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