HF3251 Summary

• Removes "mobile telephone insurance" from the list of limited lines insurance that individual insurance producers may qualify for, while adding portable electronics insurance as a new limited lines category.

• Establishes a new regulatory framework for portable electronics insurance, requiring vendors to obtain a limited lines license and defining coverage as insurance for repair or replacement of portable electronic devices against loss, theft, mechanical failure, malfunction, damage, or other applicable perils.

• Mandates that vendors provide prospective customers with written materials disclosing potential coverage duplication, that enrollment is optional, material coverage terms, claim procedures, cancellation rights with pro rata refunds, and material exclusions or limitations.

• Requires vendors to hold a limited lines license, notify the commissioner within 30 days of adding or eliminating sales locations, employ a supervising agency to oversee program administration and training, and keep insurance funds held in fiduciary capacity remitted to the supervising agency within 60 days.

• Establishes licensing fees of $100 per location for vendors with ten or fewer locations and $6,500 for vendors with more than ten locations, plus appropriates $39,000 in fiscal year 2011 and base appropriations of $40,000 in 2012 and $41,000 in 2013 to the commerce commissioner for implementation.