[Rev. 2/11/2015 11:54:00
AM--2014R2]
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.
NRS 691D.210 Issuance
or renewal of license for nonresident: Conditions.
NRS 691D.220 Employee
or authorized representative of licensee may sell or offer portable electronics
insurance; conditions; training; restrictions.
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
to provide written disclosures.
NRS 691D.320 Billing
and collection of charges by vendor; itemization of charges; disclosure;
accounting of money received by vendor.
NRS 691D.330 Termination
of policy; change in terms of policy; method of notice.
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;
(c) A warranty;
(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.
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:
(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 as a limited line;
(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
(c) The applicant meets all other requirements
for licensure.
(Added to NRS by 2011, 2023)
NRS 691D.220 Employee or authorized representative of licensee may sell or
offer portable electronics insurance; conditions; training; restrictions.
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.
(Added to NRS by 2011, 2024)
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 to provide written disclosures.
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;
(c) Summarize the material terms of the coverage
provided under the policy of portable electronics insurance, including:
(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)
NRS 691D.320 Billing and collection of charges by vendor; itemization of
charges; disclosure; accounting of money received by vendor.
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 of policy; method of
notice. 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)
