REQUIRES TWO THIRDS MAJORITY VOTE §§ (67, 88,89, 166.5, 183, 209)
(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINTA.B. 618
Assembly Bill No. 618–Committee on Commerce and Labor
(On Behalf of Department of Business
and Industry—Insurance)
March 26, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes relating to regulation of insurance. (BDR 57‑564)
FISCAL NOTE: Effect on Local Government: Yes.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to insurance; providing for the regulation of the business of viatical settlements; requiring the commissioner of insurance to adopt regulations governing the use of electronic records and signatures; temporarily authorizing the adoption of regulations to enforce federal law concerning a bill of rights for patients; limiting the disclosure of certain information concerning consumers; providing for the conversion of domestic mutual insurers into domestic stock insurers; providing for the reorganization of domestic mutual insurers into mutual insurance holding companies; making various other changes concerning the regulation of insurance; providing penalties; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Title 57 of NRS is hereby amended by adding thereto a
1-2 new chapter to consist of the provisions set forth as sections 2 to 52,
1-3 inclusive, of this act.
1-4 Sec. 2. As used in sections 2 to 52, inclusive, of this act, unless the
1-5 context otherwise requires, the words and terms defined in sections 3 to
1-6 16, inclusive, of this act have the meanings ascribed to them in those
1-7 sections.
1-8 Sec. 3. “Advertising” means a written, electronic or printed
1-9 communication or a communication by recorded telephone message,
1-10 radio, television, the Internet or a similar medium of communication,
1-11 including a film strip, motion picture or videotape, published,
1-12 communicated or otherwise placed before the public to create an interest
1-13 in, or induce a person to sell a policy of life insurance pursuant to, a
1-14 viatical settlement.
2-1 Sec. 4. “Broker of viatical settlements” means a person who on
2-2 behalf of a viator and for a fee, commission or other valuable
2-3 consideration offers or attempts to negotiate a viatical settlement between
2-4 the viator and one or more providers of viatical settlements. The term
2-5 does not include an attorney at law, certified public accountant or
2-6 financial planner accredited by a nationally recognized accrediting
2-7 agency who is retained by the viator and whose compensation is not paid
2-8 by a provider or purchaser of viatical settlements.
2-9 Sec. 5. “Business of viatical settlements” means the offering,
2-10 solicitation, negotiation, procurement, effectuation, purchasing,
2-11 financing, monitoring, tracking, underwriting, selling, transferring,
2-12 pledging or otherwise hypothecating viatical settlements.
2-13 Sec. 6. “Chronically ill” means:
2-14 1. Being unable to perform at least two activities of daily living, such
2-15 as eating, moving from one place to another, bathing, dressing,
2-16 continence, defecation or urination;
2-17 2. Requiring substantial supervision for protection from threats to
2-18 health and safety because of cognitive impairment; or
2-19 3. Having a level of disability similar to that described in subsection
2-20 1 as determined by the Secretary of Health and Human Services.
2-21 Sec. 7. 1. “Financing agent” means an underwriter, agent for
2-22 placement, enhancer of credit, lender, purchaser of securities, purchaser
2-23 of a policy from a provider of viatical settlements or other person that
2-24 may enter into a viatical settlement and has direct ownership in a policy
2-25 that is the subject of the viatical settlement but:
2-26 (a) Whose principal activity related to the transaction is providing
2-27 money to effect the viatical settlement; and
2-28 (b) Who has an agreement in writing with one or more licensed
2-29 providers of viatical settlements to finance the acquisition of one or more
2-30 viatical settlements.
2-31 2. The term does not include a nonaccredited investor or a purchaser
2-32 of viatical settlements.
2-33 Sec. 8. “Policy” means an individual or group policy, group
2-34 certificate, contract or arrangement of life insurance affecting the rights
2-35 of a person, whether or not delivered or issued for delivery in this state.
2-36 Sec. 9. “Provider of viatical settlements” means a person other than
2-37 a viator who enters into or effectuates a viatical settlement. The term
2-38 does not include:
2-39 1. A bank, savings and loan association, thrift company, credit union
2-40 or other licensed lender that takes an assignment of a policy as security
2-41 for a loan;
2-42 2. The issuer of a policy that provides accelerated benefits pursuant
2-43 to the contract;
2-44 3. An authorized or eligible insurer that provides stop-loss coverage
2-45 to a provider or purchaser of viatical settlements;
2-46 4. A natural person who enters into no more than one agreement in
2-47 a calendar year for the transfer of policies for a value less than the
2-48 expected death benefit;
2-49 5. A financing agent;
3-1 6. A special organization;
3-2 7. A trust for a related provider; or
3-3 8. A purchaser of viatical settlements.
3-4 Sec. 10. “Purchaser of viatical settlements” means a person who
3-5 gives a sum of money as consideration for a policy or an interest in the
3-6 death benefits of a policy, or a person who owns or acquires or is entitled
3-7 to a beneficial interest in a trust that owns a viatical settlement contract
3-8 or is the beneficiary of a policy that has been or will be the subject of a
3-9 viatical settlement contract, for the purpose of deriving an economic
3-10 benefit. The term does not include:
3-11 1. A person licensed pursuant to sections 2 to 52, inclusive, of this
3-12 act;
3-13 2. An accredited investor or qualified institutional buyer as defined
3-14 respectively in Regulation D, Rule 501 or Rule 144A of the Federal
3-15 Securities Act of 1933, as amended;
3-16 3. A financing agent;
3-17 4. A special organization; or
3-18 5. A trust for a related provider.
3-19 Sec. 11. “Special organization” means an organization formed by a
3-20 licensed provider of viatical settlements solely to enable the provider to
3-21 gain access to institutional markets for capital.
3-22 Sec. 12. “Terminally ill” means having an illness that can
3-23 reasonably be expected to result in death within 24 months.
3-24 Sec. 13. “Trust for a related provider” means a trust established by a
3-25 licensed provider of viatical settlements solely to hold the ownership of or
3-26 beneficial interests in purchased policies in connection with financing.
3-27 Sec. 14. “Viatical settlement” means a written agreement for the
3-28 payment of money, or anything else of value, which is less than the
3-29 expected death benefit of a policy, in exchange for the viator’s
3-30 assignment, sale, transfer or devise of the death benefit or ownership of
3-31 any portion of the policy. The term includes:
3-32 1. An agreement for a loan or other financing secured primarily by a
3-33 policy, other than a loan by an insurer pursuant to or secured by the cash
3-34 value of a policy; and
3-35 2. An agreement to transfer ownership or change the beneficiary, in
3-36 the future, regardless of the date of payment to the viator.
3-37 Sec. 15. “Viaticated policy” means a policy that has been acquired
3-38 by a provider of viatical settlements pursuant to a viatical settlement.
3-39 Sec. 16. “Viator” means the owner of a policy or the holder of a
3-40 certificate of insurance under a policy of group insurance. The term is
3-41 not limited to an owner who is terminally or chronically ill except where
3-42 that limitation is expressly provided.
3-43 Sec. 17. The trustee of a trust for a related provider must agree in
3-44 writing with the provider of viatical settlements that the provider is
3-45 responsible for ensuring compliance with all statutory and regulatory
3-46 requirements and that the trustee will make all records and files related
3-47 to viatical settlements available to the commissioner as if those records
3-48 and files were maintained directly by the provider.
4-1 Sec. 18. If there is more than one viator with respect to a single
4-2 policy and they are residents of different states, the legal effect of a
4-3 viatical settlement is governed by the law of the state in which the viator
4-4 having the largest fractional ownership resides. If the viators own equal
4-5 fractions, they may agree in writing to choose the state in which one
4-6 resides.
4-7 Sec. 19. 1. A person shall not, without first obtaining a license
4-8 from the commissioner, operate in or from this state as a provider or
4-9 broker of viatical settlements.
4-10 2. Application for a license must be made to the commissioner on a
4-11 form prescribed by him, accompanied by the prescribed fee. A license
4-12 may be renewed from year to year on its anniversary by payment of the
4-13 prescribed fee. The license expires if the fee is not paid by that date.
4-14 3. An applicant shall provide information on forms required by the
4-15 commissioner, who may at any time require the applicant to disclose the
4-16 identity of all stockholders, partners, members, officers and employees.
4-17 The commissioner may refuse to issue a license to an organization if he
4-18 is not satisfied that a stockholder, partner, member or officer who may
4-19 materially influence the applicant’s conduct satisfies the requirements of
4-20 this chapter.
4-21 4. A license issued to an organization authorizes all partners,
4-22 members, officers and designated employees to act as providers or
4-23 brokers of viatical settlements. Those persons must be named in the
4-24 application or a supplement to it.
4-25 Sec. 20. 1. Upon the filing of an application and payment of the
4-26 fee, the commissioner shall investigate the applicant, and issue a license
4-27 if he finds that the applicant:
4-28 (a) If a provider of viatical settlements, has set forth a detailed plan of
4-29 operation;
4-30 (b) Is competent and trustworthy and intends to act in good faith in
4-31 the capacity for which the license is sought;
4-32 (c) Has a good reputation in business and, if a natural person, has
4-33 had experience, training or education which qualifies him in that
4-34 capacity;
4-35 (d) If an organization, provides a certificate of good standing from the
4-36 state of its domicile; and
4-37 (e) If a provider or broker of viatical settlements, has included a plan
4-38 to prevent fraud which satisfies the requirements of section 50 of this act.
4-39 2. The commissioner shall not issue a license to a nonresident unless
4-40 a written designation of an agent for service of process, or an irrevocable
4-41 written consent to the commencement of an action against the applicant
4-42 by service of process upon the commissioner, accompanies the
4-43 application.
4-44 3. A provider or broker of viatical settlements shall furnish to the
4-45 commissioner new or revised information concerning partners, members,
4-46 officers, holders of more than 10 percent of its stock, and designated
4-47 employees within 30 days after a change occurs.
5-1 Sec. 21. After notice, and after a hearing if requested, the
5-2 commissioner may suspend, revoke, refuse to issue or refuse to renew a
5-3 license under this chapter if he finds that:
5-4 1. There was material misrepresentation in the application for the
5-5 license;
5-6 2. The licensee or an officer, partner, member or significant
5-7 managerial employee has been convicted of fraudulent or dishonest
5-8 practices, is subject to a final administrative action for disqualification,
5-9 or is otherwise shown to be untrustworthy or incompetent;
5-10 3. A provider of viatical settlements has engaged in a pattern of
5-11 unreasonable payments to viators;
5-12 4. The applicant or licensee has been found guilty of, or pleaded
5-13 guilty or nolo contendere to, a felony or a misdemeanor involving fraud,
5-14 forgery, embezzlement, obtaining money under false pretenses, larceny,
5-15 extortion, conspiracy to defraud or any crime involving moral turpitude,
5-16 whether or not a judgment of conviction has been entered by the court;
5-17 5. A provider of viatical settlements has entered into a viatical
5-18 settlement in a form not approved pursuant to section 22 of this act;
5-19 6. A provider of viatical settlements has failed to honor obligations of
5-20 a viatical settlement;
5-21 7. The licensee no longer meets a requirement for initial licensure;
5-22 8. A provider of viatical settlements has assigned, transferred or
5-23 pledged a viaticated policy to a person other than another provider
5-24 licensed under this chapter, a purchaser of the viatical settlement, a
5-25 special organization or a trust for a related provider;
5-26 9. The applicant or licensee has provided materially untrue
5-27 information to an insurer that issued a policy that is the subject of a
5-28 viatical settlement; or
5-29 10. The applicant or licensee has violated a provision of this chapter.
