Full Text of HB5047 97th General Assembly
HB5047enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning insurance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Portable Electronics Insurance Act is | 5 | | amended by changing Sections 10, 15, and 30 as follows: | 6 | | (215 ILCS 136/10)
| 7 | | Sec. 10. Licensure of vendors. | 8 | | (a) In order to sell or offer coverage under a policy of | 9 | | portable electronics
insurance, a vendor is required to hold a | 10 | | limited-lines license. | 11 | | (b) A limited-lines license issued under this Act shall | 12 | | authorize any employee or authorized representative of the | 13 | | vendor to sell or offer coverage under a policy of portable | 14 | | electronics insurance to a customer at each location at which | 15 | | the vendor engages in portable electronics transactions. | 16 | | (c) The supervising entity shall maintain a registry of | 17 | | vendor locations that are authorized to sell or solicit | 18 | | portable electronics insurance coverage in this State. Upon | 19 | | request by the Director and with 10 days notice to the | 20 | | supervising entity, the registry shall be open to inspection | 21 | | and examination by the Director during the regular business | 22 | | hours of the supervising entity. In connection with a vendor's | 23 | | application for licensure and quarterly thereafter, the vendor |
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| 1 | | shall provide a list to the Director of all locations in this | 2 | | State at which it offers coverage. | 3 | | (d) Notwithstanding any other provision of law, a license | 4 | | issued pursuant to this Act shall authorize the licensee and | 5 | | its employees or authorized representatives to engage only in | 6 | | those activities that are permitted in this Act.
| 7 | | (Source: P.A. 97-366, eff. 1-1-12.) | 8 | | (215 ILCS 136/15)
| 9 | | Sec. 15. Requirements for sale of portable electronics | 10 | | insurance. | 11 | | (a) At every location where portable electronics insurance | 12 | | is offered to customers, brochures or other written materials | 13 | | must be made available to a prospective customer. The brochures | 14 | | or other written materials shall do all of the following: | 15 | | (1) disclose that portable electronics insurance may | 16 | | provide a duplication of coverage already provided by a | 17 | | customer's homeowner's insurance policy, renter's | 18 | | insurance policy, or other source of coverage; | 19 | | (2) state that the enrollment by the customer in a | 20 | | portable electronics insurance program is not required in | 21 | | order to purchase or lease portable electronics or | 22 | | services; | 23 | | (3) summarize the material terms of the insurance | 24 | | coverage, including: | 25 | | (A) the identity of the insurer; |
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| 1 | | (B) the identity of the supervising entity; | 2 | | (C) the amount of any applicable deductible and how | 3 | | it is to be paid; | 4 | | (D) benefits of the coverage; and | 5 | | (E) key terms and conditions of coverage, such as | 6 | | whether portable electronics may be repaired or | 7 | | replaced with similar make and model reconditioned or | 8 | | nonoriginal manufacturer parts or equipment; | 9 | | (4) summarize the process for filing a claim, including | 10 | | a description of how to return portable electronics and the | 11 | | maximum fee applicable in the event the enrolled customer | 12 | | fails to comply with any equipment return requirements; and | 13 | | (5) state that the enrolled customer may cancel | 14 | | enrollment for coverage under a portable electronics | 15 | | insurance policy at any time and the person paying the | 16 | | premium shall receive a refund or credit of any applicable | 17 | | unearned premium within 15 days after receipt of the refund | 18 | | by the vendor . | 19 | | (a-5) Any refund or credit due to an enrolled customer | 20 | | shall be issued within 15 days after receipt of the refund by | 21 | | the vendor. | 22 | | (b) Portable electronics insurance may be offered on a | 23 | | month-to-month or other periodic basis as a group or master | 24 | | commercial inland marine policy issued to a vendor of portable | 25 | | electronics for its enrolled customers. | 26 | | (c) Eligibility and underwriting standards for customers |
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| 1 | | electing to enroll in coverage shall be established for each | 2 | | portable electronics insurance program.
