Section 2131. Limited license for rental vehicle companies and wireless communications equipment vendors

(a) The superintendent may issue to  a  rental  vehicle  company, a wireless communications equipment vendor, or
  to a franchisee of a rental vehicle company or a wireless communications
  equipment vendor, 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 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 or the sale or offering for sale of wireless
  communications equipment 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
  property  and casualty 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.
    (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  or  wireless
  communications  equipment  agreements  are  executed, brochures or other
  written materials are readily  available  to  the  prospective  consumer
  which:
    (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  or
  to purchase or lease wireless communications equipment;
    (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  wireless  communications
  equipment vendor 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 wireless  communications  equipment  insurance
  shall  be subject to article twenty-three of this chapter. Any brochures
  used in connection  with  wireless  communications  equipment  insurance
  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
  wireless communications equipment 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  or  purchasers  or  lessors  of  wireless
  communications equipment;
    (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  or  purchaser  or  lessor  of
  wireless  communications  equipment  that purchase of any such insurance
  specified in this section is not required in order for the  consumer  to
  rent  a  motor  vehicle  or  purchase  or  lease wireless communications
  equipment;
    (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  or  the  wireless
  communications equipment vendor pursuant to this section; and
    (4) with regard to wireless communications equipment  insurance  only,
  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 or  purchasing  or
  leasing  wireless  communications  equipment  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 or wireless
  communications equipment vendor on account of vehicle rental or wireless
  communications equipment purchase or lease; and
    (2) the charges for insurance coverage are itemized but not billed  to
  the consumer separately from the charges for rental vehicles or purchase
  or lease of wireless communications equipment.
    (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.