Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 27-1-15.9
     Chapter 15.9. Portable Electronics Insurance

IC 27-1-15.9-1
Definitions
    
Sec. 1. The definitions in IC 27-1-15.6-2 apply throughout this chapter.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-2
"Customer"
    
Sec. 2. As used in this chapter, "customer" means a person who purchases portable electronics.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-3
"Insured customer"
    
Sec. 3. As used in this chapter, "insured customer" means a customer who purchases insurance under a portable electronics insurance policy that is issued to a vendor.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-4
"Location"
    
Sec. 4. As used in this chapter, "location" means:
        (1) a geographic site in Indiana; or
        (2) an Internet web site, a call center site, or a similar site;
that is intended to be used by Indiana residents to engage in portable electronics transactions.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-5
"Portable electronics"
    
Sec. 5. (a) As used in this chapter, "portable electronics" means electronic devices that are portable in nature.
    (b) The term includes accessories, wireless services, and other services related to the use of a device described in subsection (a).
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-6
"Portable electronics insurance"
    
Sec. 6. (a) As used in this chapter, "portable electronics insurance" means insurance that provides coverage for the repair or replacement of portable electronics, including coverage for loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss.
    (b) The term does not include the following:
        (1) A service contract or extended warranty that provides coverage for repair, replacement, or maintenance only to address operational or structural failure caused by:


            (A) a defect in materials or workmanship;
            (B) accidental damage from a power surge; or
            (C) normal wear and tear.
        (2) A policy of insurance that covers a seller's or manufacturer's obligations under a warranty.
        (3) Any of the following:
            (A) A homeowner's insurance policy.
            (B) A renter's insurance policy.
            (C) A private passenger automobile insurance policy.
            (D) A commercial multi-peril insurance policy.
            (E) An insurance policy that provides coverage similar to the insurance provided by a policy described in clauses (A) through (D).
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-7
"Portable electronics transaction"
    
Sec. 7. As used in this chapter, "portable electronics transaction" means the sale or lease of portable electronics.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-8
"Supervising entity"
    
Sec. 8. As used in this chapter, "supervising entity" means a business entity that:
        (1) is an:
            (A) insurer; or
            (B) insurance producer;
        that is licensed under this title; and
        (2) issues, or is appointed by the insurer that issues, a portable electronics insurance policy that is sold, solicited, or negotiated by a vendor;
to supervise the activities of the vendor related to the portable electronics insurance policy.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-9
"Vendor"
    
Sec. 9. As used in this chapter, "vendor" means a business entity that directly or indirectly engages in portable electronics transactions.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-10
Limited lines license required; authorization; training requirements; representation as limited lines producer
    
Sec. 10. (a) A vendor shall not sell, solicit, or negotiate portable electronics insurance unless the vendor holds a limited lines license issued under IC 27-1-15.6 to sell, solicit, or negotiate portable electronics insurance.


    (b) A limited lines license required by subsection (a) authorizes each of the following to sell, solicit, or negotiate portable electronics insurance to a customer at each of a vendor's locations:
        (1) The vendor.
        (2) Each of the vendor's employees or authorized representatives, regardless of whether the employee or authorized representative is individually licensed under IC 27-1-15.6, if the insurer that issues the portable electronics insurance directly supervises or appoints a supervising entity to supervise:
            (A) the administration of the portable electronics insurance sold by the vendor; and
            (B) a training program for the employees and authorized representatives.
    (c) The following apply to a training program described in subsection (b):
        (1) The training must be provided to any employee or authorized representative who is directly engaged in the sale, solicitation, or negotiation of portable electronics insurance.
        (2) Initial training of an employee or authorized representative:
            (A) must be provided before the employee or authorized representative engages in the sale, solicitation, or negotiation of portable electronics insurance; and
            (B) may be provided in electronic form.
        (3) Continuing training of an employee or authorized representative:
            (A) must be provided on a periodic basis; and
            (B) may be provided in electronic or another form.
        (4) The training must be developed and overseen by employees of the supervising entity who are licensed as insurance producers under IC 27-1-15.6 with the qualifications described in IC 27-1-15.6-7(a)(3) and IC 27-1-15.6-7(a)(4).
        (5) The training must provide basic instruction concerning the:
            (A) portable electronics insurance offered to customers of the vendor; and
            (B) disclosures required by section 12 of this chapter.
    (d) An employee or authorized representative of a vendor shall not advertise, represent, or otherwise profess to be an insurance producer other than a limited lines producer licensed under IC 27-1-15.6.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-11
Supervising entity location registry; examination
    
