Bill Text: MI SB0859 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Insurance; other; sale of portable electronics insurance; exempt from requirements for licensing of producers. Amends sec. 1202 of 1956 PA 218 (MCL 500.1202).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-31 - Assigned Pa 0552'12 With Immediate Effect 2012 Addenda [SB0859 Detail]
Download: Michigan-2011-SB0859-Engrossed.html
SB-0859, As Passed House, December 13, 2012
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 859
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1202 (MCL 500.1202), as amended by 2002 PA 737.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1202. (1) This chapter shall not be construed to require
an insurer to obtain an insurance producer license. As used in this
section, the term "insurer" does not include an insurer's officers,
directors, employees, subsidiaries, or affiliates.
(2) A license as an insurance producer is not required of any
of the following:
(a) An officer, director, or employee of an insurer or of an
insurance
producer, provided that if
the officer, director, or
employee does not receive any commission on policies written or
sold to insure risks residing, located, or to be performed in this
state and meets 1 or more of the following:
(i) The officer's, director's, or employee's activities are
executive, administrative, managerial, clerical, or a combination
of these, and are only indirectly related to the sale,
solicitation, or negotiation of insurance.
(ii) The officer's, director's, or employee's function relates
to underwriting, loss control, inspection, or the processing,
adjusting, investigating, or settling of a claim on a contract of
insurance.
(iii) The officer, director, or employee is acting in the
capacity of a special agent or agency supervisor assisting
insurance
producers where if the person's activities are limited to
providing technical advice and assistance to licensed insurance
producers and do not include the sale, solicitation, or negotiation
of insurance.
(b) A person who performs and receives no commission for any
of the following services:
(i) Securing and furnishing information for the purpose of
group life insurance, group property and casualty insurance, group
annuities, or group or blanket accident and health insurance.
(ii) Securing and furnishing information for the purpose of
enrolling individuals under plans, issuing certificates under
plans, or otherwise assisting in administering plans.
(iii) Performing administrative services related to mass
marketed property and casualty insurance.
(c) An employer or association or its officers, directors,
employees, or the trustees of an employee trust plan, to the extent
that the employers, officers, employees, directors, or trustees are
engaged in the administration or operation of a program of employee
benefits for the employer's or association's own employees or the
employees of its subsidiaries or affiliates, which program involves
the
use of insurance issued by an insurer, as long as if the
employers, associations, officers, directors, employees, or
trustees are not in any manner compensated, directly or indirectly,
by the company issuing the contracts.
(d) Employees of insurers or organizations employed by
insurers who are engaging in the inspection, rating, or
classification of risks, or in the supervision of the training of
insurance producers and who are not individually engaged in the
sale, solicitation, or negotiation of insurance.
(e) A person whose activities in this state are limited to
advertising without the intent to solicit insurance in this state
through communications in printed publications or other forms of
electronic
mass media, where the distribution of which is
not
limited
to residents of the state, provided that if the person does
not sell, solicit, or negotiate insurance that would insure risks
residing, located, or to be performed in this state.
(f) A person who is not a resident of this state who sells,
solicits, or negotiates a contract of insurance for commercial
property and casualty risks to an insured with risks located in
more
than 1 state insured under that contract, provided that that
if the person is otherwise licensed as an insurance producer to
sell, solicit, or negotiate that insurance in the state where the
insured maintains its principal place of business and the contract
of insurance insures risks located in that state.
(g) A salaried full-time employee who counsels or advises his
or her employer concerning the insurance interests of the employer
or of the subsidiaries or business affiliates of the employer,
provided
that if the employee does not sell or solicit insurance or
receive a commission.
(h) A person whose only sale of insurance is for travel or
auto-related insurance sold in connection with and incidental to
the rental of a motor vehicle under a rental agreement for a period
not to exceed 90 days.
(i) 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 provided to the customer at the time of solicitation and the
written material includes all of the following:
(i) A disclosure that portable electronics insurance may
duplicate coverage already provided by the customer's homeowners,
renters, or other insurance policies.
(ii) A statement that the enrollment by the customer in a
portable electronics insurance program is not required to purchase
or lease a portable electronic device or services for the device.
(iii) A summary of the material terms of the portable
electronics insurance coverage, including all of the following:
(A) The identity of the insurer.
(B) The amount of any applicable deductible and how it is to
be paid.
(C) The benefits of the coverage.
(D) 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.
(iv) A summary of the process for filing a claim, including a
description of how to return a portable electronic device and the
maximum fee applicable if the customer fails to comply with
equipment return requirements.
(v) A statement that the customer may cancel enrollment for
coverage under a portable electronics insurance policy at any time
and that the person paying the premium will receive a refund of or
credit for any unearned premium.
(3) As used in this section, "motor vehicle" means a motorized
vehicle designed for transporting passengers or goods.
