Bill Text: IA HF2417 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act regulating the sale of portable electronics insurance, including by requiring licensure, and providing for fees and penalties. (Formerly HSB 592)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2012-03-21 - Subcommittee, Paustian, Isenhart, and Pettengill. H.J. 629. [HF2417 Detail]
Download: Iowa-2011-HF2417-Introduced.html
House
File
2417
-
Introduced
HOUSE
FILE
2417
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
592)
A
BILL
FOR
An
Act
regulating
the
sale
of
portable
electronics
insurance,
1
including
by
requiring
licensure,
and
providing
for
fees
and
2
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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6008HV
(3)
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Section
1.
NEW
SECTION
.
522D.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Commissioner”
means
the
commissioner
of
insurance.
4
2.
“Customer”
means
a
person
who
purchases
portable
5
electronics.
6
3.
“Enrolled
customer”
means
a
customer
who
elects
coverage
7
under
a
portable
electronics
insurance
policy
issued
to
a
8
vendor
of
portable
electronics.
9
4.
“Free
trial
offer”
means
an
offer
to
a
customer
under
10
which
portable
electronics
insurance
is
provided
free
of
charge
11
for
a
limited
time
period
subsequent
to
which
a
charge
is
12
made
to
the
customer
for
the
insurance
without
notice
to
the
13
customer
of
such
charge
prior
to
the
expiration
of
the
free
14
trial
period.
15
5.
“Location”
means
any
physical
location
in
this
state,
or
16
any
website,
call
center
site,
or
similar
location
directed
to
17
residents
of
this
state.
18
6.
“Portable
electronics”
means
electronic
devices
that
19
are
personal,
self-contained,
easily
carried
by
an
individual,
20
battery
operated,
and
used
for
communication,
viewing,
21
listening,
recording,
gaming,
computing,
or
global
positioning,
22
including
cell
or
satellite
phones,
pagers,
personal
global
23
positioning
satellite
units,
portable
computers,
portable
24
audio
listening,
video
viewing,
or
recording
devices,
digital
25
cameras,
video
camcorders,
portable
gaming
systems,
docking
26
stations,
automatic
answering
devices,
and
other
similar
27
devices,
and
the
accessories
and
services
related
to
the
use
of
28
such
devices.
29
7.
a.
“Portable
electronics
insurance”
means
insurance
30
providing
coverage
for
the
repair
or
replacement
of
portable
31
electronics
which
may
include
coverage
against
any
one
or
more
32
of
the
following
causes
of
loss:
33
(1)
Property
loss.
34
(2)
Theft.
35
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(3)
Inoperability
due
to
mechanical
failure.
1
(4)
Malfunction.
2
(5)
Damage.
3
(6)
Other
similar
causes
of
loss.
4
b.
“Portable
electronics
insurance”
does
not
include
any
of
5
the
following:
6
(1)
A
service
contract
or
extended
warranty
providing
7
coverage
limited
to
the
repair,
replacement,
or
maintenance
8
of
property
for
the
operational
or
structural
failure
of
the
9
property
due
to
a
defect
in
materials,
workmanship,
accidental
10
damage
from
handling
power
surges,
or
normal
wear
and
tear.
11
(2)
A
policy
of
insurance
coverage
of
a
seller’s
or
12
manufacturer’s
obligations
under
a
warranty.
13
(3)
A
homeowner’s,
renter’s,
private
passenger
automobile,
14
commercial
multiperil,
or
similar
insurance
policy.
15
8.
“Portable
electronics
transaction”
means
any
of
the
16
following:
17
a.
The
sale
or
lease
of
portable
electronics
by
a
vendor
to
18
a
customer.
19
b.
The
sale
of
a
service
related
to
the
use
of
portable
20
electronics
by
a
vendor
to
a
customer.
21
9.
“Supervising
entity”
means
a
business
entity
that
is
22
a
licensed
insurer
or
an
insurance
producer
licensed
under
23
chapter
522B,
that
is
appointed
by
an
insurer
to
supervise
the
24
administration
of
a
portable
electronics
insurance
program.
25
10.
“Vendor”
means
a
person
in
the
business
of
engaging
in
26
portable
electronics
transactions,
directly
or
indirectly.
27
Sec.
