AB466 - Revises certain notice requirements imposed on an insurer who issues a policy of portable electronics insurance. (BDR 57-797)

- 83rd Session (2025) Assembly Bill No. 466–Assemblymember Kasama CHAPTER.......... AN ACT relating to insurance; revising certain notice requirements imposed on an insurer who issues a policy of portable electronics insurance; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires an insurer who issues a policy of portable electronics insurance to provide certain notices that are required to be provided to an enrolled customer, vendor or other policyholder to be: (1) mailed or delivered; or (2) sent by electronic mail or other electronic means in accordance with regulations adopted by the Commissioner of Insurance. (NRS 691D.330) Existing law requires any insurer to cease delivering any notice or other document by electronic means, and to use an alternative delivery method, if the insurer: (1) attempts to deliver a notice or other document by electronic means and has a reasonable basis to believe that the notice or other document was not received by the party; or (2) becomes aware that the electronic mail address provided by the party is no longer valid. (NRS 680A.560) This bill eliminates the requirement that an insurer who issues a policy of portable electronics insurance and who sends certain notices by electronic mail or other electronic means do so in accordance with regulations adopted by the Commissioner. This bill additionally specifies that the requirements setting forth the circumstances under which an insurer is required to cease delivering a notice or document by electronic means applies to an insurer who issues a policy of portable electronics insurance. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 691D.330 is hereby amended to read as follows: 691D.330 Notwithstanding any other provision of law: 1. Except as otherwise provided in this section, an insurer that issues a policy of portable electronics insurance may not terminate the policy before the expiration of the agreed term of the policy unless, not less than 30 days before the effective date of the termination, the insurer provides notice to: (a) The holder of the policy of portable electronics insurance; and (b) If the policy is a group policy issued to a vendor under which individual customers may elect to enroll for coverage, each enrolled customer. – 2 – - 83rd Session (2025) 2. If the insurer changes a term or condition of a policy of portable electronics insurance, the insurer shall, not less than 30 days before the effective date of the change, provide: (a) The policyholder with a revised policy or endorsement; and (b) Each enrolled customer with a revised certificate of coverage, endorsement, brochure or other evidence of coverage which: (1) Declares that the insurer has changed a term or condition of the policy which may affect the enrolled customer’s coverage; and (2) Provides a summary of the material changes. 3. An insurer may terminate an enrolled customer’s coverage under a vendor’s policy of portable electronics insurance upon the discovery of fraud or material misrepresentation by the enrolled customer in obtaining the coverage or in presenting a claim thereunder if the insurer provides notice of the termination to the vendor and the enrolled customer within 10 days after discovery of the fraud or material misrepresentation. 4. An insurer may immediately terminate an enrolled customer’s coverage under a vendor’s policy of portable electronics insurance if the enrolled customer: (a) Fails to pay a premium; (b) Ceases to have an active service with the vendor; or (c) Exhausts the aggregate limit of liability, if any, under the terms of the policy of portable electronics insurance and the insurer provides notice of termination to the customer within 30 calendar days after exhaustion of the limit. If the insurer fails to provide timely notice as required by this paragraph, the enrolled customer’s coverage under the policy continues until the insurer provides notice of termination to the enrolled customer notwithstanding the exhaustion of the aggregate limit of liability. 5. A vendor or other holder of a group policy of portable electronics insurance shall not terminate the policy unless, not less than 30 days before the effective date of the termination, the insurer provides notice to each enrolled customer of the termination of the policy and the effective date of termination. An insurer may authorize a vendor to provide notice to an enrolled customer on behalf of the insurer pursuant to this subsection. 6. Any notice that is required pursuant to this section must be in writing and be: (a) Mailed or delivered to the enrolled customer, vendor or other policyholder at his or her last known address; or – 3 – - 83rd Session (2025) (b) [Sent] Except as otherwise provided in NRS 680A.560, sent by electronic mail or other electronic means [in accordance with regulations adopted by the Commissioner] to the enrolled customer, vendor or other policyholder at the electronic mail address of the enrolled customer, vendor or other policyholder last known by the insurer.  An insurer or vendor who provides notice pursuant to this subsection must maintain proof of mailing or delivery in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service or an electronic record or other proof that the notice was sent. 20 ~~~~~ 25