Section 3449. Wireless communications equipment insurance policies

(a) In
  this section, the term  "policy  of  wireless  communications  equipment
  insurance"  means  an  insurance  policy  covering the kind of insurance
  described  in  subsection  (1)  of  section  two  thousand  one  hundred
  thirty-one of this chapter.
    (b)  (1)  A  group  policy,  and  certificates  issued  thereunder, of
  wireless communications equipment insurance shall not be subject to  the
  provisions  of  section three thousand four hundred twenty-five or three
  thousand four hundred twenty-six of this article.
    (2) An insurer shall not terminate or otherwise change the  terms  and
  conditions  of  a  group  policy  of  wireless  communications equipment
  insurance, and certificates issued thereunder, except upon providing the
  policyholder and certificate holders with at least sixty days notice. If
  the insurer changes the terms and conditions,  then  the  insurer  shall
  provide  the  policyholder with a revised policy or endorsement and each
  certificate holder with a revised certificate or endorsement, an updated
  brochure or facsimile thereof and an explanation of the changes.
    (3) Notwithstanding paragraph two of this subsection, an  insurer  may
  terminate a certificate upon fifteen days notice for:
    (A) nonpayment of premium; or
    (B)  discovery of fraud or material misrepresentation in obtaining the
  certificate or in the presentation of a claim thereunder.
    (4) Notwithstanding paragraph two of this subsection, an  insurer  may
  automatically terminate a certificate if the certificate holder:
    (A) ceases to have active telecommunications service with the wireless
  communications equipment vendor; or
    (B)  exhausts  the  aggregate  limit  of  liability, if any, under the
  certificate  and  the  insurer  sends  notice  of  termination  to   the
  certificate  holder within fifteen business days after exhaustion of the
  limit. However, if notice is not timely sent,  coverage  shall  continue
  notwithstanding the aggregate limit of liability until the insurer sends
  notice of termination to the certificate holder.
    (5)  Notwithstanding  the  provisions of subparagraph (B) of paragraph
  four of this subsection, upon the request of a certificate  holder,  the
  certificate  holder's  coverage  shall be eligible for reinstatement not
  more than twelve months following the date of exhaustion of the coverage
  limit in accordance with the terms of the  policy  and  subject  to  the
  enrollment  criteria  then applicable to prospective certificate holders
  generally.
    (6) Where the group policy is  terminated  by  the  policyholder,  the
  policyholder  shall  mail  or deliver written notice to each certificate
  holder advising the certificate holder of the termination of  the  group
  policy  and  the effective date of termination. The written notice shall
  be mailed or delivered to the certificate holder at  least  thirty  days
  prior to the termination.
    (c)  Whenever notice is required pursuant to this section, it shall be
  in  writing  and  mailed  or  delivered  to  the  policyholder  at   the
  policyholder's  mailing  address  and to affected certificate holders at
  the certificate holders' last known mailing addresses on file  with  the
  insurer. Every notice of termination shall specify the reason or reasons
  for termination.
    (d)  (1)  Notwithstanding  subsection  (c) of this section, an insurer
  shall not be required to give notice of termination to  the  certificate
  holder  if  the  insurer  has been advised by either the policyholder or
  another insurer that substantially similar coverage  has  been  obtained
  from the other insurer without lapse of coverage.

    (2) A policyholder shall not be required to give notice of termination
  to  a  certificate  holder  if  substantially  similar coverage has been
  obtained from another insurer without lapse of coverage.
    (e)  The  superintendent may promulgate regulations regarding policies
  of wireless  communications  equipment  insurance,  including,  but  not
  limited  to,  regulations governing policy terms and conditions, and may
  establish other reasonable limitations.