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<ns0:Id>20250AB__180099INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1800</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Krell</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Krell</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend the heading of Article 16.1 (commencing with Section 1758.6) of Chapter 5 of Part 2 of Division 1 of, and to amend Sections 1758.6, 1758.61, 1758.62, 1758.63, 1758.64, 1758.65, 1758.66, 1758.661, 1758.67, 1758.68, 1758.681, 1758.69, 1758.691, and 1758.692 of, the Insurance Code, relating to insurance. </ns0:Title>
<ns0:RelatingClause>insurance</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Portable electronics and optical products insurance.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law authorizes the commissioner to issue a portable electronics insurance agent license to a portable electronics vendor, authorizing the vendor to sell or offer to its customers insurance in connection with, and incidental to, the sale of portable electronics or the sale or provision of accessories or services related to the use of portable electronics. Existing law authorizes an endorsee of a portable electronics vendor to sell or offer portable electronics insurance pursuant to the authority of the vendor’s portable electronics insurance agent license, as provided. Existing law imposes various requirements on licensees and endorsees, including making specified disclosures, training, and recordkeeping. Under existing law, any
person who transacts insurance without a valid license is guilty of a misdemeanor.</html:p>
<html:p>This bill would expand the application of the above-described provisions to include optical products, as defined, by authorizing the commissioner to issue a portable electronics or optical products insurance agent license to a portable electronics or optical products vendor. The bill would make various conforming changes. By expanding the scope of products for which an insurance license is required, the violation of which is a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_9DDEF88F-3A46-4D8E-87F2-5CD51991A984">
<ns0:Num>SECTION 1.</ns0:Num>
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The heading of Article 16.1 (commencing with Section 1758.6) of Chapter 5 of Part 2 of Division 1 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:LawHeading id="id_70DFEB59-5A5E-4070-9607-FF38F70ACAFA" type="ARTICLE">
<ns0:Num>16.1.</ns0:Num>
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<ns0:LawHeadingText>Portable Electronics or Optical Products Insurance</ns0:LawHeadingText>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 1758.6 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>1758.6.</ns0:Num>
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<html:p>A portable electronics or optical products vendor shall not offer or sell any form of portable electronics or optical products insurance in this state unless that person is licensed as an insurance agent or broker pursuant to Article 3 (commencing with Section 1631) or has complied with the requirements of this article and has been issued a
license by the commissioner as provided in this article.</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 1758.61 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>1758.61.</ns0:Num>
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<ns0:Content>
<html:p>The commissioner may issue to an applicant that has complied with the requirements of this article a portable electronics or optical products insurance agent license that authorizes the licensee and its endorsees to offer or sell insurance in connection with, and incidental to, the sale of portable electronics, optical products, or both, or the sale or provision of accessories or services related to the use of portable
electronics, optical products, or both.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 1758.62 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_7D20D9DD-CBDD-464F-BA44-0B8122CB0C66">
<ns0:Num>1758.62.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An applicant for a portable electronics or optical products insurance agent license under this article shall submit all of the following to the commissioner:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A written application for licensure, signed by the applicant or an officer of the applicant, in the form prescribed by the commissioner.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A certificate by the insurer that is to be named in the portable electronics or optical products insurance agent license, stating that the insurer has satisfied itself that the named
applicant is trustworthy and competent to act as its insurance agent limited to this purpose and that the insurer will appoint the applicant to act as its agent to transact the kind or kinds of insurance that are permitted by this article, if the portable electronics or optical products insurance agent license applied for is issued by the commissioner. The certification shall be subscribed by an officer or managing agent of the insurer on a form prescribed by the commissioner.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An application fee, and, for each license period thereafter, a renewal fee, of two hundred ninety-two dollars ($292).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding any other law to the contrary, the provisions set forth in Sections 1667, 1668, 1668.5, 1669, 1670, 1738, and 1739 apply to any application for or issuance of a
license pursuant to this article.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Costs associated with any enforcement action or investigation shall be paid for by the person or organization licensed pursuant to this article.
