The bill requires the vendor to make available for customers a brochure or other
written material that discloses all of the following: 1) that portable electronics
insurance may duplicate coverage already provided by a customer's other insurance;
2) that a customer is not required to enroll in portable electronics insurance as a
condition of purchasing or leasing a portable electronics device; 3) a summary of the
material terms of the portable electronics coverage including the identity of the
insurer, the identity of any supervising entity, the amount of the deductible and how
to pay that deductible, the benefits of coverage, and the key terms and conditions of
coverage; 4) a summary of the process for filing a claim; and 5) that the enrolled
customer may cancel enrollment for coverage under a portable electronics insurance
policy at any time and that upon cancellation the person paying the premium
receives a refund of any applicable unearned premium.
Under the bill, the insurer is required to establish eligibility and underwriting
standards for customers electing to enroll in coverage for each portable electronics
insurance program. An insurer may terminate or otherwise change the terms and
conditions of a portable electronics insurance policy only after providing the
policyholder and all enrolled customers at least 30 days' notice before the
termination or change except that an insurer may terminate enrollment of a
customer after providing 15 days' notice when the enrolled customer committed
fraud or made a material misrepresentation in obtaining coverage or presenting a
claim and an insurer may terminate immediately the enrollment of a customer for
nonpayment of the premium or if the customer ceases to have active service with the
vendor. The bill allows an insurer to terminate the enrollment of a customer under
a portable electronics insurance policy if the customer exhausts the aggregate limit
of liability under the policy's terms and if the insurer sends notice of the termination
within 30 days after exhaustion of the limit. If the insurer does not send the notice
in a timely manner, the insurer must continue coverage, notwithstanding the
aggregate limit of liability, until the insurer sends the notice. If the vendor of
portable electronics terminates the insurance policy, the vendor shall provide
written notice to each enrolled customer advising of the termination at least 30 days
before the termination. The bill also sets requirements for providing notice or
correspondence that is required under the provisions of the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB429, s. 1 1Section 1. 628.02 (1) (b) 9. of the statutes is created to read:
SB429,3,3
1628.02 (1) (b) 9. A vendor, as defined in s. 632.975 (1) (i), or an employee or
2authorized representative of a vendor selling or offering portable electronics
3insurance under s. 632.975.
SB429, s. 2 4Section 2. 632.975 of the statutes is created to read:
SB429,3,5 5632.975 Portable electronics insurance. (1) Definitions. In this section:
SB429,3,66 (a) "Customer" means a person who purchases a portable electronic device.
SB429,3,87 (b) "Enrolled customer" means a customer who elects coverage under a portable
8electronics insurance policy issued to a vendor of portable electronics.
SB429,3,109 (c) "Location" means any physical location in the state or any Internet site, call
10center site, or similar location directed to residents of the state.
SB429,3,1311 (d) "Portable electronics" or "portable electronic devices" means electronic
12devices that are portable in nature, including accessories and services related to the
13use of the device.
SB429,3,1614 (e) 1. "Portable electronics insurance" means insurance providing coverage for
15the repair or replacement of portable electronics that may provide coverage for a
16portable electronic device against any of the following causes of loss:
SB429,3,1717 a. Loss.
SB429,3,1818 b. Theft.
SB429,3,1919 c. Inoperability due to mechanical failure.
SB429,3,2020 d. Malfunction.
SB429,3,2121 e. Damage.
SB429,3,2222 f. Other similar causes of loss.
SB429,3,2323 2. "Portable electronics insurance" does not include any of the following:
SB429,4,224 a. A service contract or extended warranty providing coverage limited to the
25repair, replacement, or maintenance of property for the operational or structural

1failure of property due to a defect in materials, workmanship, accidental damage
2from handling, power surges, or normal wear and tear.
SB429,4,43 b. A policy of insurance covering a vendor's or a manufacturer's obligations
4under a warranty.
SB429,4,65 c. A homeowner's, renter's, private passenger automobile, commercial
6multi-peril, or similar insurance policy.
SB429,4,97 (f) "Portable electronics insurance program" means the coverage options made
8available to customers of a vendor who elect to enroll for coverage of a portable
9electronic device under a policy of portable electronics insurance.
SB429,4,1110 (g) "Portable electronics transaction" means the sale or lease of a portable
11electronic device to a customer.
SB429,4,1512 (h) "Supervising entity" means a business entity that is a licensed insurer or
13licensed intermediary that is appointed by an insurer to supervise the
14administration of a portable electronics insurance program offered by a vendor to its
15customers.
SB429,4,1716 (i) "Vendor" means a person in the business of engaging in portable electronics
17transactions directly or indirectly.
SB429,4,21 18(2) Authority. (a) Requirements. A vendor or an employee or authorized
19representative of a vendor may sell or offer portable electronics insurance to
20customers without holding a certificate of authority under s. 601.04 or a license as
21an intermediary only if all of the following apply:
SB429,4,2222 1. The vendor complies with the requirements of this section.