Sec. 11. (a) A supervising entity shall:
        (1) maintain a registry of locations described in section 10(b) of this chapter; and
        (2) make the registry available for examination by the commissioner during the supervising entity's regular business hours.
    (b) The commissioner shall, at least ten (10) days before the

examination is conducted, provide to a supervising entity written notice of an examination described in subsection (a).
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-12
Written materials; content
    
Sec. 12. (a) A vendor shall, at each location where portable electronics insurance is sold, solicited, or negotiated, make available to customers written materials concerning the portable electronics insurance.
    (b) The written materials available under subsection (a) must do all the following:
        (1) Disclose that portable electronics insurance may duplicate coverage already provided under a customer's homeowner's insurance policy, renter's insurance policy, or other coverage.
        (2) State that the customer may purchase or lease portable electronics regardless of whether the customer also purchases portable electronics insurance.
        (3) Summarize the material terms of each portable electronics insurance policy under which insurance is available from the vendor, including all the following:
            (A) The identity of the insurer that issues the portable electronics insurance policy.
            (B) The identity of any supervising entity.
            (C) The amount of any applicable deductible and the manner by which the deductible is paid.
            (D) The benefits of the portable electronics insurance.
            (E) The key terms and conditions, including whether portable electronics may be repaired or replaced with:
                (i) reconditioned; or
                (ii) nonoriginal;
            manufacturer equipment of a make or model that is similar to the portable electronics.
        (4) Summarize the process for filing a claim, including:
            (A) a description of the manner by which to return portable electronics; and
            (B) the maximum fee applicable if the customer fails to comply with any applicable equipment return requirement.
        (5) State that an insured customer may cancel the portable electronics insurance at any time and the person who pays the premium will receive a refund of unearned premium.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-13
Coverage availability
    
Sec. 13. Portable electronics insurance may be sold:
        (1) for any period; and
        (2) under:
            (A) an individual policy; or
            (B) a group or master policy issued to a vendor to provide

insurance for the vendor's customers.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-14
Eligibility and underwriting standards
    
Sec. 14. The:
        (1) insurer that issues a portable electronics insurance policy; or
        (2) supervising entity that supervises a vendor with respect to a portable electronics insurance policy;
shall establish eligibility and underwriting standards for each portable electronics insurance policy that is sold, solicited, or negotiated by a vendor.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-15
Charges; funds
    
Sec. 15. The following apply to charges for portable electronics insurance:
        (1) The charges may be billed and collected by the vendor.
        (2) If the insurance cost is not included in the cost associated with the purchase or lease of portable electronics, the insurance cost must be separately itemized on the insured customer's bill.
        (3) If the insurance cost is included in the cost associated with the purchase or lease of portable electronics, the vendor shall clearly and conspicuously disclose to the insured customer that the portable electronics insurance cost is included with the cost of the portable electronics.
        (4) A vendor that bills and collects the charges shall maintain collected funds in a segregated account unless the:
            (A) insurer that issues the portable electronics insurance policy authorizes the vendor to hold the funds in an alternative manner; and
            (B) vendor remits the funds to the supervising entity less than sixty (60) days after the vendor receives the funds.
        (5) All funds received by the vendor from an insured customer for the sale of portable electronics insurance are considered to be funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer.
        (6) A vendor may receive from an insurer compensation for billing and collection services.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-16
Violations
    
