AB1800 - Portable electronics and optical products insurance.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1800 Introduced by Assembly Member Krell February 10, 2026 An act to amend the heading of Article 16.1 (commencing with Section 1758.6) of Chapter 5 of Part 2 of Division 1 of, and to amend Sections 1758.6, 1758.61, 1758.62, 1758.63, 1758.64, 1758.65, 1758.66, 1758.661, 1758.67, 1758.68, 1758.681, 1758.69, 1758.691, and 1758.692 of, the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 1800, as introduced, Krell. Portable electronics and optical products insurance. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law authorizes the commissioner to issue a portable electronics insurance agent license to a portable electronics vendor, authorizing the vendor to sell or offer to its customers 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. Existing law authorizes an endorsee of a portable electronics vendor to sell or offer portable electronics insurance pursuant to the authority of the vendor’s portable electronics insurance agent license, as provided. Existing law imposes various requirements on licensees and endorsees, including making specified disclosures, training, and recordkeeping. Under existing law, any person who transacts insurance without a valid license is guilty of a misdemeanor. This bill would expand the application of the above-described provisions to include optical products, as defined, by authorizing the commissioner to issue a portable electronics or optical products insurance agent license to a portable electronics or optical products vendor. The bill would make various conforming changes. By expanding the scope of products for which an insurance license is required, the violation of which is a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. The heading of Article 16.1 (commencing with Section 1758.6) of Chapter 5 of Part 2 of Division 1 of the Insurance Code is amended to read: Article 16.1. Portable Electronics or Optical Products Insurance SEC. 2. Section 1758.6 of the Insurance Code is amended to read: 1758.6. No A portable electronics or optical products vendor shall not offer or sell any form of portable electronics or optical products insurance in this state unless that person is licensed as an insurance agent or broker pursuant to Article 3 (commencing with Section 1631) or has complied with the requirements of this article and has been issued a license by the commissioner as provided in this article. SEC. 3. Section 1758.61 of the Insurance Code is amended to read: 1758.61. The commissioner may issue to an applicant that has complied with the requirements of this article a portable electronics or optical products insurance agent license that authorizes the licensee and its endorsees to offer or sell insurance in connection with, and incidental to, the sale of portable electronics electronics, optical products, or both, or the sale or provision of accessories or services related to the use of portable electronics. electronics, optical products, or both. SEC. 4. Section 1758.62 of the Insurance Code is amended to read: 1758.62. (a) An applicant for a portable electronics or optical products insurance agent license under this article shall submit all of the following to the commissioner: (1) A written application for licensure, signed by the applicant or an officer of the applicant, in the form prescribed by the commissioner. (2) A certificate by the insurer that is to be named in the portable electronics or optical products insurance agent license, stating that the insurer has satisfied itself that the named applicant is trustworthy and competent to act as its insurance agent limited to this purpose and that the insurer will appoint the applicant to act as its agent to transact the kind or kinds of insurance that are permitted by this article, if the portable electronics or optical products insurance agent license applied for is issued by the commissioner. The certification shall be subscribed by an officer or managing agent of the insurer on a form prescribed by the commissioner. (3) An application fee, and, for each license period thereafter, a renewal fee, of two hundred ninety-two dollars ($292). (b) Notwithstanding any other law to the contrary, the provisions set forth in Sections 1667, 1668, 1668.5, 1669, 1670, 1738, and 1739 apply to any application for or issuance of a license pursuant to this article. (c) Costs associated with any enforcement action or investigation shall be paid for by the person or organization licensed pursuant to this article. SEC. 5. Section 1758.63 of the Insurance Code is amended to read: 1758.63. An endorsee of a portable electronics or optical products vendor that has been issued a portable electronics or optical products insurance agent license pursuant to this article may sell or offer insurance products under the authority of the vendor’s portable electronics or optical products insurance agent license if all of the following conditions have been met: (a) The endorsee is 18 years of age or older. (b) The portable electronics or optical products vendor, at the time it submits its portable electronics or optical products insurance agent’s license application pursuant to Section 1758.62, also establishes a list of all locations in this state at which it offers coverage under a policy of portable electronics or optical products insurance. The list shall be maintained by the portable electronics or optical products vendor in a form prescribed by, or format acceptable to, the commissioner and shall be updated annually. The list shall be maintained by the portable electronics or optical products vendor and made available to the commissioner for review and inspection upon request. (c) Each portable electronics or optical products vendor licensed pursuant to this article shall provide for the training of its endorsees under a program developed by a licensed property and casualty broker or agent prior to allowing its endorsees to offer or sell insurance products. The training shall meet the following minimum standards: (1) Each endorsee shall receive instruction about the types of insurance specified in subdivision (e) (f) of Section 1758.69 that are offered for sale to prospective customers. (2) Each endorsee shall receive training about ethical sales practices. (3) Each endorsee shall receive training about the disclosures to be given to prospective customers pursuant to Section 1758.66. (4) The retraining of endorsees shall be conducted whenever there is a material change in the insurance products sold that requires modification of the training materials, but in no event less frequently than every three years for each endorsee. SEC. 6. Section 1758.64 of the Insurance Code is amended to read: 1758.64. An endorsee may act on behalf of and under the supervision of the portable electronics or optical products insurance agent in matters relating to transacting insurance under that agent’s license. The conduct of an endorsee of a portable electronics or optical products insurance agent acting within the scope of employment or agency shall be