1. No service contract that has been in effect for at least 70 days may be cancelled by the provider before the expiration of the agreed term or 1 year after the effective date of the service contract, whichever occurs first, except on any of the following grounds:
(a) Failure by the holder to pay an amount when due;
(b) Conviction of the holder of a crime which results in an increase in the service required under the service contract;
(c) Discovery of fraud or material misrepresentation by the holder in obtaining the service contract, or in presenting a claim for service thereunder;
(d) Discovery of:
(1) An act or omission by the holder; or
(2) A violation by the holder of any condition of the service contract,
which occurred after the effective date of the service contract and which substantially and materially increases the service required under the service contract; or
(e) A material change in the nature or extent of the required service or repair which occurs after the effective date of the service contract and which causes the required service or repair to be substantially and materially increased beyond that contemplated at the time that the service contract was issued or sold.
2. No cancellation of a service contract may become effective until at least 15 days after the notice of cancellation is mailed to the holder.
(Added to NRS by 1999, 3340)
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