58-47-1      Definitions.
58-47-2      Portable electronics insurance defined.
58-47-3      Portable electronics license required to sell or offer portable electronics insurance coverage.
58-47-4      Brochures to be available at locations where portable electronics insurance offered--Contents.
58-47-5      Periodic basis as group or master commercial inland marine policy.
58-47-6      Insurance producer license not required for vendor employees or representatives under certain conditions.
58-47-7      Training program for vendor employees and representatives.
58-47-8      Vendor permitted to collect charges for portable electronics insurance--Funds held in trust for insurer--Vendor compensation.
58-47-9      Change in policy terms and conditions--Notice.
58-47-10      Termination of insurance upon twenty days notice.
58-47-11      Immediate termination of insurance.
58-47-12      Notice of termination.
58-47-13      Notice and correspondence requirements.
58-47-14      Term of portable electronics license--Renewal.
58-47-15      Penalties for violation of chapter.
58-47-16      Application for license.

58-47-1. Definitions.

Terms used in this chapter mean:

(1)    "Customer," any person who purchases portable electronics;

(2)    "Enrolled customer," any customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics;

(3)    "Location," any physical location in the state or any website, call center site, or similar location directed to residents of this state;

(4)    "Portable electronics," electronic devices and their accessories that are easily carried by a person;

(5)    "Portable electronics transaction," the sale or lease of portable electronics by a vendor to a customer, or the sale of a service related to the use of portable electronics by a vendor to a customer;

(6)    "Supervising entity," any licensed insurer, licensed business entity, or licensed insurance producer that is appointed by an insurer to supervise the administration of a portable electronics insurance program;

(7)    "Vendor," any person in the business of engaging in portable electronics transactions directly or indirectly.

Source: SL 2012, ch 251, § 1; SL 2017, ch 215, § 1.

58-47-2. Portable electronics insurance defined.

Portable electronics insurance is insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. It is not a service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling power surges, or normal wear and tear, a policy of insurance covering a seller's or a manufacturer's obligations under a warranty, or a homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar coverage.

Source: SL 2012, ch 251, § 2.

58-47-3. Portable electronics license required to sell or offer portable electronics insurance coverage.

A vendor must have a portable electronics license issued pursuant to this chapter to sell or offer coverage under a policy of portable electronics insurance. A portable electronics license issued under this chapter authorizes any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer at each location at which the vendor engages in portable electronics transactions. Each supervising entity shall maintain a registry of vendor locations which are authorized to sell or solicit portable electronics insurance coverage in this state. The registry shall be open to inspection by the director during regular business hours of the supervising entity. The supervising entity shall be subject to examination pursuant to the applicable provisions of chapter 58-3 and must otherwise comply with § 58-33-66.

Source: SL 2012, ch 251, § 3.

58-47-4. Brochures to be available at locations where portable electronics insurance offered--Contents.

At every location where portable electronics insurance is offered to customers, brochures or other written materials must be made available by a vendor 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:

(a)    The identity of the insurer;

(b)    The identity of the supervising entity;

(c)    The amount of any applicable deductible and how it is to be paid;

(d)    Benefits of the coverage; and

(e)    Key terms and conditions of coverage such as whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal 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; and

(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.

Source: SL 2012, ch 251, § 4.

58-47-5. Periodic basis as group or master commercial inland marine policy.

Portable electronics insurance may be offered on a month to month or other periodic basis as a group or master commercial inland marine policy issued to a vendor of portable electronics for its enrolled customers. Eligibility and underwriting standards for customers electing to enroll in coverage shall be established by the insurer for each portable electronics insurance program.

Source: SL 2012, ch 251, § 5.

58-47-6. Insurance producer license not required for vendor employees or representatives under certain conditions.

An employee or an authorized representative of a vendor may sell or offer portable electronics insurance to a customer and is not subject to licensure as an insurance producer if:

(1)    The vendor obtains a portable electronics license to authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this chapter;

(2)    The insurer issuing the portable electronics insurance either directly supervises or appoints a supervising entity to supervise the administration of the sale of portable electronic insurance; and

(3)    No employee or authorized representative of a vendor of portable electronics may advertise, represent, or otherwise hold himself or herself out as a licensed insurance producer unless so licensed.

Source: SL 2012, ch 251, § 6.

58-47-7. Training program for vendor employees and representatives.

The administration of the sale of portable electronics insurance includes the development of a training program for employees and authorized representatives of the vendors. The training shall be delivered to employees and authorized representatives of vendors who are directly engaged in the activity of selling or offering portable electronics insurance. 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 a licensed producer of the supervising entity. Each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under § 58-47-4.

Source: SL 2012, ch 251, § 7.

58-47-8. Vendor permitted to collect charges for portable electronics insurance--Funds held in trust for insurer--Vendor compensation.

Any charges for portable electronics insurance coverage may be billed and collected by the vendor of portable electronics. Each charge to the enrolled customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the enrolled customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the portable electronics or related services. A vendor billing and collecting these charges is not required to maintain these funds in a segregated account if the vendor is authorized by the insurer to hold these funds in an alternative manner and remits such amounts to the supervising entity within sixty days of receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. A vendor may receive compensation for billing and collection services.