| 3 | | (Source: P.A. 97-366, eff. 1-1-12.) | 4 | | (215 ILCS 136/30)
| 5 | | Sec. 30. Termination of portable electronics insurance. | 6 | | Notwithstanding any other provision of law: | 7 | | (1) An insurer may terminate or otherwise change the | 8 | | terms and conditions of a policy of portable electronics | 9 | | insurance only upon providing the policyholder and | 10 | | enrolled customers with at least 60 days notice. | 11 | | (2) If the insurer changes the terms and conditions, | 12 | | then the insurer shall provide the vendor policyholder with | 13 | | a revised policy or endorsement and each enrolled customer | 14 | | with a revised certificate, endorsement, updated brochure, | 15 | | or other evidence indicating that a change in the terms and | 16 | | conditions has occurred and a summary of the material | 17 | | changes. | 18 | | (3) Notwithstanding item (2) of this Section, an | 19 | | insurer may terminate an enrolled customer's enrollment | 20 | | under a portable electronics insurance policy upon 15 days | 21 | | notice for discovery of fraud or material | 22 | | misrepresentation in obtaining coverage or in the | 23 | | presentation of a claim thereunder. | 24 | | (4) Notwithstanding item (2) of this Section, an | 25 | | insurer may immediately terminate an enrolled customer's |
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| 1 | | enrollment under a portable electronics insurance policy: | 2 | | (A) for nonpayment of premium; | 3 | | (B) if the enrolled customer ceases to have an | 4 | | active service with the vendor of portable | 5 | | electronics; or | 6 | | (C) if an enrolled customer exhausts the aggregate | 7 | | limit of liability, if any, under the terms of the | 8 | | portable electronics insurance policy and the insurer | 9 | | sends notice of termination to the enrolled customer | 10 | | within 30 calendar days after exhaustion of the limit; | 11 | | however, if notice is not timely sent, enrollment shall | 12 | | continue, notwithstanding the aggregate limit of | 13 | | liability, until the insurer sends notice of | 14 | | termination to the enrolled customer.
| 15 | | (5) When a portable electronics insurance policy is | 16 | | terminated by a policyholder, the policyholder shall mail | 17 | | or deliver written notice to each enrolled customer | 18 | | advising the enrolled customer of the termination of the | 19 | | policy and the effective date of termination. The written | 20 | | notice shall be mailed or delivered to the enrolled | 21 | | customer at least 30 days prior to the termination. | 22 | | (6) Whenever notice or correspondence with respect to a | 23 | | policy of portable electronics insurance is required | 24 | | pursuant to this Section or is otherwise required by law, | 25 | | it shall be in writing and sent within the notice period, | 26 | | if any, specified within the statute or regulation |
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| 1 | | requiring the notice or correspondence. Notwithstanding | 2 | | any other provision of law, notices and correspondence may | 3 | | be sent either by mail or by electronic means as set forth | 4 | | in this paragraph (6). If the notice or correspondence is | 5 | | mailed, it shall be sent to the vendor of portable | 6 | | electronics at the vendor's mailing address specified for | 7 | | such purpose and to its affected enrolled customers' last | 8 | | known mailing addresses on file with the insurer. The | 9 | | insurer or vendor of portable electronics, as the case may | 10 | | be, shall maintain proof of mailing in a form authorized or | 11 | | accepted by the United States Postal Service or other | 12 | | commercial mail delivery service. If the notice or | 13 | | correspondence is sent by electronic means, it shall be | 14 | | sent to the vendor of portable electronics at the vendor's | 15 | | electronic mail address specified for such purpose and to | 16 | | its affected enrolled customer's last known electronic | 17 | | mail address as provided by each enrolled customer to the | 18 | | insurer or vendor of portable electronics, as the case may | 19 | | be. For purposes of this paragraph (6), an enrolled | 20 | | customer's provision of an electronic mail address to the | 21 | | insurer or vendor of portable electronics, as the case may | 22 | | be, shall be deemed consent to receive notices and | 23 | | correspondence by electronic means. The insurer or vendor | 24 | | of portable electronics, as the case may be, shall maintain | 25 | | proof that the notice or correspondence was sent. Whenever | 26 | | notice is required pursuant to this Section, it shall be in |
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| 1 | | writing and may be mailed or delivered to the vendor of | 2 | | portable electronics at the vendor's mailing address and to | 3 | | its affected enrolled customers' last known mailing | 4 | | addresses on file with the insurer. If notice is mailed, | 5 | | then the insurer or vendor of portable electronics, as the | 6 | | case may be, shall maintain proof of mailing in a form | 7 | | authorized or accepted by the United States Postal Service | 8 | | or other commercial mail delivery service. Alternatively, | 9 | | an insurer or vendor policyholder may comply with any | 10 | | notice required by this Section by providing electronic | 11 | | notice to a vendor or its affected enrolled customers, as | 12 | | the case may be, by electronic means. If notice is | 13 | | accomplished through electronic means, then the insurer or | 14 | | vendor of portable electronics shall maintain proof that | 15 | | the notice was sent.
| 16 | | (7) Notice or correspondence required by this Section | 17 | | or otherwise required by law may be sent on behalf of an | 18 | | insurer or vendor, as the case may be, by the supervising | 19 | | entity appointed by the insurer. | 20 | | (Source: P.A. 97-366, eff. 1-1-12.)
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