Current through August, 2024
Section 1 Authority
This regulation is promulgated under the authority granted to
the Commissioner by Title
8 V.S.A.,
§§
15,
4261,
4813a(6)
and
4813f(b).
Section 2 Purpose
The purpose of this regulation is to establish a business
entity limited lines producer license for the sale of portable electronics
insurance and to set forth requirements for the sale of portable electronics
insurance by a vendor, its employees and authorized representatives as well as
establishing standards for the adjusting of claims under a policy of portable
electronics insurance by a supervising entity.
Section 3 Scope
This regulation governs the sale of portable electronics
insurance by a vendor and its employees and authorized
representatives.
Section 4
Definitions
As used in this regulation:
A. "Automated Claims Adjudication System"
means a preprogrammed computer system designed for the collection, data entry,
calculation and final resolution of portable electronics insurance claims
which;
1. May only be utilized by a licensed
adjuster, licensed insurance producer, or supervised individuals operating
pursuant to this regulation;
2.
Must comply with all claims payment requirements of Title 8 V.S.A.;
and
3. Must be certified as
compliant with this regulation by a licensed adjuster that is an officer of the
entity which employs the individuals operating pursuant to section 10 of this
regulation.
B. "Customer"
means a person who purchases portable electronics or services;
C. "Enrolled Customer" means a customer who
elects coverage under a portable electronics insurance policy issued to a
vendor of portable electronics;
D.
"Location" means any physical location in the State of Vermont or any website,
call center site or similar location directed to residents of the State of
Vermont;
E. "Portable Electronics"
shall have the same meaning as given in Title
8 V.S.A.§
4257(1);
F. "Portable Electronics Insurance" shall
have the same meaning as given in Title 8 V.SA § 4257(2).
G. "Portable Electronics Insurance Producer"
means any portable electronics vendor that is licensed to offer, sell or
solicit portable electronics insurance pursuant to this regulation.
H. "Portable Electronics Transaction" means:
1. the sale or lease of portable electronics
by a vendor to a customer; or
2.
the sale of a service related to the use of portable electronics by a vendor to
a customer.
I.
"Supervising Entity" means a business entity that is a licensed insurer or
insurance producer that is appointed by an insurer to supervise the
administration of a portable electronics insurance program;
J. "Portable Electronics Vendor" shall have
the same meaning as given in Title
8 V.S.A. §
4257(3).
Section 5 General Rules
A. No portable electronics vendor, and no
officer, director, employee or authorized representative of a portable
electronics vendor, shall offer, sell, or solicit the purchase of portable
electronics insurance unless that portable electronics vendor is licensed in
compliance with the requirements of this regulation.
B. The Commissioner shall issue to a portable
electronics vendor that has complied with the requirements of this regulation,
a business entity limited lines producer license that authorizes any employee
or authorized representative of the portable electronics vendor to sell or
offer coverage under a policy of portable electronics insurance to a customer
at each location at which the portable electronics vendor engages in portable
electronics transactions.
Section
6 Licensing
A. In order for a
portable electronics vendor to obtain a business entity limited lines producer
license for the sale of portable electronics insurance, it must:
1. Submit an application and fees for
licensure as required under Title 8 V.S.A., Chapter 131. Such application must
provide the name, residence address, and other information required by the
Commissioner for an employee or officer of the portable electronics vendor that
is designated by the applicant as the person responsible for the portable
electronics vendor's compliance with the requirements of this
Chapter;
2. Have designated a
licensed producer who is a natural person and appointed by the insurer in
subdivision
4
of this subsection, to be responsible for the business entity's compliance with
the insurance laws and regulations of this state. The producer designated by a
portable electronics vendor pursuant to this subsection shall not be required
to be an officer, director, or employee of the portable electronics
vendor;
3. Submit a certificate by
an appointing insurer, stating that the insurer has satisfied itself that the
named applicant is trustworthy and competent to act as its portable electronics
insurance agent; that the insurer has reviewed the training requirements for
conformity with the requirements set forth in section 7A.2. of this regulation,
and that the insurer will appoint the applicant to act as its portable
electronics insurance agent. An officer of the insurer shall execute the
certification; and
4. Be appointed
by an insurer to act as its agent.
B. Portable electronics vendors applying for
licensure pursuant to this regulation shall be exempt from any written
examination requirement under Title 8 V.S.A., Chapter 131.
