AN ACT to amend the Indiana Code concerning insurance.
producers and the officer, director, or employee's activities are
limited to providing technical advice and assistance to
licensed insurance producers and do not include the sale,
solicitation, or negotiation of insurance.
(2) A person who secures and furnishes information for the purpose of:
(A) group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and sickness insurance;
(B) enrolling individuals under plans;
(C) issuing certificates under plans or otherwise assisting in administering plans; or
(D) performing administrative services related to mass marketed property and casualty insurance;
where no commission is paid to the person for the service.
(3) A person identified in clauses (A) through (C) who is not in any manner compensated, directly or indirectly, by a company issuing a contract, to the extent that the person is engaged in the administration or operation of a program of employee benefits for the employer's or association's employees, or for the employees of a subsidiary or affiliate of the employer or association, that involves the use of insurance issued by an insurer:
(A) An employer or association.
(B) An officer, director, or employee of an employer or association.
(C) The trustees of an employee trust plan.
(A) employee of an insurer; or
(B) organization employed by insurers;
that is engaged in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers, and that is not individually engaged in the sale, solicitation, or negotiation of insurance.
(5) A person whose activities in Indiana are limited to advertising, without the intent to solicit insurance in Indiana, through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of Indiana, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in Indiana.
(6) A person who is not a resident of Indiana and who sells, solicits, or negotiates a contract of insurance for commercial
property and casualty risks to an insured with risks located in
more than one (1) state insured under that contract, provided that:
(A) the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate the insurance in the state where the insured maintains its principal place of business; and
(B) the contract of insurance insures risks located in that state.
(7) A salaried full-time employee who counsels or advises the employee's employer about the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission.
(8) An officer, employee, or representative of a rental company (as defined in IC 24-4-9-7) who negotiates or solicits insurance incidental to and in connection with the rental of a motor vehicle.
(9) An individual who:
(A) furnishes only title insurance rate information at the request of a consumer; and
(B) does not discuss the terms or conditions of a title insurance policy.
(10) An employee or authorized representative of a vendor that is licensed as a limited lines producer under this chapter to sell, solicit, or negotiate portable electronics insurance incidental to and in connection with portable electronics transactions as described in IC 27-1-15.9.
representative engages in the sale, solicitation, or
negotiation of portable electronics insurance; and
(B) may be provided in electronic form.
(3) Continuing training of an employee or authorized representative:
(A) must be provided on a periodic basis; and
(B) may be provided in electronic or another form.
(4) The training must be developed and overseen by employees of the supervising entity who are licensed as insurance producers under IC 27-1-15.6 with the qualifications described in IC 27-1-15.6-7(a)(3) and IC 27-1-15.6-7(a)(4).
(5) The training must provide basic instruction concerning the:
(A) portable electronics insurance offered to customers of the vendor; and
(B) disclosures required by section 12 of this chapter.
(d) An employee or authorized representative of a vendor shall not advertise, represent, or otherwise profess to be an insurance producer other than a limited lines producer licensed under IC 27-1-15.6.
Sec. 11. (a) A supervising entity shall:
(1) maintain a registry of locations described in section 10(b) of this chapter; and
(2) make the registry available for examination by the commissioner during the supervising entity's regular business hours.
(b) The commissioner shall, at least ten (10) days before the examination is conducted, provide to a supervising entity written notice of an examination described in subsection (a).
Sec. 12. (a) A vendor shall, at each location where portable electronics insurance is sold, solicited, or negotiated, make available to customers written materials concerning the portable electronics insurance.
(b) The written materials available under subsection (a) must do all the following:
(1) Disclose that portable electronics insurance may duplicate coverage already provided under a customer's homeowner's insurance policy, renter's insurance policy, or other coverage.
(2) State that the customer may purchase or lease portable electronics regardless of whether the customer also purchases portable electronics insurance.
with the purchase or lease of portable electronics, the
insurance cost must be separately itemized on the insured
(3) If the insurance cost is included in the cost associated with the purchase or lease of portable electronics, the vendor shall clearly and conspicuously disclose to the insured customer that the portable electronics insurance cost is included with the cost of the portable electronics.
(4) A vendor that bills and collects the charges shall maintain collected funds in a segregated account unless the:
(A) insurer that issues the portable electronics insurance policy authorizes the vendor to hold the funds in an alternative manner; and
(B) vendor remits the funds to the supervising entity less than sixty (60) days after the vendor receives the funds.
