2012 New York Consolidated Laws
ISC - Insurance
Article 21 - (2101 - 2137) AGENTS, BROKERS, ADJUSTERS, CONSULTANTS AND INTERMEDIARIES
2131 - Limited license for rental vehicle companies, wireless communications equipm ent vendors and self-service storage companies.

 
    §  2131.  Limited  license  for  rental  vehicle  companies,  wireless
  communications equipment vendors and self-service storage companies. (a)
  The superintendent may issue to a rental  vehicle  company,  a  wireless
  communications  equipment vendor, a self-service storage company or to a
  franchisee of  a  rental  vehicle  company,  a  wireless  communications
  equipment  vendor,  or a self-service storage company which has complied
  with the requirements of this section, a limited license authorizing the
  licensee, known as a "limited licensee" for the purpose of this article,
  to act as agent, with reference to the kinds of insurance  specified  in
  this section, of any insurer authorized to write such kinds of insurance
  in this state.
    (b)  The  prerequisites  for  issuance of a limited license under this
  section shall be the filing with the superintendent of the following:
    (1) an application, signed by an officer of  the  applicant,  for  the
  limited  license  in  such  form  or forms, and supplements thereto, and
  containing such information, as the superintendent may prescribe; and
    (2) an appointment of a limited licensee by the appointing insurer, in
  a format approved by the superintendent, no more than fifteen days after
  the date the agency contract is executed or the first insurance contract
  is submitted, whichever is later, stating that it has  satisfied  itself
  that  the  named  applicant  is  trustworthy and competent to act as its
  insurance agent for this limited  purpose  and  that  the  insurer  will
  appoint  such applicant to act as the agent in reference to the doing of
  such kind or kinds of insurance which are permitted by this section,  if
  the  limited  license  applied for is issued by the superintendent. Such
  appointment shall be subscribed by an officer or managing agent of  such
  insurer and affirmed as true under the penalties of perjury.
    (c)  In  the event that any provision of this chapter is violated, the
  superintendent may:
    (1) revoke or suspend a limited license issued under this  section  in
  accordance  with  the provisions of section two thousand one hundred ten
  of this article; or
    (2) after notice and hearing impose such  other  penalties,  including
  suspending  the  transaction  of  insurance  at specific locations where
  violations of this article have occurred, as  the  superintendent  deems
  necessary or convenient to carry out the purposes of this section.
    (d)  The  rental  vehicle  company,  wireless communications equipment
  vendor, or self-service storage company, or franchisee licensed pursuant
  to subsection (a) of this section may act as  agent  for  an  authorized
  insurer  only  in connection with the rental of motor vehicles, the sale
  or offering for sale of wireless communications equipment, or the rental
  of storage space, respectively, and only with respect to  the  following
  kinds of insurance:
    (1) with respect to rental vehicle companies:
    (A)  excess  liability  insurance that provides coverage to the rental
  car company or franchisee and renters and other  authorized  drivers  of
  rental  vehicles, in excess of the standard liability limits provided by
  the rental vehicle  company  in  its  rental  agreement,  for  liability
  arising from the negligent operation of the rental vehicle;
    (B)  accident  and  health insurance that provides coverage to renters
  and other vehicle occupants, in  excess  to  the  standard  first  party
  benefits  provided  pursuant  to  article fifty-one of this chapter, for
  accidental death and/or dismemberment and for medical expenses resulting
  from an accident that occurs during the rental period;
    (C) personal effects insurance that provides coverage to  renters  and
  other  vehicle occupants for the loss of, or damage to, personal effects
  that occurs during the rental period;

    (D) any  other  coverage  which  the  superintendent  may  approve  as
  meaningful  and  appropriate  in  connection  with  the  rental of motor
  vehicles; or
    (2)   with  respect  to  wireless  communications  equipment  vendors,
  insurance issued to  cover  the  loss,  theft,  mechanical  failure,  or
  malfunction  of, or damage to, wireless communications equipment offered
  as either an individual policy issued to the  consumer  or  as  a  group
  policy under which certificates or other evidence of coverage are issued
  to  individual  consumers  who  enroll in the program, provided however,
  that said insurance shall not extend to  wireless  services  or  service
  contracts governed by article seventy-nine of this chapter; or
    (3)  with  respect  to  self-service  storage companies, the following
  coverages offered as either an individual policy issued to the  consumer
  or as a group policy:
    (A)  personal  effects  insurance that provides coverage to renters of
  storage spaces at the self-service storage company's  facility  for  the
  loss  of,  or damage to, personal property stored at the facility, where
  the loss or damage occurs at the same facility during the rental period;
    (B)  any  other  coverage  that  the  superintendent  may  approve  as
  meaningful  and  appropriate  in  connection  with the rental of storage
  space.
    (e) No insurance may be issued pursuant to this section unless:
    (1) with regard to the rental of vehicles only, the rental  period  of
  the rental agreement does not exceed thirty consecutive days; and
    (2)  at  every  location  where  rental  vehicle  agreements, wireless
  communications equipment agreements, or self-service storage  agreements
  are executed, brochures or other written materials are readily available
  to the prospective consumer that:
    (A)  summarize, clearly and correctly, the material terms of insurance
  coverage, including the identity of the  insurer  and,  with  regard  to
  wireless  communications  equipment  insurance, the agent licensed under
  subsection (b) of  section  two  thousand  one  hundred  three  of  this
  article;
    (B) disclose that these policies may provide a duplication of coverage
  already  provided  by  a  renter's personal automobile insurance policy,
  homeowner's insurance policy, personal liability  insurance  policy,  or
  other source of coverage;
    (C)  state that the purchase by the consumer of the kinds of insurance
  specified in this section is not required in order to rent a vehicle, to
  purchase or lease wireless communications equipment, or to rent  storage
  space;
    (D)  describe the process for filing a claim in the event the consumer
  elects to purchase coverage;
    (E) the price, deductible,  benefits,  exclusions  and  conditions  or
  other limitations of such policies;
    (F) disclose that the employee of the rental vehicle company, wireless
  communications equipment vendor or self-storage company is not qualified
  or  authorized  to  evaluate  the  adequacy  of the purchaser's existing
  coverages, unless otherwise licensed; and
    (G) state that the customer may cancel the insurance at any  time  and
  any unearned premium will be refunded in accordance with applicable law.
    (3)  evidence  of coverage is provided to every consumer who elects to
  purchase such coverage.
    (f) Rates and forms for insurance under this section shall be  subject
  to   article  twenty-three  of  this  chapter.  Any  brochures  used  in
  connection with insurance under this section shall  be  filed  with  the
  superintendent  for  review  and  shall include disclosure of the claims
  filing process, premium, deductible amounts  and  limits  and  shall  be

