Nevada has recently amended its administrative rule relating to Service Contracts. The amendment was effective June 26, 2018. The existing regulation already required that in the event a service contract relates to “goods that are essential to the health and safety of the holder”, and the repair of such goods 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”, that repairs are required to commence with 24 hours of the report of the complete and must be completed “as soon as reasonably practicable thereafter”. If the repairs cannot be completed within 3 calendar days, the provider was required to report a status to the contract holder. The status was required to be given “by verifiable means”.
Amendments to this regulation now require that such repair status must be provided not only to the contract holder, but also to the Commissioner of Insurance and it must be provided within 3 calendar days – the same 3 days in which the Provider has to complete the repairs.
In addition, there is a new disclosure requirement for all service contracts irrespective of whether it involves repairs that may relate to heating, cooling, plumbing or electrical systems of home, advising that the contract holder may contact the Commissioner of Insurance (along with the Division’s toll-free telephone number) if he or she is not satisfied with the handling of any claim.
Nevada service contracts are subject to file and approval, so the addition of this new disclosure must be addressed in some form or fashion and filed with the Division.