1.1.................... moves to amend H.F. No. 3251 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 60K.36, subdivision 2, is amended to read:
1.4    Subd. 2. Examination not required. A resident individual applying for a limited
1.5lines credit insurance, title insurance, travel baggage insurance, mobile telephone portable
1.6electronics insurance, or bail bonds license is not required to take a written examination.

1.7    Sec. 2. Minnesota Statutes 2008, section 60K.38, subdivision 1, is amended to read:
1.8    Subdivision 1. Issuance. (a) Unless denied a license under section 60K.43, a person
1.9who has met the requirements of sections 60K.36 and 60K.37 must be issued an insurance
1.10producer license. An insurance producer may receive qualification for a license in one or
1.11more of the lines of authority in paragraphs (b) and (c) through (d).
1.12(b) An individual insurance producer may receive qualification for a license in
1.13one or more of the following major lines:
1.14(1) life insurance: coverage on human lives including benefits of endowment and
1.15annuities, and may include benefits in the event of death or dismemberment by accident
1.16and benefits for disability income;
1.17(2) accident and health or sickness insurance: coverage for sickness, bodily injury,
1.18or accidental death, and may include benefits for disability income;
1.19(3) property insurance: coverage for the direct or consequential loss or damage to
1.20property of every kind;
1.21(4) casualty insurance: coverage against legal liability, including that for death,
1.22injury, or disability, or damage to real or personal property;
1.23(5) variable life and variable annuity products insurance: coverage provided under
1.24variable life insurance contracts and variable annuities; and
1.25(6) personal lines: property and casualty insurance coverage sold to individuals and
1.26families for primarily noncommercial purposes.
2.1(c) An individual insurance producer may receive qualification for a license in
2.2one or more of the following limited lines:
2.3(1) limited line credit insurance;
2.4(2) farm property and liability insurance;
2.5(3) title insurance;
2.6(4) travel baggage insurance; and
2.7(5) mobile telephone insurance; and
2.8(6) (5) bail bonds.
2.9(d) A vendor of portable electronics insurance may receive a limited lines license
2.10pursuant to section 60K.381.

2.12    Subdivision 1. Definitions. For purposes of this section, the following terms have
2.13the following meanings:
2.14(a) "Customer" means a person who purchases portable electronics or services.
2.15(b) "Covered customer" means a customer who elects coverage under a portable
2.16electronics insurance policy issued to a vendor of portable electronics.
2.17(c) "Portable electronics" means electronic devices that are portable in nature, their
2.18accessories, and services related to the use of the device.
2.19(d)(1) "Portable electronics insurance" means insurance providing coverage for
2.20the repair or replacement of portable electronics, which may cover portable electronics
2.21against any one or more of the following causes of loss: loss, theft, mechanical failure,
2.22malfunction, damage, or other applicable perils.
2.23(2) "Portable electronics insurance" does not include:
2.24(i) a service contract governed by chapter 59B;
2.25(ii) a policy of insurance covering a seller's or a manufacturer's obligations under
2.26a warranty; or
2.27(iii) a homeowner's, renter's, private passenger automobile, commercial multiperil,
2.28or similar policy that covers loss or theft of portable electronics.
2.29(e) "Portable electronics transaction" means:
2.30(1) the sale or lease of portable electronics by a vendor to a customer; or
2.31(2) the sale of a service related to the use of portable electronics by a vendor to a
2.33(f) "Supervising agency" means a business entity that is a licensed insurance
3.1(g) "Vendor" means a person in the business of engaging in portable electronics
3.2transactions, directly or indirectly.
3.3    Subd. 2. Licensure of vendors. (a) A vendor is required to hold a limited lines
3.4license to sell or offer coverage under a policy of portable electronics insurance in
3.5connection with, and incidental to, a portable electronics transaction with a customer.
3.6(b) A limited lines license issued under this subdivision shall authorize any
3.7employee or authorized representative of the vendor to sell or offer coverage under a
3.8policy of portable electronics insurance to a customer in connection with, and incidental
3.9to, a portable electronics transaction at each location at which the vendor engages in
3.10portable electronics transactions. The application for such a limited lines license shall
3.11set forth each location at which the vendor offers coverage under a policy of portable
3.12electronics insurance. The vendor shall notify the commissioner within 30 days of adding
3.13or eliminating such a location.
3.14(c) Notwithstanding any other provision of law, a license issued pursuant to this
3.15section shall authorize the licensee and its employees or authorized representatives to
3.16engage only in those activities that are expressly permitted in this section.
3.17    Subd. 3. Requirements for sale of portable electronics insurance. (a) At every
3.18location where portable electronics insurance is offered to customers, brochures, or other
3.19written materials must be made available to a prospective customer which:
3.20(1) disclose that portable electronics insurance may provide a duplication of
3.21coverage already provided by a customer's homeowner's insurance policy, renter's
3.22insurance policy, or other source of coverage;
3.23(2) state that the enrollment by the customer in a portable electronics insurance
3.24program is not required in order to purchase or lease portable electronics or services;
3.25(3) summarize the material terms of the insurance coverage, including:
3.26(i) the identity of the insurer;
3.27(ii) the identity of the supervising agency;
3.28(iii) the amount of any applicable deductible and how it is to be paid;
3.29(iv) benefits of the coverage;
3.30(v) the terms for terminating or modifying coverage as set forth in the policy of
3.31portable electronics insurance; and
3.32(vi) any material exclusions, conditions, or other limitations of coverage including
3.33whether portable electronics may be repaired or replaced with similar make and model
3.34reconditioned or nonoriginal manufacturer parts or equipment;
3.35(4) describe the process for filing a claim, including a description of any
4.1(i) to return portable electronics and the maximum fee applicable in the event the
4.2customer fails to comply with any equipment return requirements; and
4.3(ii) any proof of loss requirements; and
4.4(5) state that the customer may cancel enrollment for coverage under a portable
4.5electronics insurance policy at any time and any unearned premium will be refunded
4.6on a pro rata basis.
4.7(b) Portable electronics insurance may be offered on a month to month or other
4.8periodic basis as a group or master commercial inland marine policy issued to a vendor of
4.9portable electronics under which individual customers may elect to enroll for coverage.
4.10(c) Notwithstanding any other provision of Minnesota law regarding the termination
4.11or modification of coverage under a policy of insurance, the terms for the termination
4.12or modification of coverage under a policy of portable electronics insurance issued in
4.13compliance with this chapter shall be as set forth in the policy.
4.14(d) Eligibility and underwriting standards for customers electing to enroll in
4.15coverage shall be established for each portable electronics insurance program.
4.16    Subd. 4. Authority of vendors of portable electronics. (a) The employees and
4.17authorized representatives of vendors may sell or offer portable electronics insurance to
4.18customers and shall not be subject to licensure as an insurance producer under this chapter
4.19provided that:
4.20(1) the vendor obtains a limited lines license to authorize its employees or authorized
4.21representatives to sell or offer portable electronics insurance pursuant to this section;
4.22(2) the insurer issuing the portable electronics insurance appoints a supervising
4.23agency to supervise the administration of the program including development of a training
4.24program for employees and authorized representatives of the vendors. The training
4.25required by this subdivision shall comply with the following:
4.26(i) the training shall be delivered to all employees and authorized representatives of
4.27the vendors who sell or offer portable electronics insurance;
4.28(ii) the training may be provided in electronic form. However, if conducted in
4.29an electronic form, the supervising agency shall implement a program of in-person
4.30training conducted by licensed employees of the supervising agency to supplement the
4.31electronic training; and
4.32(iii) each employee and authorized representative shall receive basic instruction
4.33about the portable electronics insurance offered to customers and the disclosures required
4.34under subdivision 3 of this section; and
5.1(3) no employee or authorized representative of a vendor of portable electronics
5.2shall advertise, represent, or otherwise hold himself or herself out as a non-limited lines
5.3licensed insurance producer.
5.4(b) The charges for insurance coverage may be billed and collected by the vendor of
5.5portable electronics. If billed and collected by the vendor, the charges shall be separately
5.6itemized from the charges for the purchase or lease of portable electronics or services.
5.7Vendors billing and collecting such charges shall not be required to maintain such funds
5.8in a segregated account provided that the vendor is authorized by the insurer to hold
5.9such funds in an alternative manner and remits such amounts to the supervising agency
5.10within 60 days of receipt. All funds received by a vendor from a customer for the sale of
5.11portable electronics insurance shall be considered funds held by the vendor in a fiduciary
5.12capacity for the benefit of the insurer. Vendors may receive compensation for billing
5.13and collection services.

