BILL ANALYSIS Ó AB 690 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 690 (Solorio) - As Amended: April 25, 2011 Policy Committee: InsuranceVote:11 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill updates the laws governing the sale of insurance in connection with portable electronic devices and their accessories and associated services. Specifically, this bill: 1)Updates state statute to expand the current law governing "communications devices" to include insurance for all "portable electronics." 2)Authorizes the Insurance Commissioner (IC) to issue a portable electronics insurance agent license that authorizes the licensee and its employees and authorized representatives to sell insurance in connection with, and incidental to, the sale of "portable electronics" or the sale or provision of accessories or services related to the use of portable electronics. 3)Requires vendors to clearly disclose to a customer the fact that a charge for insurance coverage has been included in the costs associated with the purchase or lease of a portable electronic device. 4)Prohibits a portable electronics insurance agent from paying an employee or authorized representative any compensation, fee, or commission based primarily on the number of customers electing coverage under the portable electronics insurance agent's license. FISCAL EFFECT Cost for the Department of Insurance would be minor and AB 690 Page 2 absorbable within existing resources. COMMENTS 1)Rationale . This bill is designed to update current law to keep pace with the changes in wireless technology that have come about since the original implementing legislation was passed in 2002. 2)Related Legislation . AB 2856 (Chaves; Chapter 437, Statutes of 2002) created a regulatory framework for the sale of communications equipment insurance in California. As enacted, this law provides the Insurance Commissioner with the authority to issue to retail vendors selling communications equipment the limited authority to sell insurance covering communications equipment to its customers. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081