2023 Alaska Statutes › Title 21. Insurance › Chapter 36. Trade Practices and Frauds › Article 5. Specific Acts and Types of Insurance. › Sec. 21.36.515. Portable electronics insurance.

(a) Portable electronics insurance may be offered, issued for delivery, issued, or renewed only if the insurer makes available to customers written material stating
(1) a summary of the material terms of the insurance, including
(A) the identity of the insurer;
(B) the identity of the vendor offering or selling the portable electronics insurance;
(C) the amount of the premium for coverage to be paid by the customer;
(D) the period for which coverage is effective;
(E) deductible amounts, and how the deductible is to be paid;
(F) the benefits of the coverage;
(G) the process for filing a claim;
(H) requirements for returning a device to the vendor or insurer, including related costs;
(I) proof-of-loss requirements;
(2) whether the portable electronic device may be repaired or replaced by the insurer in response to a claim;
(3) whether similar make and model reconditioned devices or nonoriginal manufacturer parts and equipment may be used by the insurer in response to a claim;
(4) that the insurance offered may duplicate coverage in a homeowner's, renter's, or other similar insurance policy;
(5) that the customer is not obligated to purchase insurance to purchase, lease, or service a portable electronic device; and
(6) that the customer may cancel enrollment for coverage at any time and receive a refund or credit based on a proration of the premium amount paid by the customer for the period that coverage was effective.
(b) The written materials required by this section are not subject to the requirements of AS 21.42.120.
(c) Portable electronics insurance may be offered on a month-to-month or other periodic basis as a group or master policy issued to a vendor under which an individual customer may elect to enroll for coverage. The insurer offering coverage under a group or master policy shall establish eligibility and underwriting standards for customers electing to enroll in coverage for each portable electronics insurance program.
(d) Portable electronics insurance may be offered as commercial inland marine insurance.
(e) A premium for portable electronics insurance may be billed and collected by the vendor of portable electronics. A charge to the customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services must be itemized separately from the charges for the purchase, lease, or service of a portable electronic device. If the coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the consumer that the coverage is included with the portable electronics or related services. Vendors collecting premiums for portable electronics insurance are not required to maintain premiums in a segregated account if the vendor is authorized by the producer or insurer to hold premiums in an alternative manner and pays the premiums to the insurer within 60 days after receipt. Premiums received by a vendor from a customer purchasing portable electronics insurance shall be held in a fiduciary capacity for the benefit of the insurer. A vendor may receive compensation for billing and collection services.
(f) A portable electronics insurance policy may be changed or terminated as follows:
(1) an insurer may cancel or change the terms and conditions of the policy; the insurer shall provide the vendor and enrolled customers with at least 30 days' notice and shall provide the vendor with a revised policy or endorsement and each enrolled customer with a revised certificate, endorsement, updated brochure, or other evidence indicating that a change in the terms and conditions has occurred and a summary of material changes;
(2) an insurer may, upon 15 days' notice, terminate an enrolled customer's enrollment under a portable electronics insurance policy for fraud or material misrepresentation in obtaining coverage or in the presentation of a claim under the terms of the policy;
(3) an insurer may, without prior notice, immediately terminate an enrolled customer's enrollment under a portable electronics insurance policy
(A) for nonpayment of premium;
(B) if the enrolled customer ceases to have an active service contract with the vendor; or
(C) if an enrolled customer exhausts the aggregate limit of liability, if any, under the terms of the portable electronics insurance policy and the insurer sends notice of termination to the enrolled customer within 30 calendar days after exhaustion of the limit; however, if notice is not sent within 30 calendar days, enrollment shall continue, notwithstanding the exhaustion of the aggregate limit of liability, until the insurer sends notice of termination to the enrolled customer;
(4) if a portable electronics insurance policy is terminated by a vendor, the vendor shall mail or deliver written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination; the written notice shall be mailed or delivered to the enrolled customer at least 30 days before the termination;
(5) if a policy of portable electronics insurance is terminated by an insurer or a vendor, the insurer or vendor shall, within 60 days after termination, return any unearned premium to the person who paid the premium;
(6) if notice or correspondence with respect to a policy of portable electronics insurance is required under this section or is otherwise required by law, the notice or correspondence must be in writing; notices and correspondence may be sent either by mail or by electronic means as follows:
(A) if the notice or correspondence is mailed, it shall be sent to the vendor of portable electronics at the vendor's mailing address specified for that purpose and to the vendor's affected enrolled customers' last known mailing addresses on file with the insurer; the insurer or vendor of portable electronics shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service;
(B) if the notice or correspondence is sent by electronic means, it shall be sent to the vendor of portable electronics at the vendor's electronic mail address specified for that purpose and to the vendor's affected enrolled customers' last known electronic mail addresses as provided by each enrolled customer to the insurer or vendor of portable electronics; for purposes of this subparagraph, an enrolled customer's provision of an electronic mail address to the insurer or vendor of portable electronics shall be considered consent to receive notices and correspondence electronically; the insurer or vendor of portable electronics shall maintain proof that the notice or correspondence was sent;
(7) notice or correspondence required by this section or otherwise required by law may be sent on behalf of an insurer or vendor by a producer appointed by the insurer.
(g) A portable electronics insurance policy must provide that, in the event of a covered loss under more than one policy, the portable electronics policy will provide primary coverage.
(h) In this section,
(1) “portable electronics insurance”
(A) means insurance offered, issued for delivery, delivered, or renewed by a vendor engaged in the business of selling, leasing, or servicing portable electronic devices to cover the loss, theft, mechanical failure, malfunction, damage, repair, or replacement of a small electronic device, including a cell phone, laptop computer, electronic tablet, GPS device, radio, portable music player, or associated accessory;
(B) does not include
(i) a service contract described in AS 21.03.021(e);
(ii) a policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or
(iii) a homeowner's, renter's, private passenger automobile, commercial multiperil, or similar policy that covers loss or theft of portable electronics;
(2) “vendor” means a business entity in the business of selling or leasing portable electronics and related services and accessories.