House File 487 - Introduced HOUSE FILE 487 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 120) A BILL FOR An Act regulating the sale of portable electronics insurance, 1 including requiring licensure, providing for fees and 2 penalties, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1422HV (1) 86 av/nh
H.F. 487 Section 1. NEW SECTION . 522E.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Commissioner” means the commissioner of insurance. 4 2. “Consumer” means a person who purchases portable 5 electronics in a retail transaction. 6 3. “Endorsee” means an unlicensed employee or authorized 7 representative of a licensed portable electronics vendor. 8 4. “Enrollment” means the process of soliciting or accepting 9 enrollments or applications from a consumer under a portable 10 electronics insurance policy, which includes informing the 11 consumer of the availability of coverage, preparing and 12 delivery of the certificate of insurance or notice of proposed 13 insurance, or otherwise assisting the consumer in making an 14 informed decision whether or not to elect to purchase portable 15 electronics insurance. 16 5. “Free-trial offer” means an offer to a consumer under 17 which portable electronics insurance is provided free of charge 18 for a limited time period subsequent to which a charge is made 19 to the consumer for the insurance. 20 6. a. “License period” means all of that three-year period 21 beginning as described in paragraph “b” , subparagraph (1) or 22 (2), as applicable, and ending the second succeeding year on 23 the last calendar day of the month in which the initial license 24 was issued. 25 b. A license period shall be determined for each person as 26 follows: 27 (1) Upon initial licensing, the license period shall start 28 on the date the license is issued. 29 (2) For a subsequent license, the license period shall 30 start on the first day following the month in which the initial 31 license was issued. 32 c. A license shall be renewed on or before the expiration 33 date of the license period. 34 7. a. “Portable electronics” means any of the following 35 -1- LSB 1422HV (1) 86 av/nh 1/ 16
H.F. 487 devices: 1 (1) Personal, self-contained, easily carried by an 2 individual, battery-operated electronic communication, viewing, 3 listening, recording, gaming, computing, or global positioning 4 devices, including cell or satellite phones, pagers, personal 5 global positioning satellite units, portable computers, 6 portable audio listening, video viewing or recording devices, 7 digital cameras, video camcorders, portable gaming systems, 8 docking stations, and automatic answering devices, including 9 their accessories and service related to the use of the 10 devices. 11 (2) Any other electronic device that is portable in nature 12 that the commissioner approves. 13 b. “Portable electronics” does not include 14 telecommunications switching equipment, transmission 15 wires, cell site transceiver equipment, or other equipment 16 and systems used by telecommunications companies to provide 17 telecommunications service to consumers. 18 8. a. “Portable electronics insurance” means a contract 19 providing coverage for the repair or replacement of portable 20 electronics against any one or more of the following causes of 21 loss: loss, theft, mechanical failure, malfunction, damage, or 22 other applicable perils. 23 b. “Portable electronics insurance” does not include any of 24 the following: 25 (1) A service contract or extended warranty providing 26 coverage limited to the repair, replacement, or maintenance of 27 property for the operational or structural failure of property 28 due to a defect in materials, workmanship, accidental damage 29 from handling, power surges, or normal wear and tear. 30 (2) A policy of insurance covering a seller’s or a 31 manufacturer’s obligations under a warranty. 32 (3) A homeowner’s, renter’s, private passenger automobile, 33 commercial multiperil, or similar policy. 34 9. “Portable electronics insurance license” means a document 35 -2- LSB 1422HV (1) 86 av/nh 2/ 16
H.F. 487 issued by the commissioner pursuant to this chapter authorizing 1 a portable electronics vendor to offer or sell portable 2 electronics insurance in this state. 3 10. “Portable electronics vendor” means any person in the 4 business, directly or indirectly, of selling, reselling, 5 soliciting, or leasing portable electronics, their accessories, 6 and related services to consumers. 7 Sec. 2. NEW SECTION . 522E.2 Licensure required. 8 A person shall not offer or sell any form of portable 9 electronics insurance in this state unless the person is 10 licensed as an insurance producer pursuant to chapter 522B, 11 is issued a portable electronics insurance license pursuant 12 to this chapter, or is an endorsee who is in compliance with 13 section 522E.6. 14 Sec. 3. NEW SECTION . 522E.3 Portable electronics insurance 15 license. 