Sec. 16. (a) This section supplements and does not limit the actions that may be taken by the commissioner for a violation under IC 27-1-15.6.
    (b) If a vendor or an employee or authorized representative of a vendor violates this chapter, the commissioner may do any of the

following:
        (1) After notice and hearing, impose on the vendor a civil penalty of not less than fifty dollars ($50) and not more than ten thousand dollars ($10,000).
        (2) After notice and hearing, impose other penalties that the commissioner considers necessary and reasonable, including:
            (A) suspending the privilege of transacting portable electronics insurance under this chapter at specific locations where violations have occurred; and
            (B) suspending or revoking the ability of an individual employee or authorized representative to act under the vendor's limited lines producer license.
        (3) Take action that is otherwise authorized under this title against the supervising entity.
As added by P.L.4-2012, SEC.3. Amended by P.L.276-2013, SEC.16.

IC 27-1-15.9-17
Insurer requirements; notices; termination
    
Sec. 17. (a) To the extent that this section conflicts with any other provision of IC 27 that applies to an insurer, this section is controlling.
    (b) The following apply to an insurer that issues a portable electronics insurance policy:
        (1) Except as provided in subdivisions (3) and (4), an insurer shall provide written notice to a vendor and an insured customer at least thirty (30) days before terminating or otherwise changing the terms and conditions of a portable electronics insurance policy.
        (2) An insurer that changes the terms and conditions as described in subdivision (1) shall provide to the vendor and insured customer:
            (A) a revised policy, endorsement, or certificate;
            (B) an updated brochure; or
            (C) other evidence of the change;
        including a summary of material changes.
        (3) If an insurer discovers fraud or material misrepresentation by an insured customer in:
            (A) obtaining portable electronics insurance; or
            (B) presenting a claim under the portable electronics insurance;
        the insurer may, not less than fifteen (15) days after providing written notice to the insured customer, terminate the insured customer's portable electronics insurance.
        (4) An insurer may immediately terminate an insured customer's portable electronics insurance for the following reasons:
            (A) Nonpayment of premiums.
            (B) The insured customer no longer has active service with the vendor.
            (C) The:
                (i) insured customer has exhausted any aggregate limit of

liability under the terms of the portable electronics insurance policy; and
                (ii) insurer has sent written notice of the termination to the insured customer.
        (5) If portable electronics insurance is terminated by a vendor, the vendor shall, at least thirty (30) days before the effective date of the termination, deliver written notice of the termination, including notice of the effective date of the termination, to each insured customer.
        (6) Written notice required by this chapter may be delivered as follows:
            (A) By United States mail to:
                (i) a vendor at the mailing address specified by the vendor for delivery of written notice; and
                (ii) an insured customer at the insured customer's last known mailing address;
            that is on file with the insurer.
            (B) By electronic mail to:
                (i) a vendor at the vendor's electronic mail address specified by the vendor for delivery of written notice; and
                (ii) an insured customer at the insured customer's last known electronic mail address provided by the insured customer to the insurer or vendor.
        An insured customer's provision of an electronic mail address to an insurer or a vendor is considered to be consent from the insured customer to receive written notices by electronic mail. An insurer and a vendor shall maintain proof that a written notice sent by electronic mail was sent.
        (7) A written notice required by this chapter that is delivered by a supervising entity appointed by an insurer on behalf of the insurer or vendor is considered to have been delivered by the insurer or vendor.
As added by P.L.4-2012, SEC.3.

IC 27-1-15.9-18
Application for limited lines producer license
    
Sec. 18. (a) A vendor shall apply for a limited lines producer license required by this chapter by filing a sworn application for the license with the commissioner on forms prescribed and furnished by the commissioner.
    (b) An application filed under subsection (a) must include the following information:
        (1) Except as provided in subdivision (2), the name, residence address, and other information required by the commissioner for an employee or officer of the vendor who is designated by the vendor as the individual who is responsible for the vendor's compliance with this chapter.
        (2) If the vendor derives more than fifty percent (50%) of the vendor's revenue from the sale of portable electronics insurance, the name, residence address, and other information required by

the commissioner for each officer, director, and shareholder of record that has beneficial ownership of at least ten percent (10%) of any class of securities registered by the vendor under federal securities law.
        (3) The physical address of the vendor's home office.
As added by P.L.4-2012, SEC.3.