§ 10-4-1504 — Authority of vendors of portable electronics

Colorado § 10-4-1504

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

(1) The employees
and authorized representatives of vendors may sell or offer portable electronics
insurance to customers and are not subject to licensure as an insurance producer
under this title if:

(a) The vendor obtains a limited lines producer license to authorize its
employees or authorized representatives to sell or offer portable electronics
insurance pursuant to this section;

(b) The insurer issuing the portable electronics insurance either directly
supervises, authorizes, or appoints a supervising entity to supervise the
administration of the program, including development of a training program for
employees and authorized representatives of the vendors. The supervising entity
shall include the following in the training program, which must include employees
and authorized representatives of vendors who are directly engaged in the activity
of selling or offering portable electronics insurance:

(I) A supplemental education program regarding the portable electronics
insurance product that is conducted and overseen by licensed employees of the
supervising entity if the training program is provided in electronic format; and

(II) Instruction to each employee or authorized representative about the
portable electronics insurance offered to customers and the disclosures required
under section 10-4-1503; and

(c) The employee or authorized representative of a vendor does not
advertise, represent, or otherwise hold himself or herself out as a nonlimited lines
licensed insurance producer.

(2) Notwithstanding any other provision of law, a vendor shall not
compensate employees or authorized representatives of a vendor based primarily
on the number of customers enrolled for portable electronics insurance coverage,
but the vendor may compensate employees or authorized representatives for
activities under the limited lines license as long as the compensation is incidental to
the employee's or authorized representative's overall compensation.

(3) A vendor may bill and collect charges for portable electronics insurance
coverage. A vendor shall separately itemize any charge to the enrolled customer for
coverage that is not included in the cost associated with the purchase or lease of
portable electronics and any related services. If the portable electronics insurance
coverage is included with the purchase or lease of portable electronics or related
services, the vendor shall clearly and conspicuously disclose to the enrolled
customer that the portable electronics insurance coverage is included with the
portable electronics or related services. Vendors billing and collecting the charges
are not required to maintain the charges in a segregated account if the vendor is
authorized by the insurer to hold the charges in an alternative manner and remits
the charges to the supervising entity within sixty days after receipt. All charges
received by a vendor from an enrolled customer for the sale of portable electronics
insurance are held in trust by the vendor in a fiduciary capacity for the benefit of
the insurer. Vendors may receive compensation for billing and collection services.

Legislative History

Source: L. 2012: Entire part added, (HB 12-1071), ch. 25, p. 70, � 1, effective January 1, 2013.