§ 44-8506 — Exemption from licensure as insurance producer; conditions; vendor; duties; treatment of funds

Nebraska § 44-8506

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

(1) An employee or
authorized representative of a vendor may sell or offer for sale portable
electronics insurance to customers and shall not be subject to licensure as
an insurance producer if:
(a) The vendor
obtains a limited lines insurance license pursuant to section 44-8503 that
authorizes its employees or authorized representatives to sell or offer for
sale portable electronics insurance under this section;
(b) The insurer
issuing the portable electronics insurance directly supervises or appoints
a supervising entity to supervise the administration of the insurance program,
including development of a training program for employees and authorized representatives
of a vendor. The training required by this subdivision shall comply with the
following:
(i) The training shall be delivered to employees and authorized
representatives of a vendor who are directly involved in the activity of selling
or offering for sale portable electronics insurance;
(ii) The training may
be provided in electronic form. If the training is provided in electronic
form, the supervising entity shall implement a supplemental education program
that is conducted and overseen by licensed employees of the supervising entity;
and
(iii) Each employee and authorized representative shall receive
basic instruction on the portable electronics insurance offered to customers
and the disclosures required by section 44-8505 ; and
(c) The vendor does not
advertise, represent, or otherwise hold itself or any of its employees or
authorized representatives out as authorized insurers or licensed insurance
producers.
(2) The charges for portable electronics insurance coverage may
be billed and collected by the vendor. Any charge to the customer for coverage
that is not included in the cost associated with the purchase or lease of
portable electronics shall be separately itemized on the covered customer's
bill. If the portable electronics insurance coverage is included in the purchase
or lease of portable electronics or related services, the vendor shall clearly
and conspicuously disclose to the customer that portable electronics insurance
coverage is included with the portable electronics or related services. No
vendor shall require the purchase of any kind of insurance specified in this
section as a condition of the purchase or lease of portable electronics or
services. If such insurance is purchased, the portable electronics insurance
coverage offered by the limited lines insurance licensee to a customer is
primary over any other insurance coverage applicable to the portable electronics.
A vendor who bills and collects such charges shall not be required to maintain
such funds in a segregated account if the vendor is authorized by the insurer
to hold such funds in an alternative manner and remits such amounts to the
supervising entity within sixty days after receipt. All funds received by
a vendor from a covered 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. A vendor may receive compensation for billing
and collection services.

Legislative History

Source: Laws 2011, LB535, § 6.