2.
NEW
SECTION
.
522D.2
Licensure
of
vendors.
28
1.
A
vendor
shall
obtain
a
portable
electronics
limited
29
lines
insurance
license
as
required
under
this
chapter
to
30
sell
or
offer
for
sale
coverage
under
a
policy
of
portable
31
electronics
insurance.
32
2.
A
portable
electronics
limited
lines
insurance
license
33
issued
to
a
vendor
pursuant
to
this
chapter
authorizes
any
34
employee
or
authorized
representative
of
the
vendor
to
sell
or
35
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offer
coverage
under
a
policy
of
portable
electronics
insurance
1
to
a
customer
at
each
location
at
which
the
vendor
engages
in
2
portable
electronics
transactions.
3
3.
A
supervising
entity
shall
maintain
a
registry
of
vendor
4
locations
that
are
authorized
to
sell
or
solicit
portable
5
electronics
insurance
in
this
state.
Upon
request
by
the
6
commissioner
and
with
ten
days’
notice
to
the
supervising
7
entity,
the
registry
shall
be
open
to
inspection
and
8
examination
by
the
commissioner
during
regular
business
hours
9
of
the
supervising
entity.
10
4.
Notwithstanding
any
other
provision
of
law
to
the
11
contrary,
a
portable
electronics
limited
lines
insurance
12
license
issued
pursuant
to
this
chapter
authorizes
the
licensee
13
and
its
employees
or
authorized
representatives
to
engage
in
14
those
activities
that
are
permitted
in
this
chapter.
15
Sec.
3.
NEW
SECTION
.
522D.3
Requirements
for
sale
of
16
portable
electronics
insurance.
17
1.
At
every
location
where
portable
electronics
insurance
18
is
offered
to
customers,
brochures
or
other
written
materials
19
that
do
all
of
the
following
shall
be
made
available
to
20
prospective
customers:
21
a.
Disclose
that
portable
electronics
insurance
may
provide
22
a
duplication
of
coverage
already
provided
by
the
customer’s
23
homeowner’s
insurance
policy,
renter’s
insurance
policy,
or
24
other
source
of
insurance
coverage.
25
b.
State
that
enrollment
by
the
customer
in
a
portable
26
electronics
insurance
program
is
not
required
in
order
to
27
purchase
or
lease
portable
electronics.
28
c.
Summarize
the
material
terms
of
the
portable
electronics
29
insurance
coverage
including
all
of
the
following:
30
(1)
The
identity
of
the
insurer.
31
(2)
The
identity
of
the
supervising
entity.
32
(3)
The
amount
of
any
applicable
deductible
and
how
it
is
33
to
be
paid.
34
(4)
Benefits
of
the
coverage.
35
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(5)
Key
terms
and
conditions
of
coverage
such
as
whether
1
portable
electronics
may
be
repaired
or
replaced
with
similar
2
make
and
model
reconditioned
or
nonoriginal
manufacturer
parts
3
or
equipment.
4
d.
Summarize
the
process
for
filing
a
claim,
including
5
a
description
of
how
to
return
portable
electronics
and
the
6
maximum
fee
applicable
in
the
event
the
customer
fails
to
7
comply
with
any
equipment
return
requirements.
8
e.
State
that
an
enrolled
customer
may
cancel
enrollment
for
9
coverage
under
a
portable
electronics
insurance
policy
at
any
10
time
and
the
person
paying
the
premium
shall
receive
a
refund
11
or
credit
of
any
applicable
unearned
premium.
12
2.
The
disclosures
required
pursuant
to
subsection
1
or
the
13
full
terms
and
conditions
of
portable
electronics
insurance
14
coverage
shall
be
provided
to
customers
enrolling
in
such
15
coverage
by
hand
delivery,
ordinary
mail,
or
electronic
mail,
16
or
by
directing
the
customer
to
an
internet
site
containing
17
such
information.
18
3.
Portable
electronics
insurance
may
be
offered
on
a
19
month-to-month
or
other
periodic
basis
as
a
group
or
master
20
commercial
inland
marine
policy
issued
to
a
vendor
for
its
21
enrolled
customers.
22
4.
Portable
electronics
insurance
shall
not
be
sold
through
23
a
free
trial
offer.
