Bill would require license to sell portable electronics insurance

Sellers of cell phone insurance would be required to obtain a license under a bill heard by the Banking, Commerce and Insurance Committee Jan. 31.

LB535, introduced by Hastings Sen. Dennis Utter, would establish a limited-lines insurance license to sell portable electronics insurance or provide similar coverage. Portable electronics insurance would be defined as insurance covering repair or replacement of portable electronics due to theft, misplacement, damage, mechanical faults or similar damage.

Utter said the bill would create a licensing framework under which vendors could offer this specialized insurance.

Vendors interested in selling portable electronics insurance would apply to the state Department of Insurance for a two-year license, which would have an initial fee of up to $1,000 and a renewal fee of up to $500. Vendors offering portable electronics products and service in no more than 10 locations across the state would be charged a flat initial and renewal rate of up to $100.

The bill would require vendors to disclose information to consumers covering topics such as the possibility of duplicate coverage due to a consumer’s homeowner’s insurance policy.

Violators of the bill’s provisions could be subject to fines of up to $500 per violation, not to exceed $5,000 total. The bill would have an operative date of Jan. 1, 2012.

Rhonda Oswald, representing Asurion Corporation, testified in support of the bill, saying it would implement a licensing system used in nine other states.

“[LB535] ensures a balanced regulatory structure that would avoid the need to license every individual on the floor of every retailer in Nebraska that offers the insurance to consumers,” Oswald said.

No one testified in opposition, and the committee took no immediate action on the bill.