(Reprinted with amendments adopted on April 24, 2023)
SECOND REPRINT S.B. 436
- *SB436_R2*
SENATE BILL NO. 436–COMMITTEE ON COMMERCE AND LABOR
MARCH 27, 2023
____________
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.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to insurance; requiring the Commissioner of
Insurance to submit to the Joint Interim Standing
Committee on Commerce and Labor a report concerning
the service contract provider industry in this State; 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 the Commissioner of Insurance to submit to the Joint Interim 15
Standing Committee on Commerce and Labor an annual report that provides certain 16
information concerning the service contract industry in this State. 17
– 2 –
- *SB436_R2*
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 the provisions set forth as sections 1.5 and 2 of this act. 2
Sec. 1.5. (Deleted by amendment.) 3
Sec. 2. 1. On or before December 31, 2023, and on or 4
before December 31 of each year thereafter, the Commissioner 5
shall submit a report to the Joint Interim Standing Committee on 6
Commerce and Labor concerning the service contract industry in 7
this State. 8
2. The report must include, without limitation: 9
(a) For each report other than the initial report, the number of 10
service contracts sold by providers, by county, during the calendar 11
year for which the report is made; 12
(b) The number of providers doing business in this State; 13
(c) The number of providers, by the type of service contract 14
provided; 15
(d) The number of complaints concerning providers received 16
by the Division, by type of complaint; and 17
(e) Any other matter relating to the service contract industry in 18
this State that the Commissioner deems appropriate. 19
3. As used in this section: 20
(a) “Provider” has the meaning ascribed to it in 21
NRS 690C.070. 22
(b) “Service contract” has the meaning ascribed to it in 23
NRS 690C.080. 24
Sec. 3. The provisions of subsection 1 of NRS 218D.380 do 25
not apply to any provision of this act which adds or revises a 26
requirement to submit a report to the Legislature. 27
H