§ 2131 — Limited license for rental vehicle companies, wireless communications equipment vendors and self-service storage companies

* § 2131. Limited license for rental vehicle companies, wireless\ncommunications equipment vendors and self-service storage companies. (a)\nThe superintendent may issue to a rental vehicle company, a wireless\ncommunications equipment vendor, a self-service storage company or to a\nfranchisee of a rental vehicle company, a wireless communications\nequipment vendor, or a self-service storage company which has complied\nwith the requirements of this section, a limited license authorizing the\nlicensee, known as a "limited licensee" for the purpose of this article,\nto act as agent, with reference to the kinds of insurance specified in\nthis section, of any insurer authorized to write such kinds of insurance\nin this state.\n (b) The prerequisites for issuance of a limited license under this\nsection shall be the filing with the superintendent of the following:\n (1) an application, signed by an officer of the applicant, for the\nlimited license in such form or forms, and supplements thereto, and\ncontaining such information, as the superintendent may prescribe; and\n (2) an appointment of a limited licensee by the appointing insurer, in\na format approved by the superintendent, no more than fifteen days after\nthe date the agency contract is executed or the first insurance contract\nis submitted, whichever is later, stating that it has satisfied itself\nthat the named applicant is trustworthy and competent to act as its\ninsurance agent for this limited purpose and that the insurer will\nappoint such applicant to act as the agent in reference to the doing of\nsuch kind or kinds of insurance which are permitted by this section, if\nthe limited license applied for is issued by the superintendent. Such\nappointment shall be subscribed by an officer or managing agent of such\ninsurer and affirmed as true under the penalties of perjury.\n (c) In the event that any provision of this chapter is violated, the\nsuperintendent may:\n (1) revoke or suspend a limited license issued under this section in\naccordance with the provisions of section two thousand one hundred ten\nof this article; or\n (2) after notice and hearing impose such other penalties, including\nsuspending the transaction of insurance at specific locations where\nviolations of this article have occurred, as the superintendent deems\nnecessary or convenient to carry out the purposes of this section.\n (d) The rental vehicle company, wireless communications equipment\nvendor, or self-service storage company, or franchisee licensed pursuant\nto subsection (a) of this section may act as agent for an authorized\ninsurer only in connection with the rental of motor vehicles, the sale\nor offering for sale of wireless communications equipment, or the rental\nof storage space, respectively, and only with respect to the following\nkinds of insurance:\n (1) with respect to rental vehicle companies:\n (A) excess liability insurance that provides coverage to the rental\ncar company or franchisee and renters and other authorized drivers of\nrental vehicles, in excess of the standard liability limits provided by\nthe rental vehicle company in its rental agreement, for liability\narising from the negligent operation of the rental vehicle;\n (B) accident and health insurance that provides coverage to renters\nand other vehicle occupants, in excess to the standard first party\nbenefits provided pursuant to article fifty-one of this chapter, for\naccidental death and/or dismemberment and for medical expenses resulting\nfrom an accident that occurs during the rental period;\n (C) personal effects insurance that provides coverage to renters and\nother vehicle occupants for the loss of, or damage to, personal effects\nthat occurs during the rental period;\n (D) any other coverage which the superintendent may approve as\nmeaningful and appropriate in connection with the rental of motor\nvehicles; or\n (2) with respect to wireless communications equipment vendors,\ninsurance issued to cover the loss, theft, mechanical failure, or\nmalfunction of, or damage to, wireless communications equipment offered\nas either an individual policy issued to the consumer or as a group\npolicy under which certificates or other evidence of coverage are issued\nto individual consumers who enroll in the program, provided however,\nthat said insurance shall not extend to wireless services or service\ncontracts governed by article seventy-nine of this chapter; or\n (3) with respect to self-service storage companies, the following\ncoverages offered as either an individual policy issued to the consumer\nor as a group policy:\n (A) personal effects insurance that provides coverage to renters of\nstorage spaces at the self-service storage company's facility for the\nloss of, or damage to, personal property stored at the facility, where\nthe loss or damage occurs at the same facility during the rental period;\n (B) any other coverage that the superintendent may approve as\nmeaningful and appropriate in connection with the rental of storage\nspace.