NAC690C.110. Information required in contract; status report.

     1. A service contract must clearly state the procedures for making a claim on the contract, including, without limitation:

     (a) A toll-free telephone number for claim service.

     (b) Procedures for obtaining prior approval of work if such approval is required by the contract.

     (c) If the service contract relates to goods that are essential to the health and safety of the holder and the repair of such goods is covered under the terms and conditions of the service contract, procedures for obtaining emergency service on such goods outside of normal business hours, including, without limitation, a statement which provides that if the emergency 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:

          (1) Repairs will commence within 24 hours after the report of the claim and will be completed as soon as reasonably practicable thereafter; and

          (2) If the provider determines that repairs cannot practicably be completed within 3 calendar days after the report of the claim, the provider will provide a status report to the holder as described in subsection 2.

     2. A status report must:

     (a) Be provided not later than 3 calendar days after the report of the claim;

     (b) Be provided by verifiable means; and

     (c) Include, without limitation:

          (1) A list of the required repairs or services;

          (2) The primary reason causing the required repairs or services to extend beyond the 3-day period set forth in subparagraph (2) of paragraph (c) of subsection 1, including, without limitation, the status of any parts required for the repairs or services;

          (3) The current estimated time to complete the repairs or services; and

          (4) Contact information for the holder to make additional inquiries concerning any aspect of the claim and a commitment by the provider to respond to such inquiries not later than 1 business day after such an inquiry is made.

     3. If any preexisting conditions are excluded from coverage, the service contract must state the basis upon which service may be denied for such preexisting conditions.

     4. As used in this section, “verifiable means” includes, without limitation, communication given by facsimile transmission, electronic mail, mail, telephone, if there is an auditable record of the communication by telephone, or by any similar mode of communication that is appropriate given the course of dealing between the provider and the holder.

     (Added to NAC by Comm’r of Insurance by R195-99, eff. 1-27-2000; A by R067-07, 4-17-2008)