</html:p>
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 1758.63 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_3BA86A46-9C88-407C-8224-482D4808515B">
<ns0:Num>1758.63.</ns0:Num>
<ns0:LawSectionVersion id="id_688EBED3-C0BE-4F6C-A493-F9A920DCCDF7">
<ns0:Content>
<html:p>An endorsee of a portable electronics or optical products vendor that has been issued a portable electronics or optical products insurance agent license pursuant to this article may sell or offer insurance products under the authority of the vendor’s portable electronics or optical products insurance agent license if all of the following conditions have been met:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The endorsee is 18 years of age or older.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The portable electronics
or optical products vendor, at the time it submits its portable electronics or optical products insurance agent’s license application pursuant to Section 1758.62, also establishes a list of all locations in this state at which it offers coverage under a policy of portable electronics or optical products insurance. The list shall be maintained by the portable electronics or optical products vendor in a form prescribed by, or format acceptable to, the commissioner and shall be updated annually. The list shall be maintained by the portable electronics or optical products
vendor and made available to the commissioner for review and inspection upon request.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Each portable electronics or optical products vendor licensed pursuant to this article shall provide for the training of its endorsees under a program developed by a licensed property and casualty broker or agent prior to allowing its endorsees to offer or sell insurance products. The training shall meet the following minimum standards:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Each endorsee shall receive instruction about the types of insurance specified in subdivision (f) of Section 1758.69 that are offered for sale
to prospective customers.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Each endorsee shall receive training about ethical sales practices.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Each endorsee shall receive training about the disclosures to be given to prospective customers pursuant to Section 1758.66.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The retraining of endorsees shall be conducted whenever there is a material change in the insurance products sold that requires modification of the training materials, but in no event less frequently than every three years for each endorsee.
</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 1758.64 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>1758.64.</ns0:Num>
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<ns0:Content>
<html:p>An endorsee may act on behalf of and under the supervision of the portable electronics or optical products insurance agent in matters relating to transacting insurance under that agent’s license. The conduct of an endorsee of a portable electronics or optical products insurance agent acting within the scope of employment or agency shall be deemed the conduct of the portable electronics or optical products insurance agent for purposes of this article.</html:p>
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<ns0:Num>SEC. 7.</ns0:Num>
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Section 1758.65 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_88D435FE-C91F-4327-9F63-8DB4364773E3">
<ns0:Num>1758.65.</ns0:Num>
<ns0:LawSectionVersion id="id_BA3AFE8D-B5AD-4AF4-933C-19FA4629CDA1">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
If a licensee or endorsee violates any provision of this article or any other provision of this code, the commissioner may do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
After notice and hearing, suspend or revoke the license of the portable electronics or optical products insurance agent.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
After notice and hearing, impose fines on the portable electronics or optical products insurance agent for its conduct or that of its endorsees.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
After notice and hearing, impose other penalties that the commissioner deems necessary and convenient to carry out the purpose of this code, including suspending the privilege of transacting portable electronics insurance, optical products insurance, or both, pursuant to this article at specific business locations where violations have occurred, imposing fines on the portable electronics or optical products insurance agent, and suspending or revoking the ability of individual endorsees to act under the vendor’s license.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If any person or persons sell insurance in connection with, or incidental to, the sale of portable
electronics, optical products, or both, or the sale or provision of accessories or services related thereto, or hold themselves or an organization out as a portable electronics
or optical products insurance agent without obtaining the license required by this article, or as being licensed pursuant to Chapter 5 (commencing with Section 1621) without obtaining that license, the commissioner may issue a cease and desist order pursuant to Section 12921.8.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding any other law to the contrary, the provisions of Section 1748.5 are applicable to both the organization issued a license pursuant to this article and any endorsee to that license.
