Texas Senate Bill SB839

Texas 2013 - 83rd Regular

Caption

Relating to the provision of insurance coverage for certain portable electronic devices.

Impact

The introduction of SB839 establishes mandatory guidelines for vendors regarding the disclosure and billing of insurance coverage to customers. The legislation stipulates that vendors must clearly itemize any charges for insurance that are not included in the standard purchase of portable electronic devices. This is expected to benefit consumers by ensuring transparency and helping them understand the costs associated with insurance when acquiring electronic devices.

Summary

SB839 aims to enhance the regulatory framework governing insurance coverage for portable electronic devices. This bill amends the Texas Insurance Code to provide clarity on the authority of vendors licensed to sell portable electronic devices in relation to the insurance they can offer. It allows these vendors to act as agents for authorized insurers and sell insurance covering various risks associated with portable electronic devices, including loss, theft, mechanical failure, and damage. This is significant as it fosters a more structured approach to mobile device protection within the marketplace.

Contention

Contentious points surrounding SB839 mainly relate to the complexities of policy termination and customer notification requirements. The bill sets forth explicit procedures that insurers must follow to notify customers about any changes or termination of their insurance policies, including situations of fraud or nonpayment. Critics argue that these requirements may impose additional burdens on vendors and insurers, potentially complicating the insurance process for both parties. Proponents, however, argue that these protections are essential for consumer rights, ensuring they are adequately informed of their insurance status.