§ 3453*2 — Self-service storage company group insurance policies

* § 3453. Self-service storage company group insurance policies. (a)\nFor purposes of this section, unless the context requires otherwise:\n (1) "Self-service storage company group policy" means a group policy,\nincluding certificates issued to the group members, where the group\npolicyholder is a self-service storage company and the policy provides\ninsurance to group members of the type described in paragraph three of\nsubsection (d) of section two thousand one hundred thirty-one of this\nchapter.\n (2) "Group member" means a person who rents storage space from a\nself-service storage company and who is insured under the self-service\nstorage company group policy.\n (3) "Certificate" or "certificate of insurance" means any policy,\ncontract, or other evidence of insurance, or rider or endorsement\nthereto, issued to a group member under a self-service storage company\ngroup policy.\n (b) A self-service storage company group policy or certificate may be\nissued or issued for delivery in this state only in compliance with the\nprovisions of this section.\n (c) Coverage under a self-service storage company group policy shall\nextend only to group members.\n (d) A self-service storage company group policy may provide only the\ninsurance coverages described in paragraph three of subsection (d) of\nsection two thousand one hundred thirty-one of this chapter.\n (e) The premium for the self-service storage company group policy,\nincluding certificates, shall be paid wholly by the group members if the\ngroup policyholder is licensed pursuant to section two thousand one\nhundred thirty-one of this chapter. In all other cases, such premium may\nbe paid by the group policyholder from funds contributed:\n (1) wholly by the group policyholder;\n (2) wholly by the group members; or\n (3) jointly by the group policyholder and group members.\n (f)(1) Any policy dividend, retrospective premium credit, or\nretrospective premium refund in respect of premiums paid by the group\npolicyholder may:\n (A) be applied to reduce the premium contribution of the group\npolicyholder, but not in excess of the proportion to its contribution;\nor\n (B) be retained by the group policyholder.\n (2) Any policy dividend, retrospective premium credit, or\nretrospective premium refund not distributed under paragraph one of this\nsubsection shall be:\n (A) applied to reduce future premiums and, accordingly, future\ncontributions, of existing or future group members, or both; or\n (B) paid or refunded to those group members insured on the date the\npayment or refund is made to the group policyholder, if distributed by\nthe group policyholder, or on the date of mailing, if distributed\ndirectly by the insurer, subject to the following requirements:\n (i) the insurer shall be responsible for determining the allocation of\nthe payment or refund to the group members;\n (ii) if the group policyholder distributes the payment or refund, the\ninsurer shall be responsible for audit to ascertain that the payment or\nrefund is actually made in accordance with the allocation procedure; and\n (iii) if the group policyholder fails to make the payment or refund,\nthe insurer shall make the payment or refund directly or use the method\nprovided in subparagraph (A) of this paragraph.\n (3) Notwithstanding paragraphs one and two of this subsection, if a\ndividend accrues upon termination of coverage under a self-service\nstorage company group policy, the premium for which was paid out of\nfunds contributed by group members specifically for the coverage, the\ndividend shall be paid or refunded by the group policyholder to the\ngroup members insured on the date the payment or refund is made to the\ngroup policyholder, net of reasonable expenses incurred by the group\npolicyholder in paying or refunding the dividend to such group members.\n (4) For the purposes of this subsection, "dividend" means a return by\nan insurer to a group policyholder of excess premiums paid by that group\npolicyholder in light of favorable loss experience, including\nretrospective premium credits or retrospective premium refunds. The term\n"dividend" does not include reimbursements or fees received by a group\npolicyholder in connection with the operation or administration of a\nself- service storage company group policy, including administrative\nreimbursements, fees for services provided by the group policyholder, or\ntransactional service fees.\n (g) The insurer must treat in like manner all eligible group members\nof the same class.\n (h) A self-service storage company group policy or certificate shall\nnot be eligible for placement by an excess line broker licensed pursuant\nto article twenty-one of this chapter.\n (i) (1) The insurer shall be responsible for the mailing or delivery\nof a certificate of insurance to each group member insured under the\nself-service storage company group policy. The insurer shall also be\nresponsible for the mailing or delivery to each group member of an\namended certificate of insurance, or endorsement to the certificate,\nwhenever there is a change of limits; change in type of coverage;\naddition, reduction, or elimination of coverage; or addition of\nexclusion, under the self-service storage company group policy or\ncertificate.\n (2) The certificate shall contain in substance all material terms and\nconditions of coverage afforded to the group member, unless the\nself-service storage company group policy is incorporated by reference\nand a copy of the group policy accompanies the certificate.