24
5.
The
commissioner
of
insurance
shall
establish
25
eligibility
and
underwriting
standards
for
customers
electing
26
to
enroll
in
coverage
for
each
portable
electronics
insurance
27
program.
28
Sec.
4.
NEW
SECTION
.
522D.4
Authority
of
vendors.
29
1.
The
employees
and
authorized
representatives
of
a
vendor
30
may
sell
or
offer
portable
electronics
insurance
to
customers
31
and
shall
not
be
subject
to
licensure
under
this
chapter
or
as
32
an
insurance
producer
under
chapter
522B
provided
that
all
of
33
the
following
requirements
are
met:
34
a.
The
vendor
obtains
a
portable
electronics
limited
lines
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insurance
license
that
authorizes
the
vendor’s
employees
1
or
authorized
representatives
to
sell
or
offer
portable
2
electronics
insurance
pursuant
to
this
chapter.
3
b.
The
insurer
issuing
the
portable
electronics
insurance
4
either
directly
supervises
the
administration
of
the
portable
5
electronics
insurance
program
or
appoints
a
supervising
entity
6
to
supervise
the
administration
of
the
program,
including
7
development
of
a
training
program
for
employees
and
authorized
8
representatives
of
the
vendor.
The
training
required
by
this
9
paragraph
shall
comply
with
all
of
the
following
requirements:
10
(1)
The
training
shall
be
delivered
to
employees
and
11
authorized
representatives
of
a
vendor
who
are
directly
engaged
12
in
the
activity
of
selling
or
offering
for
sale
portable
13
electronics
insurance.
14
(2)
The
training
may
be
offered
in
electronic
form.
15
However,
if
the
training
is
conducted
in
electronic
form,
the
16
supervising
entity
shall
implement
a
supplemental
education
17
program
for
employees
and
authorized
representatives
of
18
the
vendor
regarding
the
portable
electronics
insurance
19
product
that
is
conducted
and
overseen
by
an
employee
of
the
20
supervising
entity
who
is
an
insurance
producer
licensed
under
21
chapter
522B.
22
(3)
Each
employee
and
authorized
representative
of
a
vendor
23
shall
receive
basic
instruction
about
the
portable
electronics
24
insurance
offered
to
customers
and
the
disclosures
required
25
under
section
522D.3.
26
c.
A
vendor
or
an
authorized
representative
shall
maintain
27
a
list
of
all
employees
or
authorized
representatives
of
each
28
vendor
who
are
authorized
to
sell
or
offer
portable
electronics
29
insurance
to
customers
under
this
section.
Upon
request
by
30
the
commissioner,
and
with
ten
days’
notice
to
the
vendor
31
or
supervising
entity,
the
list
maintained
shall
be
open
to
32
inspection
and
examination
by
the
commissioner
during
normal
33
business
hours
of
the
vendor
or
supervising
entity.
34
d.
An
employee
or
authorized
representative
of
a
vendor
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shall
not
advertise,
represent,
or
otherwise
hold
the
employee
1
or
authorized
representative
out
as
being
a
licensed
insurance
2
producer
under
chapter
522B.
3
2.
a.
Charges
for
portable
electronics
insurance
coverage
4
may
be
billed
and
collected
by
the
vendor.
Any
charge
to
an
5
enrolled
customer
for
coverage
that
is
not
included
in
the
cost
6
associated
with
the
purchase
or
lease
of
portable
electronics
7
shall
be
separately
itemized
on
the
enrolled
customer’s
bill.
8
If
the
portable
electronics
insurance
is
included
with
the
9
purchase
or
lease
of
portable
electronics,
the
vendor
shall
10
clearly
and
conspicuously
disclose
to
the
enrolled
customer
11
that
the
portable
electronics
insurance
is
included
with
the
12
portable
electronics.
13
b.
A
vendor
that
bills
and
collects
charges
for
portable
14
electronics
insurance
shall
not
be
required
to
maintain
such
15
funds
in
a
segregated
account
provided
that
the
vendor
is
16
authorized
by
the
insurer
to
hold
such
funds
in
an
alternative
17
manner
and
remits
such
amounts
to
the
supervising
entity
within
18
sixty
days
of
receipt.