16 A portable electronics vendor that applies for a license 17 and complies with the requirements of this chapter shall 18 be issued a portable electronics insurance license by the 19 commissioner that authorizes the licensee and the licensee’s 20 endorsees to offer or sell portable electronics insurance to 21 a consumer in connection with, and incidental to, the sale of 22 portable electronics or the sale and provision of accessories 23 or services related to the use of portable electronics. 24 Sec. 4. NEW SECTION . 522E.4 Application and fees. 25 1. A portable electronics vendor applying for a portable 26 electronics insurance license under this chapter shall submit 27 all of the following to the commissioner: 28 a. A written application for licensure, signed by the 29 applicant or an officer of the applicant, in the form 30 prescribed by the commissioner. 31 b. A certificate by the insurer that is to be named in 32 the portable electronics insurance license, stating that the 33 insurer is satisfied that the named applicant is trustworthy 34 and competent to act as a portable electronics insurance 35 -3- LSB 1422HV (1) 86 av/nh 3/ 16
H.F. 487 licensee limited to this purpose and that the insurer will 1 appoint the applicant to act as its agent to transact the kind 2 or kinds of insurance that are permitted by this chapter if the 3 portable electronics insurance license applied for is issued by 4 the commissioner. The certification shall be subscribed by an 5 officer or managing agent of the insurer on a form prescribed 6 by the commissioner. 7 c. An application fee of the lesser of fifty dollars per 8 each endorsee at a location of the vendor or five hundred 9 dollars per location valid for a three-year period and, for 10 each three-year period thereafter, a renewal fee in the same 11 amount. A maximum fee of five thousand dollars shall apply 12 for licensure of a portable electronics vendor with multiple 13 locations. The fees collected shall be deposited as provided 14 in section 505.7. 15 2. Costs associated with any enforcement action against or 16 investigation of a portable electronics vendor licensed under 17 this chapter shall be paid for by the portable electronics 18 vendor. 19 Sec. 5. NEW SECTION . 522E.5 License renewal. 20 1. Not less than sixty days before a portable electronics 21 insurance license will expire, the commissioner may use an 22 electronic delivery method, including electronic mail or other 23 similar electronic method of delivery, to deliver, or may mail, 24 to the latest electronic mail or mailing address appearing in 25 the commissioner’s records, an application to the licensee 26 to renew a portable electronics insurance license for the 27 appropriate succeeding license term. It is the licensee’s 28 responsibility to renew the license, whether or not a renewal 29 notice is received. 30 2. The commissioner may accept a late renewal without 31 penalty, provided that the licensee’s failure to comply is due 32 to a clerical error or inadvertence. 33 3. An application for renewal of a portable electronics 34 insurance license may be filed on or before the expiration 35 -4- LSB 1422HV (1) 86 av/nh 4/ 16
H.F. 487 date of the license. An application for renewal of an expired 1 license may be filed after the expiration date and until that 2 same month and date of the next succeeding year. 3 4. The commissioner shall impose a penalty fee equal to 4 one-half of the renewal fee for the portable electronics 5 insurance license for any application for renewal that is filed 6 after the expiration date of the license. 7 Sec. 6. NEW SECTION . 522E.6 Endorsee requirements. 8 An endorsee of a portable electronics vendor that has been 9 issued a portable electronics insurance license pursuant to 10 this chapter may sell or offer insurance products under the 11 authority of the vendor’s portable electronics insurance 12 license if all of the following conditions have been met: 13 1. The endorsee is eighteen years of age or older. 14 2. The portable electronics vendor, at the time of 15 submission of an application for a portable electronics 16 insurance license pursuant to section 522E.4, includes a list 17 of all locations in this state at which the vendor intends 18 to offer coverage under a policy of portable electronics 19 insurance. The list shall be maintained by the portable 20 electronics vendor in a form prescribed by, or format 21 acceptable to, the commissioner, shall be updated annually, 22 and shall be made available to the commissioner for review and 23 inspection upon request. 24 3. The portable electronics vendor provides for the 25 training of its endorsees under a program developed by a 26 licensed property and casualty insurance producer prior to 27 allowing its endorsees to offer or sell portable electronics 28 insurance. The training shall meet the following minimum 29 standards: 30 a. Each endorsee shall receive instruction about the 31 applicable kinds or types of portable electronics insurance 32 authorized for sale to prospective consumers in this state as 33 provided in section 522E.9, subsection 5. 34 b. Each endorsee shall receive training about ethical sales 35 -5- LSB 1422HV (1) 86 av/nh 5/ 16