SB429,5,223 2. The insurer issuing the portable electronics insurance either directly
24supervises, or appoints a supervising entity to supervise, the administration of the
25sale of portable electronics insurance, including development of a training program,

1as described under sub. (4), for employees and authorized representatives of the
2vendors.
SB429,5,73 3. The supervising entity, if any, maintains a registry of vendor locations at
4which an employee or authorized representative is authorized to sell or offer portable
5electronics insurance in this state. Upon request by the commissioner after
6providing 10 days' notice to the supervising entity, the supervising entity shall make
7available the registry for inspection and examination by the commissioner.
SB429,5,108 4. Any employee or authorized representative who intends to sell or offer
9portable electronics insurance to customers shall complete a training program under
10sub. (4).
SB429,5,1411 (b) Prohibited representations. No employee or authorized representative of a
12vendor of portable electronics may advertise, represent, or otherwise hold himself or
13herself out as a licensed insurance intermediary, if the employee or authorized
14representative does not hold a license as an intermediary in this state.
SB429,5,1815 (c) Scope. Compliance by a vendor with this section shall authorize any
16employee or authorized representative of a vendor to sell or offer coverage under a
17policy of portable electronics insurance to a customer at each location at which the
18vendor engages in portable electronics transactions.
SB429,5,21 19(3) Penalties. If a vendor of portable electronics or an employee or authorized
20representative of a vendor violates any provision of this section, the commissioner
21may do any of the following:
SB429,5,2322 (a) After notice and hearing, impose forfeitures not to exceed $500 per violation
23or $5,000 in the aggregate for violations.
SB429,5,2424 (b) Order, under s. 601.41 (4), any of the following:
SB429,6,2
11. Suspension of the selling or offering of portable electronics insurance at the
2specific business location where the violation occurred.
SB429,6,43 2. Suspension of the selling or offering of portable electronics insurance by an
4employee or authorized representative of a vendor.
SB429,6,7 5(4) Training. The insurer or supervising entity shall develop and administer
6the training program required under sub. (2) (a) 4. that complies with all of the
7following:
SB429,6,108 (a) The insurer or supervising entity shall deliver training to employees and
9authorized representatives of a vendor who are directly engaged in selling or offering
10portable electronics insurance.
SB429,6,1511 (b) The insurer or supervising entity may provide the training in electronic
12form. If the training is in electronic form, the insurer or supervising entity shall
13implement a supplemental education program regarding portable electronics
14insurance that is conducted and overseen by licensed employees of the insurer or
15supervising entity.
SB429,6,1916 (c) The insurer or supervising entity shall provide to every employee and
17authorized representative of a vendor basic instruction about the portable
18electronics insurance offered to customers and the disclosures required under sub.
19(6).
SB429,6,25 20(5) Compensation. (a) A vendor of portable electronics may not compensate an
21employee or authorized representative based primarily on the number of customers
22enrolled in portable electronics insurance coverage but the vendor may compensate
23an employee or authorized representative, in a manner that is incidental to his or her
24overall compensation, for activities related to the sale or offering of portable
25electronics insurance.
SB429,7,2
1(b) 1. A vendor of portable electronics may bill and collect the charges for
2portable electronics insurance coverage.
SB429,7,53 2. The vendor shall separately itemize on the enrolled customer's bill any
4charge to the enrolled customer for coverage that is not included in the cost
5associated with the purchase or lease of the portable electronics.
SB429,7,96 3. If the portable electronics insurance coverage is included with the purchase
7or lease of a portable electronic device, the vendor shall clearly and conspicuously
8disclose to the enrolled customer that the coverage is included with the purchase or
9lease of the portable electronic device.
SB429,7,1610 4. A vendor that bills and collects charges from an enrolled customer is not
11required to maintain those moneys in a segregated account if the insurer authorizes
12the vendor to hold those moneys in a manner other than a segregated account and
13if the vendor remits the moneys to the insurer or supervising entity within 60 days
14of receiving those moneys. The vendor shall consider all moneys received by that
15vendor from an enrolled customer for the sale of portable electronics insurance to be
16held in trust by that vendor in a fiduciary capacity for the benefit of the insurer.
SB429,7,1817 5. The insurer or supervising entity may compensate the vendor for billing and
18collection services.
SB429,7,21 19(6) Disclosures. At every location where portable electronics insurance is
20offered to customers, a vendor shall make available to prospective customers
21brochures or other written materials that contain all of the following:
SB429,7,2422 (a) A disclosure that portable electronics insurance may provide a duplication
23of coverage already provided by a customer's homeowner's insurance policy, renter's
24insurance policy, or other source of insurance coverage.
SB429,8,2
1(b) A statement that a customer is not required to enroll in portable electronics
2insurance as a condition of purchasing or leasing a portable electronic device.
