§ 379.1510 — Authorization to sell, vendor responsibilities — eligibility and underwriting standards — supervising business entity to be appointed, purpose — training requirements — collection of charges.

Missouri § 379.1510

• Jurisdiction: Missouri
• Title XXIV: BUSINESS AND FINANCIAL INSTITUTIONS
• Ch. 379: Insurance Other Than Life

Text

1.  A vendor shall have the obligation to ensure that every location that is authorized to sell, solicit, or negotiate portable electronics insurance to customers shall have specific brochures available to prospective customers which:

(1)  Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's, renter's, or other source of coverage;

(2)  State that the enrollment by the customer in a portable electronics insurance program is not required in order to purchase or lease portable electronics or services;

(3)  Summarize the material terms of the insurance coverage, including:

(a)  The identity of the insurer;

(b)  The identity of the supervising business entity;

(c)  The amount of any applicable deductible and how it is to be paid;

(d)  Benefits of the coverage; and

(e)  Key terms and conditions of coverage, such as whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

(4)  Summarize the process for filing a claim, including any requirement to return portable electronics and the maximum fee applicable in the event the customer fails to comply with any equipment return requirements; and

(5)  State that the customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and receive a refund of any unearned premium on a pro rata basis.

2.  Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance program.  Each insurer shall maintain all eligibility and underwriting records for a period of five years.  Portable electronics insurance issued under sections 379.1500 to 379.1550 shall be deemed primary coverage over any other collateral coverage and any policy or certificate of coverage issued subsequent to January 1, 2015, shall contain a disclosure to that effect.  A policy or certificate of coverage shall be made available to prospective customers at the point of sale or delivered to an enrolled customer within sixty days from the date a customer enrolls for coverage.

3.  Insurers offering portable electronics insurance coverage through vendors shall appoint a supervising business entity to supervise the administration of the program.  The supervising business entity shall be responsible for the development of a training program for employees and authorized representatives of a vendor, and shall include basic instruction about the portable electronics insurance offered to customers and the disclosures required under this section.

4.  Insurers and applicable supervising business entities offering portable electronics insurance shall share all complaint, grievance, or inquiries regarding any conduct that is specific to a vendor and that may not comply with applicable state laws and regulations.

5.  A supervising business entity shall maintain a registry of vendor locations which are authorized to sell or solicit portable electronics insurance coverage in this state.  Upon request by the director and with ten days' notice to the supervising business entity, the registry shall be open to inspection and examination by the director during regular business hours of the supervising business entity.

6.  Within thirty days of a supervising business entity terminating a vendor location's appointment to sell or solicit portable electronics insurance, the supervising business entity shall update the registry with the effective date of termination.  If a supervising business entity has possession of information relating to any cause for discipline under section 375.141 , the supervising business entity shall notify the director of such information in writing.  The privileges and immunities applicable to insurers under section 375.022 shall apply to supervising business entities for any information reported under this subsection.

7.  The supervising business entity shall not charge a fee for adding or removing a vendor location from the registry.

8.  No employee or authorized representative of a vendor shall advertise, represent, or otherwise hold himself or herself out as an insurance producer, unless such employee or authorized representative is otherwise licensed as an insurance producer.

9.  The training required in subsection 3 of this section shall be delivered to all employees and authorized representatives of the vendors who are directly engaged in the activity of selling portable electronics insurance in this state.  The training may be provided in electronic form.  However, if conducted in an electronic form, the supervising business entity shall implement a supplemental education program regarding the portable electronics insurance product that is conducted and overseen by licensed employees of the supervising business entity.

10.  The charges for portable electronics insurance coverage may be billed and collected by the vendor.  Any charge to the customer that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the customer's bill.  If the portable electronics insurance is included in the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the customer that the portable electronics insurance coverage is included with the portable electronics or related services.  Vendors billing and collecting such charges shall not be required to maintain such funds in a segregated account, provided that the insurer authorized the vendor to hold such funds in an alternative manner and remits such amounts to the supervising business entity within forty-five days of receipt.  All funds received by a vendor from a customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer.  Vendors shall maintain all records related to the purchase of portable electronics insurance for a period of three years from the date of purchase.

Legislative History

(L. 2011 S.B. 132, A.L. 2013 H.B. 58) Effective 6-25-13