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:

1(1) The vendor obtains a limited lines license to
2authorize its employees or authorized representatives to sell
3or offer portable electronics insurance under this section.

4(2) The insurer issuing the portable electronics
5insurance either directly supervises or authorizes a
6designated licensee to supervise the administration of the
7program, including development of a training program for
8employees and authorized representatives of the vendors. The
9training required by this paragraph shall comply with the
10following:

11(i) The training shall be delivered to employees and
12authorized representatives of a vendor who are directly
13engaged in the activity of selling, soliciting or
14negotiating portable electronics insurance.

15(ii) The training may be provided in electronic
16form. If conducted in an electronic form, the vendor
17shall implement a supplemental education program
18regarding portable electronics insurance that is
19conducted and overseen by the designated licensee.

20(iii) Each employee and authorized representative
21shall receive basic instruction about the portable
22electronics insurance offered to customers and the
23disclosures required under section 4.

24(3) No employee or authorized representative of a vendor
25of portable electronics shall advertise, represent or
26otherwise hold himself out as a licensed insurance producer.

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

1lease of portable electronics or related services shall be
2separately itemized on the enrolled customer's bill. If the
3portable electronics insurance coverage is included with the
4purchase or lease of portable electronics or related services,
5the vendor shall clearly and conspicuously disclose to the
6enrolled customer that the portable electronics insurance
7coverage is included with the portable electronics or related
8services. Vendors billing and collecting the charges shall not
9be required to maintain the funds in a segregated account
10provided that the vendor is authorized by the insurer to hold
11the funds in an alternative manner and remits the amounts to the
12supervising entity within 60 days of receipt. The funds received
13by a vendor from an enrolled customer for the sale of portable
14electronics insurance shall be considered funds held in trust by
15the vendor in a fiduciary capacity for the benefit of the
16insurer. Vendors may receive compensation from the insurer for
17billing and collection services.

18Section 6. Termination or alteration of portable electronics
19insurance.

20Notwithstanding any other provision of law:

21(1) [An<-] Notwithstanding paragraph (2.1), an insurer may
22terminate an enrolled customer's enrollment under a portable
23electronics insurance policy upon 15 days' notice for
24discovery of fraud or material misrepresentation in obtaining
25coverage or in the presentation of a fraudulent claim.

<-26(1.1) An insurer may terminate an enrolled customer's
27enrollment under a portable electronics insurance policy upon
2830 days' notice for nonpayment of premium.

29(2) [An<-] Notwithstanding paragraph (2.1), an insurer may
30immediately terminate an enrolled customer's enrollment under

1a portable electronics insurance policy:

2(i) if the enrolled customer ceases to have active
3service with the vendor of portable electronics; or

4(ii) if an enrolled customer exhausts the annual
5aggregate limit of liability under the terms of the
6portable electronics insurance policy and the insurer
7sends notice of termination to the enrolled customer
8within 30 calendar days after exhaustion of the limit. If
9notice is not timely sent, however, enrollment shall
10continue notwithstanding the annual aggregate limit of
11liability until the insurer sends notice of termination
12to the enrolled customer.

13(2.1) Except as provided under paragraphs (1)<-, (1.1)
14and (2), an insurer shall provide the vendor policyholder and 
15each enrolled customer with at least 60 days' notice prior to 
16the termination or alteration of the terms and conditions of 
17a policy of portable electronics insurance. If the terms and 
18conditions of a portable electronics insurance policy are 
19altered, the insurer shall provide:

20(i) the vendor policyholder with a revised policy or
21endorsement; and

22(ii) each enrolled customer with evidence indicating
23that an alteration has occurred and a summary of the
24material changes.

25(3) Where a portable electronics insurance policy is
26terminated by a policyholder, the policyholder shall mail or
27deliver written notice to each enrolled customer advising the
28enrolled customer of the termination of the policy and the
29effective date of termination. The written notice shall be
30mailed or delivered to the enrolled customer at least 30 days

1prior to the termination.

2(4) Whenever notice is required under this section, it
3shall be in writing and may be mailed or delivered to the
4vendor of portable electronics at the vendor's mailing
5address and to its affected enrolled customers' last known
6mailing addresses on file with the insurer. If notice is
7mailed, the insurer or vendor of portable electronics shall
8maintain proof of mailing in a form authorized or accepted by
9the United States Postal Service or other commercial mail
10delivery service. Alternatively, an insurer or vendor
11policyholder may comply with a notice required by this
12section by providing electronic notice to a vendor or its
13affected enrolled customers by electronic means. If notice is
14accomplished through electronic means, the insurer or vendor
15of portable electronics, as the case may be, shall maintain
16proof that the notice was sent.

17Section 2. The amendment of section 6 of the act shall apply
18to a portable electronics insurance policy offered, issued or
19renewed on or after the effective date of this section.

20Section 3. This act shall take effect in 60 days.