NRS: CHAPTER 691D - PORTABLE ELECTRONICS INSURANCE

[Rev. 6/29/2024 5:01:06 PM--2023]

CHAPTER 691D - PORTABLE ELECTRONICS INSURANCE

GENERAL PROVISIONS

NRS 691D.010 Definitions.

NRS 691D.020 “Customer” defined.

NRS 691D.030 “Enrolled customer” defined.

NRS 691D.040 “Location” defined.

NRS 691D.050 “Maintenance agreement” defined.

NRS 691D.060 “Portable electronics” defined.

NRS 691D.070 “Portable electronics insurance” defined.

NRS 691D.080 “Supervising entity” defined.

NRS 691D.090 “Vendor” defined.

NRS 691D.100 “Warranty” defined.

LICENSING

NRS 691D.200 License required to sell or offer portable electronics insurance; contents of application; maintenance of schedule of business locations by licensee required.

NRS 691D.210 Issuance or renewal of license for nonresident: Conditions.

NRS 691D.220 Employee or authorized representative of licensee authorized to sell or offer portable electronics insurance without license under certain circumstances; restrictions; compensation.

MISCELLANEOUS PROVISIONS

NRS 691D.300 Policy of portable electronics insurance: Delivery; coverage; standards for coverage; supervising entity; training for employees and authorized representatives.

NRS 691D.310 Vendor required to provide written disclosures to prospective customers; vendor required to file policy form with Commissioner before use.

NRS 691D.320 Billing and collection of charges by vendor authorized; itemization of charges in certain circumstances; disclosure to customer if coverage included with purchase or lease; accounting and status of money received by vendor; compensation of vendor for billing and collection services.

NRS 691D.330 Termination of policy; change in terms or condition of policy; requirements for notice of termination.

REGULATION AND ENFORCEMENT

NRS 691D.500 Regulations.

NRS 691D.510 Administrative fines; suspension of privilege of vendor, employee or authorized representative to sell or offer portable electronics insurance; suspension or revocation of license.

_________

GENERAL PROVISIONS

NRS 691D.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 691D.020 to 691D.100, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2011, 2022)

NRS 691D.020 “Customer” defined. “Customer” means a person who acquires, by lease or purchase, portable electronics or services related to the use of portable electronics from a vendor.

(Added to NRS by 2011, 2022)

NRS 691D.030 “Enrolled customer” defined. “Enrolled customer” means a customer who elects coverage under a policy of portable electronics insurance issued to a vendor.

(Added to NRS by 2011, 2022)

NRS 691D.040 “Location” defined. “Location” means any physical site within this State or any Internet website, call center or other similar site where a vendor transacts business with residents of this State.

(Added to NRS by 2011, 2022)

NRS 691D.050 “Maintenance agreement” defined. “Maintenance agreement” means a contract for a limited period that provides only for scheduled maintenance.

(Added to NRS by 2011, 2022)

NRS 691D.060 “Portable electronics” defined. “Portable electronics” means electronic devices that are portable in nature and their accessories.

(Added to NRS by 2011, 2022)

NRS 691D.070 “Portable electronics insurance” defined.

1. “Portable electronics insurance” means insurance which provides coverage for the repair or replacement of portable electronics and which may cover portable electronics against loss, theft, inoperability due to mechanical failure, malfunction, accidental damage or other similar perils in accordance with the terms of the policy.

2. The term does not include:

(a) A service contract governed by chapter 690C of NRS;

(b) A maintenance agreement;

(d) A policy of homeowners’ insurance, renter’s insurance or motor vehicle insurance; or

(e) A policy of property or casualty insurance for business and commercial risks.

(Added to NRS by 2011, 2023)

NRS 691D.080 “Supervising entity” defined. “Supervising entity” means a business or entity that is a licensed insurer or producer of insurance.

