The Vermont Statutes Online

Title 8: Banking and Insurance

Chapter 114: Portable Electronics Insurance

• § 4257. Definitions

  As used in this chapter:

  (1) “Portable electronics” means electronic devices that are portable in nature, their accessories, and services related to the use of such devices.

  (2) “Portable electronics insurance” means insurance that may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy that provides coverage for the repair or replacement of portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. The term does not include a service contract governed by chapter 113, subchapter 4 of this title, a policy of insurance covering a seller’s or a manufacturer’s obligations under a warranty, or a homeowner’s, renter’s, private passenger automobile, commercial multi-peril, or similar policy.

  (3) “Portable electronics vendor” means a person in the business of selling or leasing portable electronics directly or indirectly. (Added 2011, No. 136 (Adj. Sess.), § 9, eff. May 18, 2012.)

• § 4258. Premium billings

  The charges for portable electronics insurance coverage may be billed and collected by a portable electronics vendor. Any charge to a 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 customer’s bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics, a portable electronics vendor shall clearly and conspicuously disclose to the customer that the portable electronics insurance coverage is included with the portable electronics. A portable electronics vendor billing and collecting such charges shall not be required to maintain such funds in a segregated account, provided that the vendor is authorized by the insurer to hold such funds in an alternative manner and remits such amounts to the insurer or the producer appointed by the insurer to supervise the administration of a portable electronics insurance program within 60 days of receipt. All funds received by a portable electronics vendor from an enrolled 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. Portable electronics vendors may receive compensation for billing and collection services. (Added 2011, No. 136 (Adj. Sess.), § 9, eff. May 18, 2012.)

• § 4259. Termination and modification requirements

  Notwithstanding any other provision of law, the terms for the termination or modification of a policy of portable electronics insurance shall be as set forth in the policy. (Added 2011, No. 136 (Adj. Sess.), § 9, eff. May 18, 2012.)

• § 4260. Notice requirements

  (a) Whenever notice or correspondence with respect to a policy of portable electronics insurance is required pursuant to the policy or is otherwise required by law, it shall be in writing. Notwithstanding any other provision of law, notices and correspondence may be sent either by mail or by electronic means as set forth in this section. If the notice or correspondence is mailed, it shall be sent to the portable electronics vendor at the vendor’s mailing address specified for such purpose and to its affected customers’ last known mailing address on file with the insurer. The insurer or vendor of portable electronics shall maintain proof of mailing in a form authorized or accepted by the U.S. Postal Service or other commercial mail delivery service. If the notice or correspondence is sent by electronic means, it shall be sent to the portable electronics vendor at the vendor’s electronic mail address specified for such purpose and to its affected customers’ last known electronic mail address as provided by each customer to the insurer or vendor of portable electronics. A customer’s provision of an electronic mail address to the insurer or vendor of portable electronics is deemed consent to receive notices and correspondence by electronic means at such address if notice of that consent is provided to the customer within 30 calendar days. The insurer or vendor of portable electronics shall maintain proof that the notice or correspondence was sent.

  (b) Notice or correspondence required pursuant to a policy of portable electronics insurance or otherwise required by law may be sent on behalf of the insurer or vendor by an insurance producer appointed by the insurer to supervise the administration of a portable electronics insurance program. (Added 2011, No. 136 (Adj. Sess.), § 9, eff. May 18, 2012; amended 2017, No. 80, § 17.)

• § 4261. Rulemaking; licensing; claims; sales

  The Commissioner shall adopt rules establishing a business entity limited lines producer license for the sale of portable electronics insurance as well as requirements for the sale of portable electronics insurance by a vendor and its employees and authorized representatives and standards for the adjusting of claims under a policy of portable electronics insurance by a supervising entity. (Added 2011, No. 136 (Adj. Sess.), § 9, eff. May 18, 2012.)