5.14    Sec. 4. Minnesota Statutes 2009 Supplement, section 60K.55, subdivision 2, is
5.15amended to read:
5.16    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations and the
5.17technology surcharge required under paragraph (d), each insurance producer licensed
5.18under this chapter shall pay to the commissioner a fee of:
5.19    (1) $50 for an initial life, accident and health, property, or casualty license issued to
5.20an individual insurance producer, and a fee of $50 for each renewal;
5.21    (2) $50 for an initial variable life and variable annuity license issued to an individual
5.22insurance producer, and a fee of $50 for each renewal;
5.23    (3) $50 for an initial personal lines license issued to an individual insurance
5.24producer, and a fee of $50 for each renewal;
5.25    (4) $50 for an initial limited lines license issued to an individual insurance producer,
5.26and a fee of $50 for each renewal;
5.27    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each
5.28renewal; and
5.29    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal; and
5.30(7) $5,000 for an initial portable electronics insurance limited lines license, and a
5.31fee of $1,000 for each renewal.
5.32    (b) Initial licenses issued to a business entity under this chapter are valid for a period
5.33not to exceed 24 months and expire on October 31 of the renewal year assigned by the
5.34commissioner. Initial licenses issued to an individual insurance producer under this
5.35chapter before August 1, 2010, are valid for a period not to exceed 24 months and expire
6.1on October 31 of the renewal year assigned by the commissioner. Each individual license
6.2initially issued or renewed on or after August 1, 2010, expires on the last day of the birth
6.3month of the producer in the year that will result in the term of the license being at least
6.412 months, but no more than 24 months. Beginning with the first license expiration on
6.5the last day of the birth month of an individual producer as set forth in this paragraph, all
6.6such licenses must after this date expire biennially on the last day of the birth month of the
6.7individual producer that is two years subsequent to the preceding expiration date. Each
6.8renewal insurance producer license is valid for a period of 24 months.
6.9    (c) All fees are nonreturnable, except that an overpayment of any fee may be
6.10refunded upon proper application.
6.11    (d) In addition to the fees required under paragraph (a), individual insurance
6.12producers shall pay, for each initial license and renewal, a technology surcharge of up to
6.13$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted
6.14under that section."
6.15Amend the title accordingly