Bill
SB 1069
Allows retailers to sell portable electronics insurance without full licensure if they give specific disclosures; a 60-day transition to a limited-line license.
Status: Referred to Committee on Regulatory Affairs (introduced Feb. 3, 2025)
Summary
SB 1069 amends MCL 500.1202 (section 1202 of the 1956 Insurance Code) to (1) create an explicit, limited exemption from the insurance-producer licensing requirement for sellers whose only insurance sale is portable‑electronics insurance sold incident to the sale of a portable electronic device, and (2) require specified written consumer disclosures as a condition of that exemption. The bill also provides a 60‑day transition tied to the availability of a limited‑line portable electronics insurance producer license application.
Purpose / intent
To allow retailers and others who only offer portable electronics insurance (for devices such as phones, tablets, laptops) to do so without obtaining a full producer license, while establishing consumer disclosure requirements and phasing in a limited‑line licensing option.
Key provisions
- License exemption: Inserts a new carve‑out so a person whose only sale of insurance is portable electronics insurance sold in connection with the sale of a portable electronic device does not need an insurance producer license — provided required written disclosure material is given at time of solicitation.
- Required disclosures (must be in the written material provided when offering coverage):
- Notice that portable electronics insurance may duplicate homeowners, renters, or other existing policies.
- Statement that enrollment is not required to purchase/lease the device or related services.
- Summary of material terms, including:
- Identity of the insurer;
- Any applicable deductible and how it must be paid;
- Coverage benefits;
- Key conditions (e.g., repair vs. replacement, whether reconditioned or non‑OEM parts may be used).
- Summary of the claims process, including device return procedures and the maximum fee if return requirements aren’t met.
- Statement that the customer may cancel at any time and, if applicable, receive refund/credit of unearned premium.
- Transition to limited‑line licensing: The exemption ends 60 days after the Department of Insurance furnishes a limited‑line portable electronics insurance producer license application under section 1298 — i.e., after that date sellers will need the limited‑line license (unless otherwise exempt).
- Parallels: The bill uses similar structure/requirements to other limited exemptions in the statute (e.g., stored property insurance).
Who is affected
- Retailers and sellers of portable electronic devices who offer device insurance incidental to sales (e.g., point‑of‑sale insurance vendors): may sell such insurance without a full producer license if they comply with the disclosure rule during the exemption period and until a limited‑line license becomes available.
- Consumers: gain mandated disclosure about coverage, duplication risks, cancellation and claims procedures.
- Insurers and licensed producers: will see a new limited‑line licensing path created and a short transitional window before licensing becomes required; may need to ensure contracts and disclosure materials meet the new statutory content.
- Department of Insurance: must provide the limited‑line license application (triggering the 60‑day transition) and will likely oversee compliance.
Procedural / timing notes
- Introduced and referred to Committee on Regulatory Affairs.
- The exemption described is temporary in practice because it terminates 60 days after the Department issues the limited‑line portable electronics insurance producer license application. The bill text does not specify an effective date beyond normal enactment rules.
Compiled from official sources — confirm details with the bill’s official record.
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