Public Act 097-0939
 
HB5047 EnrolledLRB097 20156 RPM 65559 b

    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
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;
            (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
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
    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
    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
    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.)