, as long as
13 any health benefits offered are not offered on a stand-alone basis and
14 are incidental to other property and casualty travel coverages.
15 (6) (A) The travel insurance agent and any travel company offering and
16 disseminating travel insurance under a travel insurance agent's license
17 shall be subject to (i) the unfair trade practices rules and enforcement
18 provisions of article twenty-four of this chapter and (ii) any other
19 enforcement provisions applicable to insurance producers generally.
20 (B) If the superintendent determines that a travel company, or a trav-
21 el company's employee has violated any provision of this article or any
22 other provision of this chapter, the superintendent may:
23 (i) Direct the limited lines travel insurance producer to implement a
24 corrective action plan with the travel company.
25 (ii) Direct the limited lines travel insurance producer to revoke the
26 authorization of the travel company to transact travel insurance on its
27 behalf and under its license and to remove the travel company's name
28 from its register.
29 (C) If the superintendent determines that a travel company, or a trav-
30 el company's employee has violated a provision in this article or any
31 other provision of this chapter, the superintendent, after notice and a
32 hearing, may:
33 (i) Suspend or revoke the license of the limited lines travel insur-
34 ance producer as authorized under this chapter.
35 (ii) Impose a monetary fine on the limited lines travel insurance
36 producer.
37 § 3. Subsection (a) of section 3452 of the insurance law, as added by
38 chapter 318 of the laws of 2008, is amended to read as follows:
39 (a)(1) A group property travel insurance policy, and certificates
40 thereunder, may be issued or delivered in this state only in accordance
41 with the provisions of this section.
42 (2) A group property travel insurance policy, and certificates there-
43 under, may be issued only by an authorized insurer.
44 (3) The policy may be issued to:
45 (A) any railroad company, steamship company, carrier by air, public
46 bus carrier, or other common carrier of passengers or travel company,
47 which shall be deemed the policyholder, where the policy insures its
48 passengers or travel customers; or
49 (B) any other group where the superintendent has determined in a regu-
50 lation that the members are engaged in a common enterprise, or have an
51 economic or social affinity or relationship, and that the issuance of
52 the policy would not be contrary to the best interests of the public.
53 (4) The travel insurance policy may provide coverage [for trip cancel-
54 lation, trip interruption, baggage, and personal effects] as specified
55 in paragraph four of subsection (d) of section two thousand one hundred
56 thirty-one of this chapter, when limited to a specific trip. The policy
S. 3520 8
1 shall be sold in connection with transportation provided by the common
2 carrier or travel company or, with respect to other groups as permitted
3 by the superintendent in accordance with subparagraph (B) of paragraph
4 three of this subsection, subject to such limitations provided in the
5 regulation promulgated by the superintendent.
6 (5) Coverage under the policy shall be limited to the group member's
7 risks with respect to a particular trip.
8 (6) A person shall not be required to purchase any product or service
9 to be eligible for group property travel insurance coverage, or required
10 to purchase coverage as a condition of becoming a passenger or a group
11 member.
12 § 4. This act shall take effect on the one hundred twentieth day after
13 it shall have become a law.