19
c.
All
funds
received
by
a
vendor
from
an
enrolled
customer
20
for
the
purchase
of
portable
electronics
insurance
shall
be
21
considered
funds
held
in
trust
by
the
vendor
in
a
fiduciary
22
capacity
for
the
benefit
of
the
insurer.
A
vendor
may
receive
23
compensation
for
billing
and
collection
services.
24
Sec.
5.
NEW
SECTION
.
522D.5
Penalties
——
suspension
or
25
revocation
of
license.
26
If
a
vendor
or
the
vendor’s
employee
or
authorized
27
representative
violates
any
provision
of
this
chapter,
the
28
commissioner
may
do
any
of
the
following:
29
1.
After
notice
and
hearing,
impose
penalties
not
to
exceed
30
five
hundred
dollars
per
violation
or
five
thousand
dollars
in
31
the
aggregate
for
such
violations.
32
2.
After
notice
and
hearing,
take
other
affirmative
action
33
that
the
commissioner
deems
necessary
and
reasonable
to
carry
34
out
the
purposes
of
this
chapter,
including
the
following:
35
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a.
Suspend
the
privilege
of
selling
or
offering
for
sale
1
portable
electronics
insurance
pursuant
to
this
chapter
at
2
specific
business
locations
where
violations
of
this
chapter
3
have
occurred.
4
b.
Suspend
or
revoke
the
ability
of
an
individual
employee
5
or
authorized
representative
to
sell
or
offer
for
sale
portable
6
electronics
insurance
pursuant
to
the
portable
electronics
7
limited
lines
insurance
license
of
a
vendor.
8
Sec.
6.
NEW
SECTION
.
522D.6
Termination
of
portable
9
electronics
insurance.
10
Notwithstanding
any
other
provision
of
law
to
the
contrary:
11
1.
An
insurer
may
terminate
or
otherwise
change
the
terms
12
and
conditions
of
a
policy
of
portable
electronics
insurance
13
only
upon
providing
the
vendor
and
enrolled
customers
with
at
14
least
thirty
days’
notice
of
such
termination
or
change.
15
2.
If
the
insurer
changes
the
terms
and
conditions
of
a
16
policy
of
portable
electronics
insurance,
the
insurer
shall
17
provide
the
vendor
with
a
revised
policy
or
endorsement
and
18
each
enrolled
customer
with
a
revised
certificate,
endorsement,
19
updated
brochure,
or
other
evidence
indicating
that
a
change
in
20
the
terms
and
conditions
of
the
policy
has
occurred
along
with
21
a
summary
of
material
changes.
22
3.
Notwithstanding
subsection
1,
an
insurer
may
terminate
23
an
enrolled
customer’s
enrollment
under
a
portable
electronics
24
insurance
policy
with
fifteen
days’
notice
upon
discovery
of
25
fraud
or
material
misrepresentation
in
obtaining
coverage
or
in
26
the
presentation
of
a
claim
under
that
coverage.
27
4.
Notwithstanding
subsection
1,
an
insurer
may
immediately
28
terminate
an
enrolled
customer’s
enrollment
under
a
portable
29
electronics
insurance
policy
for
any
of
the
following
reasons:
30
a.
Nonpayment
of
premium.
31
b.
If
the
enrolled
customer
ceases
to
have
active
service
32
with
the
vendor.
33
c.
If
the
enrolled
customer
exhausts
the
aggregate
limit
of
34
liability,
if
any,
under
the
terms
of
the
portable
electronics
35
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2417
insurance
policy
and
the
insurer
sends
notice
of
termination
to
1
the
enrolled
customer
within
thirty
days
after
exhaustion
of
2
the
limit.
However,
if
notice
is
not
timely
sent,
enrollment
3
shall
continue
notwithstanding
the
aggregate
limit
of
liability
4
until
the
insurer
sends
notice
of
termination
to
the
enrolled
5
customer.
6
5.
If
a
portable
electronics
insurance
policy
is
terminated
7
by
a
vendor,
the
vendor
shall
mail
or
deliver
written
notice
8
to
each
enrolled
customer
advising
the
enrolled
customer
9
of
the
termination
of
the
policy
and
the
effective
date
of
10
termination.
