2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 7 - Portable Electronics Vendors › Section 10-705 - Limited Lines License -- Authorization

(a)    A limited lines license to offer or sell coverage under a policy of portable electronics insurance to a customer issued under this subtitle authorizes a vendor or an authorized representative of the vendor to sell coverage under a policy of portable electronics insurance to customers at each location at which the vendor engages in portable electronics transactions in the State if:
(1)    the portable electronics insurance policies have been filed with and approved by the Commissioner;
(2)    the vendor holds an appointment under § 10–118 of this title with each authorized insurer that the vendor intends to represent;
(3)    at each location where coverage under a policy of portable electronics insurance is offered or sold to customers, the vendor provides to the customers disclosures approved by the Commissioner that:
(i)    summarize the material terms of the coverage under the policy of portable electronics insurance including:
1.    the identity of the insurer;
2.    the premium to be paid;
3.    any applicable deductible;
4.    the major features of the benefits of the coverage; and
5.    the key terms and conditions of coverage including whether the portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;
(ii)    1.    state that portable electronics insurance may duplicate insurance coverage already provided by a customer’s homeowner’s insurance policy, renter’s insurance policy, or other source of insurance coverage; and
2.    state that the purchase of coverage under a policy of portable electronics insurance would make this coverage primary to any other coverage, including duplicate coverage;
(iii)    state that the purchase of coverage under a policy of portable electronics insurance is not required in order to enter into the portable electronics transaction;
(iv)    describe the process for filing a claim if the customer elects to purchase coverage under a policy of portable electronics insurance including a description of:
1.    any requirement to pay a deductible;
2.    any requirement to return portable electronics;
3.    the maximum fee applicable if the customer fails to comply with a return requirement; and
4.    any requirement to file a proof of loss;
(v)    state that:
1.    the customer may cancel coverage under the portable electronics insurance at any time; and
2.    if the customer cancels coverage under the portable electronics insurance, any unearned premium will be refunded to the person paying the premium in accordance with applicable law; and
(vi)    provide the toll–free consumer hotline telephone number of the Administration; and
(4)    the vendor provides a training program, approved by the Commissioner, for any employee or authorized representative who sells coverage under a policy of portable electronics insurance to customers under this subtitle that includes instruction:
(i)    about the portable electronics insurance offered to customers of the vendor;
(ii)    that the employee or authorized representative may not represent or imply to a customer that purchase of coverage under a policy of portable electronics insurance is required in order to purchase portable electronics;
(iii)    that portable electronics insurance may duplicate insurance coverage already provided by a customer’s homeowner’s insurance policy, renter’s insurance policy, or other source of insurance coverage; and
(iv)    about the other disclosures required by item (3) of this subsection.
(b)    (1)    The training required under subsection (a)(4) of this section may be provided in electronic form.
(2)    If training is conducted in electronic form, the supervising entity shall implement a supplemental education program about the portable electronics insurance product that is conducted and overseen by licensed insurance producers employed by the supervising entity.