NY Ins L § 3453-2 (2021)
2021 New York Laws ISC - Insurance Article 34 - 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