HB 12-1071 Summary: Portable Electronics Insurance

• Creates a new regulatory framework for portable electronics insurance in Colorado, allowing vendors to sell insurance coverage for devices like cell phones, laptops, and tablets through a limited lines producer license.

• Requires vendors to provide customers with written disclosures explaining coverage details, deductibles, claim procedures, the right to cancel anytime, and that insurance may duplicate existing homeowner or renter policies.

• Vendors and their employees can sell portable electronics insurance without individual insurance producer licenses if the vendor obtains a limited lines license and implements a training program overseen by a supervising entity (insurer or insurance producer).

• Prohibits vendors from compensating employees primarily based on enrollment numbers and requires charges for coverage to be separately itemized; all premium charges held in trust for the insurer's benefit.

• Allows insurers to terminate policies with 30 days' notice, but permits immediate termination for nonpayment (after 15 days' notice), fraud, or when customers cease active service; effective January 1, 2013.