The Oregon Department of Consumer and Business Services (DCBS) has proposed a rule that would require all vendors of portable electronic devices (smart phones, digital tablets like the IPad, etc.) to obtain a
limited insurance producer license before offering, selling or issuing portable electronics insurance coverage to consumers. This rule-making authority is promulgated by
House Bill 3411 enacted in the 2011 legislative session. House Bill 3411 requires that vendors who sell or lease portable electronics devices, such as cell phones or electronic tablets, must obtain a limited insurance producer license from the Department of Consumer and Business Services before issuing, selling or offering portable electronics insurance coverage to customers. Please read on for more!
To quote the
Oregon Statement of Need and Fiscal Impact of the proposed rule:
Section 5, chapter 393, Oregon Laws 2011, provides that an employee, agent or authorized representative of a vendor may issue, sell or offer for sale portable electronics insurance coverage to a customer without obtaining a limited license if the vendor has been issued a limited license, and the insurer or supervising entity develops a training program that is completed by employees, agents and authorized representatives of the vendor. A “supervising entity” is defined as an insurer or an insurance producer. The training must include basic instruction about portable electronics insurance coverage and the disclosures required under the Act. If the training program is delivered electronically, it must also include a supplementary education program that is conducted and overseen by employees of the insurer or supervising entity. The proposed rules establish the vendor’s training requirements for its employees, agents or authorized representatives.
A "vendor" is viewed as follows:
Some vendors who choose to sell portable electronics insurance coverage may be small businesses, but the majority of vendors will be retailers of telecommunication equipment and services. It is anticipated that the number of small businesses subject to this rule will be minimal.
Under the proposed rule, employees, agents or other authorized representatives of a vendor may sell this coverage as long as the vendor has been issued a limited license and the insurer or "supervising entity" has developed a training program that is completed by employees, agents and authorized representatives. Supervising entities are insurers or producers, and the training must include basic instruction about portable electronics insurance coverage and the disclosures required under the Act.
The proposed rules establish the vendor's training requirements for employees, agents and authorized representatives and has already been adopted into law. Click
HERE for the proposed rule and text.
Just curious... do you think this is important? Or just another rule that really means nothing? The ProSchools insurance blog feels that anyone who is going to be dealing with insurance needs to be licensed... there are just too many things that can go wrong without the proper training and licensure. Thoughts??