§ 3446 — Product or system group insurance policies

§ 3446. Product or system group insurance policies. (a) A group policy\nmay be issued to a group policyholder, who shall be a manufacturer,\ndistributor, or installer of a product or system, or a trustee of a\ntrust established, or participated in, by one or more manufacturers,\ndistributors, or installers, in accordance with the provisions of this\nsection.\n (b) The group shall consist only of members who have purchased or own\nthe product or system where the manufacturer, distributor, or installer\nhas represented that the product or system is designed to prevent loss\nor damage to property from a specific cause (other than loss or damage\nresulting from defect in materials or workmanship, or wear and tear),\nand the policy shall only cover such loss or damage.\n (c) The policy, and certificates issued thereunder, may provide\ncoverage for a kind of insurance authorized by paragraphs four through\ntwelve, nineteen and twenty of subsection (a) of section one thousand\none hundred thirteen of this chapter, and may be issued or delivered in\nthis state only by an insurer authorized in this state to write the\ncoverage.\n (d) The coverage shall not be duplicative of coverage under any other\napplicable insurance policy.\n (e) The insurer must treat in like manner all eligible group members\nof the same class.\n (f) The premium for the group policy, including certificates\nthereunder, shall be paid by the group policyholder from funds\ncontributed wholly by the group policyholder.\n (g) The superintendent may promulgate regulations regarding product\nand system group policies, including regulations governing issuance of\ncertificates to group members; minimum provisions of certificates;\npolicy cancellation and renewal; minimum number of group members;\npayment of premium; and policy dividends, retrospective premium credits,\nor retrospective premium refunds; and may establish other reasonable\nlimitations.\n (h) A product or system group policyholder shall comply with the\nprovisions of section two thousand one hundred twenty-two of this\nchapter, in the same manner as an insurance agent or broker, in any\nadvertisement, sign, pamphlet, circular, card, or other public\nannouncement referring to coverage under a group policy or certificate.\n (i) A product or system group policy or certificate shall not be\nsubject to section three thousand four hundred twenty-five or section\nthree thousand four hundred twenty-six of this article.\n (j)(1) "Manufacturer" means a person that:\n (A) manufactures or produces the product or system and sells it under\nits own trade name or label;\n (B) does not manufacture or produce the product or system but sells it\nunder its own trade name or label;\n (C) manufactures or produces the product or system and it is sold\nunder the trade name or label of another person; or\n (D) does not manufacture or produce the product or system but,\npursuant to a written contract, licenses the use of its trade name or\nlabel to another person that sells the product or system under the\nlicensor's trade name or label.\n (2) "Manufacturer" shall also include a distributor which is a parent,\naffiliate, or subsidiary of a manufacturer.\n (3) The holder of a patent shall not be considered a manufacturer\nsolely because it receives royalties on its patents.\n