5-30 Sec. 22. A person shall not use a form of viatical settlement or of
5-31 disclosure in this state unless the form has been filed with and approved
5-32 by the commissioner. The commissioner shall disapprove such a form if,
5-33 in his opinion, the settlement or any of its terms is unreasonable,
5-34 contrary to the interests of the public or otherwise misleading or unfair
5-35 to the viator. The commissioner may require the submission of
5-36 advertising material before its use.
5-37 Sec. 23. 1. Each licensee under this chapter shall file with the
5-38 commissioner on or before March 1 of each year an annual statement
5-39 containing such information as the commissioner prescribes by
5-40 regulation.
5-41 2. Except as allowed or required by a statute other than this chapter,
5-42 a provider or broker of viatical settlements, an insurer, a producer of
5-43 insurance, an information bureau, a rating agency or any other person
5-44 knowing the identity of an insured shall not disclose that identity as an
5-45 insured to any other person unless the disclosure is:
5-46 (a) Necessary to effect a viatical settlement between the viator and a
5-47 provider of viatical settlements and the viator and the insured have given
5-48 prior written consent to the disclosure;
6-1 (b) Furnished in response to an investigation or examination by the
6-2 commissioner or another governmental officer or agency;
6-3 (c) A term of or condition to the transfer of a policy by one provider of
6-4 viatical settlements to another provider; or
6-5 (d) Necessary to permit a financing agent to finance the purchase of a
6-6 policy by a provider of viatical settlements and the insured has given
6-7 prior written consent to the disclosure.
6-8 Sec. 24. The commissioner may examine or investigate a licensee
6-9 under this chapter as often as he considers appropriate. An examination
6-10 will be conducted in the manner provided in NRS 679B.230 to 679B.300,
6-11 inclusive. The commissioner may also examine or investigate any other
6-12 person or business insofar as he considers necessary or material to the
6-13 examination or investigation of the licensee. Instead of an examination
6-14 or investigation under this chapter of a foreign or alien person licensed
6-15 under this chapter, the commissioner may accept a report on
6-16 examination or investigation of the licensee by the equivalent authority
6-17 of the licensee’s state of domicile or port of entry.
6-18 Sec. 25. 1. A person required to be licensed under this chapter
6-19 shall retain for 5 years copies of all:
6-20 (a) Contracts, underwriting documents, forms of policy and
6-21 applications, from the date of the proposal, offer or execution, whichever
6-22 is latest;
6-23 (b) Checks, drafts and other evidence or documentation relating to the
6-24 payment, transfer or release of money, from the date of the transaction;
6-25 and
6-26 (c) Records and documents related to the requirements of this chapter.
6-27 2. This section does not relieve a person of the obligation to produce
6-28 a document described in subsection 1 to the commissioner after the
6-29 expiration of the relevant period if the person has retained the document.
6-30 3. Records required by this section to be retained must be legible and
6-31 complete. They may be retained in any form or by any process that
6-32 accurately reproduces or is a durable medium for the reproduction of the
6-33 record.
6-34 Sec. 26. 1. With each application for a viatical settlement, a
6-35 provider or broker of viatical settlements shall furnish to the viator at
6-36 least the following disclosures no later than the time the application for
6-37 the settlement is signed by all the parties, in a separate document signed
6-38 by the viator and the provider or broker:
6-39 (a) The possible alternatives to viatical settlement, including any
6-40 accelerated death benefits or loans offered under the viator’s policy.
6-41 (b) Some or all of the proceeds of the viatical settlement may be
6-42 taxable under the federal income tax or a state franchise or income tax,
6-43 and assistance should be sought from a professional tax adviser.
6-44 (c) Proceeds of the viatical settlement may be subject to the claims of
6-45 creditors.
6-46 (d) Receipt of proceeds of a viatical settlement may adversely affect
6-47 the viator’s eligibility for Medicaid or other governmental benefits, and
6-48 advice should be sought from the appropriate governmental agencies.
7-1 (e) The viator has a right to terminate a viatical settlement within 15
7-2 days after his receipt of the proceeds, as provided in section 31 of this act,
7-3 and if the insured dies during that period, the settlement is terminated
7-4 and all proceeds must be repaid to the provider.
7-5 (f) Money will be sent to the viator within 3 business days after the
7-6 provider has received the insurer’s or group administrator’s
7-7 acknowledgment that ownership of or interest in the policy has been
7-8 transferred and the beneficiary has been designated.
7-9 (g) Entering into a viatical settlement may cause other rights,
7-10 including conversion and waiver of premium, that may exist under the
7-11 policy to be forfeited by the viator, and assistance should be sought from
7-12 a financial adviser.
7-13 (h) A brochure is provided which describes the process of viatical
7-14 settlement, in the form prescribed by the National Association of
7-15 Insurance Commissioners unless the commissioner prescribes a different
7-16 form.
7-17 2. The document in which the disclosures required by paragraphs (a)
7-18 to (g), inclusive, of subsection 1 are made must also contain the
7-19 following:
7-20 All medical, financial and personal information solicited or
7-21 obtained by a provider or broker of viatical settlements about an
7-22 insured, including his identity and that of members of his family, a
7-23 spouse or other relationship, may be disclosed as necessary to effect
7-24 the viatical settlement between the viator and the provider. If you
7-25 are asked to provide this information, you will be asked to consent to
7-26 the disclosure. Failure to consent may affect your ability to viaticate
7-27 your policy. The information may be furnished to someone who
7-28 buys the policy or provides money for the purchase.
7-29 Sec. 27. A provider of viatical settlements shall furnish to the viator,
7-30 no later than the date the viatical settlement is signed by all parties, at
7-31 least the following disclosures, conspicuously displayed in the viatical
7-32 settlement or in a separate document signed by the viator and the
7-33 provider or broker of viatical settlements:
7-34 1. The affiliation, if any, between the provider and the issuer of the
7-35 policy to be viaticated.
7-36 2. The name, address and telephone number of the provider.
7-37 3. The amount and method of calculating the broker’s commission,
7-38 including anything of value paid or given to the broker for placing the
7-39 policy.
7-40 4. If the policy to be viaticated was issued as a joint policy, contains
7-41 family riders or covers a life other than that of the insured under it, any
7-42 possible loss of coverage on the other lives under the policy, and that the
7-43 viator should consult the producer of the insurance or the issuer of the
7-44 policy for advice concerning the settlement.
7-45 5. The monetary amount of the current death benefit payable to the
7-46 provider under the policy and, if known, the availability of any other
8-1 guaranteed benefit, the monetary amount of any benefit for accidental
8-2 death or dismemberment, and the provider’s interest in those benefits.
8-3 6. The name, business address and telephone number of the escrow
8-4 agent, and the right of the viator or owner to inspect or receive copies of
8-5 the relevant escrow or trust agreements or related documents.
8-6 Sec. 28. If a provider of viatical settlements transfers ownership or
8-7 changes the beneficiary of a viaticated policy, he shall inform the insured
8-8 of the transfer or change within 20 days after it occurs.
8-9 Sec. 29. 1. A provider of viatical settlements who enters into a
8-10 settlement shall first obtain:
8-11 (a) If the viator is the insured, a written statement from a licensed
8-12 attending physician that the viator is of sound mind and under no
8-13 constraint or undue influence to enter into a settlement;
8-14 (b) A witnessed document in which the viator represents that he has a
8-15 full and complete understanding of the settlement and of the benefits of
8-16 the policy, acknowledges that he has entered into the settlement freely
8-17 and voluntarily and, if applicable to determine a payment to a person
8-18 terminally or chronically ill, acknowledges that he is terminally or
8-19 chronically ill and that the illness was diagnosed after the policy was
8-20 issued; and
8-21 (c) A document in which the insured consents to the release of his
8-22 medical records to a provider or broker of viatical settlements and the
8-23 insurer that issued the policy covering him.
8-24 2. Within 20 days after a viator executes documents necessary to
8-25 transfer rights under a policy, or enters into an agreement in any form,
8-26 express or implied, to viaticate the policy, the provider of viatical
8-27 settlements shall give written notice to the issuer of the policy that the
8-28 policy has or will become viaticated. The notice must be accompanied by
8-29 a copy of the release of medical records and the application for the
8-30 viatical settlement.
8-31 Sec. 30. All medical information solicited or obtained by a licensee
8-32 under this chapter is subject to other laws of this state relating to the
8-33 confidentiality of the information.
8-34 Sec. 31. A viatical settlement entered into in this state must reserve
8-35 to the viator an unconditional right to terminate the settlement within 15
8-36 days after he receives the proceeds of the settlement. If the insured dies
8-37 during that period, the settlement is terminated, but the proceeds must be
8-38 repaid to the provider of the viatical settlement.
8-39 Sec. 32. 1. A provider of viatical settlements shall instruct the
8-40 viator to send the executed documents required to effect the change in
8-41 ownership or assignment or change of beneficiary of the affected policy
8-42 to a designated independent escrow agent. Within 3 business days after
8-43 the date the escrow agent receives the documents, or within 3 business
8-44 days after the provider receives the documents if by mistake they are sent
8-45 directly to him, the escrow agent shall deposit the proceeds of the
8-46 settlement into an escrow or trust account maintained in a regulated
8-47 financial institution whose deposits are insured by the Federal Deposit
8-48 Insurance Corporation.
9-1 2. Upon deposit of the proceeds in that account, the escrow agent
9-2 shall deliver to the provider the original documents executed by the
9-3 viator. Upon the provider’s receipt from the insurer of an
9-4 acknowledgment of the change in ownership or assignment or change of
9-5 beneficiary of the affected policy, he shall instruct the escrow agent to
9-6 pay the proceeds of the settlement to the viator.
9-7 3. Payment to the viator must be made within 3 business days after
9-8 the date the provider received the acknowledgment from the insurer.
9-9 Failure to make the payment within that time makes the viatical
9-10 settlement voidable by the viator for lack of consideration until payment
9-11 is tendered to and accepted by the viator.
9-12 Sec. 33. 1. Contact with an insured to determine the status of his
9-13 health after a viatical settlement may be made only by a provider or
9-14 broker of viatical settlements who is licensed in this state, or its
9-15 authorized representative, and no oftener than once every 3 months if the
9-16 insured has a life expectancy of 1 year or more, or once every month if
9-17 the insured has a life expectancy of less than 1 year. The provider or
9-18 broker shall explain the procedure for those contacts at the time the
9-19 settlement is entered into.
9-20 2. The limitations of subsection 1 do not apply to contacts for
9-21 purposes other than determining status of health.
9-22 3. A provider or broker is responsible for the acts of his authorized
9-23 representative.
9-24 Sec. 34. 1. A viator may not enter into a viatical settlement within
9-25 2 years after the issuance of the policy to which the settlement relates
9-26 unless one or more of the following conditions is or has been satisfied:
9-27 (a) The policy was issued upon the owner’s exercise of a right of
9-28 conversion arising out of a group policy.