\n (e) No insurance may be issued pursuant to this section unless:\n (1) with regard to the rental of vehicles only, the rental period of\nthe rental agreement does not exceed thirty consecutive days; and\n (2) at every location where rental vehicle agreements, wireless\ncommunications equipment agreements, or self-service storage agreements\nare executed, brochures or other written materials are readily available\nto the prospective consumer that:\n (A) summarize, clearly and correctly, the material terms of insurance\ncoverage, including the identity of the insurer and, with regard to\nwireless communications equipment insurance, the agent licensed under\nsubsection (b) of section two thousand one hundred three of this\narticle;\n (B) disclose that these policies may provide a duplication of coverage\nalready provided by a renter's personal automobile insurance policy,\nhomeowner's insurance policy, personal liability insurance policy, or\nother source of coverage;\n (C) state that the purchase by the consumer of the kinds of insurance\nspecified in this section is not required in order to rent a vehicle, to\npurchase or lease wireless communications equipment, or to rent storage\nspace;\n (D) describe the process for filing a claim in the event the consumer\nelects to purchase coverage;\n (E) the price, deductible, benefits, exclusions and conditions or\nother limitations of such policies;\n (F) disclose that the employee of the rental vehicle company, wireless\ncommunications equipment vendor or self-storage company is not qualified\nor authorized to evaluate the adequacy of the purchaser's existing\ncoverages, unless otherwise licensed; and\n (G) state that the customer may cancel the insurance at any time and\nany unearned premium will be refunded in accordance with applicable law.\n (3) evidence of coverage is provided to every consumer who elects to\npurchase such coverage.\n (f) Rates and forms for insurance under this section shall be subject\nto article twenty-three of this chapter. Any brochures used in\nconnection with insurance under this section shall be filed with the\nsuperintendent for review and shall include disclosure of the claims\nfiling process, premium, deductible amounts and limits and shall be\nprominently displayed in the brochure with at least twelve-point type\nbold headings. Any such brochures shall also be subject to section\nthree thousand one hundred two of this chapter, provided, however, that\nany policy, certificate or other evidence of insurance coverage, whether\nor not contained in such brochure, shall not be subject to section three\nthousand one hundred two of this chapter, but shall be written in a\nclear and coherent manner and whenever practicable shall use words with\ncommon and everyday meaning to facilitate readability and to aid the\npolicyholder in understanding the coverage provided.\n (g) Any limited license issued under this section shall also authorize\nany salaried employee or any sales representative authorized by the\nlicensee who, pursuant to subsection (h) of this section, is trained to\nact individually on behalf, and under the supervision, of the licensee\nwith respect to the kinds of insurance specified in this section.\n (h) Each company or franchisee licensed pursuant to this section shall\nconduct a training program, which shall be submitted to the\nsuperintendent for approval prior to use, and which shall meet the\nfollowing minimum standards:\n (1) each trainee shall receive basic instruction about the kinds of\ninsurance specified in this section offered for purchase by prospective\nrenters of rental vehicles, purchasers or lessors of wireless\ncommunications equipment, or renters of storage space;\n (2) each trainee shall be instructed with respect to the disclosures\nrequired under subsection (e) of this section and to acknowledge to a\nprospective renter of a rental vehicle, purchaser or lessor of wireless\ncommunications equipment, or renter of storage space that purchase of\nany such insurance specified in this section is not required in order\nfor the consumer to rent a motor vehicle, purchase or lease wireless\ncommunications equipment, or rent storage space;\n (3) each trainee shall be instructed to acknowledge to a prospective\nconsumer of the kinds of insurance specified in this section that the\nconsumer may have insurance policies that already provide the coverage\nbeing offered by the rental vehicle company, the wireless communications\nequipment vendor, or self-service storage company pursuant to this\nsection; and\n (4) with regard to wireless communications equipment insurance and\nself-service storage company insurance, training materials may be\ndeveloped and provided by an agent licensed pursuant to subsection (b)\nof section two thousand one hundred three of this article.