Bill Text: IL HB5047 | 2011-2012 | 97th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Portable Electronics Insurance Act. Provides that a business entity that is a licensed insurance producer or insurer (supervising entity) shall maintain a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage in the State and that, upon request by the Director of Insurance and with 10 days notice to the supervising entity, the registry shall be open to inspection and examination by the Director during the regular business hours of the supervising entity. Makes changes to the provision requiring brochures or other written materials be made available to prospective customers at every location where portable electronics insurance is offered. Deletes language concerning notice with regard to the termination of portable electronics insurance and provides instead that whenever notice or correspondence with respect to a policy of portable electronics insurance is required pursuant to the provision concerning termination of portable electronics insurance or is otherwise required by law, it shall be in writing and sent within the notice period, if any, specified within the statute or regulation. Sets forth provisions concerning notice requirements.

Spectrum: Bipartisan Bill

Status: (Passed) 2012-08-10 - Public Act . . . . . . . . . 97-0939 [HB5047 Detail]

Download: Illinois-2011-HB5047-Enrolled.html

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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Portable Electronics Insurance Act is
amended by changing Sections 10, 15, and 30 as follows:
(215 ILCS 136/10)
Sec. 10. Licensure of vendors.
(a) In order to sell or offer coverage under a policy of
portable electronics insurance, a vendor is required to hold a
limited-lines license.
(b) A limited-lines license issued under this Act shall
authorize 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.
(c) The supervising entity shall maintain a registry of
vendor locations that are authorized to sell or solicit
portable electronics insurance coverage in this State. Upon
request by the Director and with 10 days notice to the
supervising entity, the registry shall be open to inspection
and examination by the Director during the regular business
hours of the supervising entity. In connection with a vendor's
application for licensure and quarterly thereafter, the vendor

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shall provide a list to the Director of all locations in this
State at which it offers coverage.
(d) Notwithstanding any other provision of law, a license
issued pursuant to this Act shall authorize the licensee and
its employees or authorized representatives to engage only in
those activities that are permitted in this Act.
(Source: P.A. 97-366, eff. 1-1-12.)
(215 ILCS 136/15)
Sec. 15. Requirements for 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. The brochures
or other written materials shall do all of the following:
(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;

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(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 enrolled customer
fails to comply with any equipment return requirements; and
(5) state that the 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 within 15 days after receipt of the refund
by the vendor.
(a-5) Any refund or credit due to an enrolled customer
shall be issued within 15 days after receipt of the refund by
the vendor.
(b) 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.
(c) Eligibility and underwriting standards for customers

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electing to enroll in coverage shall be established for each
portable electronics insurance program.
(Source: P.A. 97-366, eff. 1-1-12.)
(215 ILCS 136/30)
Sec. 30. Termination of portable electronics insurance.
Notwithstanding any other provision of law:
(1) An insurer may terminate or otherwise change the
terms and conditions of a policy of portable electronics
insurance only upon providing the policyholder and
enrolled customers with at least 60 days notice.
(2) 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 that a change in the terms and
conditions has occurred and a summary of the material
changes.
(3) Notwithstanding item (2) of this Section, an
insurer may terminate an enrolled customer's enrollment
under a portable electronics insurance policy upon 15 days
notice for discovery of fraud or material
misrepresentation in obtaining coverage or in the
presentation of a claim thereunder.
(4) Notwithstanding item (2) of this Section, an
insurer may immediately terminate an enrolled customer's

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enrollment under a portable electronics insurance policy:
(A) for nonpayment of premium;
(B) if the enrolled customer ceases to have an
active service with the vendor of portable
electronics; or
(C) 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 30 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.
(5) When a portable electronics insurance policy is
terminated by a policyholder, the policyholder shall mail
or deliver 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 30 days prior to the termination.
(6) Whenever notice or correspondence with respect to a
policy of portable electronics insurance is required
pursuant to this Section or is otherwise required by law,
it shall be in writing and sent within the notice period,
if any, specified within the statute or regulation

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requiring the notice or correspondence. Notwithstanding
any other provision of law, notices and correspondence may
be sent either by mail or by electronic means as set forth
in this paragraph (6). If the notice or correspondence is
mailed, it shall be sent to the vendor of portable
electronics at the vendor's mailing address specified for
such purpose and to its affected enrolled customers' last
known mailing addresses on file with the insurer. The
insurer or vendor of portable electronics, as the case may
be, shall maintain proof of mailing in a form authorized or
accepted by the United States Postal Service or other
commercial mail delivery service. If the notice or
correspondence is sent by electronic means, it shall be
sent to the vendor of portable electronics at the vendor's
electronic mail address specified for such 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, as the case may
be. For purposes of this paragraph (6), an enrolled
customer's provision of an electronic mail address to the
insurer or vendor of portable electronics, as the case may
be, shall be deemed consent to receive notices and
correspondence by electronic means. The insurer or vendor
of portable electronics, as the case may be, shall maintain
proof that the notice or correspondence was sent. Whenever
notice is required pursuant to this Section, it shall be in

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writing and may be mailed or delivered to the vendor of
portable electronics at the vendor's mailing address and to
its affected enrolled customers' last known mailing
addresses on file with the insurer. If notice is mailed,
then the insurer or vendor of portable electronics, as the
case may be, shall maintain proof of mailing in a form
authorized or accepted by the United States Postal Service
or other commercial mail delivery service. Alternatively,
an insurer or vendor policyholder may comply with any
notice required by this Section by providing electronic
notice to a vendor or its affected enrolled customers, as
the case may be, by electronic means. If notice is
accomplished through electronic means, then the insurer or
vendor of portable electronics shall maintain proof that
the notice was sent.
(7) Notice or correspondence required by this Section
or otherwise required by law may be sent on behalf of an
insurer or vendor, as the case may be, by the supervising
entity appointed by the insurer.
(Source: P.A. 97-366, eff. 1-1-12.)