9-29 (b) The owner of the policy is a charitable organization exempt from
9-30 taxation under 26 U.S.C. § 501(c)(3).
9-31 (c) The owner of the policy is a business organization.
9-32 (d) The viator or owner submits to the provider of viatical settlements
9-33 independent evidence that within the 2-year period:
9-34 (1) The owner or insured has been diagnosed to have an illness or
9-35 condition that is life-threatening or requires a course of treatment for at
9-36 least 2 years, long-term care or health care at home, or any combination
9-37 of these;
9-38 (2) The spouse of the owner or insured has died;
9-39 (3) The owner or insured has divorced his spouse;
9-40 (4) The owner or insured has retired from full-time employment;
9-41 (5) The owner or insured has become physically or mentally
9-42 disabled and a physician determines that the disability precludes him
9-43 from maintaining full-time employment;
9-44 (6) The owner of the policy was the employer of the insured and
9-45 that relationship has terminated;
9-46 (7) A final judgment or order has been entered or issued by a court
9-47 of competent jurisdiction, on the application of a creditor or owner of the
9-48 insured, adjudging the owner or insured bankrupt or insolvent, or
9-49 approving a petition for reorganization of the owner or insured or
10-1 appointing a receiver, trustee or liquidator for all or a substantial part of
10-2 the assets of the owner or insured;
10-3 (8) The owner of the policy experiences a significant decrease in
10-4 income which is unexpected by him and impairs his reasonable ability to
10-5 pay the premium on the policy; or
10-6 (9) The owner or insured disposes of his ownership in a closely held
10-7 corporation.
10-8 2. The independent evidence must be submitted to the insurer when
10-9 the provider of viatical settlements submits a request to the insurer to
10-10 effect transfer of the policy to him. The insurer shall respond timely to
10-11 the request. This section does not prohibit an insurer from exercising its
10-12 right to contest a policy on the ground of fraud.
10-13 3. If a provider of viatical settlements submits to an insurer a copy of
10-14 the owner’s or insured’s certification that one of the events described in
10-15 paragraph (d) of subsection 1 has occurred, the certification conclusively
10-16 establishes that the viatical settlement is valid, and the insurer shall
10-17 timely respond to the provider’s request to effect a transfer of the policy.
10-18 Sec. 35. Sections 35 to 43, inclusive, of this act apply to advertising
10-19 of viatical settlements or related services intended for dissemination in
10-20 this state, including advertising on the Internet which is viewed by
10-21 persons in this state. To the extent that federal regulation establishes
10-22 requirements for disclosure, those sections must be so interpreted as to
10-23 eliminate or minimize conflict with the federal requirements.
10-24 Sec. 36. Each licensee under this chapter shall establish and
10-25 continuously maintain a system of control over the content, form and
10-26 method of dissemination of all advertisements of its contracts and
10-27 services. Each advertisement is the responsibility of the licensee as well
10-28 as the person who creates or presents it. A system of control must include
10-29 notification to persons authorized by the licensee who disseminate
10-30 advertisements, at least annually, of the requirements and procedures for
10-31 approval before use of any advertisements not furnished by the licensee.
10-32 Sec. 37. An advertisement must be truthful and not misleading in
10-33 fact or by implication. The form and content of an advertisement for
10-34 viatical settlements must be sufficiently complete and clear to avoid
10-35 deception. An advertisement may not have a capacity or tendency to
10-36 mislead or deceive, as determined by the commissioner from the overall
10-37 impression it may reasonably be expected to create upon a person of
10-38 average education or intelligence in the segment of the public to which it
10-39 is directed.
10-40 Sec. 38. 1. The information required to be disclosed under sections
10-41 35 to 43, inclusive, of this act may not be minimized, obscured, presented
10-42 ambiguously or so intermingled with other text of an advertisement as to
10-43 be confusing or misleading.
10-44 2. An advertisement may not omit material information or use
10-45 language or illustrations if the omission or use has a capacity or
10-46 tendency to, or does, mislead viators as to the nature or extent of any
10-47 benefit, loss covered, premium payable or effect on federal or state taxes.
10-48 Making a viatical settlement available for inspection before it is
10-49 consummated, or offering to refund payment if the viator is not satisfied
11-1 within the period prescribed in section 31 of this act, does not remedy
11-2 misleading statements.
11-3 3. An advertisement may not use the name or title of an insurer or
11-4 policy unless the advertisement has been approved by the insurer.
11-5 4. An advertisement may not state or imply that interest charged on
11-6 an accelerated death benefit or loan on a policy is unfair or in any way
11-7 improper.
11-8 5. The words “free,” “no additional cost” or words of similar import
11-9 may not be used with respect to any benefit or service unless true.
11-10 Sec. 39. 1. A testimonial, appraisal or analysis used in an
11-11 advertisement must be genuine, represent the present opinion of the
11-12 author, apply to the viatical settlement advertised, if any, and be
11-13 reproduced with sufficient completeness to avoid misleading viators. In
11-14 using a testimonial, appraisal or analysis, a licensee under this chapter
11-15 makes the statements contained his own, and the statements must satisfy
11-16 the requirements of sections 35 to 43, inclusive, of this act.
11-17 2. If the person making a testimonial, appraisal, analysis or
11-18 endorsement has a financial interest in the provider of viatical
11-19 settlements or a related organization, or receives a benefit other than
11-20 required wages, that fact must be prominently disclosed in the
11-21 advertisement.
11-22 3. An advertisement may not state or imply that a viatical settlement,
11-23 benefit or service has been approved or endorsed by a group, society or
11-24 other organization unless that is the fact and any relationship between
11-25 the organization and the provider of viatical settlements is disclosed. If
11-26 the organization is owned, controlled or managed by the provider, or
11-27 receives any payment or other consideration from the provider for
11-28 making the endorsement or testimonial, that fact must be disclosed in the
11-29 advertisement.
11-30 4. An advertisement may not contain statistical information unless it
11-31 accurately reflects recent and relevant facts. The source of all statistics
11-32 used in an advertisement must be identified.
11-33 Sec. 40. An advertisement may not disparage insurers, providers of
11-34 insurance, other providers or brokers of viatical settlements, policies,
11-35 services or methods of marketing.
11-36 Sec. 41. 1. The name of the provider of viatical settlements must be
11-37 clearly identified in an advertisement about him or his viatical
11-38 settlements. If a viatical settlement is advertised, it must be identified by
11-39 number or other appropriate description. If an application is part of an
11-40 advertisement, the name of the provider must be shown on the
11-41 application.
11-42 2. An advertisement may not use a trade name, designation of a
11-43 group, name of a parent or particular division of a provider of viatical
11-44 settlements, service mark, slogan or other device or reference without
11-45 disclosing the identity of the provider of viatical settlements licensed
11-46 under this chapter if the advertisement would have the capacity or
11-47 tendency to mislead as to his true identity or create the impression that
11-48 an organization other than the licensee would have a responsibility for
12-1 the financial obligation under a viatical settlement. The name of the
12-2 licensee must be stated in all advertisements.
12-3 Sec. 42. 1. An advertisement may not use a combination of words,
12-4 symbols or physical materials that by their content, phraseology, shape,
12-5 color or other characteristic are so similar to a combination of words,
12-6 symbols or physical materials used by a governmental program or
12-7 agency, or otherwise appear to be of such a nature, that they tend to
12-8 mislead viators into believing that the solicitation is connected with a
12-9 governmental program or agency. An advertisement may not create the
12-10 impression that a provider of viatical settlements, his financial condition
12-11 or business practices, the payment of his claims or the merit, desirability
12-12 or advisability of his viatical settlements is recommended or endorsed by
12-13 a governmental authority.
12-14 2. An advertisement may state that a provider of viatical settlements
12-15 is licensed in the state in which the advertisement appears, if it does not
12-16 imply that competing providers are not so licensed. The advertisement
12-17 may suggest consulting the licensee’s web site or communicating with
12-18 the commissioner to ascertain whether the state requires licensing and, if
12-19 so, whether a particular provider or broker of viatical settlements is
12-20 licensed.
12-21 Sec. 43. 1. If an advertiser emphasizes the speed with which
12-22 viatication will occur, the advertisement must disclose the average time
12-23 from completed application to date of offer and from acceptance of offer
12-24 to receipt of funds by the viator.
12-25 2. If an advertiser emphasizes the monetary amounts available to
12-26 viators, the advertisement must disclose the average purchase price as a
12-27 fraction of face value obtained by viators who contracted with the
12-28 advertiser during the preceding 6 months.
12-29 Sec. 44. It is a category D felony, and the offender shall be punished
12-30 as provided in NRS 193.130, for any person, knowingly or with intent to
12-31 defraud, to do any of the following acts in order to deprive another of
12-32 property or for his own pecuniary gain:
12-33 1. Present, cause to be presented or prepare with knowledge or belief
12-34 that it will be presented, false information to or by a provider or broker of
12-35 viatical settlements, a financing agent, an insurer, a provider of
12-36 insurance or any other person, or to conceal information, as part of, in
12-37 support of or concerning a fact material to:
12-38 (a) An application for the issuance of a policy or viatical settlement;
12-39 (b) The underwriting of a policy or viatical settlement;
12-40 (c) A claim for payment or other benefit under a policy or viatical
12-41 settlement;
12-42 (d) A premium paid on a policy;
12-43 (e) A payment or change of beneficiary or ownership pursuant to a
12-44 policy or viatical settlement;
12-45 (f) The reinstatement or conversion of a policy;
12-46 (g) The solicitation, offer or effectuation of a policy or viatical
12-47 settlement; or
12-48 (h) The issuance of written evidence of a policy or viatical settlement.
12-49 2. In furtherance of a fraud or to prevent detection of a fraud:
13-1 (a) Remove, conceal, alter, destroy or sequester from the
13-2 commissioner assets or records of a licensee under this chapter or other
13-3 person engaged in the business of viatical settlements;
13-4 (b) Misrepresent or conceal the financial condition of a licensee, a
13-5 financing agent, an insurer or other person;
13-6 (c) Transact the business of viatical settlements in violation of this
13-7 chapter; or
13-8 (d) File with the commissioner or analogous officer of another
13-9 jurisdiction a document containing false information or otherwise
13-10 conceal information about a material fact from the commissioner or
13-11 other officer.
13-12 3. Present, cause to be presented or prepare with knowledge or belief
13-13 that it will be presented to or by a provider or broker of viatical
13-14 settlements, a financing agent, an insurer, a provider of insurance or any
13-15 other person, in connection with a viatical settlement or transaction of
13-16 insurance, a policy fraudulently by the insured or owner or an agent of
13-17 either.
13-18 4. Embezzle, steal, misappropriate or convert money, premiums,
13-19 credits or other property of a provider of viatical settlements, a viator, an
13-20 insurer, an insured, an owner of a policy or other person engaged in the
13-21 business of viatical settlements or insurance.
13-22 5. Attempt to commit, assist, aid, abet or conspire to commit an act or
13-23 omission described in subsections 1 to 4, inclusive.
13-24 Sec. 45. It is unlawful knowingly or intentionally:
13-25 1. For any person to interfere with the enforcement of the provisions
13-26 of this chapter or an investigation of a possible violation of those
13-27 provisions.
