2013 New York Consolidated Laws
ISC - Insurance
Article 34 - (3401 - 3454) INSURANCE CONTRACTS-PROPERTY/CASUALTY
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