H.F. 487 practices. 1 c. Each endorsee shall receive training about the 2 disclosures to be given to prospective consumers pursuant to 3 section 522E.9. 4 d. The retraining of endorsees shall be conducted whenever 5 there is a material change in the insurance products sold that 6 requires modification of the training materials, but in no 7 event less frequently than every three years for each endorsee. 8 e. The portable electronics vendor shall maintain a list 9 of its endorsees who have completed the required training, and 10 make the list available to the commissioner upon request. 11 Sec. 7. NEW SECTION . 522E.7 Endorsee conduct. 12 An endorsee may act on behalf of and under the supervision of 13 a licensed portable electronics vendor in matters relating to 14 transacting portable electronics insurance under that vendor’s 15 license. The conduct of an endorsee acting within the scope of 16 the endorsee’s employment or agency shall be deemed the conduct 17 of the licensed portable electronics vendor for purposes of 18 this chapter. 19 Sec. 8. NEW SECTION . 522E.8 Violations and penalties. 20 1. If a licensed portable electronics vendor or endorsee 21 violates any provision of this chapter or any other provision 22 of this title, the commissioner may do any of the following: 23 a. After notice and hearing, suspend or revoke the license 24 of the portable electronics vendor. 25 b. After notice and hearing, impose penalties on the 26 portable electronics vendor for its conduct or that of its 27 endorsees. 28 c. After notice and hearing, impose other penalties that the 29 commissioner deems necessary and convenient to carry out the 30 purposes of this chapter, including suspending the privilege 31 of transacting portable electronics insurance pursuant to 32 this chapter at specific business locations of the portable 33 electronics vendor where violations have occurred, imposing 34 penalties on the portable electronics vendor, and suspending or 35 -6- LSB 1422HV (1) 86 av/nh 6/ 16
H.F. 487 revoking the ability of individual endorsees to act under the 1 vendor’s license. 2 2. If any person sells insurance in connection with, or 3 incidental to, the sale of portable electronics or the sale 4 or provision of accessories or services related thereto, or 5 holds oneself or an organization out as a licensed portable 6 electronics vendor without obtaining the license required 7 by this chapter, or as being an insurance producer licensed 8 pursuant to chapter 522B without obtaining that license, the 9 commissioner may issue a cease and desist order. 10 Sec. 9. NEW SECTION . 522E.9 Requirements at time of sale. 11 A licensed portable electronics vendor shall not sell 12 portable electronics insurance pursuant to this chapter unless, 13 at the time of sale, or reasonably thereafter with respect to a 14 sale or enrollment occurring by telephone, all of the following 15 conditions are satisfied: 16 1. The portable electronics vendor provides brochures or 17 other written materials to the prospective consumer that do all 18 of the following: 19 a. Summarize the material terms and conditions of coverage 20 offered, including the identity of the insurer. 21 b. Describe the process for filing a claim, including a 22 toll-free telephone number to report a claim. 23 c. Disclose any additional information on the price, 24 benefits, exclusions, conditions, or other limitations of those 25 policies that the commissioner may, by rule, prescribe. 26 d. Provide the name, address, telephone number, and license 27 number of the portable electronics vendor or the property 28 and casualty insurance broker-agent appointed by the insurer 29 issuing portable electronics insurance coverage to the portable 30 electronics vendor. 31 2. The portable electronics vendor or its endorsees 32 make all of the following disclosures, which shall either 33 be acknowledged in writing by the consumer, be provided in 34 writing to the consumer, or, for sales made in person, shall 35 -7- LSB 1422HV (1) 86 av/nh 7/ 16
H.F. 487 be displayed by clear and conspicuous signs that are posted at 1 every location where portable electronics insurance contracts 2 are executed, such as the counter where the consumer signs the 3 portable electronics insurance contract: 4 a. That the purchase by the consumer of the kinds of 5 insurance prescribed in this chapter is not required in order 6 to purchase portable electronics, accessories, or related 7 services. 8 b. That the insurance policies offered by the portable 9 electronics vendor may provide a duplication of coverage 10 already provided by other insurance policies covering the 11 consumer. 12 c. That the vendor or endorsee of the portable electronics 13 vendor is not qualified or authorized to evaluate the adequacy 14 of the consumer’s existing insurance coverages, unless that 15 person is licensed pursuant to chapter 522B. 16 d. That the consumer may cancel the insurance at any time. 17 If the consumer cancels, any unearned premium will be refunded 18 in accordance with applicable law. 19 3. The material terms and conditions of coverage are 20 provided to every person who elects to purchase the coverage. 21 4. Costs for the insurance are separately itemized in any 22 billing statement for the insurance. However, if the portable 23 electronics insurance is included with the purchase or lease 24 of portable electronics and accessories or related services, 25 the portable electronics vendor shall clearly and conspicuously 26 disclose to the consumer that the insurance coverage is 27 included with the purchase of the portable electronics or 28 related services and shall disclose the stand-alone cost of the 29 premium for the same or similar insurance on the consumer’s 30 bill and in any marketing materials made available at the point 31 of sale. 32 5. The portable electronics insurance is provided under 33 an individual policy issued to the consumer, or under a group 34 or master policy issued to an organization through a licensed 35 -8- LSB 1422HV (1) 86 av/nh 8/ 16
