1Amending the act of July 5, 2012 (P.L.995, No.112), entitled "An
2act providing for licensure of vendors, for requirements for 
3sale of portable electronics insurance, for authority of 
4vendors of portable electronics, for termination of portable 
5electronics insurance, for licensing, for renewal of license, 
6for injunctions and for appeals," further providing for
7authority of vendors of portable electronics and for
8termination of portable electronics insurance.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. Sections 5 and 6 of the act of July 5, 2012
12(P.L.995, No.112), known as the Portable Electronics Insurance
13Act, are amended to read:

14Section 5. Authority of vendors of portable electronics.

15(a) Authority and licensure.--The employees and authorized
16representatives of vendors may sell or offer portable
17electronics insurance to customers and shall not be subject to
18licensure as an insurance producer under [this chapter, provided
19that] Article VI-A of the act of May 17, 1921 (P.L.789, No.285), 
20known as The Insurance Department Act of 1921, if:

21(1) The vendor obtains a limited lines license to

1authorize its employees or authorized representatives to sell
2or offer portable electronics insurance under this section.

3(2) The insurer issuing the portable electronics
4insurance either directly supervises or authorizes a
5designated licensee to supervise the administration of the
6program, including development of a training program for
7employees and authorized representatives of the vendors. The
8training required by this paragraph shall comply with the
9following:

10(i) The training shall be delivered to employees and
11authorized representatives of a vendor who are directly
12engaged in the activity of selling, soliciting or
13negotiating portable electronics insurance.

14(ii) The training may be provided in electronic
15form. If conducted in an electronic form, the vendor
16shall implement a supplemental education program
17regarding portable electronics insurance that is
18conducted and overseen by the designated licensee.

19(iii) Each employee and authorized representative
20shall receive basic instruction about the portable
21electronics insurance offered to customers and the
22disclosures required under section 4.

23(3) No employee or authorized representative of a vendor
24of portable electronics shall advertise, represent or
25otherwise hold himself out as a licensed insurance producer.

26(b) Charges.--The charges for portable electronics insurance
27coverage may be billed and collected by the vendor of portable
28electronics. A charge to the enrolled customer for coverage that
29is not included in the cost associated with the purchase or
30lease of portable electronics or related services shall be

1separately itemized on the enrolled customer's bill. If the
2portable electronics insurance coverage is included with the
3purchase or lease of portable electronics or related services,
4the vendor shall clearly and conspicuously disclose to the
5enrolled customer that the portable electronics insurance
6coverage is included with the portable electronics or related
7services. Vendors billing and collecting the charges shall not
8be required to maintain the funds in a segregated account
9provided that the vendor is authorized by the insurer to hold
10the funds in an alternative manner and remits the amounts to the
11supervising entity within 60 days of receipt. The funds received
12by a vendor from an enrolled customer for the sale of portable
13electronics insurance shall be considered funds held in trust by
14the vendor in a fiduciary capacity for the benefit of the
15insurer. Vendors may receive compensation from the insurer for
16billing and collection services.

17Section 6. Termination or alteration of portable electronics
18insurance.

19Notwithstanding any other provision of law:

20(1) [An] Notwithstanding paragraph (2.1), an insurer may
21terminate an enrolled customer's enrollment under a portable
22electronics insurance policy upon 15 days' notice for
23discovery of fraud or material misrepresentation in obtaining
24coverage or in the presentation of a fraudulent claim.

25(2) [An] Notwithstanding paragraph (2.1), an insurer may
26immediately terminate an enrolled customer's enrollment under
27a portable electronics insurance policy:

28(i) if the enrolled customer ceases to have active
29service with the vendor of portable electronics; or

30(ii) if an enrolled customer exhausts the annual

1aggregate limit of liability under the terms of the
2portable electronics insurance policy and the insurer
3sends notice of termination to the enrolled customer
4within 30 calendar days after exhaustion of the limit. If
5notice is not timely sent, however, enrollment shall
6continue notwithstanding the annual aggregate limit of
7liability until the insurer sends notice of termination
8to the enrolled customer.

9(2.1) Except as provided under paragraphs (1) and (2),
10an insurer shall provide the vendor policyholder and each 
11enrolled customer with at least 60 days' notice prior to the 
12termination or alteration of the terms and conditions of a 
13policy of portable electronics insurance. If the terms and 
14conditions of a portable electronics insurance policy are 
15altered, the insurer shall provide:

16(i) the vendor policyholder with a revised policy or
17endorsement; and

18(ii) each enrolled customer with evidence indicating
19that an alteration has occurred and a summary of the
20material changes.

21(3) Where a portable electronics insurance policy is
22terminated by a policyholder, the policyholder shall mail or
23deliver written notice to each enrolled customer advising the
24enrolled customer of the termination of the policy and the
25effective date of termination. The written notice shall be
26mailed or delivered to the enrolled customer at least 30 days
27prior to the termination.

28(4) Whenever notice is required under this section, it
29shall be in writing and may be mailed or delivered to the
30vendor of portable electronics at the vendor's mailing

1address and to its affected enrolled customers' last known
2mailing addresses on file with the insurer. If notice is
3mailed, the insurer or vendor of portable electronics shall
4maintain proof of mailing in a form authorized or accepted by
5the United States Postal Service or other commercial mail
6delivery service. Alternatively, an insurer or vendor
7policyholder may comply with a notice required by this
8section by providing electronic notice to a vendor or its
9affected enrolled customers by electronic means. If notice is
10accomplished through electronic means, the insurer or vendor
11of portable electronics, as the case may be, shall maintain
12proof that the notice was sent.

13Section 2. The amendment of section 6 of the act shall apply
14to a portable electronics insurance policy offered, issued or
15renewed on or after the effective date of this section.

16Section 3. This act shall take effect in 60 days.