S.B. 436
- *SB436*
SENATE BILL NO. 436–COMMITTEE ON COMMERCE AND LABOR
MARCH 27, 2023
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Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to service contracts.
(BDR 57-873)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to insurance; requiring the provider of a service
contract to maintain or contract for an adequate network
or workforce of employees or contractors to carry out its
obligations under the service contract in a timely and
reasonable manner; providing that the holder of a service
contract is entitled to reimbursement of costs incurred as
the result of the failure by the provider to comply with
such a requirement; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the regulation of providers of service contracts by the 1
Commissioner of Insurance. (Chapter 690C of NRS) Existing law defines a service 2
contract as a contract pursuant to which a provider, in exchange for separately 3
stated consideration, is obligated for a specified period to a holder to repair, replace 4
or perform maintenance on, or indemnify or reimburse the holder for the costs of 5
repairing, replacing or performing maintenance on, goods that are described in the 6
service contract and which have an operational or structural failure as a result of a 7
defect in materials, workmanship or normal wear and tear. Types of service 8
contracts include contracts that: (1) pay reimbursement for towing, rental and 9
emergency road service; and (2) provide for the repair, replacement or maintenance 10
of goods for damages that result from power surges or accidental damage from 11
handling. (NRS 690C.080) Existing law authorizes the Commissioner to assess a 12
civil penalty against a provider who fails to comply with existing law or who 13
violates an order or regulation of the Commissioner. (NRS 690C.330) 14
This bill requires a provider to ensure that the provider maintains or contracts 15
for an adequate network or workforce of employees or contractors to carry out its 16
obligations to the holder of a service contract in a timely and reasonable manner, 17
including, without limitation, the duty to repair, replace or perform maintenance on 18
goods that are described in the service contract. This bill also provides that if the 19
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- *SB436*
provider fails to comply with the requirement to maintain or contract for such an 20
adequate network or workforce of employees or contractors, then, in addition to 21
any other remedies available to the holder, a holder is entitled to reimbursement 22
from the provider for any reasonable and necessary costs incurred by the holder to 23
repair, replace or perform maintenance on the goods. 24
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 690C of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. A provider shall maintain or contract for an adequate 3
network or workforce of employees or contractors that is sufficient 4
to carry out its obligations to a holder under a service contract in a 5
timely and reasonable manner, including, without limitation, the 6
duty to repair, replace or perform maintenance on goods that are 7
described in the service contract. 8
2. If a provider fails to comply with the provisions of 9
subsection 1, in addition to any other remedy available to a holder, 10
a holder is entitled to reimbursement from the provider for any 11
reasonable and necessary costs incurred by the holder to repair, 12
replace or perform maintenance on the goods. 13
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