  prominently  displayed  in  the brochure with at least twelve-point type
  bold headings.   Any such brochures shall also  be  subject  to  section
  three  thousand one hundred two of this chapter, provided, however, that
  any policy, certificate or other evidence of insurance coverage, whether
  or not contained in such brochure, shall not be subject to section three
  thousand  one  hundred  two  of  this chapter, but shall be written in a
  clear and coherent manner and whenever practicable shall use words  with
  common  and  everyday  meaning  to facilitate readability and to aid the
  policyholder in understanding the coverage provided.
    (g) Any limited license issued under this section shall also authorize
  any salaried employee or any  sales  representative  authorized  by  the
  licensee  who, pursuant to subsection (h) of this section, is trained to
  act individually on behalf, and under the supervision, of  the  licensee
  with respect to the kinds of insurance specified in this section.
    (h) Each company or franchisee licensed pursuant to this section shall
  conduct   a   training   program,   which  shall  be  submitted  to  the
  superintendent for approval prior to  use,  and  which  shall  meet  the
  following minimum standards:
    (1)  each  trainee  shall receive basic instruction about the kinds of
  insurance specified in this section offered for purchase by  prospective
  renters   of   rental   vehicles,  purchasers  or  lessors  of  wireless
  communications equipment, or renters of storage space;
    (2) each trainee shall be instructed with respect to  the  disclosures
  required  under  subsection  (e) of this section and to acknowledge to a
  prospective renter of a rental vehicle, purchaser or lessor of  wireless
  communications  equipment,  or  renter of storage space that purchase of
  any such insurance specified in this section is not  required  in  order
  for  the  consumer  to  rent a motor vehicle, purchase or lease wireless
  communications equipment, or rent storage space;
    (3) each trainee shall be instructed to acknowledge to  a  prospective
  consumer  of  the  kinds of insurance specified in this section that the
  consumer may have insurance policies that already provide  the  coverage
  being offered by the rental vehicle company, the wireless communications
  equipment  vendor,  or  self-service  storage  company  pursuant to this
  section; and
    (4) with regard to wireless  communications  equipment  insurance  and
  self-service  storage  company  insurance,  training  materials  may  be
  developed and provided by an agent licensed pursuant to  subsection  (b)
  of section two thousand one hundred three of this article.
    (i)  Limited  licensees  acting pursuant to and under the authority of
  this section  shall  comply  with  all  applicable  provisions  of  this
  article,  except  that  notwithstanding section two thousand one hundred
  twenty of this article, a limited  licensee  pursuant  to  this  section
  shall  not  be  required  to  treat  premiums  collected  from consumers
  purchasing such insurance when renting  motor  vehicles,  purchasing  or
  leasing  wireless  communications equipment, or renting storage space as
  funds received in a fiduciary capacity, provided that:
    (1) the insurer represented by the limited licensee has  consented  in
  writing,  signed  by  the  insurer's  officer, that premiums need not be
  segregated from funds received by the rental vehicle  company,  wireless
  communications  equipment  vendor, or self-storage company on account of
  vehicle rental, wireless communications equipment purchase or lease,  or
  storage space rental; and
    (2)  the charges for insurance coverage are itemized but not billed to
  the consumer separately from the charges for rental  vehicles,  purchase
  or lease of wireless communications equipment, or storage space rental.

    (j) No limited licensees under this section shall advertise, represent
  or  otherwise  hold  itself  or  any  of its employees themselves out as
  licensed insurance agents or brokers.
    (k)  The  superintendent  may  issue  a replacement for a currently in
  force license which has been lost or destroyed. Before such  replacement
  license  shall  be  issued,  there shall be on file in the office of the
  superintendent a  written  application  for  such  replacement  license,
  affirming  under  penalty  of perjury that the original license has been
  lost or destroyed, together with a fee of fifteen dollars.
    (l) For purposes of this section "wireless  communications  equipment"
  shall  mean  wireless  handsets,  pagers,  personal  digital assistants,
  wireless telephones or wireless telephone batteries and  other  wireless
  devices  and accessories related to such devices that are used to access
  wireless communications services and includes wireless services.