(Added to NRS by 2011, 2023)

NRS 691D.090 “Vendor” defined. “Vendor” means a person who, directly or indirectly, engages in the business of:

1. The sale or lease of portable electronics by the vendor to a customer; or

2. The sale of a service related to the use of portable electronics by the vendor to a customer.

(Added to NRS by 2011, 2023)

NRS 691D.100 “Warranty” defined. “Warranty” means a warranty provided solely by a manufacturer, importer or seller of goods for which the manufacturer, importer or seller did not receive separate consideration and that:

1. Is not negotiated or separated from the sale of the goods;

2. Is incidental to the sale of the goods; and

3. Guarantees to indemnify the consumer for defective parts, mechanical or electrical failure, labor or other remedial measures required to repair or replace the goods.

(Added to NRS by 2011, 2023)

LICENSING

NRS 691D.200 License required to sell or offer portable electronics insurance; contents of application; maintenance of schedule of business locations by licensee required.

1. A vendor shall not sell or offer coverage under a policy of portable electronics insurance unless the vendor holds a license as a producer of insurance in portable electronics insurance as a limited line issued by the Commissioner pursuant to NRS 683A.261 or 683A.271.

2. In addition to the information required pursuant to NRS 683A.251, an application for a license as a producer of insurance in portable electronics insurance must include:

(a) A schedule which identifies each location at which the vendor does business; and

(b) The physical address of the home office of the vendor.

3. A natural person who is designated by a vendor pursuant to paragraph (b) of subsection 2 of NRS 683A.251 is not required to be a principal, officer or employee of the vendor.

4. A vendor who is licensed as a producer of insurance in portable electronics insurance shall maintain the schedule described in paragraph (a) of subsection 2 and make the schedule available for inspection by the Commissioner upon request.

(Added to NRS by 2011, 2023)

NRS 691D.210 Issuance or renewal of license for nonresident: Conditions. The Commissioner may issue or renew a license as a producer of insurance in portable electronics insurance as a limited line pursuant to NRS 683A.261 or 683A.271 to an applicant who is not a resident of Nevada, including, without limitation, a resident of Canada:

1. Before July 1, 2014, if:

(a) The jurisdiction in which the applicant resides or in which the applicant maintains his or her principal place of business does not provide for the issuance of a license as a producer of insurance in portable electronics insurance as a limited line; and

(b) The applicant meets all other requirements for licensure.

2. On or after July 1, 2014, if:

(b) The applicant is issued a license as a producer of insurance for property and casualty insurance in this State pursuant to NRS 683A.261; and

(Added to NRS by 2011, 2023)

NRS 691D.220 Employee or authorized representative of licensee authorized to sell or offer portable electronics insurance without license under certain circumstances; restrictions; compensation.

1. Notwithstanding any other provision of law, an employee or authorized representative of a vendor that holds a license as a producer of insurance in portable electronics insurance issued by the Commissioner pursuant to NRS 683A.261 or 683A.271 may, without a license issued by the Commissioner, sell or offer coverage under a policy of portable electronics insurance at any location at which the vendor does business if:

(a) The employee or authorized representative of the vendor sells or offers coverage under a policy of portable electronics insurance only on behalf of, and under the supervision of, the vendor; and

(b) Before the employee or authorized representative of the vendor sells or offers coverage under a policy of portable electronics insurance, he or she completes a program of training provided by the vendor pursuant to NRS 691D.300.

2. An employee or authorized representative of a vendor who sells or offers coverage under a policy of portable electronics insurance pursuant to this section shall not advertise, represent or otherwise hold himself or herself out as a licensed producer of insurance unless the person is licensed as a producer of insurance.

3. An employee or authorized representative of a vendor who offers to a customer coverage under a policy of portable electronics insurance pursuant to this section and enrolls the customer under the policy may receive from the vendor compensation that is:

(a) Incidental to the overall compensation received by the employee or authorized representative of the vendor; and

(b) Relating to the offering of the coverage and the enrolling of the customer under the policy of portable electronics insurance.

(Added to NRS by 2011, 2024; A 2017, 4005)

MISCELLANEOUS PROVISIONS

NRS 691D.300 Policy of portable electronics insurance: Delivery; coverage; standards for coverage; supervising entity; training for employees and authorized representatives.