The
written
notice
shall
be
mailed
or
delivered
11
to
the
enrolled
customer
at
least
thirty
days
prior
to
the
12
termination.
13
6.
a.
Whenever
notice
or
correspondence
with
respect
to
a
14
policy
of
portable
electronics
insurance
is
required
pursuant
15
to
this
section
or
is
otherwise
required
by
law,
the
notice
16
or
correspondence
shall
be
in
writing
and
sent
within
the
17
notice
period,
if
any,
specified
in
the
statute
or
regulation
18
requiring
the
notice
or
correspondence.
19
b.
Notwithstanding
any
other
provision
of
law
to
the
20
contrary,
notices
and
correspondence
may
be
sent
by
mail
or
by
21
electronic
means
as
set
forth
in
this
paragraph
“b”
.
22
(1)
If
the
notice
or
correspondence
is
sent
by
mail,
it
23
shall
be
sent
to
the
vendor
at
the
vendor’s
mailing
address
24
specified
for
such
purpose
and
to
the
affected
enrolled
25
customers
at
their
last
known
mailing
addresses
on
file
with
26
the
insurer.
The
insurer
or
vendor,
as
the
case
may
be,
shall
27
maintain
proof
of
mailing
in
a
form
authorized
or
accepted
28
by
the
United
States
postal
service
or
other
commercial
mail
29
delivery
service.
30
(2)
If
the
notice
or
correspondence
is
sent
by
electronic
31
means,
it
shall
be
sent
to
the
vendor
at
the
vendor’s
32
electronic
mail
address
specified
for
such
purpose
and
to
the
33
affected
enrolled
customers
at
their
last
known
electronic
mail
34
address
as
provided
by
each
enrolled
customer
to
the
insurer
or
35
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vendor,
as
the
case
may
be.
For
purposes
of
this
subparagraph,
1
an
enrolled
customer’s
provision
of
an
electronic
mail
address
2
to
an
insurer
or
vendor
shall
be
deemed
consent
to
receive
3
notices
and
correspondence
by
electronic
means.
The
insurer
or
4
vendor,
as
the
case
may
be,
shall
maintain
proof
that
a
notice
5
or
correspondence
was
sent
by
electronic
means
to
an
enrolled
6
customer.
7
7.
Notice
or
correspondence
required
by
this
section
or
8
otherwise
required
by
law
may
be
sent
on
behalf
of
an
insurer
9
or
vendor,
as
the
case
may
be,
by
the
supervising
entity
10
appointed
by
the
insurer.
11
Sec.
7.
NEW
SECTION
.
522D.7
Application
for
license
——
12
fees.
13
1.
If
a
vendor
is
selling
or
offering
to
sell
or
will
14
sell
or
offer
to
sell
portable
electronics
insurance
in
this
15
state,
the
vendor
shall
submit
a
sworn
application
for
a
16
portable
electronics
limited
lines
insurance
license
to
the
17
commissioner
on
an
application
form
prescribed
and
furnished
by
18
the
commissioner.
19
2.
The
application
form
shall
include
the
following
20
information:
21
a.
The
name,
residence
address,
and
other
information
22
required
by
the
commissioner
for
an
employee
or
officer
of
23
the
vendor
that
is
designated
by
the
vendor
as
the
person
24
responsible
for
or
who
will
be
responsible
for
the
vendor’s
25
compliance
with
the
requirements
of
this
chapter.
However,
if
26
the
vendor
derives
more
than
fifty
percent
of
its
revenue
from
27
the
sale
of
portable
electronics
insurance,
the
information
28
required
in
this
paragraph
shall
be
provided
for
all
officers,
29
directors,
and
shareholders
of
record
of
the
vendor
that
have
30
beneficial
ownership
in
the
vendor
of
ten
percent
or
more
of
31
any
class
of
securities
registered
under
federal
securities
32
law.
33
b.
Provide
the
location
of
the
vendor’s
home
office.
34
3.
Any
vendor
engaging
in
the
sale
of
or
offering
for
sale
35
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portable
electronics
insurance
on
or
before
July
1,
2012,
1
shall
apply
for
licensure
under
this
chapter
within
ninety
2
days
of
the
application
form
being
made
available
by
the
3
commissioner.