deemed the conduct of the portable electronics or optical products insurance agent for purposes of this article. SEC. 7. Section 1758.65 of the Insurance Code is amended to read: 1758.65. (a) If a licensee or endorsee violates any provision of this article or any other provision of this code, the commissioner may do any of the following: (1) After notice and hearing, suspend or revoke the license of the portable electronics or optical products insurance agent. (2) After notice and hearing, impose fines on the portable electronics or optical products insurance agent for its conduct or that of its endorsees. (3) After notice and hearing, impose other penalties that the commissioner deems necessary and convenient to carry out the purpose of this code, including suspending the privilege of transacting portable electronics insurance insurance, optical products insurance, or both, pursuant to this article at specific business locations where violations have occurred, imposing fines on the portable electronics or optical products insurance agent, and suspending or revoking the ability of individual endorsees to act under the vendor’s license. (b) If any person or persons sell insurance in connection with, or incidental to, the sale of portable electronics electronics, optical products, or both, or the sale or provision of accessories or services related thereto, or hold themselves or an organization out as a portable electronics or optical products insurance agent without obtaining the license required by this article, or as being licensed pursuant to Chapter 5 (commencing with Section 1621) without obtaining that license, the commissioner may issue a cease and desist order pursuant to Section 12921.8. (c) Notwithstanding any other provision of law to the contrary, the provisions of Section 1748.5 are applicable to both the organization issued a license pursuant to this article and any endorsee to that license. SEC. 8. Section 1758.66 of the Insurance Code is amended to read: 1758.66. A portable electronics or optical products insurance agent shall not sell insurance pursuant to this article by unsolicited telephone calls or otherwise unless, at the time of sale, or reasonably thereafter with respect to a sale or enrollment occurring by telephone, all of the following conditions are satisfied: (a) The portable electronics or optical products insurance agent provides brochures or other written materials to the prospective purchaser that do all of the following: (1) Summarize the material terms and conditions of coverage offered, including the identity of the insurer. (2) Describe the process for filing a claim, including a toll-free telephone number to report a claim. (3) Disclose any additional information on the price, benefits, exclusions, conditions, or other limitations of those policies that the commissioner may, by rule, prescribe. (4) Provide the name, address, telephone number, and license number of the licensee or the property and casualty broker-agent appointed by the insurer issuing portable electronics insurance coverage coverage, optical products insurance coverage, or both, to the licensee, as well as the department’s toll-free consumer hotline. (b) The portable electronics or optical products insurance agent or its endorsees make all of the following disclosures, which shall be acknowledged in writing by the purchaser, or displayed by clear and conspicuous signs that are posted at every location where contracts are executed, such as the counter where the purchaser signs the service agreement, or provided in writing to the purchaser: (1) That the purchase by the customer of the kinds of insurance prescribed in this article is not required in order to purchase portable electronics, optical products, accessories, or related services. (2) That the insurance policies offered by the portable electronics or optical products insurance agent may provide a duplication of coverage already provided by other insurance policies covering the purchaser. (3) That the endorsee of the portable electronics or optical products insurance agent is not qualified or authorized to evaluate the adequacy of the purchaser’s existing insurance coverages, unless that person is licensed pursuant to Article 3 (commencing with Section 1631). (4) That the customer may cancel the insurance at any time. If the customer cancels any unearned premium will be refunded in accordance with applicable law. (c) The material terms and conditions of coverage are provided to every person who elects to purchase that coverage. (d) Costs for the insurance are separately itemized in any billing statement for the insurance. However, if the portable electronics coverage or optical products coverage is included with the purchase or lease of portable electronics electronics, optical products, or related services, the vendor shall clearly and conspicuously disclose to the customer that the coverage is included with the purchase of the portable electronics electronics, optical products, or related services. (e) The insurance is provided under an individual policy issued to the purchaser, or under a group or master policy issued to an organization licensed as a portable electronics or optical products insurance agent by an insurer authorized to transact the applicable kinds or types of insurance in this state. SEC. 9. Section 1758.661 of the Insurance Code is amended to read: 1758.661. Charges for portable electronics or optical products insurance may be billed and collected by a portable electronics or optical products insurance agent licensee. A licensee shall not be required to maintain those funds in a segregated account if the insurer represented by the licensee has provided in writing that the funds need not be segregated from funds received by the portable electronics or optical products vendor on account of the sale or lease of portable electronics electronics, optical products, or related services or accessories. All funds received by a vendor from a customer for the sale of portable electronics or optical products insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. Licensees may receive compensation for billing and collection services. SEC. 10. Section 1758.67 of the Insurance Code is amended to read: 1758.67. Under the authority of the portable electronics or optical products insurance agent license, a portable electronics or optical products insurance agent shall not do any of the following: (a) Offer to sell insurance except in conjunction with, and incidental to, the business of selling portable electronics, electronics or optical products, their accessories, or related services. (b) Advertise, represent, or otherwise portray itself or its endorsees as licensed insurers or property and casualty broker-agents. (c) Pay any endorsee compensation based primarily on the number of customers electing coverage under the portable electronics or optical products insurance agent’s license. However, nothing in this code shall prohibit the payment of compensation to an endorsee of a portable electronics or o [Text truncated for display. Full text available on Congress.gov.]