\n (3) If coverage afforded to the group member is excess of other\napplicable insurance coverage, the certificate shall contain a notice\nadvising the group member that, if the member has other insurance\ncoverage, specified coverages under the self-service storage company\ngroup policy will be excess over the other insurance.\n (j) A group policyholder shall comply with the provisions of section\ntwo thousand one hundred twenty-two of this chapter, in the same manner\nas an agent or broker, in any advertisement, sign, pamphlet, circular,\ncard, or other public announcement referring to coverage under a\nself-service storage company group policy or certificate.\n (k) A self-service storage company group policy or certificate shall\nnot be subject to section three thousand four hundred twenty-five or\nsection three thousand four hundred twenty-six of this article. The\nfollowing requirements shall apply in regard to termination of coverage:\n (1) (A) A self-service storage company group policy or certificate may\nbe cancelled by an insurer only if cancellation is based on one or more\nof the reasons set forth in subparagraphs (A) through (D) or (F) through\n(H) of paragraph one of subsection (c) of section three thousand four\nhundred twenty-six of this article; provided, however, that an act or\nomission by a group member that would constitute the basis for\ncancellation of an individual certificate shall not constitute the basis\nfor cancellation of the self-service storage company group policy.\n (B) Where the premium is derived wholly from funds contributed by the\ngroup policyholder, an individual certificate may be cancelled by the\ninsurer only if cancellation is based on one or more of the reasons set\nforth in subparagraph (B), (C) or (H) of paragraph one of subsection (c)\nof section three thousand four hundred twenty-six of this article.\n (2) (A) An insurer's cancellation of a self-service storage company\ngroup policy, including all certificates, shall not become effective\nuntil fifteen days after the insurer mails or delivers written notice of\ncancellation to the group policyholder at the mailing address shown in\nthe policy.\n (i) Where all or part of the premium is derived from funds contributed\nby a group member specifically for the coverage, written notice of\ncancellation of the self-service storage company group policy shall also\nbe mailed or delivered by the insurer to the group member at the group\nmember's mailing address.\n (ii) Where none of the premium is derived from funds contributed by a\ngroup member specifically for the coverage, the group policyholder shall\nmail or deliver written notice to the group member advising the group\nmember of the cancellation of the self-service storage company group\npolicy and the effective date of cancellation. The written notice shall\nbe mailed or delivered by the group policyholder within ninety days\nafter receiving notice of cancellation from the insurer.\n (B) An insurer's cancellation of an individual certificate shall not\nbecome effective until fifteen days after the insurer mails or delivers\nwritten notice of cancellation to the group member at the group member's\nmailing address and to the group policyholder at the mailing address\nshown in the self-service storage company group policy.\n (C) (i) A group policyholder may cancel a self-service storage company\ngroup policy, including all certificates, or any individual certificate,\nfor any reason upon thirty days written notice to the insurer and each\ngroup member; and\n (ii) The group policyholder shall mail or deliver written notice to\neach affected group member of the group policyholder's cancellation of\nthe self-service storage company group policy or certificate and the\neffective date of cancellation. Such written notice shall be mailed or\ndelivered to the group member's mailing address at least thirty days\nprior to the effective date of the cancellation.\n (3) (A) Unless a self-service storage company group policy provides\nfor a longer policy period, the policy and all certificates shall be\nissued or renewed for a one-year policy period.\n (B) The group policyholder shall be entitled to renew the self-service\nstorage company group policy and all certificates upon timely payment of\nthe premium billed to the group policyholder for the renewal, unless:\n (i) the insurer mails or delivers to the group policyholder and all\ngroup members written notice of nonrenewal, or conditional renewal; and\n (ii) the written notice is mailed or delivered at least thirty, but\nnot more than one hundred twenty days prior to the expiration date\nspecified in the policy or, if no date is specified, the next\nanniversary date of the policy.\n (4) Where the self-service storage company group policy is nonrenewed\nby the group policyholder, the group policyholder shall mail or deliver\nwritten notice to each group member advising the group member of\nnonrenewal of the self-service storage company group policy and the\neffective date of nonrenewal. The written notice shall be mailed or\ndelivered by the group policyholder at least thirty days prior to the\nnonrenewal.\n (5) Every notice of cancellation, nonrenewal, or conditional renewal\nshall contain the specific reason or reasons for cancellation,\nnonrenewal, or conditional renewal.\n (6) (A) An insurer shall not be required under this subsection to give\nnotice to a group member if the insurer has been advised by either the\ngroup policyholder or another insurer that substantially similar\ncoverage has been obtained from the other insurer without lapse of\ncoverage.\n (B) A group policyholder shall not be required under this subsection\nto give notice to a group member if substantially similar coverage has\nbeen obtained from another insurer without lapse of coverage.\n * NB There are 3 § 3453's\n