13-28 2. For a person engaged in the business of viatical settlements to
13-29 permit any person convicted of a felony involving dishonesty or breach of
13-30 trust to participate in that business.
13-31 Sec. 46. An application or contract for a viatical settlement, however
13-32 transmitted, must contain a settlement substantially as follows: “ A
13-33 person who knowingly presents false information in an application for a
13-34 viatical settlement is guilty of insurance fraud and subject to fine and
13-35 imprisonment.” The lack of such a statement is not a defense in a
13-36 prosecution for violation of section 44 of this act.
13-37 Sec. 47. 1. A person engaged in the business of viatical settlements
13-38 who knows or reasonably believes that a violation of section 44 of this act
13-39 is being, has been or will be committed shall promptly report the facts
13-40 and circumstances pertaining to the violation to the commissioner.
13-41 2. Any other person who knows or reasonably believes that a
13-42 violation of section 43 of this act is being, has been or will be committed
13-43 may furnish to the commissioner the information required by the
13-44 commissioner.
13-45 Sec. 48. 1. Except as otherwise provided in subsection 2, a person
13-46 furnishing information of the kind described in section 47 of this act is
13-47 immune from liability and civil action if the information is furnished to
13-48 or received from:
13-49 (a) The commissioner or his employees, agents or representatives;
14-1 (b) Another federal, state or local law enforcement or regulatory
14-2 officer or his employees, agents or representatives;
14-3 (c) Another person involved in the prevention or detection of
14-4 violations of section 44 of this act or similar offenses or his employees,
14-5 agents or representatives;
14-6 (d) The National Association of Insurance Commissioners or other
14-7 regulatory body overseeing life insurance or viatical settlements, or its
14-8 employees, agents or representatives; or
14-9 (e) The insurer that issued the policy concerned in the information.
14-10 2. The immunity provided in subsection 1 does not extend to a
14-11 statement made with actual malice. In an action brought against a
14-12 person for filing a report or furnishing other information concerning a
14-13 violation of section 44 of this act, the plaintiff must plead specifically that
14-14 the defendant acted with actual malice.
14-15 3. This section does not supplant or modify any other privilege or
14-16 immunity at common law or under another statute enjoyed by a person
14-17 described in subsection 1.
14-18 Sec. 49. 1. A document or information furnished pursuant to
14-19 section 48 of this act or obtained by the commissioner in an investigation
14-20 of an actual or suspected violation of section 44 of this act is confidential
14-21 and privileged, is not a public record and is not subject to discovery or
14-22 subpoena in a civil action or criminal prosecution.
14-23 2. Subsection 1 does not prohibit the commissioner from disclosing
14-24 documents or evidence so furnished or obtained:
14-25 (a) In an administrative or judicial proceeding to enforce a statute
14-26 administered by him;
14-27 (b) To another federal, state or local law enforcement or regulatory
14-28 officer, another person involved in the prevention or detection of
14-29 violations of section 44 of this act or similar offenses, or the National
14-30 Association of Insurance Commissioners; or
14-31 (c) To a person engaged in the business of viatical settlements who is
14-32 aggrieved by the violation.
14-33 3. Disclosure of a document or evidence under subsection 2 does not
14-34 abrogate or modify the privilege covering it under subsection 1.
14-35 Sec. 50. 1. Each licensee under this chapter shall establish and
14-36 maintain protective measures against fraud which are reasonably
14-37 calculated to prevent, detect and assist in the prosecution of violations of
14-38 section 44 of this act. The commissioner may order, or a licensee may
14-39 request and the commissioner may approve, modifications of the
14-40 measures otherwise required under this section, more or less restrictive
14-41 than those measures, as necessary to protect against fraud. Required
14-42 measures are employment of or contracting with investigators and
14-43 submission of a plan to the commissioner which includes:
14-44 (a) A description of the procedures for detecting and investigating
14-45 possible violations of section 44 of this act and for resolving
14-46 inconsistencies between medical records and applications for insurance;
14-47 (b) A description of the procedures for reporting possible violations to
14-48 the commissioner;
15-1 (c) A description of the plan for educating and training underwriters
15-2 and other personnel against fraud; and
15-3 (d) A description or chart of the organizational arrangement of the
15-4 personnel responsible for detecting and investigating possible violations
15-5 of section 44 of this act and for resolving inconsistencies between
15-6 medical records and applications for insurance.
15-7 2. A plan submitted to the commissioner pursuant to subsection 1 is
15-8 privileged and confidential, not a public record and not subject to
15-9 discovery or subpoena in a civil action or criminal prosecution.
15-10 Sec. 51. 1. In addition to the penalties and other means of
15-11 enforcement provided under this chapter:
15-12 (a) If a person violates a provision of this chapter or of a regulation
15-13 adopted under this chapter, the commissioner may seek an injunction
15-14 and apply for temporary and permanent orders he determines to be
15-15 necessary to restrain the violator.
15-16 (b) A person who violates a provision of this chapter is subject to an
15-17 administrative fine of not more than $1,000 for each violation.
15-18 (c) In addition to a criminal penalty imposed, the court shall order
15-19 restitution to the person aggrieved by the violation.
15-20 2. A person aggrieved by a violation of this chapter may bring a civil
15-21 action against the violator to recover the damages suffered.
15-22 Sec. 52. The commissioner may adopt regulations to:
15-23 1. Establish standards for evaluating the reasonableness of payments
15-24 under viatical settlements to persons chronically or terminally ill,
15-25 including the regulation of the rates of discount used to determine the
15-26 amount paid in exchange for an assignment, transfer, sale or devise of a
15-27 benefit under a policy.
15-28 2. Require a bond or otherwise ensure financial accountability of
15-29 providers and brokers of viatical settlements.
15-30 3. Govern the relationship of insurers with providers and brokers of
15-31 viatical settlements during the viatication of a policy.
15-32 Sec. 53. Chapter 679A of NRS is hereby amended by adding thereto
15-33 the provisions set forth as sections 54 and 55 of this act.
15-34 Sec. 54. “Producer of insurance” means a person required to be
15-35 licensed under the laws of this state to sell, solicit or negotiate insurance.
15-36 Sec. 55. “Provider of insurance” includes an insurer, producer of
15-37 insurance, managing general agent, third party administrator,
15-38 organization composed of or using preferred providers of health care,
15-39 health maintenance organization, commercial bank, trust company,
15-40 savings and loan association, credit union, thrift company, financial
15-41 holding company, affiliate or subsidiary of an insurer or financial
15-42 holding company, broker-dealer in securities, mortgage lender, and any
15-43 other person engaged in the business of insurance.
15-44 Sec. 56. NRS 679A.020 is hereby amended to read as follows:
15-45 679A.020 As used in this code, unless the context otherwise requires,
15-46 the words and terms defined in NRS 679A.030 to 679A.130, inclusive, and
15-47 sections 54 and 55 of this act have the meanings ascribed to them in those
15-48 sections.
16-1 Sec. 57. Chapter 679B of NRS is hereby amended by adding thereto
16-2 the provisions set forth as sections 58 and 59 of this act.
16-3 Sec. 58. 1. The commissioner shall adopt regulations governing:
16-4 (a) The use of electronic signatures, and the acceptance and
16-5 transmission of electronic records, in transactions relating to insurance;
16-6 and
16-7 (b) The electronic filing of forms and payment of fees, and the storage
16-8 and reproduction of records, filed with the division.
16-9 2. As used in this section:
16-10 (a) “Electronic” means relating to technology having electrical,
16-11 digital, magnetic, wireless, optical, electromagnetic or similar
16-12 capabilities.
16-13 (b) “Electronic record” means a record created, generated, sent,
16-14 communicated, received or stored by electronic means.
16-15 (c) “Electronic signature” means an electronic sound, symbol or
16-16 process attached to or logically associated with a record and executed or
16-17 adopted by a person with the intent to sign the record.
16-18 (d) “Record” means information that is inscribed on a tangible
16-19 medium or that is stored in an electronic or other medium and is
16-20 retrievable in perceivable form.
16-21 (e) “Transaction” means an action or set of actions occurring
16-22 between two or more persons relating to the transaction of business,
16-23 commercial or governmental affairs.
16-24 Sec. 59. The commissioner may adopt regulations, not inconsistent
16-25 with any provision of NRS, to enforce the provisions of any federal law
16-26 enacted after January 1, 2001, concerning a bill of rights for patients.
16-27 Sec. 60. NRS 679B.090 is hereby amended to read as follows:
16-28 679B.090 1. The commissioner may employ such other technical,
16-29 actuarial, rating, clerical and other assistants and examiners as he may
16-30 reasonably require for execution of his duties, each of whom must be in the
16-31 classified service of the state.
16-32 2. The commissioner may contract for and procure services of
16-33 examiners and other or additional specialized technical or professional
16-34 assistance, as independent contractors or for a fee, as he may reasonably
16-35 require. None of the persons providing those services or assistance on [a]
16-36 contract or for a fee [basis] may be in the classified service of the state.
16-37 3. The commissioner may contract with a person outside the division
16-38 for administering examinations, processing applications for licenses, and
16-39 collecting fees.
16-40 4. The commissioner may adopt regulations to carry out the
16-41 provisions of subsections 2 and 3.
16-42 Sec. 61. NRS 679B.150 is hereby amended to read as follows:
16-43 679B.150 1. The commissioner may:
16-44 (a) Take measures to enhance the public understanding of insurance
16-45 coverages purchased by consumers and encourage price competition
16-46 among insurers and a public understanding of the standards promulgated
16-47 under paragraph (b).
16-48 (b) Develop, promulgate and revise as he deems appropriate, standards
16-49 in each of the several areas of insurance appropriate to be applied to
17-1 policies sold in the State of Nevada. The standards [shall] must seek to
17-2 ensure that policies [shall not be] are not unjust, unfair, inequitable,
17-3 unfairly discriminatory, misleading, deceptive, obscure or encourage
17-4 misrepresentation or misunderstanding of the contract.
17-5 (c) Develop criteria to determine the suitability of insurance contracts
17-6 and the practices used in the sale of insurance.
17-7 2. [Nothing in this section shall] This section does not prohibit an
17-8 insurer from offering policies encompassing standards more favorable to
17-9 the insured than those promulgated under this section.
17-10 Sec. 62. NRS 679B.152 is hereby amended to read as follows:
17-11 679B.152 1. Every insurer or organization for dental care which pays
17-12 claims on the basis of fees for medical or dental care which are “usual and
17-13 customary” shall submit to the commissioner a complete description of the
17-14 method it uses to determine those fees. This information must be kept
17-15 confidential by the commissioner. The fees determined by the insurer or
17-16 organization to be the usual and customary fees for that care are subject to
17-17 the approval of the commissioner as being the usual and customary fees in
17-18 that locality. The provisions of this subsection apply to medical or dental
17-19 care provided to a claimant under any contract of insurance.
