SENATE BILL NO. 115 "An Act defining portable electronics insurance and authorizing the director of insurance to issue a limited producer license to a person that sells portable electronics insurance." 10:41:12 AM AT EASE 10:43:27 AM RECONVENED 10:43:32 AM Senator Egan explained SB 115. He referred to the Sponsor Statement (copy on file): As cell phones, tablet computers and other portable electronic devices proliferate and become necessary to commerce and communication, insurers have begun to create products to cover the loss or damage of these valuable and important possessions. Because most electronic devices are sold through retailers who are not usually in the insurance business, and because most portable electronics insurance is sold where the devices are purchases, without regulation wildly divergent standards have evolved under which these policies are sold. There is at present a chaotic market for such insurance. Under these circumstances, the possibility exists that less well capitalized, or less scrupulous, companies may not survive in the marketplace or otherwise may not be able to make good on their promises. Similarly, sales personnel working for vendors of electronic devices may not understand these products well enough to explain them to customers, and they may well not understand the disclosure laws under which sellers of insurance must operate, leaving consumers vulnerable to liabilities they do not fully comprehend. To guard against the excesses of a marketplace frontier, reputable companies seek regulation that protects both the customer and the reputation of the products being marketed. SB 116 seeks to provide both sellers and buyers the confidence to enter the market for portable electronics insurance--buyers that the product will be both appropriate and dependable, sellers that their products will be trusted and sought after. Senator Olson wondered if other states had similar legislation Senator Egan replied yes. Co-Chair Stedman noted the one zero fiscal note from Department of Commerce, Community and Economic Development. STEPHEN MCDANIEL, ASURION, FLORIDA (via teleconference), testified in support of SB 115. He explained that the legislation would protect consumers. 10:46:39 AM LINDA HALL, DIRECTOR, DIVISION OF INSURANCE, introduced herself. Co-Chair Stedman requested the thoughts, concerns, and perspective of the Division of Insurance. Ms. Hall replied that the division did not introduce the bill. She explained that the division had agreed to license the vendor to have the limited producer license, and the employees would be able to sell and train. She explained that there were requirements of the vendor to keep a list of the employees that were selling the insurance. 10:49:00 AM Senator McGuire wondered who was excluded from the marketplace. Ms. Hall felt that the bill would not be a barrier to entry. She stated that it would streamline the process for anyone who wanted to sell a product that would directly impact consumers. Senator Egan thanked the committee. SB 115 was HEARD and HELD in committee for further consideration. Co-Chair Stedman explained the following day's agenda.