Requires wireless communications equipment vendors offering insurance on such equipment to disclose whether they pay a commission to the wireless communications equipment retailer.
Ayes (59): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Excused (2): Diaz, Johnson
TITLE OF BILL: An act to amend the insurance law, in relation to disclosures by limited licensees which are wireless communications equipment vendors
PURPOSE OR GENERAL IDEA OF BILL: To clarify the disclosure requirements for wireless communications equipment insurance companies.
SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill amends section 2131 of the insurance law to explicitly require that when a commission is earned for the sale of wireless communications equipment insurance that the receipt of such commission be disclosed.
Section two further amends section 2131 of the insurance law by clarifying that the term "commission" means a payment to an insurance salesperson that is based only on a consumer's decision to enroll in a wireless equipment insurance program. Section two further provides that such wireless communications equipment insurance program sales are to be regulated by the simple process established in this bill.
EXISTING LAW: The wireless communications vendor ("wireless vendor") is licensed as a "limited licensee" under Section 2131 of the Insurance Law. As required under § 2131(e) (2), when the wireless vendor offers the purchaser of wireless communications equipment the option of purchasing wireless communications equipment insurance, the wireless vendor makes available to the purchaser written materials summarizing the material teens of the insurance coverage, including the name of the insurer and the agent licensed under section 2103(b) of the Insurance Law. Additionally, such materials indicate that this product may be a duplication of coverage already provided by a renter's, homeowner's, automobile, or other liability insurance.
JUSTIFICATION: This bill maintains the set of disclosures required of limited licensees regarding disclosure necessary for the consumer to make an informed insurance purchasing decision, namely the terms, costs, and procedures of the insurance product. This bill will further benefit consumers who seek wireless communications equipment insurance by establishing a salesperson commission disclosure requirement that ensures the speed and convenience of these common and simple transactions.
The information necessary to affect whether or not to purchase wireless equipment insurance is limited. The insurance transactions are not complicated by various offers from the equipment seller of competing insurance products. Consumers will be offered a simple and complete product, along with the insurance product's terms, costs, and procedures as required by § 2131, as well as a disclosure when a salesperson receives a commission for a sale.
PRIOR LEGISLATIVE HISTORY: New bill
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: On the 30th day after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 6463 IN SENATE February 13, 2012 ___________Introduced by Sen. LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to disclosures by limited licensees which are wireless communications equipment vendors THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (E) of paragraph 2 of subsection (e) of section 2131 of the insurance law, as amended by chapter 368 of the laws of 2010, is amended to read as follows: (E) the price, deductible, benefits, exclusions and conditions or other limitations of such policies, AND, WITH REGARD TO WIRELESS COMMU- NICATIONS EQUIPMENT POLICIES, DISCLOSE, WHEN A COMMISSION IS PAID TO A RETAIL REPRESENTATIVE, PROVIDED THAT A COMMISSION IS TO BE SO PAID, AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY REGARDING PRODUCER COMPENSATION, THE DISCLOSURES REQUIRED BY THIS SUBPARAGRAPH SHALL BE DEEMED TO BE IN FULL COMPLIANCE WITH ANY SUCH LAW, RULE OR REGULATION; S 2. Section 2131 of the insurance law is amended by adding two new subsections (m) and (n) to read as follows: (M) FOR PURPOSES OF THIS SECTION, WITH RESPECT TO INSURANCE OFFERED AND PROVIDED TO WIRELESS COMMUNICATIONS EQUIPMENT VENDORS, "COMMISSION" SHALL MEAN THE PROVISION BY A WIRELESS COMMUNICATIONS EQUIPMENT VENDOR TO A RETAIL REPRESENTATIVE OF MONETARY REMUNERATION, WHICH IS SOLELY CONTINGENT UPON A CONSUMER'S DECISION TO ENROLL IN A WIRELESS COMMUNI- CATION EQUIPMENT VENDOR INSURANCE POLICY. (N) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS SECTION, THE PROVISIONS OF PART THIRTY OF TITLE ELEVEN OF NEW YORK STATE CODES, RULES AND REGU- LATIONS, AND ANY OTHER LAW, RULE OR REGULATION REGARDING DISCLOSURE OF PRODUCER COMPENSATION SHALL NOT APPLY TO WIRELESS COMMUNICATIONS EQUIP- MENT POLICIES. S 3. This act shall take effect on the thirtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14507-01-2