AB231

Existing law provides for the regulation of providers of service contracts by the Commissioner of Insurance. (Chapter 690C of NRS) Existing law requires that a service contract specify the duties of the provider and any limitations, exceptions or exclusions. (NRS 690C.260) This bill sets forth certain duties of a provider of a home warranty service contract, which this bill defines to mean a service contract that covers only the structural components, appliances or home systems of a residence. This bill requires the duties of a provider of a home warranty service contract set forth in the contract to include, without limitation, the duty to ensure that: (1) any goods, other than an air conditioner, furnace or heater in a home or dwelling, covered under the service contract are restored to sound working condition within 14 business days after receiving notice that the goods are defective; and (2) any goods which are restored and become defective within 14 business days after the date on which the goods were restored are restored within 2 business days after receiving notice that the goods are defective. With respect to an air conditioner, furnace or heater in a home or dwelling that is covered under a service contract, this bill requires a service contract to provide that the provider has the duty to: (1) ensure that the air conditioner, furnace or heater is restored to sound working condition within 5 business days after receiving notice that the air conditioner, furnace or h