The Director of the Nebraska Department of Insurance (NDOI) has published proposed amendments of Title 210, Nebraska Administrative Code, Chapter 58 – Motor Vehicle Service Contract Reimbursement Insurance.
According to materials published by the NDOI, the proposed amendments streamline the filing requirements for motor vehicle service contracts (MVSCs). Currently, MVSC providers are responsible for filing a copy of the MVSC form with the Department prior to use, while reimbursement insurers are responsible for filing a copy of the MVSC reimbursement policy with the department prior to use. Both entities must file a “notice of filing” form provided by the department. The Department acknowledges that this results in an inefficient review process. The proposed amendment will require only the MVSC provider to file one copy of the MVSC form, the corresponding reimbursement policy, and the “Notice of Filing” form.
The amendments also clarify the department’s definition of “conspicuously” as it applies to the MVSC disclosure requirements. This is not a change in policy, but merely a codification of the Department’s definition of “conspicuously,” which has previously been outlined in Department Bulletin CB-106.
Finally, the proposed amendments place an additional requirement on MVSC providers who cover vehicle protection products. The recent passage of Nebraska Legislative Bill 1054 expands the definition of MVSC to include, among other things, contracts providing for incidental costs resulting from the failure of a vehicle protection product to perform as specified. Simultaneously, LB 1054 excludes from the act any product warranties governed by the Magnuson-Moss Warranty – Federal Trade Commission Improvement Act, 15 U.S.C. 2301 et seq (MMWA).
