Kentucky regulators have released a new license application that will allow retailers for the first time to sell insurance to cover the portable electronic devices they sell.
State lawmakers earlier this year a law that created the means whereby insurance agents and retailers may obtain a state license to offer insurance on portable electronic devices such as laptop computers, cellphones, and mp-3 players.
The license application requires that the person overseeing the insurance products be a licensed agent or business entity that offers and sells portable electronic devices. The supervisor must maintain a record of each place where the insurance is sold and to make those records available to regulators.
Under the law, retailers can obtain a blanket license for multiple stores throughout the state. The cost of the license is $100 for one to 20 separate locations to $2,500 for 21 or more locations in the state.
The law includes several consumer protection measures such as disclosing that the coverage may duplicate coverage provided by a customer’s homeowners insurance policy or rental policy. Retailers are also required to tell customers that the coverage is optional and not a condition for buying the product.
Customers must be informed that the can cancel the coverage at any time and receive a refund on the unearned portion of the premium.
The policies can be offered on a monthly basis or any another pay period. The cost of the policy must be itemized and not included as part of the total cost of the electronic device.