(5) All funds received by the vendor from an insured customer for the sale of portable electronics insurance are considered to be funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer.
(6) A vendor may receive from an insurer compensation for billing and collection services.
Sec. 16. (a) This section supplements and does not limit the actions that may be taken by the commissioner for a violation under IC 27-1-15.6.
(b) If a vendor or an employee or authorized representative of a vendor violates this chapter, the commissioner may do any of the following:
(1) After notice and hearing, impose on the vendor a civil penalty of not less than fifty dollars ($50) and not more than ten thousand dollars ($10,000).
(2) After notice and hearing, impose other penalties that the commissioner considers necessary and reasonable, including:
(A) suspending the privilege of transacting portable electronics insurance under this chapter at specific locations where violations have occurred; and
(B) suspending or revoking the ability of an individual employee or authorized representative to act under the vendor's limited lines producer license.
Sec. 17. (a) To the extent that this section conflicts with any other provision of IC 27 that applies to an insurer, this section is controlling.
(b) The following apply to an insurer that issues a portable
electronics insurance policy:
(1) Except as provided in subdivisions (3) and (4), an insurer shall provide written notice to a vendor and an insured customer at least thirty (30) days before terminating or otherwise changing the terms and conditions of a portable electronics insurance policy.
(2) An insurer that changes the terms and conditions as described in subdivision (1) shall provide to the vendor and insured customer:
(A) a revised policy, endorsement, or certificate;
(B) an updated brochure; or
(C) other evidence of the change;
including a summary of material changes.
(3) If an insurer discovers fraud or material misrepresentation by an insured customer in:
(A) obtaining portable electronics insurance; or
(B) presenting a claim under the portable electronics insurance;
the insurer may, not less than fifteen (15) days after providing written notice to the insured customer, terminate the insured customer's portable electronics insurance.
(4) An insurer may immediately terminate an insured customer's portable electronics insurance for the following reasons:
(A) Nonpayment of premiums.
(B) The insured customer no longer has active service with the vendor.
(i) insured customer has exhausted any aggregate limit of liability under the terms of the portable electronics insurance policy; and
(ii) insurer has sent written notice of the termination to the insured customer.
(5) If portable electronics insurance is terminated by a vendor, the vendor shall, at least thirty (30) days before the effective date of the termination, deliver written notice of the termination, including notice of the effective date of the termination, to each insured customer.
(6) Written notice required by this chapter may be delivered as follows:
(A) By United States mail to:
(i) a vendor at the mailing address specified by the
vendor for delivery of written notice; and
(ii) an insured customer at the insured customer's last known mailing address;
that is on file with the insurer.
(B) By electronic mail to:
(i) a vendor at the vendor's electronic mail address specified by the vendor for delivery of written notice; and
(ii) an insured customer at the insured customer's last known electronic mail address provided by the insured customer to the insurer or vendor.
An insured customer's provision of an electronic mail address to an insurer or a vendor is considered to be consent from the insured customer to receive written notices by electronic mail. An insurer and a vendor shall maintain proof that a written notice sent by electronic mail was sent.
(7) A written notice required by this chapter that is delivered by a supervising entity appointed by an insurer on behalf of the insurer or vendor is considered to have been delivered by the insurer or vendor.
Sec. 18. (a) A vendor shall apply for a limited lines producer license required by this chapter by filing a sworn application for the license with the commissioner on forms prescribed and furnished by the commissioner.
(b) An application filed under subsection (a) must include the following information:
(1) Except as provided in subdivision (2), the name, residence address, and other information required by the commissioner for an employee or officer of the vendor who is designated by the vendor as the individual who is responsible for the vendor's compliance with this chapter.
(2) If the vendor derives more than fifty percent (50%) of the vendor's revenue from the sale of portable electronics insurance, the name, residence address, and other information required by the commissioner for each officer, director, and shareholder of record that has beneficial ownership of at least ten percent (10%) of any class of securities registered by the vendor under federal securities law.
(3) The physical address of the vendor's home office.
added by this act.
(b) A vendor that sold, solicited, or negotiated portable electronics insurance on June 30, 2012, shall not sell, solicit, or negotiate portable electronics insurance after October 31, 2012, unless the vendor has, before November 1, 2012, obtained a limited lines license as required by IC 27-1-15.9, as added by this act.
(c) This SECTION expires January 1, 2014.