LRB-3860/1
ARG&TJD:kjf:jm
2013 - 2014 LEGISLATURE
January 27, 2014 - Introduced by Senators Lasee,
Schultz and Olsen, cosponsored
by Representatives Nygren, Marklein, Ballweg, Bies, Strachota, Kahl and
Bernier. Referred to Committee on Insurance and Housing.
SB524,1,2
1An Act to amend 632.975 (2) (d); and
to create 424.301 (6) and 424.401 (6) of
2the statutes;
relating to: portable electronics insurance.
Analysis by the Legislative Reference Bureau
Current law establishes criteria for selling and offering portable electronics
insurance and imposes certain requirements and restrictions relating to the sale of
portable electronics insurance. Portable electronics insurance is insurance
providing coverage for the repair or replacement of portable electronics that may
provide coverage for a portable electronic device against loss, theft, inoperability due
to mechanical failure, malfunction, or damage, but portable electronics insurance
does not include a service contract or extended warranty. A vendor of portable
electronics may sell or offer to its customers coverage under a policy of portable
electronics insurance issued by an insurer to the vendor and may bill and collect from
its customers charges for the portable electronics insurance coverage. The vendor
must make available for customers a brochure or other written material that
contains certain disclosures, including that a customer is not required to enroll in
portable electronics insurance as a condition of purchasing or leasing a portable
electronics device and that an enrolled customer may cancel coverage at any time
and receive a refund of any unearned premium.
Also under current law, the Wisconsin Consumer Act (WCA) imposes certain
requirements and restrictions on creditors that contract for insurance coverage in
connection with a consumer credit transaction. With a limited exception, a creditor
may not contract for or receive a separate charge for insurance against loss of or
damage to property unless the amount financed, exclusive of charges for the
insurance, is $800 or more and the value of the property is $800 or more. The WCA
also imposes other limitations on a creditor's ability to contract for or receive a
separate charge for insurance against loss of or damage to the customer's property.
For certain insurance products sold by a creditor, the WCA allows the customer to
cancel the insurance product within 30 days and the creditor must provide notice of
this 30-day cancellation period.
Under this bill, these provisions of the WCA do not apply to portable electronics
insurance.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB524,1
1Section
1. 424.301 (6) of the statutes is created to read:
SB524,2,32
424.301
(6) This section does not apply to portable electronics insurance, as
3defined in s. 632.975 (1) (e).
SB524,2
4Section
2. 424.401 (6) of the statutes is created to read:
SB524,2,65
424.401
(6) This section does not apply to portable electronics insurance, as
6defined in s. 632.975 (1) (e).
SB524,3
7Section
3. 632.975 (2) (d) of the statutes is amended to read:
SB524,2,118
632.975
(2) (d)
Applicability of existing law. A vendor selling or offering
9portable electronics insurance is subject to ss. 601.41, 601.42, 601.61, 601.63, and
10601.64, except that any forfeitures or penalties shall be in the amounts specified in
11sub. (3).
Sections 424.301 and 424.401 do not apply to portable electronics insurance.