SB429,8,43 (c) A summary of the material terms of the portable electronics insurance
4coverage including all of the following:
SB429,8,55 1. The identity of the insurer.
SB429,8,66 2. The identity of the supervising entity, if any.
SB429,8,77 3. The amount of any applicable deductible and how to pay that deductible.
SB429,8,88 4. The benefits of coverage.
SB429,8,129 5. The key terms and conditions of coverage such as whether a portable
10electronic device covered under the policy may be repaired or replaced with parts or
11equipment of a similar make and model that are reconditioned or are nonoriginal
12manufacturer parts or equipment.
SB429,8,1513 (d) A summary of the process for filing a claim, including a description of how
14to return a portable electronic device and the maximum fee applicable in the event
15the enrolled customer fails to comply with any equipment return requirement.
SB429,8,1916 (e) A statement that the enrolled customer may cancel enrollment for coverage
17under a portable electronics insurance policy at any time and that upon cancellation
18the person paying the premium receives a refund of any applicable unearned
19premium.
SB429,8,23 20(7) Permitted offering. A vendor may offer portable electronics insurance on
21a month to month or other periodic basis as a group or master commercial inland
22marine policy that is issued to a vendor of portable electronics for its enrolled
23customers.
SB429,9,3
1(8) Underwriting. An insurer shall establish eligibility and underwriting
2standards for customers electing to enroll in coverage for each portable electronics
3insurance program offered by a vendor to its customers.
SB429,9,8 4(9) Termination of insurance; changes to policy. (a) Except as provided in
5par. (c), an insurer may terminate or otherwise change the terms and conditions of
6a policy of portable electronics insurance only after providing the policyholder and
7all enrolled customers at least 30 days' notice before terminating the coverage or
8making the change.
SB429,9,139 (b) If the insurer changes the terms and conditions in accordance with par. (a),
10the insurer shall provide the vendor policyholder with a revised policy or
11endorsement and shall provide each enrolled customer a revised certificate,
12endorsement, updated brochure, or other evidence indicating that a change in the
13terms and conditions has occurred and a summary of the material changes.
SB429,9,1814 (c) 1. An insurer may terminate the enrollment of an enrolled customer under
15a portable electronics insurance policy after providing 15 days' notice if the insurer
16discovers that the enrolled customer committed fraud or made a material
17misrepresentation in obtaining coverage or in the presentation of a claim under the
18portable electronics insurance policy.
SB429,9,2119 2. An insurer may immediately terminate the enrollment of an enrolled
20customer under a portable electronics insurance policy for any of the following
21reasons:
SB429,9,2322 a. The enrolled customer fails to pay the premium for the portable electronics
23insurance policy.
SB429,9,2524 b. The enrolled customer ceases to have an active service with the vendor of
25portable electronics.
SB429,10,8
13. An insurer may terminate the enrollment of an enrolled customer under a
2portable electronics insurance policy if the enrolled customer exhausts any
3aggregate limit of liability under the terms of the portable electronics insurance
4policy and the insurer sends notice of termination to the enrolled customer within
530 days after exhaustion of the limit. If the insurer does not send the notice within
630 days after exhaustion of the limit, the insurer shall continue the coverage
7notwithstanding the aggregate limit of liability until the insurer sends notice of
8termination to the enrolled customer.
SB429,10,129 (d) If a portable electronics insurance policy is terminated by a vendor that
10owns the policy, the vendor shall mail or deliver, at least 30 days before the
11termination, written notice to each enrolled customer advising of the termination of
12the portable electronics insurance policy and the effective date of termination.
SB429,11,213 (e) Any notice or correspondence with respect to coverage under a policy of
14portable electronics insurance that is required under this section or is otherwise
15required by law shall be in writing and may be mailed to the vendor at the mailing
16address of the vendor and to the enrolled customers at their last known mailing
17addresses on file with the insurer or delivered by electronics means to the vendor and
18enrolled customers. If the notice or correspondence is mailed, the insurer, or vendor,
19that mailed the notice or correspondence, shall maintain proof of mailing in a form
20authorized or accepted by the U.S. postal service or other commercial mail delivery
21service. If delivery of the notice or correspondence is by electronic means, the insurer
22shall use the electronic mail address specified by the vendor for that purpose and the
23insurer, or vendor, shall use the last known electronic mail address provided by each
24enrolled customer. An enrolled customer who provides an electronic mail address to
25the insurer or vendor consents to receive notices and correspondence by electronic

1means. If delivery is by electronic means, the insurer or vendor, whichever delivers
2the notice or correspondence, shall maintain proof of delivery.
SB429,11,63 (f) A supervising entity may send any notice or correspondence required by this
4section or otherwise required by law. An insurer or vendor is not required to provide
5the notice or correspondence if it is provided by a supervising entity in a manner that
6complies with this section.
SB429,11,77 (End)
Loading...
Loading...