Cell phones have gotten more and more complex over the years. Although you can get a cell phone that doesn’t do much more than let you make calls, most people are opting for smartphones that do a whole lot more. Often, vendors will offer a form of insurance for these very expensive phones. A new law may soon be passed in Nebraska that requires cell phone vendors to get a license to sell insurance.
What kind of cell phone do you have? I have just recently gotten my very first cell phone. I’ve never had one before, and for years, I didn’t want one, or feel that I had need for one. Lately, it seemed like a good idea for me to have a cell phone in order to keep in touch with family members who live far away, who are going through a difficult time right now.
No, I didn’t get a smartphone. I got the most basic, easiest, non-intimidating type of cell phone I could find. It’s one of those “pay as you go” kinds, and it’s going to take me a while to get used to using it. It does have the capability to take pictures, which I’m sure will come in handy, once I learn how to make it do that. I wasn’t offered any kind of insurance when I purchased my cell phone, because really, there just isn’t any need for that.
However, if you instead buy a smartphone, with all the bells and whistles, you might be offered insurance from the vendor you bought the phone from. This type of insurance usually covers loss, theft, damage that is done to the phone, and product failure.
Right now, lawmaker in Nebraska are working on passing a law that would require vendors of cell phones to have a license to sell the insurance that they are currently selling to people who buy cell phones. Similar laws have already been passed in 20 other states. If this law is passed in Nebraska, it would mean that vendors would have to create employee training programs to offer insurance. It would also require disclosures for consumers who already have the coverage they need through another insurance policy. Overall, this law, if passed, is said to be a good thing for consumers.
Part of the details in this law include a requirement that vendors that sell smartphones pay a fee, which could be as high as $1,000, for a two-year license to sell insurance. It would cost the vendor $500 to renew that license. There has also been an amendment submitted that suggests lowering the fees to $100 for a one-year license, and $100 for each renewal. The amendment also states that vendors could not require consumers to purchase insurance coverage as a condition of purchasing the smartphone or the plan that goes with it.
Image by Cheon Fong Liew on Flickr