Nev. Admin. Code § 690C.120

Current through November 8, 2024

Section 690C.120 - Cancellation of contract: Refund of purchase price; cancellation fee

1. Except as otherwise provided in this subsection, if a provider cancels a service contract pursuant to NRS 690C.270, the provider shall refund to the holder the portion of the purchase price that is unearned by the provider. The provider may deduct any outstanding balance on the account of the holder from the amount of the purchase price that is unearned by the provider when calculating the amount of the refund. A provider who cancels a contract pursuant to NRS 690C.270 may not impose a cancellation fee.

2. Except as otherwise provided in this section, if a holder who is the original purchaser of a service contract submits to the provider a request in writing to cancel the service contract in accordance with the terms of the contract, the provider shall refund to the holder the portion of the purchase price that is unearned by the provider.

3. If a holder requests the cancellation of a service contract pursuant to subsection 2, the provider may impose a reasonable cancellation fee if such a fee is provided for in the terms of the service contract.

4. If the provider transfers a service contract at the request of the holder, the provider may impose a reasonable transfer fee if such a fee is provided for in the terms of the service contract.

5. When calculating the amount of a refund pursuant to subsection 2, the provider may deduct from the portion of the purchase price that is unearned by the provider:

(a) Any outstanding balance on the account of the holder; and

(b) Any cancellation fee imposed pursuant to this section.

6. Except as otherwise provided in this subsection, if the purchase price of a service contract is financed and the loan has not been paid in full by the holder, the provider may provide a refund to the holder pursuant to this section or NRS 690C.250 by sending the refund to the lender. The amount of refund that may be sent to the lender must not exceed the holder's outstanding balance on the loan.

Nev. Admin. Code § 690C.120

Added to NAC by Comm'r of Insurance by R195-99, eff. 1-27-2000; A by R064-18AP, eff. 6/26/2018

NRS 679B.130 and 690C.300