</html:p>
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<ns0:Num>SEC. 8.</ns0:Num>
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Section 1758.66 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>1758.66.</ns0:Num>
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<html:p>A portable electronics or optical products insurance agent shall not sell insurance pursuant to this article by unsolicited telephone calls or otherwise unless, at the time of sale, or reasonably thereafter with respect to a sale or enrollment occurring by telephone, all of the following conditions are satisfied:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The portable electronics or optical products insurance agent provides brochures or other written materials to the prospective purchaser that do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Summarize the material
terms and conditions of coverage offered, including the identity of the insurer.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Describe the process for filing a claim, including a toll-free telephone number to report a claim.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Disclose any additional information on the price, benefits, exclusions, conditions, or other limitations of those policies that the commissioner may, by rule, prescribe.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Provide the name, address, telephone number, and license number of the licensee or the property and casualty broker-agent appointed by the insurer issuing portable electronics insurance coverage, optical products insurance coverage, or both, to the licensee, as
well as the department’s toll-free consumer hotline.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The portable electronics or optical products insurance agent or its endorsees make all of the following disclosures, which shall be acknowledged in writing by the purchaser, or displayed by clear and conspicuous signs that are posted at every location where contracts are executed, such as the counter where the purchaser signs the service agreement, or provided in writing to the purchaser:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That the purchase by the customer of the kinds of insurance prescribed in this article is not required in order to purchase portable electronics, optical products, accessories, or related services.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That the insurance policies offered by the portable electronics or optical products insurance agent may provide a duplication of coverage already provided by other insurance policies covering the purchaser.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
That the endorsee of the portable electronics
or optical products insurance agent is not qualified or authorized to evaluate the adequacy of the purchaser’s existing insurance coverages, unless that person is licensed pursuant to Article 3 (commencing with Section 1631).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
That the customer may cancel the insurance at any time. If the customer cancels any unearned premium will be refunded in accordance with applicable law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The material terms and conditions of coverage are provided to every person who elects to purchase that coverage.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Costs for the insurance are separately itemized in any billing statement for the insurance. However, if the portable electronics coverage or optical products coverage
is included with the purchase or lease of portable
electronics, optical products, or related services, the vendor shall clearly and conspicuously disclose to the customer that the coverage is included with the purchase of the portable electronics, optical products, or related services.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The insurance is provided under an individual policy issued to the purchaser, or under a group or master policy issued to an organization licensed as a portable electronics or optical products insurance agent by an insurer authorized to transact the applicable kinds or types of insurance in this state.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_166259F3-A4FC-4E14-9720-21F2667A7737">
<ns0:Num>SEC. 9.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.661.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.661 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_09342584-32DF-44F9-BDCE-3A668A2BB4DE">
<ns0:Num>1758.661.</ns0:Num>
<ns0:LawSectionVersion id="id_F4264ABD-2552-4CC6-9557-10D7BBB686E8">
<ns0:Content>
<html:p>Charges for portable electronics or optical products insurance may be billed and collected by a portable electronics or optical products insurance agent licensee. A licensee shall not be required to maintain those funds in a segregated account if the insurer represented by the licensee has provided in writing that the funds need not be segregated from funds received by the portable electronics or optical products vendor on account of the sale or lease of portable
electronics, optical products, or related services or accessories. All funds received by a vendor from a customer for the sale of portable electronics or optical products insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. Licensees may receive compensation for billing and collection services.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_83E7794D-1409-4716-B417-324021781B27">
<ns0:Num>SEC. 10.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.67.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.67 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_70DDF595-8FD3-45B5-897C-2C8D6B69DD80">
<ns0:Num>1758.67.</ns0:Num>
<ns0:LawSectionVersion id="id_F7B118A7-F154-445E-8850-7408A0E001F1">
<ns0:Content>
<html:p>Under the authority of the portable electronics or optical products insurance agent license, a portable electronics or optical products insurance agent shall not do any of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Offer to sell insurance except in conjunction with, and incidental to, the business of selling portable electronics or optical products, their accessories, or related services.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Advertise, represent, or otherwise portray itself or its endorsees as licensed insurers or property and casualty broker-agents.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Pay any endorsee compensation based primarily on the number of customers electing coverage under the portable electronics or optical products insurance agent’s license. However, nothing in this code shall prohibit the payment of compensation to an endorsee of a portable electronics or optical products insurance agent for activities under the agent’s license that is incidental to their overall compensation. The incidental compensation shall not exceed fifteen dollars ($15) per customer who purchases portable electronics insurance
