[Rev. 11/22/2013 10:30:42 AM--2013]

[NAC-690C Revised Date: 3-12]

CHAPTER 690C - SERVICE CONTRACTS

690C.010         Definitions.

690C.020         “Commissioner” defined.

690C.030         “Provider” defined.

690C.040         “Service contract” defined.

690C.050         “Service contract” interpreted.

690C.100         Submission and approval of contract; fees.

690C.110         Information required in contract; status report.

690C.120         Cancellation of contract: Refund of purchase price; cancellation fee.

 

 

 

      NAC 690C.010  Definitions. (NRS 690C.300)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 690C.020, 690C.030 and 690C.040 have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

      NAC 690C.020  “Commissioner” defined. (NRS 690C.300)  “Commissioner” means the Commissioner of Insurance.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

      NAC 690C.030  “Provider” defined. (NRS 690C.300)  “Provider” has the meaning ascribed to it in NRS 690C.070.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

      NAC 690C.040  “Service contract” defined. (NRS 690C.300)  “Service contract” has the meaning ascribed to it in NRS 690C.080.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

      NAC 690C.050  “Service contract” interpreted. (NRS 679B.130, 690C.300)  The Commissioner will interpret “service contract” as used in chapter 690C of NRS not to include:

     1.  A service contract issued by a motor club as defined in NRS 696A.070;

     2.  A contract of insurance for home protection as defined in NRS 690B.100; and

     3.  Contracts of insurance issued by insurers licensed pursuant to Title 57 of NRS.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

      NAC 690C.100  Submission and approval of contract; fees. (NRS 679B.130, 690C.300)

     1.  A provider shall not issue, sell or offer for sale a service contract unless it has been approved by the Commissioner.

     2.  A provider who submits a service contract to the Commissioner for approval must submit with the contract:

     (a) All documents that are part of the application for the service contract;

     (b) All documents that are part of the contract;

     (c) A form for assessing fees as described in NAC 680B.010; and

     (d) The appropriate fee described in subsection 3.

     3.  The Commissioner will charge the following fees:

     (a) Twenty-five dollars for:

          (1) The initial filing of all the forms that comprise a new service contract.

          (2) The filing of a service contract that modifies a service contract which has been approved by the Commissioner pursuant to this section.

     (b) Ten dollars for the filing of a rider or endorsement to a service contract that has been approved by the Commissioner pursuant to this section.

     4.  The Commissioner may approve or disapprove a service contract submitted pursuant to this section within 60 days after the date on which the Commissioner determines that the provider has fully complied with the requirements of subsection 2. If the Commissioner does not approve or disapprove the contract within the 60 days described in this subsection, the contract shall be deemed to be approved by the Commissioner. Each service contract shall be deemed to be complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the service contract is filed with him or her, determines that the proposal is incomplete because the proposal does not comply with subsection 2.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)

REVISER’S NOTE.

      The regulation of the Commissioner of Insurance filed with the Secretary of State on January 27, 2000 (LCB File No. R195-99), the source of NAC 690C.010 to 690C.120, inclusive (sections 2 to 9, inclusive, of the regulation), contains the following provision not included in NAC:

      “Sec. 10.  Any provider issuing or selling service contracts in this state on or before December 1, 1999, may continue to issue or sell service contracts until the earlier of:

      1.  May 1, 2000; or

      2.  The issuance of a certificate of registration to the provider and approval of the provider’s service contract pursuant to section 7 of this regulation [NAC 690C.100].”

 

      NAC 690C.110  Information required in contract; status report. (NRS 679B.130, 690C.300)

     1.  A service contract must clearly state the procedures for making a claim on the contract, including, without limitation:

     (a) A toll-free telephone number for claim service.

     (b) Procedures for obtaining prior approval of work if such approval is required by the contract.

     (c) If the service contract relates to goods that are essential to the health and safety of the holder and the repair of such goods is covered under the terms and conditions of the service contract, procedures for obtaining emergency service on such goods outside of normal business hours, including, without limitation, a statement which provides that if the emergency involves the loss of heating or cooling, loss of plumbing or substantial loss of electrical service and the emergency renders a dwelling unfit for a person to live in because of defects that immediately endanger the health and safety of the occupants of the dwelling:

          (1) Repairs will commence within 24 hours after the report of the claim and will be completed as soon as reasonably practicable thereafter; and

          (2) If the provider determines that repairs cannot practicably be completed within 3 calendar days after the report of the claim, the provider will provide a status report to the holder as described in subsection 2.

     2.  A status report must:

     (a) Be provided not later than 3 calendar days after the report of the claim;

     (b) Be provided by verifiable means; and

     (c) Include, without limitation:

          (1) A list of the required repairs or services;

          (2) The primary reason causing the required repairs or services to extend beyond the 3-day period set forth in subparagraph (2) of paragraph (c) of subsection 1, including, without limitation, the status of any parts required for the repairs or services;

          (3) The current estimated time to complete the repairs or services; and

          (4) Contact information for the holder to make additional inquiries concerning any aspect of the claim and a commitment by the provider to respond to such inquiries not later than 1 business day after such an inquiry is made.

     3.  If any preexisting conditions are excluded from coverage, the service contract must state the basis upon which service may be denied for such preexisting conditions.

     4.  As used in this section, “verifiable means” includes, without limitation, communication given by facsimile transmission, electronic mail, mail, telephone, if there is an auditable record of the communication by telephone, or by any similar mode of communication that is appropriate given the course of dealing between the provider and the holder.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000; A by R067-07, 4-17-2008)

      NAC 690C.120  Cancellation of contract: Refund of purchase price; cancellation fee. (NRS 690C.300)

     1.  Except as otherwise provided in this subsection, if a provider cancels a service contract pursuant to NRS 690C.270, the provider shall refund to the holder the portion of the purchase price that is unearned by the provider. The provider may deduct any outstanding balance on the account of the holder from the amount of the purchase price that is unearned by the provider when calculating the amount of the refund. A provider who cancels a contract pursuant to NRS 690C.270 may not impose a cancellation fee.

     2.  Except as otherwise provided in this section, if a holder who is the original purchaser of a service contract submits to the provider a request in writing to cancel the service contract in accordance with the terms of the contract, the provider shall refund to the holder the portion of the purchase price that is unearned by the provider.

     3.  If a holder requests the cancellation of a service contract pursuant to subsection 2, the provider may impose a reasonable cancellation fee if such a fee is provided for in the terms of the service contract.

     4.  When calculating the amount of a refund pursuant to subsection 2, the provider may deduct from the portion of the purchase price that is unearned by the provider:

     (a) Any outstanding balance on the account of the holder; and

     (b) Any cancellation fee imposed pursuant to this section.

     5.  Except as otherwise provided in this subsection, if the purchase price of a service contract is financed and the loan has not been paid in full by the holder, the provider may provide a refund to the holder pursuant to this section or NRS 690C.250 by sending the refund to the lender. The amount of refund that may be sent to the lender must not exceed the holder’s outstanding balance on the loan.

     6.  As used in this section, “holder” has the meaning ascribed to it in NRS 690C.060.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000)