H.F. 487 insurance producer or through a licensed portable electronics 1 vendor by an insurer authorized to transact the applicable 2 kinds or types of insurance in this state. 3 6. Portable electronics insurance shall not be sold through 4 a free-trial offer. 5 Sec. 10. NEW SECTION . 522E.10 Charges and collection of 6 moneys. 7 1. Charges for portable electronics insurance may be billed 8 and collected by a licensed portable electronics vendor. A 9 licensed vendor shall not be required to maintain those moneys 10 in a segregated account if the insurer represented by the 11 vendor has provided in writing that the moneys need not be 12 segregated from moneys received by the portable electronics 13 vendor on account of the sale or lease of portable electronics 14 or related services or accessories. 15 2. All moneys received by a licensed portable electronics 16 vendor from a consumer for the sale of portable electronics 17 insurance shall be considered moneys held in trust by the 18 portable electronics vendor in a fiduciary capacity for the 19 benefit of the insurer. A licensed portable electronics vendor 20 may receive compensation for billing and collection services. 21 Sec. 11. NEW SECTION . 522E.11 Other restrictions. 22 1. Under the authority of a portable electronics insurance 23 license, a portable electronics vendor shall not do any of the 24 following: 25 a. Offer to sell insurance except in conjunction with, and 26 incidental to, the business of selling portable electronics, 27 their accessories, or related services. 28 b. Advertise, represent, or otherwise portray itself or 29 its endorsees as licensed insurers or property and casualty 30 insurance broker-agents. 31 c. Pay an endorsee compensation based primarily on the 32 number of consumers electing coverage under the portable 33 electronics vendor’s license. However, this chapter does 34 not prohibit the payment of compensation to an endorsee 35 -9- LSB 1422HV (1) 86 av/nh 9/ 16
H.F. 487 of a portable electronics vendor for activities under the 1 vendor’s license that is incidental to the endorsee’s overall 2 compensation. The incidental compensation shall not exceed 3 fifteen dollars per transaction for portable electronics 4 insurance coverage. 5 2. Unless lawfully transacting the business of insurance 6 pursuant to a certificate of authority issued for the 7 appropriate class of insurance, a person obligated to perform 8 under a contract offered in or from this state that meets the 9 definition of portable electronics insurance shall be deemed to 10 be unlawfully transacting the business of insurance. 11 Sec. 12. NEW SECTION . 522E.12 Policy forms. 12 An insurer that provides insurance to be sold by a licensed 13 portable electronics vendor shall file a copy of the policy 14 form issued to a consumer, or of any policy or certificate 15 issued under a group or master policy to an organization 16 through an insurance producer licensed under chapter 522B 17 or through a licensed portable electronics vendor, with the 18 commissioner, who shall make the policy form available to the 19 public. 20 Sec. 13. NEW SECTION . 522E.13 Portable electronics 21 insurance policy changes. 22 1. An insurer may terminate a portable electronics 23 insurance policy or otherwise change the terms and conditions 24 of a portable electronics insurance policy only upon 25 providing the licensed portable electronics vendor that is 26 the policyholder and enrolled consumers with at least thirty 27 calendar days’ written notice. 28 2. If the insurer changes the terms and conditions of a 29 policy of portable electronics insurance, the insurer shall 30 provide the licensed portable electronics vendor that is the 31 policyholder with a revised policy or endorsement and each 32 enrolled consumer with a revised certificate, endorsement, 33 updated brochure, or other evidence indicating that a change 34 in the terms and conditions of the policy has occurred and a 35 -10- LSB 1422HV (1) 86 av/nh 10/ 16