1. An authorized insurer may deliver or issue for delivery in this State a policy of portable electronics insurance as a group or master inland marine policy issued to a vendor. A vendor may provide coverage for portable electronics under the policy to customers who elect to enroll under the policy. The policy may be offered on a month-to-month or other periodic basis. Notwithstanding the provisions of any law to the contrary, each rate for a policy of portable electronics insurance must be filed with the Commissioner pursuant to chapter 686B of NRS.

2. An insurer that issues a group policy of portable electronics insurance to a vendor shall:

(a) Establish reasonable eligibility and underwriting standards for customers who elect to enroll under the vendor’s policy of portable electronics insurance.

(b) Appoint a supervising entity to oversee the vendor’s sales and enrollment activities under the vendor’s policy of portable electronics insurance.

3. A supervising entity appointed pursuant to this section must develop and conduct a training program for the employees and authorized representatives of the vendor who sell or offer coverage under the vendor’s policy of portable electronics insurance. The training program must include, without limitation, basic instruction concerning:

(a) The coverage that is available to customers who enroll under the vendor’s policy of portable electronics insurance; and

(b) The disclosures required by NRS 691D.310.

4. The supervising entity may provide the basic instruction required by subsection 3 in electronic form if the supervising entity provides supplemental education that is conducted and overseen by a licensed employee of the supervising entity.

5. The supervising entity shall ensure that each employee and authorized representative of a vendor completes the training program required by subsection 3 before selling or offering to sell coverage under the vendor’s policy of portable electronics insurance.

(Added to NRS by 2011, 2024)

NRS 691D.310 Vendor required to provide written disclosures to prospective customers; vendor required to file policy form with Commissioner before use.

1. A vendor shall make available to a prospective customer, at each location where the vendor sells or offers coverage under a policy of portable electronics insurance, a printed brochure or other written material concerning the coverage available under the policy of portable electronics insurance. The written material must:

(a) Disclose that coverage under a policy of portable electronics insurance may duplicate coverage already provided to the customer by a policy of property insurance or other source of coverage;

(b) State that the customer is not required to enroll for coverage under the vendor’s policy of portable electronics insurance as a condition of the purchase or lease of any portable electronics or related services;

(1) The identity of the insurer;

(2) The identity of the supervising entity;

(3) The amount of any applicable deductible and how it is to be paid;

(4) Benefits of the coverage; and

(5) Key terms and conditions of the coverage, including, without limitation, whether portable electronics may be repaired or replaced with a similar make and model that has been reconditioned or with nonoriginal manufacturer parts or equipment;

(d) Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable if the enrolled customer fails to comply with any equipment return requirements; and

(e) State that the enrolled customer may cancel his or her enrollment for coverage under the policy of portable electronics insurance at any time and, in the event of such cancellation, the person paying the premium for the coverage will receive a refund of any applicable unearned premium.

2. The printed brochure or other written material that a vendor is required to make available to a prospective customer in accordance with subsection 1 need not be:

(a) Filed with the Commissioner; or

(b) Approved by the Commissioner.

3. An insurer must file a portable electronics insurance policy form, including any certificate of coverage, with the Commissioner not later than 15 days before the use of the form by the insurer.

(Added to NRS by 2011, 2025; A 2013, 1263)

1. If a customer purchases a policy of portable electronics insurance from a vendor or elects to enroll in coverage under the vendor’s policy of portable electronics insurance, the vendor may bill and collect the charges for the portable electronics insurance coverage.

2. Any charge to the customer for portable electronics insurance coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services must be separately itemized on the customer’s bill.

3. If portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor must clearly and conspicuously disclose to the customer that the portable electronics insurance coverage is included with the purchase of the portable electronics or related services.

4. A vendor which bills and collects charges for portable electronics insurance coverage on behalf of an insurer is not required to maintain such money in a segregated account if the vendor:

(a) Is authorized by the insurer to hold such money in an alternative manner; and

(b) Remits such amounts to the supervising entity within 60 days after receipt.

Ê All money collected by a vendor from an enrolled customer for the sale of portable electronics insurance shall be deemed to be held in trust by the vendor in a fiduciary capacity for the benefit of the insurer, and the insurer shall be deemed to have received the premium from the enrolled customer upon payment of the premium by the enrolled customer to the vendor. A vendor is entitled to receive compensation for billing and collection services.

