North Carolina Law on Electronics Coverage to Take Effect

North Carolina companies that sell portable electronics coverage will soon be able to offer insurance under a new state law that is due to take effect at the end of the year.

Earlier this year, state lawmakers passed a bill that would allow electronic devices vendors to offer coverage at their business locations under a limited lines insurance license. The license would allow any employee or agent of the company to offer the coverage at all the company’s locations.

Under the law, the state Department of Insurance would have regulatory control over the licenses. Companies applying for the coverage would have to pay an initial application fee of $100 and an annual renewal fee of $100. The department anticipates the fees will result in $3,000 to $4,000 in annual revenue.

The new law includes a number of consumer protection measures including that customers be made aware that the electronics coverage may already be provided under a customer’s homeowners insurance policy. The company must also inform customers that the coverage is optional and that it is not necessary to purchase the coverage when buying a computer, mobile phone, or other such devices.

Consumers must also be informed that they can cancel the coverage at any time and receive any applicable premium refunds. The insurer underwriting the policies must administer a training license to instruct employees of the limited license holder.

Topics Legislation North Carolina