Section 7 Portable Electronics insurance
Producer Employees and Authorized Representatives
A. The employees and authorized
representatives of portable electronics insurance producers may sell or offer
portable electronics insurance to customers and shall not be subject to
licensure as an insurance producer provided that:
1. The portable electronics insurance vendor
obtains a limited lines license to authorize its employees or representatives
to sell or offer portable electronics insurance pursuant to this
section;
2. The insurer issuing the
portable electronics insurance either directly supervises or appoints a
supervising entity to supervise the administration of the program including
development of a training program for employees and authorized representatives
of the portable electronics insurance producer. The training required by this
subdivision shall comply with the following:
(i) The training shall be delivered to
employees and authorized representatives of a portable electronics insurance
producer who are directly engaged in the activity of selling or offering
portable electronics insurance;
(ii) The training may be provided in
electronic form. However, if conducted in an electronic form the supervising
entity shall implement a supplemental education program regarding the portable
electronics insurance product that is conducted and overseen by licensed
employees of the supervising entity;
(iii) Each employee and authorized
representative shall receive basic instruction about the portable electronics
insurance offered to customers, the disclosures required under section 8 of
this regulation and ethical sales practices; and,
(iv) All training material used shall be made
available to the Commissioner upon request.
Section 8 Requirements for the
Sale of Portable Electronics Insurance
A. At
every location where portable electronics insurance is offered to customers,
brochures or other written materials must be made available to a prospective
customer which:
1. Disclose that portable
electronics insurance may provide a duplication of coverage already provided by
a customer's homeowner's insurance policy, renter's insurance policy or other
source of coverage;
2. State that
the enrollment by the customer in a portable electronics insurance program is
not required in order to purchase or lease portable electronics or
services;
3. Summarize the material
terms of the insurance coverage, including:
(i) The identity of the insurer;
(ii) The identity of the supervising
entity;
(iii) The amount of any
applicable deductible and how it is to be paid;
(iv) Benefits of the coverage; and
(v) Key terms and conditions of coverage such
as whether portable electronics may be repaired or replaced with similar make
and model reconditioned or non-original manufacturer parts or
equipment.
4. Summarize
the process for filing a claim, including a description of how to return
portable electronics and the maximum fee applicable in the event the customer
fails to comply with any equipment return requirements.
5. State that an enrolled customer may cancel
enrollment for coverage under a portable electronics insurance policy at any
time and the person paying the premium shall receive a refund or credit of any
applicable unearned premium.
B. Eligibility and underwriting standards for
customers electing to enroll in coverage shall be established for each portable
electronics insurance program.
Section
9 Portable Electronics Insurance Producer Prohibitions
A portable electronics insurance producer shall not:
A. Offer, sell, or solicit the purchase of
insurance except in conjunction with and incidental to portable electronics
transactions;
B. Advertise,
represent, or otherwise portray itself or any of its employees or
representatives as non-limited lines licensed producers, unless so
licensed;
C. Make any statement or
engage in any conduct, express or implied, that would lead a consumer to
believe:
1. That the insurance coverage
offered by the portable electronics insurance producer does not provide a
duplication of coverage already provided by a customer's personal homeowner's
insurance policy, renter's insurance policy, or by another source of
coverage;
2. That the purchase by
the customer of portable electronics insurance is required in order to purchase
or lease portable electronics from the portable electronics insurance producer;
and
3. That the portable
electronics insurance producer or the portable electronics insurance producer's
employees or authorized representatives are qualified to evaluate the adequacy
of the customer's existing insurance coverage.
Section 10 Portable Electronics Insurance
Claims
A license as an adjuster shall not be required of an
individual who collects claim information from, or furnishes claim information
to, insureds or claimants, and who conducts data entry including entering data
into an automated claims adjudication system, provided that no more than twenty
five such persons are under the supervision of one licensed adjuster or
licensed insurance producer. A licensed insurance producer who is functioning
as a supervising entity pursuant to this regulation may also negotiate and
resolve outstanding portable electronic insurance claims.
Section 11 Severability
If any provision of this regulation or its application to any
person or circumstance is for any reason held to be invalid, the remainder of
the Regulation and the application of the provision to other persons or
circumstances shall not be affected.
Section 12 Effective Date
This regulation shall take effect on April 15,
2013.