(Added to NRS by 2011, 2026; A 2013, 1263)

NRS 691D.330 Termination of policy; change in terms or condition of policy; requirements for notice of termination. Notwithstanding any other provision of law:

1. Except as otherwise provided in this section, an insurer that issues a policy of portable electronics insurance may not terminate the policy before the expiration of the agreed term of the policy unless, not less than 30 days before the effective date of the termination, the insurer provides notice to:

(a) The holder of the policy of portable electronics insurance; and

(b) If the policy is a group policy issued to a vendor under which individual customers may elect to enroll for coverage, each enrolled customer.

2. If the insurer changes a term or condition of a policy of portable electronics insurance, the insurer shall, not less than 30 days before the effective date of the change, provide:

(a) The policyholder with a revised policy or endorsement; and

(b) Each enrolled customer with a revised certificate of coverage, endorsement, brochure or other evidence of coverage which:

(1) Declares that the insurer has changed a term or condition of the policy which may affect the enrolled customer’s coverage; and

(2) Provides a summary of the material changes.

3. An insurer may terminate an enrolled customer’s coverage under a vendor’s policy of portable electronics insurance upon the discovery of fraud or material misrepresentation by the enrolled customer in obtaining the coverage or in presenting a claim thereunder if the insurer provides notice of the termination to the vendor and the enrolled customer within 10 days after discovery of the fraud or material misrepresentation.

4. An insurer may immediately terminate an enrolled customer’s coverage under a vendor’s policy of portable electronics insurance if the enrolled customer:

(a) Fails to pay a premium;

(b) Ceases to have an active service with the vendor; or

(c) Exhausts the aggregate limit of liability, if any, under the terms of the policy of portable electronics insurance and the insurer provides notice of termination to the customer within 30 calendar days after exhaustion of the limit. If the insurer fails to provide timely notice as required by this paragraph, the enrolled customer’s coverage under the policy continues until the insurer provides notice of termination to the enrolled customer notwithstanding the exhaustion of the aggregate limit of liability.

5. A vendor or other holder of a group policy of portable electronics insurance shall not terminate the policy unless, not less than 30 days before the effective date of the termination, the insurer provides notice to each enrolled customer of the termination of the policy and the effective date of termination. An insurer may authorize a vendor to provide notice to an enrolled customer on behalf of the insurer pursuant to this subsection.

6. Any notice that is required pursuant to this section must be in writing and be:

(a) Mailed or delivered to the enrolled customer, vendor or other policyholder at his or her last known address; or

(b) Sent by electronic mail or other electronic means in accordance with regulations adopted by the Commissioner to the enrolled customer, vendor or other policyholder at the electronic mail address of the enrolled customer, vendor or other policyholder last known by the insurer.

Ê An insurer or vendor who provides notice pursuant to this subsection must maintain proof of mailing or delivery in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service or an electronic record or other proof that the notice was sent.

(Added to NRS by 2011, 2026; A 2013, 1264)

REGULATION AND ENFORCEMENT

NRS 691D.500 Regulations. The Commissioner may adopt such regulations as necessary to carry out the provisions of this chapter.

(Added to NRS by 2011, 2028)

NRS 691D.510 Administrative fines; suspension of privilege of vendor, employee or authorized representative to sell or offer portable electronics insurance; suspension or revocation of license. If a vendor or an employee or authorized representative of a vendor violates any provision of this chapter or an order or regulation of the Commissioner issued or adopted pursuant thereto, the Commissioner may, after notice and an opportunity for a hearing:

1. Impose an administrative fine pursuant to NRS 683A.461 for each violation, which must not exceed $50,000 in the aggregate;

2. Suspend a vendor’s privilege of engaging in the sale or offering of coverage under a policy of portable electronics insurance at a particular location where the vendor does business;

3. Suspend or revoke the privilege of an employee or authorized representative of a vendor to sell or offer coverage under a policy of portable electronics insurance; or

4. Suspend or revoke the license issued by the Commissioner to the vendor as a licensed producer of insurance.

(Added to NRS by 2011, 2027)