TITLE 27

Insurance

CHAPTER 27-2.7

Portable Electronics Insurance

SECTION 27-2.7-6



   § 27-2.7-6  Termination of portable

electronics insurance. –

Notwithstanding any other provision of law:



   (1) An insurer may terminate or otherwise change the terms

and conditions of a policy of portable electronics insurance only upon

providing the vendor and its enrolled customers with at least thirty (30) days

notice. An insurer may not change the terms and conditions of a policy of

portable electronics insurance more than once in any six (6) month period.



   (2) If the insurer changes the terms and conditions, then the

insurer 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 a change in the terms and conditions has occurred and

a summary of material changes.



   (3) Notwithstanding subdivision (1) of this section, an

insurer may terminate an enrolled customer's enrollment under a portable

electronics insurance policy upon fifteen (15) days notice for discovery of

fraud or material misrepresentation in obtaining coverage or in the

presentation of a claim thereunder.



   (4) Notwithstanding subdivision (1) of this section, an

insurer may immediately terminate an enrolled customer's enrollment under a

portable electronics insurance policy:



   (i) For nonpayment of premium;



   (ii) If the enrolled customer ceases to have an active

service with the vendor of portable electronics; or



   (iii) 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

thirty (30) calendar days after exhaustion of the limit. However, if notice is

not timely sent, enrollment shall continue notwithstanding the aggregate limit

of liability until the insurer sends notice of termination to the enrolled

customer.



   (5) When 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 thirty (30) days prior to

the termination.



   (6) Whenever notice or correspondence with respect to a

policy of portable electronics insurance is required pursuant to this section

or is otherwise required by law, it shall be in writing and sent within the

notice period, if any, specified within the statute or regulation requiring the

notice or correspondence. Notwithstanding any other provision of law, notices

and correspondence may be sent either by mail or by electronic means as set

forth in this subdivision. 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 such purpose and to its affected enrolled customers' last known

mailing addresses on file with the insurer. The insurer or vendor of portable

electronics, as the case may be, shall maintain proof of mailing in a form

authorized or accepted by the United States postal service or other commercial

mail delivery service. 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 such purpose and to its affected enrolled

customers' last known electronic mail address as provided by each enrolled

customer to the insurer or vendor of portable electronics, as the case may be.

For purposes of this subdivision, an enrolled customer's provision of an

electronic mail address to the insurer or vendor of portable electronics, as

the case may be, shall be deemed consent to receive notices and correspondence

by electronic means. The insurer or vendor of portable electronics, as the case

may be, 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, as the

case may be, by the supervising entity appointed by the insurer.



History of Section.

(P.L. 2012, ch. 136, § 1; P.L. 2012, ch. 247, § 1.)