17-20 2. Any contract for group, blanket or individual health insurance and
17-21 any contract issued by a nonprofit hospital, medical or dental service
17-22 corporation or organization for dental care, which provides a plan for
17-23 dental care to its insureds or members which limits their choice of a dentist,
17-24 under the plan to those in a preselected group, must offer its insureds or
17-25 members the option of selecting a plan of benefits which does not restrict
17-26 the choice of a dentist. The selection of that option does not entitle the
17-27 insured or member to any increase in contributions by his employer or
17-28 other organization toward the premium or cost of the optional plan over
17-29 that contributed under the restricted plan.
17-30 Sec. 63. NRS 679B.190 is hereby amended to read as follows:
17-31 679B.190 1. The commissioner shall carefully preserve in the
17-32 division and in permanent form all papers and records relating to the
17-33 business and transactions of the division and shall hand them over to his
17-34 successor in office.
17-35 2. Except as otherwise provided in subsections 3[, 5 and 6,] and 5 to
17-36 9, inclusive, other provisions of this code and NRS 616B.015, the papers
17-37 and records must be open to public inspection.
17-38 3. Any records or information in the possession of the division related
17-39 to an investigation conducted by the commissioner is confidential unless:
17-40 (a) The commissioner releases, in the manner that he deems appropriate,
17-41 all or any part of the records or information for public inspection after
17-42 determining that the release of the records or information:
17-43 (1) Will not harm his investigation or the person who is being
17-44 investigated; or
17-45 (2) Serves the interests of a policyholder, the shareholders of the
17-46 insurer or the public; or
17-47 (b) A court orders the release of the records or information after
17-48 determining that the production of the records or information will not
17-49 damage any investigation being conducted by the commissioner.
18-1 4. The commissioner may destroy unneeded or obsolete records and
18-2 filings in the division in accordance with provisions and procedures
18-3 applicable in general to administrative agencies of this state.
18-4 5. The commissioner may classify as confidential [certain] :
18-5 (a) Specified records and information obtained from a governmental
18-6 agency [or] ;
18-7 (b) Documents obtained or received from other sources upon the
18-8 express condition that they remain confidential.
18-9 6. All information and documents in the possession of the division or
18-10 any of its employees which are related to cases or matters under
18-11 investigation by the commissioner or his staff are confidential for the
18-12 period of the investigation and may not be made public unless the
18-13 commissioner finds the existence of an imminent threat of harm to the
18-14 safety or welfare of the policyholder, shareholders or the public and
18-15 determines that the interests of the policyholder, shareholders or the public
18-16 will be served by publication thereof, in which event he may make a record
18-17 public or publish all or any part of the record in any manner he deems
18-18 appropriate.
18-19 7. The commissioner may classify as confidential the records of a
18-20 consumer or information relating to a consumer to protect the health,
18-21 welfare or safety of the consumer.
18-22 8. In performing his duties, the commissioner may:
18-23 (a) Share documents, materials or other information, including any
18-24 documents, materials or information classified as confidential, with other
18-25 state, federal and international regulatory or law enforcement agencies
18-26 or with the National Association of Insurance Commissioners and its
18-27 affiliates and subsidiaries if the recipient agrees to maintain the
18-28 confidentiality and privileged status of the documents, materials or other
18-29 information.
18-30 (b) May receive documents, materials or other information, including
18-31 any documents, materials or information otherwise confidential and
18-32 privileged, from other state, federal and international regulatory or law
18-33 enforcement agencies or from the National Association of Insurance
18-34 Commissioners and its affiliates and subsidiaries, and shall maintain as
18-35 confidential or privileged any document, material or information
18-36 received with notice or the understanding that it is confidential or
18-37 privileged under the law of the jurisdiction from which it was received.
18-38 (c) Enter into agreements, consistent with this subsection, governing
18-39 the sharing and use of information.
18-40 9. No waiver of confidentiality or privilege with respect to any
18-41 document, material or information occurs as a result of disclosure to the
18-42 commissioner under this section or of sharing as authorized under this
18-43 chapter.
18-44 Sec. 64. NRS 679B.220 is hereby amended to read as follows:
18-45 679B.220 1. The commissioner shall communicate on request of the
18-46 regulatory officer for insurance [supervisory official of] in any state,
18-47 province or country any information which it is his duty by law to ascertain
18-48 respecting authorized insurers.
18-49 2. The commissioner may:
19-1 (a) Be a member of the National Association of Insurance
19-2 Commissioners or any successor organization;
19-3 (b) Exchange with the association or any successor organization any
19-4 information, not otherwise confidential, relating to applicants and licensees
19-5 under this Title;
19-6 (c) Communicate with the association or any successor organization
19-7 concerning the business of insurance generally; [and]
19-8 (d) Enter into compacts with the regulatory officers in other states to
19-9 further the uniform treatment of insurers throughout the United States;
19-10 and
19-11 (e) Participate in and support other cooperative activities of public
19-12 officers having supervision of the business of insurance.
19-13 Sec. 65. NRS 679B.510 is hereby amended to read as follows:
19-14 679B.510 As used in NRS 679B.510 to 679B.560, inclusive, and
19-15 section 59 of this act, unless the context otherwise requires, the words and
19-16 terms defined in NRS 679B.520, 679B.530 and 679B.540 have the
19-17 meanings ascribed to them in those sections.
19-18 Sec. 66. NRS 680A.320 is hereby amended to read as follows:
19-19 680A.320 1. For the purposes of this section:
19-20 (a) An “affiliated person” is a person controlled by any combination of
19-21 the insurer, the parent corporation, a subsidiary or the principal
19-22 stockholders or officers or directors of any of the foregoing.
19-23 (b) “Depository institution” has the meaning ascribed to it in section 3
19-24 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(1).
19-25 (c) “Financial holding company” means a bank holding company
19-26 that satisfies the requirements of section 4(l)(1) of the Bank Holding
19-27 Company Act of 1956, 12 U.S.C. § 1841(l)(1).
19-28 (d) “Health facility” has the meaning ascribed to it in NRS 439A.015.
19-29 [(c)] (e) A “subsidiary” is a person of which either the insurer and the
19-30 parent corporation or the insurer or the parent corporation holds practical
19-31 control.
19-32 2. No insurer may engage directly or indirectly in any transaction or
19-33 agreement with its parent corporation, a financial holding company, a
19-34 depository institution, or [with] any subsidiary or affiliated person which
19-35 will result or tend to result in:
19-36 (a) Substitution contrary to the interest of the insurer and through any
19-37 method of any asset of the insurer with an asset or assets of inferior quality
19-38 or lower fair market value;
19-39 (b) Deception as to the true operating results of the insurer;
19-40 (c) Deception as to the true financial condition of the insurer;
19-41 (d) Allocation to the insurer of a proportion of the expense of combined
19-42 facilities or operations which is unfair and unfavorable to the insurer;
19-43 (e) Unfair or excessive charges against the insurer for services,
19-44 facilities, supplies or reinsurance;
19-45 (f) Unfair and inadequate charges by the insurer for reinsurance,
19-46 services, facilities or supplies furnished by the insurer to others;
19-47 (g) Payment by the insurer for services, facilities, supplies or
19-48 reinsurance not reasonably needed by the insurer;
20-1 (h) Depletion of the insurer’s surplus, through payment of dividends or
20-2 other distribution or withdrawal, below the amount thereof reasonably
20-3 required for conduct of the insurer’s business and maintenance of growth
20-4 with safety to policyholders; or
20-5 (i) Payment by the insurer for services or products for which the health
20-6 facility has charged less than fair market value, unless the reduced charge
20-7 is reflected in the form of reduced premiums. In determining what
20-8 constitutes fair market value, consideration must be given to reasonable
20-9 agreements for the preferential provision of health care, in accordance with
20-10 regulations adopted by the commissioner. An insurer which pays less than
20-11 fair market value for services or products in a transaction which is subject
20-12 to the provisions of this paragraph shall annually file a certification with
20-13 the commissioner that the reduced payment has been reflected in the form
20-14 of reduced premiums, together with documentation supporting the
20-15 certification.
20-16 3. In all transactions between the insurer and its parent corporation, or
20-17 involving the insurer and any subsidiary or affiliated person, full
20-18 recognition must be given to the paramount duty and obligation of the
20-19 insurer to protect the interests of policyholders, both existing and future.
20-20 4. If a health facility is a parent, subsidiary or affiliate of an insurer or
20-21 of a parent or facility of an insurer, and the insurer purchases medical or
20-22 any other services or products from the health facility, the health facility
20-23 may not:
20-24 (a) Attempt artificially to reduce or increase its margin of profit by
20-25 altering the charges to the insurer.
20-26 (b) Alter its true operating results or financial condition through charges
20-27 to the insurer for services or products.
20-28 This subsection does not prohibit activities authorized pursuant to
20-29 paragraph (i) of subsection 2.
20-30 5. If a health facility is found, after notice and a hearing, to have
20-31 violated the provisions of subsection 4, the commissioner may impose an
20-32 administrative fine of not more than $5,000 for each violation.
20-33 Sec. 67. NRS 680B.010 is hereby amended to read as follows:
20-34 680B.010 The commissioner shall collect in advance and receipt for,
20-35 and persons so served must pay to the commissioner, fees and
20-36 miscellaneous charges as follows:
20-37 1. Insurer’s certificate of authority:
20-38 (a) Filing initial application.................. $2,450
20-39 (b) Issuance of certificate:
20-40 (1) For any one kind of insurance as defined in NRS 681A.010
20-41 to 681A.080, inclusive.............................. 283
20-42 (2) For two or more kinds of insurance as so defined.................................................... 578
20-43 (3) For a reinsurer2,450
20-44 (c) Each annual continuation of a certificate 2,450
20-45 (d) Reinstatement pursuant to NRS 680A.180, 50 percent of the
20-46 annual continuation fee otherwise required.