Any
vendor
commencing
operations
in
this
state
4
after
July
1,
2012,
shall
obtain
a
portable
electronics
limited
5
lines
insurance
license
prior
to
selling
or
offering
for
sale
6
portable
electronics
insurance.
7
4.
Initial
portable
electronics
limited
lines
insurance
8
licenses
issued
pursuant
to
this
chapter
shall
be
valid
for
a
9
period
of
twenty-four
months
and
shall
expire
on
March
of
the
10
renewal
year
assigned
by
the
commissioner.
11
5.
Each
vendor
licensed
under
this
chapter
shall
pay
to
the
12
commissioner
a
fee
as
prescribed
by
the
commissioner
by
rule,
13
but
in
no
event
shall
the
fee
exceed
one
thousand
dollars
for
14
an
initial
portable
electronics
limited
lines
insurance
license
15
or
five
hundred
dollars
for
each
renewal
of
the
license.
16
However,
for
a
vendor
that
engages
in
portable
electronics
17
transactions
at
ten
or
fewer
locations
in
the
state,
the
fee
18
shall
not
exceed
one
hundred
dollars
for
an
initial
license
and
19
one
hundred
dollars
for
each
renewal
of
the
license.
20
Sec.
8.
NEW
SECTION
.
522D.8
Rules.
21
The
commissioner
shall
adopt
rules
pursuant
to
chapter
17A
22
as
necessary
to
implement
and
administer
the
provisions
of
this
23
chapter.
24
EXPLANATION
25
This
bill
regulates
the
sale
of
portable
electronics
26
insurance
by
requiring
licensure,
and
providing
for
fees
and
27
penalties.
“Portable
electronics”
are
electronic
devices
that
28
are
personal,
self-contained,
easily
carried
by
an
individual,
29
battery
operated,
and
used
for
communication,
viewing,
30
listening,
recording,
gaming,
computing,
or
global
positioning,
31
including
cell
or
satellite
phones,
pagers,
personal
global
32
positioning
satellite
units,
portable
computers,
portable
33
audio
listening,
video
viewing,
or
recording
devices,
digital
34
cameras,
video
camcorders,
portable
gaming
systems,
docking
35
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stations,
automatic
answering
devices,
and
other
similar
1
devices,
and
the
accessories
and
services
related
to
the
use
of
2
such
devices.
3
“Portable
electronics
insurance”
is
insurance
that
provides
4
coverage
for
the
repair
or
replacement
of
portable
electronics
5
including
various
causes
of
loss.
“Portable
electronics
6
insurance”
does
not
include
a
service
contract
or
extended
7
warranty,
a
seller’s
or
manufacturer’s
warranty
obligations,
8
or
other
insurance
such
as
homeowner’s,
renter’s,
automobile,
9
or
commercial
multiperil
insurance.
Vendors
of
portable
10
electronics
sell
or
offer
for
sale
such
insurance
pursuant
11
to
a
policy
issued
to
the
vendor
by
an
insurer
that
offers
12
such
coverage.
The
bill
applies
to
vendors
that
have
physical
13
locations
in
the
state,
as
well
as
any
website,
call
center
14
site,
or
similar
location
directed
to
residents
of
this
state.
15
Vendors
are
required
to
obtain
a
portable
electronics
16
limited
lines
insurance
license
as
required
under
new
Code
17
chapter
522D
to
sell
or
offer
for
sale
coverage
under
a
18
portable
electronics
insurance
policy.
Such
a
license
19
issued
to
a
vendor
authorizes
any
employee
or
authorized
20
representative
of
the
vendor
to
sell
or
offer
the
insurance
21
coverage
at
each
location
in
the
state
where
the
vendor
22
sells
portable
electronics.
A
“supervising
entity”
that
is
23
a
licensed
insurer
or
licensed
insurance
producer
under
Code
24
chapter
522B
must
maintain
a
registry
of
vendor
locations
at
25
which
portable
electronics
insurance
is
sold
or
solicited
that
26
is
available
for
inspection
by
the
commissioner
of
insurance.
27
Vendors
that
sell
portable
electronics
insurance
are
28
required
to
offer
written
materials
to
customers
that
disclose
29
certain
specified
information
about
the
insurance
that
is
being
30
offered.