\n (i) Limited licensees acting pursuant to and under the authority of\nthis section shall comply with all applicable provisions of this\narticle, except that notwithstanding section two thousand one hundred\ntwenty of this article, a limited licensee pursuant to this section\nshall not be required to treat premiums collected from consumers\npurchasing such insurance when renting motor vehicles, purchasing or\nleasing wireless communications equipment, or renting storage space as\nfunds received in a fiduciary capacity, provided that:\n (1) the insurer represented by the limited licensee has consented in\nwriting, signed by the insurer's officer, that premiums need not be\nsegregated from funds received by the rental vehicle company, wireless\ncommunications equipment vendor, or self-storage company on account of\nvehicle rental, wireless communications equipment purchase or lease, or\nstorage space rental; and\n (2) the charges for insurance coverage are itemized but not billed to\nthe consumer separately from the charges for rental vehicles, purchase\nor lease of wireless communications equipment, or storage space rental.\n (j) No limited licensees under this section shall advertise, represent\nor otherwise hold itself or any of its employees themselves out as\nlicensed insurance agents or brokers.\n (k) The superintendent may issue a replacement for a currently in\nforce license which has been lost or destroyed. Before such replacement\nlicense shall be issued, there shall be on file in the office of the\nsuperintendent a written application for such replacement license,\naffirming under penalty of perjury that the original license has been\nlost or destroyed, together with a fee of fifteen dollars.\n (l) For purposes of this section "wireless communications equipment"\nshall mean wireless handsets, pagers, personal digital assistants,\nwireless telephones or wireless telephone batteries and other wireless\ndevices and accessories related to such devices that are used to access\nwireless communications services and includes wireless services.\n * NB Effective until June 17, 2026\n * § 2131. Limited license for rental vehicle companies, peer-to-peer\ncar sharing program administrators, wireless communications equipment\nvendors and self-service storage companies. (a) The superintendent may\nissue to a rental vehicle company, a peer-to-peer car sharing program\nadministrator, a wireless communications equipment vendor, a\nself-service storage company or to a franchisee of a rental vehicle\ncompany, a wireless communications equipment vendor, or a self-service\nstorage company which has complied with the requirements of this\nsection, a limited license authorizing the licensee, known as a "limited\nlicensee" for the purpose of this article, to act as agent, with\nreference to the kinds of insurance specified in this section, of any\ninsurer authorized to write such kinds of insurance in this state.\n (b) The prerequisites for issuance of a limited license under this\nsection shall be the filing with the superintendent of the following:\n (1) an application, signed by an officer of the applicant, for the\nlimited license in such form or forms, and supplements thereto, and\ncontaining such information, as the superintendent may prescribe; and\n (2) an appointment of a limited licensee by the appointing insurer, in\na format approved by the superintendent, no more than fifteen days after\nthe date the agency contract is executed or the first insurance contract\nis submitted, whichever is later, stating that it has satisfied itself\nthat the named applicant is trustworthy and competent to act as its\ninsurance agent for this limited purpose and that the insurer will\nappoint such applicant to act as the agent in reference to the doing of\nsuch kind or kinds of insurance which are permitted by this section, if\nthe limited license applied for is issued by the superintendent. Such\nappointment shall be subscribed by an officer or managing agent of such\ninsurer and affirmed as true under the penalties of perjury.\n (c) In the event that any provision of this chapter is violated, the\nsuperintendent may:\n (1) revoke or suspend a limited license issued under this section in\naccordance with the provisions of section two thousand one hundred ten\nof this article; or\n (2) after notice and hearing impose such other penalties, including\nsuspending the transaction of insurance at specific locations where\nviolations of this article have occurred, as the superintendent deems\nnecessary or convenient to carry out the purposes of this section.