20-47 (e) Registration of additional title pursuant to NRS 680A.240.............................................. 50
20-48 (f) Annual renewal of the registration of additional title pursuant
20-49 to NRS 680A.240...................................... 25
21-1 2. Charter documents, other than those filed with an application
21-2 for a certificate of authority. Filing amendments to articles of
21-3 incorporation, charter, bylaws, power of attorney and other
21-4 constituent documents of the insurer, each document..................................................... $10
21-5 3. Annual statement or report. For filing annual statement or
21-6 report ........................................................... $25
21-7 4. Service of process:
21-8 (a) Filing of power of attorney................... $5
21-9 (b) Acceptance of service of process........ 30
21-10 5. [Agents’ licenses,] Licenses, appointments and renewals[:]
21-11 for producers of insurance:
21-12 (a) [Resident agents and nonresident agents qualifying under
21-13 subsection 3 of NRS 683A.340:
21-14 (1)] Application and license....... [$78] $125
21-15 [(2) Appointment by]
21-16 (b) Appointment fee for each insurer.. [5] 15
21-17 [(3)] (c) Triennial renewal of each license [78] 125
21-18 [(4)] (d) Temporary license..................... 10
21-19 [(b) Other nonresident agents:
21-20 (1) Application and license ................... 138
21-21 (2) Appointment by each insurer............. 25
21-22 (3) Triennial renewal of each license...... 138
21-23 6. Brokers’ licenses and renewals:
21-24 (a) Resident brokers and nonresident brokers qualifying under
21-25 subsection 3 of NRS 683A.340:
21-26 (1) Application and license ................... $78
21-27 (2) Triennial renewal of each license........ 78
21-28 (b) Other nonresident brokers:
21-29 (1) Application and license ................... 258
21-30 (2) Triennial renewal of each license...... 258
21-31 (c) Resident surplus]
21-32 (e) Modification of an existing license... 50
21-33 6. Surplus lines brokers:
21-34 [(1)] (a) Application and license . [78] $125
21-35 [(2)] (b) Triennial renewal of each license [78] 125
21-36 [(d) Nonresident surplus lines brokers:
21-37 (1) Application and license.................... 258
21-38 (2) Triennial renewal of each license...... 258
21-39 7. Solicitors’ licenses, appointments and renewals:
21-40 (a) Application and license ..................... $78
21-41 (b) Triennial renewal of each license.......... 78
21-42 (c) Initial appointment................................. 5
21-43 8.] 7. Managing general agents’ licenses, appointments and
21-44 renewals:
21-45 (a) [Resident managing general agents:
21-46 (1)] Application and license ...... [$78] $125
21-47 [(2) Initial appointment,]
21-48 (b) Appointment fee for each insurer.. [5] 15
21-49 [(3)] Triennial renewal of each license... [78] 125
22-1 [(b) Nonresident managing general agents:
22-2 (1) Application and license.................... 138
22-3 (2) Initial appointment, each insurer......... 25
22-4 (3) Triennial renewal of each license...... 138
22-5 9.] 8. Adjusters’ licenses and renewals:
22-6 (a) Independent and public adjusters:
22-7 (1) Application and license ....... [$78] $125
22-8 (2) Triennial renewal of each license...... [78] 125
22-9 (b) Associate adjusters:
22-10 (1) Application and license ........... [78] 125
22-11 (2) [Initial appointment............................. 5
22-12 (3)]Triennial renewal of each license.... [78] 125
22-13 [10.] 9. Licenses and renewals for appraisers of physical
22-14 damage to motor vehicles:
22-15 (a) Application and license .......... [$78] $125
22-16 (b) Triennial renewal of each license. [78] 125
22-17 [11.] 10. Additional title and property insurers pursuant to NRS
22-18 680A.240:
22-19 (a) Original registration............................ $50
22-20 (b) Annual renewal.................................... 25
22-21 [12.] 11. Insurance vending machines:
22-22 (a) Application and license, for each machine [$78] $125
22-23 (b) Triennial renewal of each license. [78] 125
22-24 [13.] 12. Permit for solicitation for securities:
22-25 (a) Application for permit...................... $100
22-26 (b) Extension of permit............................. 50
22-27 [14.] 13. Securities salesmen for domestic insurers:
22-28 (a) Application and license ..................... $25
22-29 (b) Annual renewal of license..................... 15
22-30 [15.] 14. Rating organizations:
22-31 (a) Application and license .................... $500
22-32 (b) Annual renewal.................................. 500
22-33 [16.] 15. Certificates and renewals for administrators licensed
22-34 pursuant to chapter 683A of NRS:
22-35 (a) [Resident administrators:
22-36 (1)] Application and certificate of registration ....................................... [$78] $125
22-37 [(2)] (b) Triennial renewal.............. [78] 125
22-38 [(b) Nonresident administrators:
22-39 (1) Application and certificate of registration 138
22-40 (2) Triennial renewal............................. 138
22-41 17.] 16. For copies of the insurance laws of Nevada, a fee
22-42 which is not less than the cost of producing the copies.
22-43 [18.] 17. Certified copies of certificates of authority and
22-44 licenses issued pursuant to the insurance code $10
22-45 [19.] 18. For copies and amendments of documents on file in
22-46 the division, a reasonable charge fixed by the commissioner,
22-47 including charges for duplicating or amending the forms and for
22-48 certifying the copies and affixing the official seal.
23-1 [20.] 19. Letter of clearance for [an agent or broker] a
23-2 producer of insurance or other licensee, if requested by someone
23-3 other than the licensee............................. $10
23-4 [21.] 20. Certificate of status as a [licensed agent or broker]
23-5 producer of insurance or other licensee, if requested by someone
23-6 other than the licensee............................. $10
23-7 [22.] 21. Licenses, appointments and renewals for bail agents:
23-8 (a) Application and license .......... [$78] $125
23-9 (b) [Initial appointment by] Appointment for each surety insurer.................................... [5] 15
23-10 (c) Triennial renewal of each license. [78] 125
23-11 [23.] 22. Licenses and renewals for bail enforcement agents:
23-12 (a) Application and license .......... [$78] $125
23-13 (b) Triennial renewal of each license. [78] 125
23-14 [24.] 23. Licenses, appointments and renewals for general [bail
23-15 agents:] agents for bail:
23-16 (a) Application and license .......... [$78] $125
23-17 (b) Initial appointment by each insurer.. [5] 15
23-18 (c) Triennial renewal of each license. [78] 125
23-19 [25.] 24. Licenses and renewals for bail solicitors:
23-20 (a) Application and license .......... [$78] $125
23-21 (b) Triennial renewal of each license. [78] 125
23-22 [26.] 25. Licenses and renewals for title agents and escrow
23-23 officers:
23-24 (a) [Resident title agents and escrow officers:
23-25 (1)] Application and license ...... [$78] $125
23-26 [(2)] (b) Triennial renewal of each license [78] 125
23-27 [(b) Nonresident title agents and escrow officers:
23-28 (1) Application and license ................... 138
23-29 (2) Triennial renewal of each license..... 138]
23-30 (c) Appointment fee for each title insurer15
23-31 (d) Change in name or location of business or in association................................................. 10
23-32 [27.] 26. Certificate of authority and renewal for a seller of
23-33 prepaid funeral contracts.............. [$78] $125
23-34 [28.] 27. Licenses and renewals for agents for prepaid funeral
23-35 contracts:
23-36 (a) [Resident agents:
23-37 (1)] Application and license ...... [$78] $125
23-38 [(2)] (b) Triennial renewal of each license [78] 125
23-39 [(b) Nonresident agents:
23-40 (1) Application and license.................... 138
23-41 (2) Triennial renewal of each license...... 138
23-42 29.] 28. Licenses, appointments and renewals for agents for
23-43 fraternal benefit societies:
23-44 (a) [Resident agents:
23-45 (1)] Application and license ...... [$78] $125
23-46 [(2) Appointment..................................... 5
23-47 (3)] (b) Appointment for each insurer.. 15
23-48 (c) Triennial renewal of each license. [78] 125
23-49 [(b) Nonresident agents:
24-1 (1) Application and license.................... 138
24-2 (2) Triennial renewal of each license...... 138
24-3 30.] 29. Reinsurance intermediary broker or manager:
24-4 (a) [Resident agents:
24-5 (1)] Application and license ...... [$78] $125
24-6 [(2)] (b) Triennial renewal of each license [78] 125
24-7 [(b) Nonresident agents:
24-8 (1) Application and license ................... 138
24-9 (2) Triennial renewal of each license ..... 138
24-10 31.] 30. Agents for and sellers of prepaid burial contracts:
24-11 (a) [Resident agents and sellers:
24-12 (1)] Application and certificate or license [$78] $125
24-13 [(2)] (b) Triennial renewal.............. [78] 125
24-14 [(b) Nonresident agents and sellers:
24-15 (1) Application and certificate or license138
24-16 (2) Triennial renewal............................. 138
24-17 32.] 31. Risk retention groups:
24-18 (a) Initial registration and review of an application............................................... $2,450
24-19 (b) Each annual continuation of a certificate of registration............................................ 2,450
24-20 [33.] 32. Required filing of forms:
24-21 (a) For rates and policies......................... $25
24-22 (b) For riders and endorsements................ 10
24-23 33. Viatical settlements:
24-24 (a) Provider of viatical settlements:
24-25 (1) Application and license........... $1,000
24-26 (2) Annual renewal........................ 1,000
24-27 (b) Broker of viatical settlements:
24-28 (1) Application and license................ 500
24-29 (2) Annual renewal........................... 500
24-30 34. Insurance consultants:
24-31 (a) Application and license................ $125
24-32 (b) Triennial renewal........................... 125
24-33 35. Licensee’s association with or appointment or sponsorship
24-34 by an organization:
24-35 (a) Initial appointment, association or sponsorship, for each
24-36 organization.......................................... $50
24-37 (b) Renewal of each association or sponsorship.................................................. 50
24-38 (c) Annual renewal of appointment....... 15
24-39 Sec. 68. NRS 682A.100 is hereby amended to read as follows:
24-40 682A.100 1. An insurer may invest in preferred or guaranteed stocks
24-41 or shares of any solvent institution existing under the laws of the United
24-42 States of America, Canada or Mexico, or of any state or province thereof, if
24-43 all of the prior obligations and prior preferred stocks, if any, of [such] the
24-44 institution at the date of acquisition of the investment by the insurer are
24-45 eligible as investments under this chapter and if the net earnings of [such]
24-46 the institution available for its fixed charges during either of the last 2
24-47 years have been, and during each of the last 5 years have averaged, not less
24-48 than 1 1/2 times the sum of its average annual fixed charges, if any, its
24-49 average annual maximum contingent interest, if any, and its average annual
25-1 preferred dividend requirements. For the purposes of this section [such
25-2 computation shall refer] the computation refers to the fiscal years
25-3 immediately preceding the date of acquisition of the investment by the
25-4 insurer, and the term “preferred dividend requirement” [shall be deemed to
25-5 mean] means cumulative or noncumulative dividends, whether paid or not.
25-6 2. No insurer [shall] may invest in any such preferred or guaranteed
25-7 stocks in an amount in excess of [10] 35 percent of [any issue or such] the
25-8 particular issue of guaranteed or preferred [stocks] stock or, subject to
25-9 subsection 1 of NRS 682A.050 [(diversification),] more than an amount
25-10 equal to 10 percent of the insurer’s admitted assets in any one issue.
25-11 Sec. 69. NRS 682A.110 is hereby amended to read as follows:
25-12 682A.110 1. An insurer may invest up to [25] 35 percent of its assets
25-13 in nonassessable [(except as to bank or trust company stocks, and except
25-14 for taxes)] common stocks, other than insurance stocks, of any solvent
25-15 corporation organized and existing under the laws of the United States of
25-16 America, Canada or Mexico, or of any state or province thereof, except
25-17 that bank or trust company stocks may be assessable and any stocks may
25-18 be assessable for taxes, if [such] the corporation has had net earnings
25-19 available for dividends on [such] the stock in each of the 5 fiscal years next
25-20 preceding acquisition by the insurer. If the issuing corporation has not been
25-21 in legal existence for [the whole of such] all of the 5 fiscal years but was
25-22 formed as a consolidation or merger of two or more businesses of which at
25-23 least one was in operation on a date 5 years [prior to] before the
25-24 investment, the test of eligibility of its common stock under this section
25-25 [shall] must be based upon consolidated pro forma statements of the
25-26 predecessor or constituent institutions.
25-27 2. Any amount invested in a fund or trust under NRS 682A.140 must
25-28 not be included in computing the amounts prescribed in subsection 1.
