§ 3452 — Group property travel insurance policies

§ 3452. Group property travel insurance policies. (a)(1) A group\nproperty travel insurance policy, and certificates thereunder, may be\nissued or delivered in this state only in accordance with the provisions\nof this section.\n (2) A group property travel insurance policy, and certificates\nthereunder, may be issued only by an authorized insurer.\n (3) The policy may be issued to:\n (A) any railroad company, steamship company, carrier by air, public\nbus carrier, or other common carrier of passengers, which shall be\ndeemed the policyholder, where the policy insures its passengers;\n (B) an institution of higher education as provided in paragraph two of\nsubsection (a) of section three thousand two hundred forty of this\nchapter; or\n (C) any other group where the superintendent has determined in a\nregulation that the members are engaged in a common enterprise, or have\nan economic or social affinity or relationship, and that the issuance of\nthe policy would not be contrary to the best interests of the public.\n (4) (A) Except as provided in subparagraph (B) of paragraph one of\nsubsection (a) of section three thousand two hundred forty of this\nchapter, the policy may provide coverage for trip cancellation, trip\ninterruption, baggage, and personal effects when limited to a specific\ntrip. The policy shall be sold in connection with transportation\nprovided by the common carrier or, with respect to other groups as\npermitted by the superintendent in accordance with subparagraph (C) of\nparagraph three of this subsection, subject to such limitations provided\nin the regulation promulgated by the superintendent.\n (B) A policy issued to an institution of higher education shall comply\nwith clause (V) of item (iv) of subparagraph (B) of paragraph one of\nsubsection (a) of section three thousand two hundred forty of this\nchapter.\n (5) Coverage under the policy shall be limited to the group member's\nrisks with respect to a particular trip, except a policy issued to an\ninstitution of higher education shall comply with item (iv) of\nsubparagraph (B) of paragraph one of subsection (a) of section three\nthousand two hundred forty of this chapter.\n (6) A person shall not be required to purchase any product or service\nto be eligible for group property travel insurance coverage, or required\nto purchase coverage as a condition of becoming a passenger or a group\nmember.\n (b) An insurer shall treat in a like manner all eligible group members\nof the same class.\n (c) A group travel insurance policy or certificate issued thereunder,\nshall not be subject to section three thousand four hundred twenty-five\nor section three thousand four hundred twenty-six of this article. The\nfollowing requirements shall apply with regard to cancellation,\nnonrenewal, or conditional renewal of coverage:\n (1) Unless the group policy provides for a longer policy period, the\npolicy shall be issued or renewed for a one-year policy period, except a\npolicy issued to an institution of higher education shall be issued or\nrenewed for a period consistent with item (iv) of subparagraph (B) of\nparagraph one of subsection (a) of section three thousand two hundred\nforty of this chapter.\n (2) An insurer may cancel a group policy, only if cancellation is\nbased upon one or more of the reasons set forth in paragraph one of\nsubsection (c) of section three thousand four hundred twenty-six of this\narticle, provided, however, that an act or omission by a group member\nshall not constitute the basis for cancellation of the policy.\n (3) An insurer's cancellation, nonrenewal, or conditional renewal of a\ngroup policy shall not become effective until at least sixty days after\nthe insurer mails or delivers written notice of the cancellation,\nnonrenewal, or conditional renewal to the group policyholder at the\nmailing address shown in the policy. For purposes of this section, the\nterm "conditional renewal" shall mean a renewal that is conditioned upon\nchange of limits, change in type of coverage, reduction or elimination\nof coverage, increased deductible or addition of exclusion, or an\nincrease in premiums in excess of ten percent per group member.\n (4) Every notice of cancellation, nonrenewal, or conditional renewal\nshall set forth the specific reason or reasons for cancellation,\nnonrenewal, or conditional renewal.\n (5) A group policyholder may cancel the group policy for any reason\nupon thirty days written notice to the insurer.\n (6) Any certificate in effect when the group policy is cancelled,\nnonrenewed or otherwise terminated shall continue to be in effect for\nthe period of coverage specified in the certificate.\n (7) (A) An insurer may terminate a certificate upon fifteen days\nnotice for:\n (i) nonpayment of premium; or\n (ii) discovery of fraud or material misrepresentation in obtaining the\ncertificate or in the presentation of a claim thereunder.\n (B) The coverage shall terminate as provided in the certificate, which\nshall in no event be later than the conclusion of the trip, except\ncoverage under a policy issued to an institution of higher education as\nprovided in item (iv) of subparagraph (B) of paragraph one of subsection\n(a) of section three thousand two hundred forty of this chapter shall\nterminate in accordance with the provisions of that section.\n (d) The superintendent may promulgate regulations pertaining to group\nproperty travel insurance, including regulations regarding: payments of\ndividends or retrospective premium refunds; minimum provisions; minimum\nnumber of group members; and other reasonable limitations.\n