\n (d) The rental vehicle company, peer-to-peer car sharing program\nadministrator, wireless communications equipment vendor, or self-service\nstorage company, or franchisee licensed pursuant to subsection (a) of\nthis section may act as agent for an authorized insurer only in\nconnection with the rental of motor vehicles, the sharing of a shared\nvehicle, the sale or offering for sale of wireless communications\nequipment, or the rental of storage space, respectively, and only with\nrespect to the following kinds of insurance:\n (1) with respect to rental vehicle companies and peer-to-peer car\nsharing program administrators:\n (A) excess liability insurance that provides coverage to the rental\ncar company or franchisee and renters and other authorized drivers of\nrental vehicles, or that provides coverage to the peer-to-peer car\nsharing program administrator, shared vehicles owners, or shared vehicle\ndrivers, or a combination thereof, in excess of the standard liability\nlimits provided by the rental vehicle company in its rental agreement or\nthe peer-to-peer car sharing program agreement pursuant to article forty\nof the general business law, for liability arising from the negligent\noperation of the rental vehicle or the shared vehicle;\n (B) accident and health insurance that provides coverage to renters\nand other vehicle occupants, in excess to the standard first party\nbenefits provided pursuant to article fifty-one of this chapter, for\naccidental death and/or dismemberment and for medical expenses resulting\nfrom an accident that occurs during the rental period or during the\npeer-to-peer car sharing period;\n (C) personal effects insurance that provides coverage to renters and\nother vehicle occupants or to shared vehicle owners or shared vehicle\ndrivers, or a combination thereof, and other vehicle occupants, for the\nloss of, or damage to, personal effects that occurs during the rental\nperiod or peer-to-peer car sharing period;\n (D) any other coverage that the superintendent may approve as\nmeaningful and appropriate in connection with the rental of motor\nvehicles; or\n (2) with respect to wireless communications equipment vendors,\ninsurance issued to cover the loss, theft, mechanical failure, or\nmalfunction of, or damage to, wireless communications equipment offered\nas either an individual policy issued to the consumer or as a group\npolicy under which certificates or other evidence of coverage are issued\nto individual consumers who enroll in the program, provided however,\nthat said insurance shall not extend to wireless services or service\ncontracts governed by article seventy-nine of this chapter; or\n (3) with respect to self-service storage companies, the following\ncoverages offered as either an individual policy issued to the consumer\nor as a group policy:\n (A) personal effects insurance that provides coverage to renters of\nstorage spaces at the self-service storage company's facility for the\nloss of, or damage to, personal property stored at the facility, where\nthe loss or damage occurs at the same facility during the rental period;\n (B) any other coverage that the superintendent may approve as\nmeaningful and appropriate in connection with the rental of storage\nspace.\n (e) No insurance may be issued pursuant to this section unless:\n (1) with regard to the rental of vehicles only, the rental period of\nthe rental agreement does not exceed thirty consecutive days; and\n (2) at every location where rental vehicle agreements, wireless\ncommunications equipment agreements, or self-service storage agreements\nare executed, brochures or other written materials are readily available\nto the prospective consumer, and with regard to a peer-to-peer car\nsharing program administrator, the administrator provides written\nmaterials, that:\n (A) summarize, clearly and correctly, the material terms of insurance\ncoverage, including the identity of the insurer and, with regard to\nwireless communications equipment insurance, the agent licensed under\nsubsection (b) of section two thousand one hundred three of this\narticle;\n (B) disclose that these policies may provide a duplication of coverage\nalready provided by a renter's personal automobile insurance policy,\nhomeowner's insurance policy, personal liability insurance policy, or\nother source of coverage;\n (C) state that the purchase by the consumer of the kinds of insurance\nspecified in this section is not required in order to rent a vehicle, to\nshare a shared vehicle, to purchase or lease wireless communications\nequipment, or to rent storage space;\n (D) describe the process for filing a claim in the event the consumer\nelects to purchase coverage;\n (E) the price, deductible, benefits, exclusions and conditions or\nother limitations of such policies;\n (F) disclose that the employee of the rental vehicle company,\npeer-to-peer car sharing program administrator, wireless communications\nequipment vendor or self-storage company is not qualified or authorized\nto evaluate the adequacy of the purchaser's existing coverages, unless\notherwise licensed; and\n (G) state that the customer may cancel the insurance at any time and\nany unearned premium will be refunded in accordance with applicable law.\n (3) evidence of coverage is provided to every consumer who elects to\npurchase such coverage.\n (f) Rates and forms for insurance under this section shall be subject\nto article twenty-three of this chapter. Any brochures or other written\nmaterials used in connection with insurance under this section shall be\nfiled with the superintendent for review and shall include disclosure of\nthe claims filing process, premium, deductible amounts and limits and\nshall be prominently displayed in the brochure or other written\nmaterials with at least twelve-point type bold headings. Any such\nbrochures or other written materials shall also be subject to section\nthree thousand one hundred two of this chapter, provided, however, that\nany policy, certificate or other evidence of insurance coverage, whether\nor not contained in such brochure, shall not be subject to section three\nthousand one hundred two of this chapter, but shall be written in a\nclear and coherent manner and whenever practicable shall use words with\ncommon and everyday meaning to facilitate readability and to aid the\npolicyholder in understanding the coverage provided.