25-29 Sec. 70. NRS 682A.130 is hereby amended to read as follows:
25-30 682A.130 1. An insurer may invest in the stock of [its] a subsidiary
25-31 insurance corporation formed or acquired by it, or in the stock of [its] a
25-32 subsidiary business corporation [or corporations] formed and engaged
25-33 solely in any one or more of the following businesses:
25-34 (a) [In any] A business necessary and incidental to the convenient
25-35 operation of the insurer’s insurance business or to the administration of any
25-36 of its lawful affairs;
25-37 (b) Providing any actuarial, computer, data processing, accounting,
25-38 claims, appraisal, collection, sales, loss prevention or safety engineering
25-39 and similar services;
25-40 (c) Real property management and development;
25-41 (d) Premium financing;
25-42 (e) Financing of agents of the insurer;
25-43 (f) Acting as investment adviser and principal underwriter or investment
25-44 adviser or principal underwriter of a management company or management
25-45 companies (mutual funds), registered as such under the Investment
25-46 Company Act of 1940;
25-47 (g) Financial and investment counseling services;
25-48 (h) Administration of self-insurance plans;
26-1 (i) Administration of self-insured pension and similar plans, or the self-
26-2 insured portions of such plans;
26-3 (j) Securities broker-dealer;
26-4 (k) Escrow services; [or]
26-5 (l) Trust services with respect to funds payable or paid by it under its
26-6 insurance contracts[.] ;
26-7 (m) Bank, savings and loan association or thrift company; or
26-8 (n) Insurance agency.
26-9 2. For the purposes of this section a “subsidiary” is a corporation of
26-10 which the insurer owns sufficient stock to give it effective control.
26-11 3. All of the insurer’s investments under this section shall be deemed
26-12 to be common stocks for the purposes of the [25-percent-of-assets]
26-13 limitation imposed by NRS 682A.110[.] on the percentage of admitted
26-14 assets which may be invested in common stock.
26-15 Sec. 71. NRS 682A.190 is hereby amended to read as follows:
26-16 682A.190 An insurer may invest in share or savings accounts of thrift
26-17 companies, credit unions or savings and loan associations, or in savings
26-18 accounts of banks, and in any one such institution only to the extent that
26-19 the investment is insured by the Federal Deposit Insurance Corporation, the
26-20 National Credit Union Share Insurance Fund or a private insurer approved
26-21 pursuant to NRS 677.247 or 678.755.
26-22 Sec. 72. NRS 682A.200 is hereby amended to read as follows:
26-23 682A.200 1. An insurer may make loans or investments not
26-24 otherwise expressly permitted under this chapter, in an aggregate amount
26-25 not over [5] 10 percent of the insurer’s admitted assets and not over 1
26-26 percent of [such] those assets as to any one such loan or investment, if
26-27 [such] the loan or investment fulfills the requirements of NRS 682A.030
26-28 and otherwise qualifies as a sound investment. No such loan or investment
26-29 [shall] may be represented by:
26-30 (a) Any item described in NRS 681B.020 , [(assets not allowed),] or any
26-31 loan or investment otherwise expressly prohibited.
26-32 (b) Agents’ balances, or amounts advanced to or owing by agents,
26-33 except as to policy loans, mortgage loans and collateral loans otherwise
26-34 authorized under this chapter.
26-35 (c) Any category of loans or investments expressly eligible under any
26-36 other provision of this chapter.
26-37 (d) Any asset [theretofore] acquired or held by the insurer under any
26-38 other category of loans or investments eligible under this chapter.
26-39 2. The insurer shall keep a separate record of all loans and investments
26-40 made under this section.
26-41 Sec. 73. NRS 682A.240 is hereby amended to read as follows:
26-42 682A.240 1. A domestic insurer may invest in real property only if
26-43 used for the purposes or acquired in any manner, and within limits, set
26-44 forth below:
26-45 (a) The building in which it has its principal office, the land upon which
26-46 the building stands, and such other real property as may be requisite for the
26-47 insurer’s convenient accommodation in the transaction of its business. The
26-48 amount so invested, and apportioned as to space actually so occupied or
26-49 used, must not aggregate more than 15 percent of the insurer’s assets; but
27-1 the commissioner may authorize an insurer to increase the investment in
27-2 such amount as he may determine if, upon proper showing made upon a
27-3 hearing held by him, he finds that the 15-percent limitation is insufficient
27-4 to provide reasonable and convenient accommodation for the insurer’s
27-5 business.
27-6 (b) Real property acquired in satisfaction or part payment of loans,
27-7 mortgages, liens, judgments, decrees or debts previously owing to the
27-8 insurer in the due course of its business.
27-9 (c) Real property acquired in part payment of the consideration on the
27-10 sale of other real property owned by it, if [such] the transaction has
27-11 effected a net reduction in the insurer’s investments in real property.
27-12 (d) Real property acquired by gift or devise, or through merger,
27-13 consolidation or bulk reinsurance of another insurer under this code.
27-14 (e) Additional real property and equipment incidental thereto, if
27-15 necessary or convenient for the purpose of enhancing the sale or other
27-16 value of real property previously acquired or held under this section.
27-17 [Such] The additional real property and equipment, together with the real
27-18 property for the enhancement of which it was acquired, must be included
27-19 together, for the purpose of applicable investment limits, and is subject to
27-20 disposal under NRS 682A.250 at the same time and under the same
27-21 conditions as apply to [such] the enhanced real property.
27-22 (f) Real property, or any interest therein, acquired or held by purchase,
27-23 lease or otherwise, other than real property to be used primarily for mining,
27-24 development of oil or mineral resources, recreational, amusement, hotel,
27-25 motel or club purposes, acquired as an investment for production of
27-26 income, or acquired to be improved or developed for investment purposes
27-27 pursuant to an existing program therefor. The insurer may hold, mortgage,
27-28 improve, develop, maintain, manage, lease, sell, convey and otherwise
27-29 dispose of real property acquired by it under this section. An insurer [shall]
27-30 may not have at any one time invested in real property under this paragraph
27-31 more than [15] 20 percent of its admitted assets.
27-32 2. Total investments of the insurer in real property under this section
27-33 [must] may not at any time exceed [25] 35 percent of the insurer’s
27-34 admitted assets.
27-35 Sec. 74. Chapter 683A of NRS is hereby amended by adding thereto
27-36 the provisions set forth as sections 75 to 99, inclusive, of this act.
27-37 Sec. 75. “Business organization” means a corporation, association,
27-38 partnership, limited liability company, limited liability partnership or
27-39 other legal form of organization.
27-40 Sec. 76. “Home state” means the District of Columbia or any state
27-41 or territory of the United States or Canada in which a producer of
27-42 insurance maintains his principal place of residence or principal place of
27-43 business and is licensed to act as a producer of insurance.
27-44 Sec. 77. “License” means a document issued by the commissioner
27-45 authorizing a person to act as a producer of insurance for the lines of
27-46 authority specified in the document.
27-47 Sec. 78. “Negotiate” means to confer directly with, or offer advice
27-48 directly to, a purchaser or prospective purchaser of a particular contract
27-49 of insurance concerning any of the substantive benefits, terms or
28-1 conditions of the contract, if the person conferring or offering the advice
28-2 sells insurance or obtains insurance from insurers or purchasers.
28-3 Sec. 79. “Producer of limited line insurance” means a person who
28-4 sells, solicits or negotiates one or more forms of limited line insurance to
28-5 natural persons through a master, corporate, group or individual policy.
28-6 Sec. 80. “Sell” means to exchange a contract of insurance, by any
28-7 means, for money or its equivalent on behalf of an insurer.
28-8 Sec. 81. “Solicit” means to attempt to sell insurance or to ask or
28-9 urge a person to apply for a particular kind of insurance from a
28-10 particular insurer.
28-11 Sec. 82. “Terminate” means to cancel the relationship between a
28-12 producer of insurance and the insurer or to terminate a producer’s
28-13 authority to transact insurance.
28-14 Sec. 83. “Uniform application” means the uniform application for
28-15 licensing of producers of insurance prepared by the National Association
28-16 of Insurance Commissioners and adopted by the commissioner.
28-17 Sec. 84. 1. A person shall not sell, solicit or negotiate insurance in
28-18 this state for any class of insurance unless he is licensed for that class of
28-19 insurance.
28-20 2. An insurer is exempt from the requirement for licensure as a
28-21 producer of insurance, but this exemption does not extend to an insurer’s
28-22 officers, directors, employees, subsidiaries or affiliates.
28-23 3. A person required to be licensed in this state who transacts
28-24 insurance without a license is subject to an administrative fine of not
28-25 more than $1,000 for each violation.
28-26 Sec. 85. The following persons need not be licensed as producers of
28-27 insurance:
28-28 1. An officer, director or employee of an insurer or of a producer of
28-29 insurance if the officer, director or employee does not receive any
28-30 commission on policies written or sold to insure risks residing, located or
28-31 to be performed in this state and:
28-32 (a) The officer, director or employee’s activities are executive,
28-33 administrative, managerial, clerical or a combination of these, and are
28-34 only indirectly related to the sale, solicitation or negotiation of
28-35 insurance;
28-36 (b) The officer, director or employee’s function relates to
28-37 underwriting, control of losses, inspection or the processing, adjusting,
28-38 investigating or settling of claims on contracts of insurance; or
28-39 (c) The officer, director or employee is acting in the capacity of a
28-40 special agent or supervisor of an agency assisting producers of insurance
28-41 where his activities are limited to providing technical advice and
28-42 assistance to licensed producers and do not include sale, solicitation or
28-43 negotiation of insurance.
28-44 2. A person who secures and furnishes information for the purpose
28-45 of group life insurance, group property and casualty insurance, group
28-46 annuities, or group or blanket accident and health insurance, or for the
28-47 purpose of enrolling natural persons under plans, issuing certificates
28-48 under plans or otherwise assisting in administering plans, or who
28-49 performs administrative services related to mass marketed property and
29-1 casualty insurance, if no commission is paid to him for the service. As
29-2 used in this subsection, “blanket accident and health insurance” has the
29-3 meaning ascribed to it in NRS 689B.070.
29-4 3. An employer or association or its officers, directors or employees,
29-5 or the trustees of an employees’ trust plan, to the extent that the
29-6 employer, association, officers, directors, employees or trustees are
29-7 engaged in the administration or operation of a program of employees’
29-8 benefits for the employer’s or association’s own employees or the
29-9 employees of its subsidiaries or affiliates, if the program involves the use
29-10 of insurance issued by an insurer and the employer, association, officers,
29-11 directors, employees or trustees are not compensated by the insurer
29-12 issuing the contracts.
29-13 4. Employees of insurers or organizations employed by insurers who
29-14 are engaged in the inspection, rating or classification of risks or in the
29-15 supervision of the training of producers of insurance and are not
29-16 individually engaged in the sale, solicitation or negotiation of insurance.
29-17 5. A person whose activities in this state re limited to advertising,
29-18 without the intent to solicit insurance in this state, through
29-19 communications in printed publications or electronic mass media whose
29-20 distribution is not limited to residents of this state, if he does not sell,
29-21 solicit or negotiate insurance of risks residing, located or to be performed
29-22 in this state.
29-23 6. A salaried full-time employee who counsels or advises his
29-24 employer concerning the interests of the employer, or of the subsidiaries
29-25 or affiliates of the employer, in insurance, if the employee does not sell or
29-26 solicit insurance or receive a commission.
