Section 10-703 - Selling coverage under portable electronics insurance policy. - Maryland Statutes

§ 10-703. Selling coverage under portable electronics insurance policy.
 

(a)  Limited lines license required.- A vendor shall hold a limited lines license to sell coverage under a policy of portable electronics insurance in connection with, and incidental to, a portable electronics transaction with a customer before the vendor or the employees of or authorized representatives of the vendor may sell or offer to sell coverage under a policy of portable electronics insurance to a customer. 

(b)  Scope of limited lines license.- A limited lines license issued under this subtitle shall also authorize any salaried or hourly employee or authorized representative of the vendor to sell coverage under a policy of portable electronics insurance to a customer in connection with, and incidental to, a portable electronics transaction only if the employee or authorized representative is: 

(1) trained under § 10-705 of this subtitle to act on behalf of the vendor; and 

(2) acting under the supervision of the vendor. 

(c)  Acts of employee deemed acts of vendor.- The acts of an employee or authorized representative offering to sell or selling coverage under a policy of portable electronics insurance shall be deemed the acts of the vendor for the purposes of this subtitle. 

(d)  Billing and collecting of premiums.-  

(1) A vendor may bill and collect premiums from covered customers for coverage under a policy of portable electronics insurance. 

(2) A vendor that bills and collects premiums under this section is not required to maintain the premiums collected in a segregated account if: 

(i) the vendor's appointing insurer agrees in writing that segregation of funds is not required; and 

(ii) the vendor remits the funds collected to the appointing insurer or that insurer's appointed insurance producer within 60 days after receipt. 

(3) The premiums for coverage under a policy of portable electronics insurance shall be separately itemized from the charges for the purchase or lease of the portable electronics. 

(e)  Compensation for sale of coverage prohibited.-  

(1) Except as provided in paragraph (2) of this subsection, a vendor and the employees or authorized representatives of the vendor may not receive compensation for the sale of coverage under a policy of portable electronics insurance. 

(2) A vendor may receive compensation for billing and collection services under a policy of portable electronics insurance. 

(3) Nothing in this subsection shall affect the ability of a vendor or an authorized representative of the vendor to compensate the employees of the vendor or of the authorized representative in a manner that does not depend on the sale of portable electronics insurance. 
 

[2009, chs. 316, 317.]