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Senate passes bill to regulate cell phone insurance

Senate passes bill to regulate cell phone insurance

Idaho Freedom Foundation staff
March 27, 2012

The state of Idaho is one step closer to regulating the sale of cell phone and other portable electronics insurance.

The Senate voted 26-8 Tuesday in favor of House Bill 649, which would place portable electronics in the same category as other limited lines of insurance such as travel or pet insurance.

The bill says a company would need to get a single license for a location, rather than have each individual sales person licensed. Technically, that’s what is required under Idaho law, but the Department of Insurance doesn’t enforce the law for portable electronics just yet.

Sen. John Goedde, R-Coeur d’Alene, described the bill as one that would reduce government regulation of the industry.

Sen. Russ Fulcher, R-Meridian, wasn’t convinced. “I’m trying to understand what the problem is that the bill is truly trying to fix,” Fulcher asked Goedde.

“Every sales person at every store … would have to be licensed with a full license” under existing law, answered Goedde.

Sen. Steve Vick, a Republican from Dalton Gardens, asked, “Are you saying that every insurance salesman for this has to be licensed individually” and if so, are they now? “Are you saying the Department of Insurance does not enforce current law?” Vick pressed.

“I guess that would be the case,” answered Goedde.

Vick wound up opposing the legislation, which now goes to the governor for his consideration. The House voted 53-13 in favor of the bill on March 16.

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