SENATE BILL NO. 1073

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding section 1295.

the people of the state of michigan enact:

Sec. 1295. (1) An employee or authorized representative of a vendor may sell or offer portable electronics insurance under this chapter to customers without an insurance producer license if all of the following conditions are met:

(a) The vendor that employs the employee or authorized representative is a limited line portable electronics insurance producer that authorizes its employees or authorized representatives to sell or offer portable electronics insurance.

(b) The insurer issuing the portable electronics insurance coverage either directly supervises or appoints a supervising entity to supervise the administration of the portable electronics insurance coverage program, including development of a training program for employees and authorized representatives of the vendors. The training required under this subdivision must comply with all of the following:

(i) The training must be delivered to employees and authorized representatives of a vendor who are directly engaged in the activity of selling or offering portable electronics insurance coverage.

(ii) The training may be provided in electronic form. If the training is conducted in electronic form, the supervising entity shall implement a supplemental education program regarding portable electronics insurance that is conducted and overseen by employees of the supervising entity who are licensed insurance producers.

(iii) The training must provide basic instruction about the portable electronics insurance coverage offered to customers and the disclosures required under section 1294.

(c) An employee or authorized representative of a vendor described in subdivision (a) does not advertise, represent, or otherwise hold himself or herself out as an insurance producer.

(2) A vendor shall not compensate the vendor's employee or authorized representative based primarily on the number of customers enrolled for portable electronics insurance coverage. A vendor may compensate the vendor's employee or authorized representative for activities under the vendor's limited line portable electronics insurance producer license that are incidental to the employee's or authorized representative's overall compensation.

(3) A vendor may bill and collect the charges for portable electronics insurance coverage. A vendor shall separately itemize on the enrolled customer's bill any charge for coverage that is not included in the cost associated with the purchase or lease of a portable electronic device or related services. If the portable electronics insurance coverage is included with the purchase or lease of a portable electronic device or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the portable electronic device or related services. A vendor that bills and collects charges as allowed under this subsection is not required to maintain the proceeds in a segregated account if the vendor is authorized by the insurer to hold the proceeds in an alternative manner and remits those proceeds to the supervising entity within 60 days after receiving them. All money received by a vendor from an enrolled customer from the purchase of portable electronics insurance is considered money held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. The insurer may compensate the vendor for billing and collection services described in this subsection.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:

(a) Senate Bill No. 1069.

(b) Senate Bill No. 1070.

(c) Senate Bill No. 1071.

(d) Senate Bill No. 1072.

(e) Senate Bill No. 1074.

(f) Senate Bill No. 1075.

(g) Senate Bill No. 1076.

(h) Senate Bill No. 1077.

(i) Senate Bill No. 1078.