coverage or optical products insurance coverage.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Unless lawfully transacting the business of insurance pursuant to a certificate of authority issued pursuant to Section 700 for the appropriate class, a person obligated to perform under a contract offered in or from this state that meets the definition of portable electronics or optical products insurance as set forth in Section 1758.69 shall be deemed to be unlawfully transacting the business of insurance and shall be subject to subdivision (b) of Section 700 and Section 12921.8.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_37C2DF38-3BEE-4F27-B35E-86F87DC48B60">
<ns0:Num>SEC. 11.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.68.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.68 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_5BCBADDC-6DB1-45CF-B512-CC7AA78C57FA">
<ns0:Num>1758.68.</ns0:Num>
<ns0:LawSectionVersion id="id_C7EEB824-FAAE-4F9A-AF75-0E9F1DC67AA4">
<ns0:Content>
<html:p>Any insurer that provides insurance to be sold by an organization licensed as a portable electronics or optical products insurance agent shall file a copy of any individual policy issued to a purchaser, or any policy or certificate issued under a group or master policy to an organization licensed as a portable electronics or optical products insurance agent, with the commissioner, who shall make that policy available to the public.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_BACDC090-3613-4B24-A8DF-840A31B2780E">
<ns0:Num>SEC. 12.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.681.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.681 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_DE13188E-6003-4328-B7E4-C6CC77888CB1">
<ns0:Num>1758.681.</ns0:Num>
<ns0:LawSectionVersion id="id_37F8D93B-B0A2-47A7-90A1-EAAA896136A1">
<ns0:Content>
<html:p>Notwithstanding any other law:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
As used in this section, “portable electronics or optical products vendor policyholder” means a portable electronics or optical products insurance agent licensee pursuant to subdivision (g) of Section 1758.69.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An insurer may terminate a portable electronics
or optical products
insurance policy or otherwise change the terms and conditions of a portable electronics or optical products insurance policy only upon providing the portable electronics or optical products vendor policyholder and enrolled customers with at least 30 calendar days’ written notice.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the insurer changes the terms and conditions of a policy of portable electronics or optical products insurance, the insurer shall provide the portable electronics or optical products vendor policyholder with a revised policy
or endorsement and each enrolled customer with a revised certificate, endorsement, updated brochure, or other evidence indicating that a change in the terms and conditions has occurred and a summary of those changes.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notwithstanding subdivision (b), an insurer may terminate an enrolled customer’s enrollment under a portable electronics or optical products insurance policy upon 15 calendar days’ notice for discovery of fraud or material misrepresentation in obtaining coverage or in the presentation of a claim under the policy.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Notwithstanding subdivision (b), an insurer may immediately terminate an enrolled customer’s enrollment under a portable electronics or optical products
insurance policy without prior notice for any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For nonpayment of premium.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the enrolled customer ceases to have an active service with the vendor of portable electronics or optical products.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the enrolled customer exhausts the aggregate limit of liability, if any, under the terms of the portable electronics or optical products insurance policy and the insurer sends notice of termination to the enrolled customer within 30 calendar days after exhaustion of the limit. However, if notice is not sent within 30 calendar days, enrollment shall continue
notwithstanding the aggregate limit of liability until 30 calendar days from the date the insurer sends notice of termination to the enrolled customer.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
If a portable electronics or optical products insurance policy is terminated by a portable electronics or optical products vendor policyholder, the portable electronics or optical products vendor policyholder shall mail or deliver a written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. The written notice shall be mailed or delivered by the portable electronics
or optical products vendor policyholder to the enrolled customer at least 30 days prior to the termination. However, if the notice is not sent within 30 calendar days, enrollment shall continue until 30 calendar days from the date the portable electronics
or optical products vendor policyholder sends notice of termination to the enrolled customer or until a new portable electronics or optical products insurance policy is in effect.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Whenever notice or correspondence with respect to a policy of portable electronics or optical products insurance is required pursuant to this section, it shall be in writing and sent within the notice period required pursuant to this section. Notices and correspondence shall be sent to the portable electronics or optical products vendor policyholder at the portable electronics
or optical products vendor policyholder’s mailing address specified for that purpose and to its affected enrolled customers’ last known mailing addresses on file with the insurer or the portable electronics or optical products vendor policyholder. The insurer or portable electronics or optical products vendor policyholder shall maintain proof that the notice or correspondence was sent for not less than three years after that notice or correspondence was sent.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_649AB868-6048-4CC2-8242-0BE01892A711">
<ns0:Num>SEC. 13.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.69.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.69 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_3C797FEB-763B-4D7D-A1F9-416CC9939C5B">
<ns0:Num>1758.69.</ns0:Num>
<ns0:LawSectionVersion id="id_A08B2530-53CC-4D0A-B1BB-13DD32292C96">
<ns0:Content>
