2020 New York Laws
ISC - Insurance
Article 34 - Insurance Contracts-Property/casualty
3446 - Product or System Group Insurance Policies.

§ 3446. Product or system group insurance policies. (a) A group policy
may  be  issued  to  a  group policyholder, who shall be a manufacturer,
distributor, or installer of a product or system,  or  a  trustee  of  a
trust  established,  or  participated  in, by one or more manufacturers,
distributors, or installers, in accordance with the provisions  of  this
section.
  (b)  The group shall consist only of members who have purchased or own
the product or system where the manufacturer, distributor, or  installer
has  represented  that the product or system is designed to prevent loss
or damage to property from a specific cause (other than loss  or  damage
resulting  from  defect  in materials or workmanship, or wear and tear),
and the policy shall only cover such loss or damage.
  (c) The  policy,  and  certificates  issued  thereunder,  may  provide
coverage  for  a kind of insurance authorized by paragraphs four through
twelve, nineteen and twenty of subsection (a) of  section  one  thousand
one  hundred thirteen of this chapter, and may be issued or delivered in
this state only by an insurer authorized in  this  state  to  write  the
coverage.
  (d)  The coverage shall not be duplicative of coverage under any other
applicable insurance policy.
  (e) The insurer must treat in like manner all eligible  group  members
of the same class.
  (f)   The   premium  for  the  group  policy,  including  certificates
thereunder,  shall  be  paid  by  the  group  policyholder  from   funds
contributed wholly by the group policyholder.
  (g)  The  superintendent  may promulgate regulations regarding product
and system group policies, including regulations governing  issuance  of
certificates  to  group  members;  minimum  provisions  of certificates;
policy cancellation  and  renewal;  minimum  number  of  group  members;
payment of premium; and policy dividends, retrospective premium credits,
or  retrospective  premium  refunds;  and may establish other reasonable
limitations.
  (h) A product or system  group  policyholder  shall  comply  with  the
provisions  of  section  two  thousand  one  hundred  twenty-two of this
chapter, in the same manner as an insurance  agent  or  broker,  in  any
advertisement,   sign,   pamphlet,   circular,  card,  or  other  public
announcement referring to coverage under a group policy or certificate.
  (i) A product or system 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.
  (j)(1) "Manufacturer" means a person that:
  (A) manufactures or produces the product or system and sells it  under
its own trade name or label;
  (B) does not manufacture or produce the product or system but sells it
under its own trade name or label;
  (C)  manufactures  or  produces  the  product or system and it is sold
under the trade name or label of another person; or
  (D) does not  manufacture  or  produce  the  product  or  system  but,
pursuant  to  a  written contract, licenses the use of its trade name or
label to another person that sells  the  product  or  system  under  the
licensor's trade name or label.
  (2) "Manufacturer" shall also include a distributor which is a parent,
affiliate, or subsidiary of a manufacturer.
  (3)  The  holder  of  a  patent shall not be considered a manufacturer
solely because it receives royalties on its patents.