Source: SL 2012, ch 251, § 8.

58-47-9. Change in policy terms and conditions--Notice.

An insurer may terminate or otherwise change the terms and conditions of a policy of portable electronics insurance only upon providing the vendor policyholder and enrolled customers with at least twenty days notice. If the insurer changes the terms and conditions, then the insurer shall provide the vendor policyholder with a revised policy or endorsement and each enrolled customer with a revised certificate, endorsement, updated brochure, or other evidence indicating a change in the terms and conditions has occurred and a summary of material changes.

Source: SL 2012, ch 251, § 9.

58-47-10. Termination of insurance upon twenty days notice.

An insurer may terminate an enrolled customer's enrollment under a portable electronics insurance policy upon twenty days notice for nonpayment of premium, discovery of fraud, or material misrepresentation in obtaining coverage or in the presentation of a claim under the policy.

Source: SL 2012, ch 251, § 10.

58-47-11. Immediate termination of insurance.

An insurer may immediately terminate an enrolled customer's enrollment under a portable electronics insurance policy:

(1)    If the enrolled customer ceases to have an active service with the vendor of portable electronics; or

(2)    If an enrolled customer exhausts the aggregate limit of liability, if any, under the terms of the portable electronics insurance policy and the insurer sends notice of termination to the enrolled customer within thirty calendar days after exhaustion of the limit. However, if notice is not timely sent, enrollment shall continue notwithstanding the aggregate limit of liability until the insurer sends notice of termination to the enrolled customer.

Source: SL 2012, ch 251, § 11.

58-47-12. Notice of termination.

If a portable electronics insurance policy is terminated by a vendor policyholder, the vendor policyholder shall mail or deliver a written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. The written notice shall be mailed or delivered to the enrolled customer at least thirty days before the termination.

Source: SL 2012, ch 251, § 12.

58-47-13. Notice and correspondence requirements.

If any notice or correspondence with respect to a policy of portable electronics insurance is required, the notice or correspondence shall be in writing and mailed within any notice period specified within the statute or regulation requiring the notice or correspondence. Notwithstanding any other law, any notice or correspondence may be mailed by postal or electronic means. If the notice or correspondence is mailed through any postal service, the notice or correspondence shall be sent to the vendor of portable electronics at the vendor's mailing address specified for that purpose and to its affected enrolled customer's last known mailing address on file with the insurer. Either the insurer or vendor of portable electronics shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or any other commercial mail delivery service. If the notice or correspondence is mailed by electronic means, the notice or correspondence shall be sent to the vendor of portable electronics at the vendor's electronic mail address specified for that purpose and to its affected enrolled customer's last known electronic mail address as provided by each enrolled customer to the insurer or vendor of portable electronics. An enrolled customer's provision of an electronic mail address to the insurer or vendor of portable electronics is deemed to be consent to receive notice or correspondence by electronic means so long as a disclosure is provided to the customer within a reasonable time following purchase of the portable electronics. The insurer or vendor of portable electronics shall maintain proof that any notice or correspondence was electronically mailed to an enrolled customer. Notice or correspondence may be sent on behalf of any insurer or vendor, by the supervising entity appointed by the insurer.

Source: SL 2012, ch 251, § 13; SL 2017, ch 215, § 2.

58-47-14. Term of portable electronics license--Renewal.

A portable electronics license issued under this chapter is valid for one year unless suspended or revoked by the division. A license may be renewed upon expiration for another one-year period upon application of the vendor and payment of the fees as set forth in § 58-2-29.

Source: SL 2012, ch 251, § 14.

58-47-15. Penalties for violation of chapter.

If a vendor of portable electronics or its employee or authorized representative violates any provision of this chapter, the director may do any of the following:

(1)    After notice and hearing, impose penalties permitted under this section that the director deems necessary and reasonable to carry out the purpose of this chapter, including, but not limited to:

(a)    Suspending or revoking the privilege of transacting portable electronics insurance pursuant to this chapter at specific business locations where violations have occurred; and

(b)    Suspending or revoking the ability of individual employees or authorized representatives to act under the license;

(2)    Permit an applicant or licensee to elect in writing to pay a specified money penalty within a specified time in lieu of a license suspension or other permitted action. The money penalty may not exceed five hundred dollars per violation or five thousand dollars in aggregate.

Source: SL 2012, ch 251, § 16.

58-47-16. Application for license.

An application for a license under this chapter shall be made to and filed with the director on forms prescribed and furnished by the director. The application shall provide:

(1)    The name, residence address, and other information required by the director for an employee or officer of the vendor that is designated by the applicant as the person responsible for the vendor's compliance with the requirements of this chapter; and

(2)    The location of the applicant's home office.

Any vendor engaging in portable electronics insurance transactions on or before July 1, 2012 must apply for licensure within ninety days of the application being made available by the director. Any applicant commencing operations after July 1, 2012 must obtain a portable electronics license prior to offering portable electronics insurance.

Source: SL 2012, ch 251, § 17.