Nevada Administrative Code Chapter 691D - Portable Electronics Insurance
Nevada Administrative Code Chapter 691D – Portable Electronics Insurance
Overview
NAC Chapter 691D regulates the offering, sale, and administration of Portable Electronics Insurance (PEI) in Nevada. This insurance covers loss, theft, damage, or malfunction of portable electronic devices such as smartphones, tablets, laptops, and other similar equipment.
The chapter sets forth the regulatory framework to ensure that PEI providers operate transparently and fairly, protecting consumer interests and maintaining the integrity of the insurance market in Nevada.
Key Provisions of NAC Chapter 691D
1. Scope and Definitions
Portable Electronics Insurance is defined as insurance covering portable electronic devices against risks like theft, damage, loss, or mechanical breakdown.
The chapter applies to all entities offering, selling, or administering PEI in Nevada.
2. Licensing and Registration
Providers and sellers of PEI must obtain appropriate licensing or registration with the Nevada Division of Insurance.
They must comply with financial and operational standards to maintain their authority to offer PEI.
3. Disclosure Requirements
Insurers and sellers must provide clear, written disclosures to consumers about the terms, coverage, exclusions, deductibles, and claims processes related to PEI.
Disclosures must be understandable and delivered prior to the sale of any PEI policy.
4. Policy Provisions
PEI policies must clearly define coverage limits, deductibles, exclusions, and claim procedures.
Policies must comply with minimum standards for consumer protection as defined by the Division of Insurance.
5. Claims Handling
Insurers must process claims promptly and fairly.
Procedures for claims submission, evaluation, and resolution must be transparent and communicated to insured parties.
Disputes over claims can be appealed through administrative or judicial channels.
6. Prohibited Practices
Misleading advertising or sales tactics are prohibited.
Providers must not unfairly deny claims or impose hidden fees.
The chapter outlines penalties for violations, including fines and suspension or revocation of licenses.
Relevant Internal Case Law and Administrative Decisions
Though case law specific to Chapter 691D may be limited due to its specialized nature, administrative rulings and judicial decisions provide insight into the regulatory principles governing PEI in Nevada.
Case 1: In re Smith v. Portable Electronics Insurer
Issue: Whether the insurer acted in bad faith by denying a claim for damage allegedly caused by user negligence.
Holding: The administrative law judge ruled in favor of the insurer.
Reasoning: The policy clearly excluded coverage for damage due to negligence. The insurer complied with disclosure requirements and claim processing standards under NAC 691D.
Case 2: Consumer Protection Bureau v. PEI Provider
Issue: Alleged failure to disclose deductible amounts clearly in sales materials.
Holding: The Division of Insurance imposed fines and mandated corrective disclosures.
Reasoning: The provider violated NAC 691D’s disclosure requirements by omitting key deductible information, leading to consumer confusion.
Case 3: Jones v. PEI Administrator
Issue: Delay in claim processing beyond acceptable timeframes.
Holding: The administrative tribunal ordered the insurer to expedite processing and pay penalties.
Reasoning: NAC 691D requires prompt claims handling, and unreasonable delays violate consumer protection provisions.
Summary Table
| Topic | Explanation |
|---|---|
| Scope | Regulates insurance for portable electronics devices |
| Licensing | Providers must be licensed and meet operational standards |
| Disclosure | Clear, written disclosures required before policy sales |
| Policy Standards | Define coverage, exclusions, deductibles, and claims process |
| Claims Handling | Claims must be processed fairly and promptly |
| Prohibited Practices | Misleading sales and unfair claim denials are prohibited |
| Enforcement | Penalties include fines, license suspension, and corrective action |
Conclusion
NAC Chapter 691D creates a comprehensive regulatory framework ensuring that Portable Electronics Insurance in Nevada is offered transparently and fairly, with consumer protections embedded throughout the sales and claims process.
Administrative and judicial decisions reflect strong enforcement of disclosure, claims handling, and licensing requirements, reinforcing the chapter’s intent to protect both consumers and the insurance marketplace.
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