                                 CODE OF VIRGINIA

AUTHORITY OF VENDORS OF PORTABLE ELECTRONICS (§ 38.2-1878)

A. The employees and authorized representatives of vendors may sell or offer
portable electronics insurance to customers and shall not be subject to
licensure as an insurance producer under this chapter provided that:

   1. The vendor obtains a limited lines property and casualty insurance agent
   license;

   2. The vendor selling the portable electronics insurance provides a training
   program for all employees and authorized representatives of the vendor. The
   training program shall consist of instruction about the portable electronics
   insurance offered to customers, the disclosures required under &#xA7;
   38.2-1877, and the conduct prohibited by &#xA7; 38.2-512. The training
   required by this subdivision may be delivered in person or in an electronic
   form. The licensed producer designated by the vendor as being responsible for
   its compliance with the insurance laws, rules, and regulations of the
   Commonwealth, as required by &#xA7; 38.2-1820, shall hold a property and
   casualty insurance agent license and shall supervise the administration of the
   training program required by this subdivision;

   3. No employee or authorized representative of a vendor of portable
   electronics is compensated based primarily on the number of customers who
   purchase portable electronics insurance coverage but may receive compensation
   for activities under the limited lines license that is incidental to their
   overall compensation; and

   4. The employee or authorized representative of the vendor of portable
   electronics insurance does not represent or otherwise hold himself out as a
   licensed insurance producer.

B. The license authority of any vendor licensed as a limited lines property and
casualty producer selling portable electronics insurance shall terminate
immediately if the sole licensed responsible producer designated for the
vendor&#8217;s compliance with the insurance laws, rules, and regulations of the
Commonwealth is removed for any reason, a new responsible producer has not been
appointed, and the Commission notified within 30 calendar days of such removal
and of the newly designated responsible producer.

C. A vendor shall report any violation of this article to the Commissioner
within 30 days of discovery of the violation by the vendor.

D. Any charge to the customer for portable electronics insurance that is not
included in the cost associated with the purchase or lease of portable
electronics or related services shall be separately itemized on the
customer&#8217;s bill. If the charge for portable electronics insurance is
included in the cost associated with the purchase or lease of portable
electronics or related services, the vendor shall clearly and conspicuously
disclose to the customer that the charge for the portable electronics or
services covers the cost of the insurance.

E. The charges for portable electronics insurance coverage may be billed and
collected by the vendor of portable electronics insurance. Vendors billing and
collecting premiums for portable electronics insurance shall be required to
comply with the provisions of &#xA7; 38.2-1813. Vendors may receive compensation
for billing and collection services.

F. Notwithstanding any other provision of law, applicants for licensure pursuant
to this article whose home state does not issue a producer license with a
similar line of authority as the license authorized by this article shall be
issued a limited lines property and casualty license for portable electronics
insurance. Any licensee whose home state does not have property and casualty
limited lines for portable electronics insurance or similar line of authority in
its home state after July 1, 2014, or such later date as may be determined by
the Commission, shall obtain a full property and casualty license or its license
shall terminate in Virginia. For purposes of this subsection, &#8220;home
state&#8221; means the District of Columbia and any state or territory of the
United States except Virginia, or any province of Canada, in which an applicant
maintains such person&#8217;s principal place of residence or principal place of
business.

HISTORY: 2011, c. 222; 2013, c. 9.