Interpretation of Service Contract Delivery Requirement

OFFICE OF SUPERINTENDENT OF INSURANCE 2016 DEC 22 PM 2 50 FILED SUPERINTENDENT OF INSURANCE John G. Franchini 505-827-4299 NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE DEPUTY SUPERINTENDENT Robert Doucette 505-827-5832 Bulletin 2016-027 December 22, 2016 # TO: ALL PROVIDERS OF SERVICE CONTRACTS # RE: INTERPRETATION OF DELIVERY REQUIREMENT THE FOLLOWING Bulletin is issued pursuant to NMSA 1978 Sections 59A-58-11(B), and 59A-2-8, and Sections 13.1.2.1 to 13.1.2.10 and 13.10.23.11. The purpose of this Bulletin is to interpret the service contract delivery requirement found in NMSA Section 59A-58-11(B), and which states, “[t]he provider shall furnish a copy of the service contract to the holder within a reasonable time after the contract is purchased.” Pursuant to that statutory requirement, all service contract providers must deliver a copy of the actual service contracts to the consumer; acceptable methods of delivery include hand delivery, delivery by US mail or electronic delivery by email or facsimile. Electronic delivery will only satisfy this requirement when the consumer has access to, and agrees to accept, electronic delivery. The service contract provider shall actually deliver to the consumer a copy of the service contract, which shall be customized as necessary for that consumer. At a minimum, the service contract shall be customized to identify the consumer, the item or product covered by the contract, and the start and end dates for the contract, as appropriate. While it is permissible to direct a potential consumer to a website to view a sample contract prior to sale, directing a contract holder to a website to obtain information about a service contract that the holder has purchased does not satisfy this requirement. ized to identify the consumer, the item or product covered by the contract, and the start and end dates for the contract, as appropriate. While it is permissible to direct a potential consumer to a website to view a sample contract prior to sale, directing a contract holder to a website to obtain information about a service contract that the holder has purchased does not satisfy this requirement. Any person issuing service contracts or soliciting business in any manner other than as described above shall be considered as acting in violation of the New Mexico Insurance Code. Violations of the Insurance Code may be subject to regulatory enforcement and may result in penalties and fines. Any person aggrieved by a bulletin may request a hearing before the superintendent in accordance with NMSA 1978 Section 59A-4-15. Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US If you have additional questions regarding this Bulletin, please contact the Company Licensing Bureau, Office of Superintendent of Insurance, at 1-505-827-4601. DONE and ORDERED this 22 day of December, 2016. for Robert E. Dunn JOHN G. FRANCHINI Superintendent of Insurance Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US