<html:p>As used in this article, the following definitions have the following meanings:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Endorsee” means an unlicensed employee or authorized representative of a portable electronics or optical products vendor.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Enrollment” means the process of soliciting or accepting enrollments or applications from a consumer under a portable electronics or optical products insurance policy, which includes informing the consumer of the availability of coverage, preparing and delivery of the certificate of insurance or notice
of proposed insurance, or otherwise assisting the consumer in making an informed decision whether or not to elect to purchase portable electronics or optical products insurance.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“License period” means all of that two-year period beginning as described in subparagraph (A) or (B) of paragraph (2), as applicable, and ending the second succeeding year on the last calendar day of the month in which the initial license was issued.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A license period shall be determined for each person as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Upon initial licensing, the license period shall start on the date the license is issued.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For a subsequent license, the
license period shall start on the first day following the month in which the initial license was issued.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A license shall be renewed on or before the expiration date of the license period.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Optical products” has the same meaning as defined in Section 9855 of the Business and Professions Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Portable electronics” means all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Personal, self-contained, easily carried by an individual, battery-operated electronic communication, viewing, listening, recording, gaming, computing, or global positioning devices, including cell or satellite phones, pagers, personal global positioning satellite units, portable computers, portable audio listening, video viewing or recording devices, digital cameras, video camcorders, portable gaming systems, docking stations, automatic answering devices, their accessories, and service related to the use of those devices.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Any other electronic device that is portable in nature that the commissioner approves.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Portable electronics” does not include telecommunications switching equipment, transmission wires, cell site transceiver equipment, or other equipment and systems used by telecommunications companies to provide telecommunications service to
consumers.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Portable electronics or optical products insurance” means a contract providing coverage for the repair or replacement of portable electronics, optical products, or both, against any one or more of the following causes of loss: loss, theft, mechanical failure, malfunction, damage, or other applicable perils.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Portable electronics or optical products insurance” does not include any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A service contract governed by Article 4.5 (commencing with Section 9855) of Chapter 20 of Division 3 of the Business and Professions Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A policy of insurance covering a seller’s or a manufacturer’s obligations under a warranty.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A homeowner’s, renter’s, private passenger automobile, commercial multiperil, or similar policy.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Portable electronics or optical products insurance agent license” means an agent license issued to an individual or organization for the enrollment and sale of portable electronics insurance, optical products insurance, or both.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Portable electronics
or optical products vendor” means any person in the business, directly or indirectly, of selling, reselling, soliciting, or leasing portable electronics, optical products, or both, their accessories, and related services to customers.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_B4CADDCB-50E2-4DA6-9ABC-E8EC4E633FB5">
<ns0:Num>SEC. 14.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.691.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.691 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_EE181410-4A66-41D7-BB82-F68B0D21CCB1">
<ns0:Num>1758.691.</ns0:Num>
<ns0:LawSectionVersion id="id_94DCE85B-5FFF-4CEF-9139-B369E522DABE">
<ns0:Content>
<html:p>Nothing in this article regulating the sale of portable electronics or optical products insurance shall be construed to impair or impede the application of any other law regulating the sale of portable electronics or optical products insurance.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_7DBA11D0-2112-418D-97DE-69D9291C3876">
<ns0:Num>SEC. 15.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'16.1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1758.692.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 1758.692 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_2C787C77-8830-4DE4-BD62-A88B31625738">
<ns0:Num>1758.692.</ns0:Num>
<ns0:LawSectionVersion id="id_1A25DE2F-F455-496B-B5A8-7BFED21327A1">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Not less than 60 days before a permanent license will expire, the commissioner may use an electronic delivery method, including email or other similar electronic method of delivery, to deliver, or may mail, to the latest email or mailing address appearing on the commissioner’s records, an application to the licensee to renew the license of a portable electronics or optical products insurance agent for the appropriate succeeding license term. It is the licensee’s responsibility to renew, whether or not a renewal notice is received.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commissioner may accept a late renewal without penalty, provided that the licensee’s failure to comply is due to a
clerical error or inadvertence.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An application for renewal of a license may be filed on or before the expiration date. An application for renewal of an expired license may be filed after the expiration date and until that same month and date of the next succeeding year.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commissioner shall impose a penalty fee equal to one-half of the renewal fee for the portable electronics or optical products insurance agent license for any renewal that is filed after the expiration date of the license.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_06C20F48-9AA4-4B6A-870B-9383150E34EC">
<ns0:Num>SEC. 16.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>