NY Ins L § 2131 (2021)
2021 New York Laws ISC - Insurance Article 21 - 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.