H.F. 487 summary of those changes. 1 3. Notwithstanding subsection 1, an insurer may terminate 2 an enrolled consumer’s enrollment under a portable electronics 3 insurance policy upon fifteen calendar days’ notice for 4 discovery of fraud or material misrepresentation in obtaining 5 coverage or in the presentation of a claim under the policy. 6 4. Notwithstanding subsection 1, an insurer may immediately 7 terminate an enrolled consumer’s enrollment under a portable 8 electronics insurance policy without prior notice for any of 9 the following reasons: 10 a. Nonpayment of premium. 11 b. If the enrolled consumer ceases to have an active service 12 with the licensed portable electronics vendor that is the 13 policyholder. 14 c. If the enrolled consumer exhausts the aggregate limit of 15 liability, if any, under the terms of the portable electronics 16 insurance policy and the insurer sends notice of termination 17 to the enrolled consumer within thirty calendar days after 18 exhaustion of the limit. However, if notice is not sent within 19 thirty calendar days, enrollment shall continue notwithstanding 20 the aggregate limit of liability until thirty calendar days 21 from the date the insurer sends notice of termination to the 22 enrolled consumer. 23 5. If a portable electronics insurance policy is terminated 24 by the licensed portable electronics vendor that is the 25 policyholder, the portable electronics vendor shall mail or 26 deliver a written notice to each enrolled consumer advising 27 the enrolled consumer of the termination of the policy and the 28 effective date of termination. The written notice shall be 29 mailed or delivered by the portable electronics vendor to the 30 enrolled consumer at least thirty calendar days prior to the 31 termination. However, if the notice is not sent within thirty 32 calendar days, enrollment shall continue until thirty calendar 33 days from the date the portable electronics vendor sends notice 34 of termination to the enrolled consumer or until a new portable 35 -11- LSB 1422HV (1) 86 av/nh 11/ 16
H.F. 487 electronics insurance policy is in effect. 1 6. Whenever notice or correspondence with respect to a 2 policy of portable electronics insurance is required pursuant 3 to this section, it shall be in writing and sent within the 4 notice period required pursuant to this section. Notices 5 and correspondence shall be sent to the licensed portable 6 electronics vendor that is the policyholder at the portable 7 electronics vendor’s mailing address specified for that purpose 8 and to its affected enrolled consumers’ last known mailing 9 addresses on file with the insurer or the portable electronics 10 vendor. The insurer or portable electronics vendor shall 11 maintain proof that the notice or correspondence was sent for 12 not less than three years after that notice or correspondence 13 was sent. 14 Sec. 14. NEW SECTION . 522E.14 Rules. 15 The commissioner shall adopt rules pursuant to chapter 17A 16 to implement and administer this chapter. 17 Sec. 15. NEW SECTION . 522E.15 Other law. 18 Nothing in this chapter regulating the sale of portable 19 electronics insurance shall be construed to impair or impede 20 the application of any other law regulating the sale of 21 portable electronics insurance. 22 Sec. 16. EFFECTIVE DATE. This Act takes effect January 1, 23 2016. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill creates new Code chapter 522E for the purpose 28 of regulating the sale of portable electronics insurance, 29 including requiring licensure of portable electronics vendors 30 to offer or sell portable electronics insurance, and providing 31 for fees and penalties. 32 New Code chapter 522E defines “portable electronics” as 33 devices that are personal, self-contained, easily carried by 34 an individual, battery operated, and used for a variety of 35 -12- LSB 1422HV (1) 86 av/nh 12/ 16
H.F. 487 specified purposes, and accessories or services related to 1 the use of such devices. “Portable electronics insurance” is 2 a contract providing coverage for the repair or replacement 3 of portable electronics. Such insurance does not include a 4 service contract or extended warranty or insurance covering 5 a seller’s or manufacturer’s obligations under a warranty. 6 A “portable electronics insurance license” issued by the 7 commissioner of insurance authorizes a portable electronics 8 vendor to offer or sell portable electronics insurance. A 9 “portable electronics vendor” is a person in the business, 10 directly or indirectly, of selling, reselling, soliciting, or 11 leasing portable electronics, their accessories, and related 12 services to consumers. 13 Persons are prohibited from offering or selling portable 14 electronics insurance unless they are licensed as insurance 15 producers under Code chapter 522B, are issued a portable 16 electronics insurance license pursuant to the provisions of the 17 bill, or are endorsees in compliance with the provisions of the 18 bill. A portable electronics insurance license issued by the 19 commissioner of insurance authorizes a portable electronics 20 vendor and its endorsees, i.e., unlicensed employees or 21 authorized representatives of the vendor, to offer or sell 22 portable electronics insurance to consumers in connection with, 23 and incidental to, the sale of portable electronics or the sale 24 and provision of accessories or services related to the use of 25 portable electronics. 26 A portable electronics vendor must file an application for a 27 license to sell portable electronics insurance that includes a 28 certificate by the insurer that the vendor is trustworthy and 29 competent, and is accompanied by a fee of $50 for each endorsee 30 at a location of the vendor, or $500 per location, whichever 31 amount is less, with a maximum fee of $5,000 for vendors with 32 multiple locations. The bill also contains provisions for 33 renewal of the license. 34 An endorsee of a licensed vendor may sell or offer portable 35 -13- LSB 1422HV (1) 86 av/nh 13/ 16
