SB472 SABSTRACT B&I
SENATE COMMITTEE ON BANKING AND INSURANCE
COUNSEL: Marey Casey
SENATE BILL NO. 472
BY: Senator Minard
SHORT TITLE: Exempting certain vendors of portable electronics from insurance licensing requirements.
DATE INTRODUCED: February 9, 2011
CODE REFERENCE: New §33-12-32a
PROPOSED LAW PRESENTED TO THE COMMITTEE:
The stated purpose of S.B. 472 is to provide an exemption from insurance licensing requirements for vendors of portable electronics when they offer portable electronics insurance.
In summary, the new section provides as follows:
• New definitions. §33-12-32a(a). For instance, “Portable electronics insurance” means insurance providing coverage for the repair or replacement of portable electronics which may cover portable electronics against any one or more of the following causes of loss: Loss, theft, mechanical failure, malfunction, damage or other applicable perils.
• Exemption from producer licensing requirements for the vendor and its employees or authorized representatives. §33-12-32a(b).
• Requirements for the sale of portable electronics insurance, including the availability of written materials summarizing the material insurance terms and process for filing a claim. §33-12-32a(c).
• Authorizing vendors to sell or offer portable electronics insurance without being subject to licensure as insurance producers. §33-12-32a(d). As part of this subsection, the vendor must comply with the provisions of this new section and its employees and authorized representatives must be trained. Also, the compensation of its employees and authorized representatives may not be based primarily on the number of customers enrolled for portable electronics insurance.
• Suspension of privileges. §33-12-32a(e). The Insurance Commissioner may punish violations of this section after notice and hearing by imposing fines and other penalties, including suspending transaction privileges at specific business locations or for specific individual or authorized representatives.
• Termination of portable electronics insurance, including allowing the insurer to change terms and conditions upon providing sixty-days notice, terminating a customer’s enrollment upon fifteen days notice for fraud or material misrepresentation in obtaining coverage or in the presentation of a claim, and terminating a customer’s enrollment immediately for nonpayment of premium, cessation of active service with the vendor or if the customer exhausted the aggregate limit of liability, if any. §33-12-32a(f).
TITLE: The title should reflect the possible imposition of fines and penalties.
FISCAL NOTE: No
GOVERNMENT AGENCIES AFFECTED: West Virginia Insurance Commissioner
EFFECTIVE DATE: 90 days from passage
OTHER COMMITTEE REFERENCE AND/OR ACTION: Committee on the Judiciary
COMMENTS: The title should reflect the possible imposition of fines and penalties.