Such
insurance
may
be
offered
on
a
month-to-month
31
or
other
periodic
basis.
The
disclosures
contained
in
the
32
written
materials
must
be
offered
to
persons
enrolling
in
33
portable
electronics
coverage
by
hand
delivery,
ordinary
34
mail,
or
electronic
mail,
or
by
directing
the
customer
to
an
35
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internet
site
containing
the
information.
Portable
electronics
1
insurance
cannot
be
sold
through
a
free
trial
offer.
A
2
“free
trial
offer”
is
an
offer
to
provide
such
insurance
to
a
3
customer
free
of
charge
for
a
limited
time
period
subsequent
4
to
which
a
charge
is
made
to
the
customer
without
notice
prior
5
to
expiration
of
the
free
trial
period.
Eligibility
and
6
underwriting
standards
must
be
established
for
each
portable
7
electronics
insurance
program
by
the
commissioner
of
insurance.
8
Employees
and
authorized
representatives
of
a
vendor
may
9
sell
or
offer
portable
electronics
insurance
to
customers
10
and
are
not
subject
to
licensure
under
new
Code
chapter
11
522D
or
Code
chapter
522B
if
certain
training
and
oversight
12
requirements
are
met
by
the
insurer
and
the
supervising
13
entity
appointed
by
the
insurer.
A
vendor
or
an
authorized
14
representative
is
required
to
maintain
a
list
of
all
employees
15
or
authorized
representatives
of
the
vendor
who
are
authorized
16
to
sell
or
offer
portable
electronics
insurance
to
customers.
17
The
list
must
be
available
for
inspection
and
examination
18
during
the
vendor’s
normal
business
hours
by
the
commissioner
19
of
insurance
upon
10
days’
notice.
20
A
vendor
may
bill
and
collect
charges
for
portable
21
electronics
insurance
and
be
paid
for
doing
so
but
is
22
considered
to
hold
any
funds
collected
in
trust
for
the
23
insurer.
24
The
commissioner
of
insurance
may
subject
a
vendor
or
the
25
vendor’s
employees
or
authorized
representatives
to
penalties
26
for
violations
of
the
Code
chapter
not
to
exceed
$500
per
27
violation
or
$5,000
in
the
aggregate.
The
commissioner
may
28
also
suspend
the
vendor’s
privilege
of
selling
the
insurance
29
at
specific
locations
of
the
vendor
or
suspend
or
revoke
30
the
selling
privileges
of
a
specific
employee
or
authorized
31
representative
of
a
vendor.
32
An
insurer
cannot
terminate
or
otherwise
change
the
terms
of
33
a
portable
electronics
insurance
policy
without
giving
notice
34
to
the
vendor
and
enrolled
customers
as
provided
in
the
bill.
35
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Notice
may
be
sent
in
writing
by
mail
or
by
electronic
means.
1
A
vendor
who
is
selling
or
offering
to
sell
or
will
sell
2
or
offer
to
sell
portable
electronics
insurance
in
this
state
3
must
submit
a
sworn
application
for
a
portable
electronics
4
limited
lines
insurance
license
to
the
commissioner.
A
vendor
5
who
is
engaging
in
the
sale
of
such
insurance
on
or
before
the
6
effective
date
of
the
bill
must
apply
for
a
license
within
7
90
days
of
the
date
the
application
form
is
made
available
8
by
the
commissioner
of
insurance.
Any
vendor
that
commences
9
operations
in
the
state
after
the
effective
date
of
the
bill
10
must
obtain
a
license
prior
to
selling
or
offering
for
sale
11
portable
electronics
insurance.
12
Portable
electronics
limited
lines
insurance
licenses
shall
13
be
valid
for
24
months
and
shall
not
exceed
$1,000
for
an
14
initial
license
or
$500
for
a
renewal
of
the
license,
except
15
that
if
a
vendor
has
10
or
fewer
locations
in
the
state,
the
16
license
cost
shall
not
exceed
$100
for
an
initial
license
and
17
for
each
renewal
of
the
license.
18
The
commissioner
of
insurance
is
required
to
adopt
rules
19
pursuant
to
Code
chapter
17A
to
implement
and
administer
the
20
provisions
of
the
bill.
21
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