§ 26.1-26.7-04 — Authority of vendors of portable electronic devices

North Dakota § 26.1-26.7-04

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-26.7: Portable Electronics Insurance

Text

1. An employee and an authorized representative of a vendor may sell or offer portable
electronics insurance to customers and are not subject to licensure as an insurance
producer under this chapter if:
a. The vendor obtains a limited lines license to authorize the vendor's employees or
authorized representatives to sell or offer portable electronics insurance under
this chapter.
b. The vendor files an acknowledgment with the commissioner in a form and
manner directed by the commissioner which the vendor's counter sales personnel
and authorized representatives act on the vendor's behalf and the vendor is

responsible for any representations made by the counter sales personnel or
authorized representatives relating to insurance products offered through the
vendor. The acknowledgment must state the commissioner may take any
administrative action contemplated in this title.
c. The insurer issuing the portable electronics insurance either directly supervises or
the vendor supervises the development of a training program for employees and
authorized representatives of the vendors. The training required by this
subdivision must comply with the following:
(1) The training must be delivered to employees and authorized representatives
of vendors who are directly engaged in the activity of selling or offering
portable electronics insurance, and the training materials must be
maintained by the vendor and be made available to the commissioner for
inspection upon request; and
(2) Each employee and authorized representative shall receive basic instruction
about the portable electronics insurance offered to customers and the
disclosures required under section 26.1-26.7-03; and
d. An employee or authorized representative of a vendor of portable electronic
devices may not advertise, represent, or otherwise hold out to the public as a
nonlimited lines-licensed insurance producer.
2. A vendor's employees and authorized representatives may not be paid directly by an
insurance company, a commission, or any other compensation for the sale of
insurance. However, this section does not prevent a vendor from including the
insurance products in an overall employee performance compensation incentive
program.
3. The vendor of portable electronic devices may bill and collect charges for portable
electronic devices insurance coverage. Any charge to the enrolled customer for
coverage that is not included in the cost associated with the purchase or lease of a
portable electronic device or related service must be separately itemized on the
enrolled customer's bill. If the portable electronics insurance coverage is included with
the purchase or lease of a portable electronic device or related services, the vendor
clearly and conspicuously shall disclose to the enrolled customer any portable
electronics insurance coverage included with the portable electronic device or related
service, and the stand-alone cost of the premium for the same or similar insurance
must be made on the customer's bill and in any marketing materials made available at
the point of sale. A vendor billing and collecting the charges are not required to
maintain the funds in a segregated account if the vendor is authorized by the insurer to
hold the funds in an alternative manner. All funds received by a vendor from an
enrolled customer for the sale of portable electronics insurance must be considered
funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. A
vendor may receive compensation for billing and collection services.