HB 392 (BR 1581) - R. Damron
AN ACT relating to limited lines insurance.
Amend KRS 304.9-020 to define "portable electronics", "portable electronics insurance", "portable electronics insurance supervising entity" and "portable electronics retailer" and to redefine "limited lines insurance" and "travel insurance"; create a new section of Subtitle 9 of KRS Chapter 304 to define "limited lines travel insurance producer" "travel retailer" and "offering and disseminating" for the purposes of Sections 2 and 3 of this Act; establish the requirements for a travel retailer and its employees to offer and disseminate travel insurance on behalf of and under the control of a limited lines travel insurance producer without obtaining an agent license; amend KR 304.9-080 to prohibit a travel retailer, its employees or representatives from offering and disseminating travel insurance and prohibiting an insurer from accepting travel insurance for which a limited lines travel insurance producer does not hold a license; create a new section of Subtitle 9 of KRS Chapter 304 to establish requirements for and to authorize a portable electronics retailer license to allow portable electronics retailers, its employees and authorized representatives to offer and disseminate portable electronic insurance by the licensee at each retail location where the retailer does business in the state; establish requirements for maintaining a register of each business location; require supervision by a portable electronics insurance supervising entity; establish civil penalties to be imposed by the Commissioner of Insurance for violation of Sections 5 to 6 of this Act; create a new section of Subtitle 9 of KRS Chapter 304 to require that customers at every location where portable electronics insurance is offered be informed that the coverage may duplicate the customer's other insurance, that enrollment is not required to purchase or lease the devices or services, receive a summary of the material terms of the insurance coverage as specified, receive a summary of the process for filing claim, provide that a customer may cancel the coverage at any time and receive a refund of any applicable unearned premium; provide that the policy establishes eligibility and underwriting standards for customers to enroll; provides that charges for the insurance coverage may be billed and collected by the retailer which shall be separately itemized on the customer's bill; authorize the retailer to maintain the insurance funds in a segregated account in a fiduciary capacity and to remit the amounts retained to the portable electronics insurance supervising entity within sixty (60) days of receipt; authorize the portable electronics retailer to receive compensations for billing and collection services; provide that terms for termination or modification of a policy of portable electronics insurance are governed by the terms of the policy.
HB 392 - AMENDMENTS
HCS - Retain original provisions with technical corrections; clarify the definition of a "limited lines travel insurance producer"; establish the necessary minimum requirements for a portable electronics insurance retailer license written application form to be prescribed by the commissioner; create a new section of Subtitle 9 of KRS Chapter 304 to require that brochures or other written materials relating to portable electronics insurance be made available to a prospective customer at every location and to establish the requirements for the information to be included in the brochures or other written materials for dissemination to customers relating to portable electronics insurance.
Feb 10-introduced in House
Feb 13-to Banking & Insurance (H)
Feb 16-posted in committee
Feb 22-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
Feb 23-2nd reading, to Rules; posted for passage in the Consent Orders of the Day for Friday, February 24, 2012
Feb 24-3rd reading, passed 94-0 with Committee Substitute
Feb 27-received in Senate
Feb 29-to Banking & Insurance (S)
Mar 21-reported favorably, 1st reading, to Consent Calendar
Mar 22-2nd reading, to Rules
Mar 27-posted for passage in the Consent Orders of the Day for Tuesday, March 27, 2012; 3rd reading, passed 37-0
Mar 28-received in House; enrolled, signed by Speaker of the House
Mar 30-enrolled, signed by President of the Senate; delivered to Governor
Apr 11-signed by Governor (Acts ch. 92)