H.F. 487 electronics insurance under the authority of the vendor’s 1 license if the endorsee is at least 18 years old; the vendor 2 supplies a list with its license application of all locations 3 at which insurance will be offered; the vendor provides for 4 training of its endorsees about portable electronics insurance, 5 ethical sales practices, required disclosures to prospective 6 purchasers, and retraining about new products at least every 7 three years; and the vendor maintains a list of endorsees who 8 have completed training. 9 If the bill’s provisions are violated by a licensed vendor or 10 an endorsee, the commissioner may, after notice and a hearing, 11 revoke or suspend the license, or impose other penalties 12 including suspending authorization to sell the insurance at 13 specific business locations where violations have occurred, and 14 suspend or revoke the ability of individual endorsees to act 15 under the vendor’s license. 16 The commissioner may issue a cease and desist order against 17 a person who sells insurance in connection with, or incidental 18 to, the sale of portable electronics, or related accessories 19 or services without obtaining the license required by the bill 20 or being licensed as an insurance producer under Code chapter 21 522B. 22 A licensed portable electronics vendor is prohibited from 23 selling portable electronics insurance unless at the time of 24 sale or enrollment in the insurance or within a reasonable 25 time after a telephone transaction, the vendor makes specified 26 disclosures and provides written information to the prospective 27 customer that includes material terms and conditions of 28 coverage; describes the claims process; discloses additional 29 information about the policy; and provides information about 30 the vendor. 31 Costs for the insurance must be separately itemized in any 32 billing statement for the insurance, or, if the insurance is 33 included with the purchase or lease of portable electronics 34 and accessories or related services, the stand-alone cost for 35 -14- LSB 1422HV (1) 86 av/nh 14/ 16
H.F. 487 similar insurance must be disclosed on the consumer’s bill and 1 in marketing materials available at the point of sale. 2 The sale of portable electronics insurance to a customer 3 through a “free-trial offer” is prohibited. 4 Charges for portable electronics insurance may be billed 5 and collected by a licensed portable electronics vendor. The 6 vendor is not required to segregate those moneys if the insurer 7 provides that such segregation is not necessary, but such 8 moneys are considered moneys held in trust by the vendor in a 9 fiduciary capacity for the benefit of the insurer. Vendors may 10 receive compensation for billing and collection services. 11 A licensed portable electronics vendor is prohibited from 12 offering to sell insurance except in conjunction with and 13 incidental to the business of selling portable electronics and 14 related services and accessories; advertising or representing 15 itself or its endorsees as licensed insurers or property and 16 casualty broker-agents; paying an endorsee compensation based 17 primarily on the number of customers that purchase portable 18 electronics insurance, except that incidental compensation for 19 such transactions is allowed; or transacting the business of 20 any insurance other than portable electronics insurance. 21 An insurer that issues portable electronics insurance must 22 file a copy of the policy forms used with the commissioner, who 23 shall make the forms available to the public. 24 The bill specifies termination and notice provisions for 25 portable electronics insurance. 26 Whenever notice or correspondence related to notice is 27 required, the notice must be in writing and sent within the 28 required notice period. Notices and correspondence must be 29 sent to the licensed vendor that is the policyholder at the 30 mailing address specified for that purpose and to the last 31 known mailing addresses on file for affected consumers. The 32 insurer or the vendor shall maintain proof that the notice or 33 correspondence was sent for not less than three years. 34 The commissioner of insurance is required to adopt rules to 35 -15- LSB 1422HV (1) 86 av/nh 15/ 16
H.F. 487 implement and administer new Code chapter 522E. 1 Nothing in new Code chapter 522E regulating the sale of 2 portable electronics insurance shall be construed to impair or 3 impede the application of any other law regulating the sale of 4 such insurance. 5 New Code chapter 522E takes effect January 1, 2016. 6 -16- LSB 1422HV (1) 86 av/nh 16/ 16