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| Public Act 097-0939
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| HB5047 Enrolled | LRB097 20156 RPM 65559 b |
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AN ACT concerning insurance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Portable Electronics Insurance Act is |
amended by changing Sections 10, 15, and 30 as follows:
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(215 ILCS 136/10)
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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.
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(Source: P.A. 97-366, eff. 1-1-12.)
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(215 ILCS 136/15)
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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.
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(Source: P.A. 97-366, eff. 1-1-12.)
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(215 ILCS 136/30)
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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.
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(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.
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(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.)
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