\n (g) Any limited license issued under this section shall also authorize\nany salaried employee or any sales representative authorized by the\nlicensee who, pursuant to subsection (h) of this section, is trained to\nact individually on behalf, and under the supervision, of the licensee\nwith respect to the kinds of insurance specified in this section.\n (h) Each company or franchisee licensed pursuant to this section shall\nconduct a training program, which shall be submitted to the\nsuperintendent for approval prior to use, and which shall meet the\nfollowing minimum standards:\n (1) each trainee shall receive basic instruction about the kinds of\ninsurance specified in this section offered for purchase by prospective\nrenters of rental vehicles, shared vehicle owners, shared vehicle\ndrivers, purchasers or lessors of wireless communications equipment, or\nrenters of storage space;\n (2) each trainee shall be instructed with respect to the disclosures\nrequired under subsection (e) of this section and to acknowledge to a\nprospective renter of a rental vehicle, shared vehicle owner, shared\nvehicle driver, purchaser or lessor of wireless communications\nequipment, or renter of storage space that purchase of any such\ninsurance specified in this section is not required in order for the\nconsumer to rent a motor vehicle, share a shared vehicle, purchase or\nlease wireless communications equipment, or rent storage space;\n (3) each trainee shall be instructed to acknowledge to a prospective\nconsumer of the kinds of insurance specified in this section that the\nconsumer may have insurance policies that already provide the coverage\nbeing offered by the rental vehicle company, the wireless communications\nequipment vendor, or self-service storage company pursuant to this\nsection, as applicable; and\n (4) with regard to wireless communications equipment insurance and\nself-service storage company insurance, training materials may be\ndeveloped and provided by an agent licensed pursuant to subsection (b)\nof section two thousand one hundred three of this article.\n (i) Limited licensees acting pursuant to and under the authority of\nthis section shall comply with all applicable provisions of this\narticle, except that notwithstanding section two thousand one hundred\ntwenty of this article, a limited licensee pursuant to this section\nshall not be required to treat premiums collected from consumers\npurchasing such insurance when renting motor vehicles, sharing a shared\nvehicle, purchasing or leasing wireless communications equipment, or\nrenting storage space as funds received in a fiduciary capacity,\nprovided that:\n (1) the insurer represented by the limited licensee has consented in\nwriting, signed by the insurer's officer, that premiums need not be\nsegregated from funds received by the rental vehicle company,\npeer-to-peer car sharing program administrator, wireless communications\nequipment vendor, or self-storage company on account of vehicle rental,\nsharing of a shared vehicle, wireless communications equipment purchase\nor lease, or storage space rental; and\n (2) the charges for insurance coverage are itemized but not billed to\nthe consumer separately from the charges for rental vehicles, shared\nvehicles, purchase or lease of wireless communications equipment, or\nstorage space rental.\n (j) No limited licensees under this section shall advertise, represent\nor otherwise hold itself or any of its employees themselves out as\nlicensed insurance agents or brokers.\n (k) The superintendent may issue a replacement for a currently in\nforce license which has been lost or destroyed. Before such replacement\nlicense shall be issued, there shall be on file in the office of the\nsuperintendent a written application for such replacement license,\naffirming under penalty of perjury that the original license has been\nlost or destroyed, together with a fee of fifteen dollars.\n (l) For purposes of this section "wireless communications equipment"\nshall mean wireless handsets, pagers, personal digital assistants,\nwireless telephones or wireless telephone batteries and other wireless\ndevices and accessories related to such devices that are used to access\nwireless communications services and includes wireless services.\n (m) For purposes of this section, "peer-to-peer car sharing program\nadministrator", "peer-to-peer car sharing period", "shared vehicle",\n"shared vehicle driver", and "shared vehicle owner" shall have the\nmeanings set forth in section nine hundred of the general business law.\n * NB Effective June 17, 2026\n