PORTABLE ELECTRONICS INSURANCE S.B. 859:
SUMMARY AS ENACTED
Senate Bill 859 (as enacted) PUBLIC ACT 552 of 2012
Sponsor: Senator Dave Hildenbrand
House Committee: Insurance
CONTENT
The bill amended the Insurance Code to create an exception to the insurance producer license requirement for a person who sells only portable electronics insurance and discloses specified information to customers.
The Code requires a person to obtain an insurance producer license in order to sell, solicit, or negotiate insurance. Under the bill, this requirement does not apply to a person whose only sale of insurance is for portable electronics insurance sold in connection with and incidental to the sale of a portable electronic device, if written disclosure material is given to the customer at the time of solicitation and includes all of the following:
-- A disclosure that portable electronics insurance may provide a duplication of coverage already provided by the customer's homeowner's insurance policy, renter's insurance policy, or other insurance coverage.
-- A statement that the customer's enrollment in a portable electronics insurance program is not required to purchase or lease a portable electronic device or services for it.
-- A summary of the process for filing a claim, including a description of how to return a device and the maximum fee applicable if the customer fails to comply with any equipment return requirements.
-- A statement that the customer may cancel enrollment for coverage at any time and that the person paying the premium will receive a refund of any applicable unearned premium.
In addition, the written disclosure material must summarize the material terms of the insurance coverage, including all of the following:
-- The insurer's identity.
-- The amount of any applicable deductible and how it is to be paid.
-- Benefits of the coverage.
-- Key terms and conditions of the coverage, such as whether the portable electronics may be repaired or replaced with a similar make and model or reconditioned or nonoriginal manufacturer parts or equipment.
The bill took effect on January 2, 2013.
Legislative Analyst: Julie Cassidy
FISCAL IMPACT
The bill will have no fiscal impact on State or local government.
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.