29-27 7. An employee of a producer of insurance or an insurer who
29-28 responds to requests from holders of policies previously issued, if the
29-29 employee is not directly compensated according to the volume of
29-30 premiums that may result from those services and does not solicit
29-31 insurance or offer advice concerning terms or conditions of policies.
29-32 Sec. 86. 1. A resident natural person applying for a license as a
29-33 producer of insurance must pass a written examination unless exempt
29-34 under section 90 of this act. The examination must test his knowledge
29-35 concerning the lines of authority for which application is made, the
29-36 duties and responsibilities of a producer and the laws and regulations of
29-37 this state relating to insurance. The commissioner shall adopt
29-38 regulations for developing and conducting examinations required by this
29-39 section.
29-40 2. The commissioner may contract with a person outside the division
29-41 for administering examinations, processing applications, collecting fees
29-42 and performing any other functions he considers appropriate.
29-43 3. Each natural person applying for an examination shall pay a
29-44 nonrefundable fee in an amount prescribed by the commissioner to
29-45 defray the cost of processing the application and administering the
29-46 examination.
29-47 4. An applicant who fails to appear for the examination as scheduled
29-48 or fails to pass the examination must reapply for examination and pay
29-49 the required fee in order to be scheduled for another examination.
30-1 Sec. 87. 1. The commissioner shall prescribe the form of
30-2 application by a natural person for a license as a resident producer of
30-3 insurance. The applicant must declare, under penalty of refusal to issue,
30-4 or suspension or revocation of, the license, that the statements made in
30-5 the application are true, correct and complete to the best of his
30-6 knowledge and belief. Before approving the application, the
30-7 commissioner must find that the applicant has:
30-8 (a) Attained the age of 18 years;
30-9 (b) Not committed any act that is a ground for refusal to issue, or
30-10 suspension or revocation of, a license;
30-11 (c) Completed a course of study for the lines of authority for which
30-12 application is made, unless the applicant is exempt from this
30-13 requirement;
30-14 (d) Paid the fee prescribed for the license and a fee of $15 for deposit
30-15 in the insurance recovery account, neither of which may be refunded;
30-16 and
30-17 (e) Successfully passed the examinations for the lines of authority for
30-18 which application is made, unless the applicant is exempt from this
30-19 requirement.
30-20 2. A business organization must be licensed as a producer of
30-21 insurance in order to act as such. Application must be made on a form
30-22 prescribed by the commissioner. Before approving the application, the
30-23 commissioner must find that the applicant has:
30-24 (a) Paid the fee prescribed for the license and a fee of $15 for deposit
30-25 in the insurance recovery account, neither of which may be refunded;
30-26 and
30-27 (b) Designated a natural person licensed as a producer of insurance
30-28 to be responsible for the organization’s compliance with the laws and
30-29 regulations of this state relating to insurance.
30-30 3. A natural person who is a resident of this state applying for a
30-31 license must furnish a copy of a search concerning him conducted by the
30-32 Federal Bureau of Investigation in its national criminal records, and of a
30-33 search concerning him of the central repository for Nevada records of
30-34 criminal history. The commissioner shall adopt regulations concerning
30-35 the procedures for obtaining this information.
30-36 4. The commissioner may require any document reasonably
30-37 necessary to verify information contained in an application.
30-38 Sec. 88. 1. Unless the commissioner refuses to issue the license
30-39 under section 93 of this act, he shall issue a license as a producer of
30-40 insurance to a person who has satisfied the requirements of sections 86
30-41 and 87 of this act. A producer may qualify for a license in one or more of
30-42 the lines of authority permitted by statute or regulation, including:
30-43 (a) Life insurance on human lives, which includes benefits from
30-44 endowments and annuities and may include additional benefits from
30-45 death by accident and benefits for dismemberment by accident and for
30-46 disability.
30-47 (b) Health insurance for sickness, bodily injury or accidental death,
30-48 which may include benefits for disability.
31-1 (c) Property insurance for direct or consequential loss or damage to
31-2 property of every kind.
31-3 (d) Casualty insurance against legal liability, including liability for
31-4 death, injury or disability and damage to real or personal property.
31-5 (e) Surety indemnifying financial institutions or providing bonds for
31-6 fidelity, performance of contracts, or financial guaranty.
31-7 (f) Variable annuities, including coverage reflecting the results of a
31-8 separate investment account.
31-9 (g) Credit insurance, including life, disability, property,
31-10 unemployment, involuntary unemployment, mortgage life, mortgage
31-11 guaranty, mortgage disability, guaranteed protection of assets, and any
31-12 other form of insurance offered in connection with an extension of credit
31-13 that is limited to wholly or partially extinguishing the obligation which
31-14 the commissioner determines should be considered as limited-line credit
31-15 insurance.
31-16 (h) Personal lines, consisting of automobile and motorcycle insurance
31-17 and residential property insurance, including coverage for flood, of
31-18 personal watercraft and of excess liability, written over one or more
31-19 underlying policies of automobile or residential property insurance.
31-20 (i) Fixed annuities as a limited line.
31-21 (j) Travel and baggage as a limited line.
31-22 (k) Rental car agency as a limited line.
31-23 2. A license as a producer of insurance remains in effect unless
31-24 revoked, suspended, allowed to expire or otherwise terminated, if the
31-25 license is renewed when due, the fee for renewal and a fee of $15 for
31-26 deposit in the insurance recovery account are paid for each license and
31-27 each affiliation with a business organization licensed pursuant to
31-28 subsection 2 of section 87 of this act and any requirement for education
31-29 is satisfied by the due date.
31-30 3. A natural person who allows his license as a producer of
31-31 insurance to expire may reapply for the same license within 12 months
31-32 after the date renewal was due without passing a written examination,
31-33 but a penalty twice the unpaid renewal fee is required for any renewal fee
31-34 received after the due date.
31-35 4. A licensed producer of insurance who is unable to renew his
31-36 license because of military service, extended medical disability or other
31-37 extenuating circumstance may request a waiver of the time limit and of
31-38 an examination, fine or sanction otherwise required or imposed because
31-39 of failure to renew.
31-40 5. A license must state the licensee’s name, address, personal
31-41 identification number, the date of issuance, the lines of authority and the
31-42 date of expiration and contain any other information the commissioner
31-43 considers necessary. A resident producer shall maintain a place of
31-44 business in this state which is accessible to the public and where he
31-45 principally conducts transactions under his license. The place of
31-46 business may be in his residence. The license must be conspicuously
31-47 displayed in an area of the place of business which is open to the public.
31-48 6. A licensee shall inform the commissioner of a change of address,
31-49 in writing or by other means acceptable to the commissioner within 30
32-1 days after the change. If a licensee changes his address without giving
32-2 written notice and the commissioner is unable to locate the licensee after
32-3 diligent effort, he may revoke the license without a hearing. The mailing
32-4 of a letter by certified mail, return receipt requested, addressed to the
32-5 licensee at his last mailing address appearing on the records of the
32-6 division, and the return of the letter undelivered, constitutes a diligent
32-7 effort by the commissioner.
32-8 Sec. 89. 1. Unless the commissioner refuses to issue the license
32-9 under section 94 of this act, the commissioner shall issue a license as a
32-10 producer of insurance to a nonresident person if:
32-11 (a) He is currently licensed as a resident and in good standing in his
32-12 home state;
32-13 (b) He has made the proper request for licensure and paid the fee
32-14 prescribed for the license and a fee of $15 for deposit in the insurance
32-15 recovery account;
32-16 (c) He has sent to the commissioner the application for licensure that
32-17 he made in his home state, or a completed uniform application; and
32-18 (d) His home state issues nonresident licenses as producers of
32-19 insurance to residents of this state pursuant to substantially the same
32-20 procedure.
32-21 2. The commissioner may participate with the National Association
32-22 of Insurance Commissioners or a subsidiary in a centralized registry in
32-23 which licensing and appointment of producers of insurance may be
32-24 effected for all states that require licensing and participate in the
32-25 registry. If he finds that participation is in the public interest, he may
32-26 adopt by regulation any uniform standards and procedures necessary for
32-27 participation, including central collection of fees for licensing and
32-28 appointment that are handled through the registry.
32-29 3. A nonresident producer who moves from one state to another state
32-30 shall file a change of address and certification from his new state of
32-31 residence within 30 days after his change of legal residence. No fee or
32-32 application for license is required.
32-33 4. A nonresident licensed as a producer for surplus lines in his home
32-34 state must be issued a nonresident license of that kind in this state
32-35 pursuant to subsection 1, subject in all other respects to chapter 685A of
32-36 NRS. A nonresident licensed as a producer for limited lines in his home
32-37 state is entitled to a nonresident license of that kind in this state pursuant
32-38 to subsection 1, granting the same scope of authority as the license issued
32-39 in the home state. As used in this subsection, insurance for limited lines
32-40 is authority granted by the home state which is restricted to less than the
32-41 total authority prescribed for the associated major lines pursuant to
32-42 section 88 of this act.
32-43 Sec. 90. 1. An applicant for licensing in this state as a producer of
32-44 insurance who was previously licensed for the same lines of authority in
32-45 another state need not complete any education or examination if he is
32-46 currently licensed in that state or, if the application is received within 90
32-47 days after the cancellation of his license, the other state certifies that he
32-48 was in good standing at the time of cancellation. Alternatively, the
32-49 exemption is available if the records of the National Association of
33-1 Insurance Commissioners show that the applicant is or was licensed and
33-2 in good standing for the lines of authority requested.
33-3 2. An examination is not required for a producer of insurance who
33-4 confines his activity to insurance categorized as limited line, credit,
33-5 travel, baggage or fixed annuity, or covering vehicles leased for a short
33-6 term.
33-7 3. A person licensed in another state who moves to this state and
33-8 desires to become licensed as a resident producer of insurance with the
33-9 benefit of the exemption provided in subsection 1 must apply for
33-10 licensing within 90 days after establishing legal residence.
33-11 Sec. 91. 1. An applicant for a license as a producer of insurance
33-12 who desires to use a name other than his true name as shown on the
33-13 license shall file with the commissioner a certified copy of the certificate
33-14 filed pursuant to chapter 602 of NRS. An incorporated applicant or
33-15 licensee shall file with the commissioner a document showing the
33-16 corporation’s true name and all fictitious names under which it conducts
33-17 or intends to conduct business. A licensee shall file promptly with the
33-18 commissioner written notice of any change in or discontinuance of the
33-19 use of a fictitious name.
33-20 2. The commissioner may disapprove in writing the use of a true
33-21 name, other than the true name of a natural person who is the applicant
33-22 or licensee, or a fictitious name of any applicant or licensee, on any of
33-23 the following grounds:
33-24 (a) The name interferes with or is deceptively similar to a name
33-25 already filed and in use by another licensee.
33-26 (b) Use of the name may mislead the public in any respect.
33-27 (c) The name states or implies that the applicant or licensee is an
33-28 insurer, motor club or hospital service plan or is entitled to engage in
33-29 activities related to insurance not permitted under the license applied for
33-30 or held.
33-31 (d) The name states or implies that the licensee is an underwriter, but:
33-32 (1) A natural person licensed as an agent or broker for life
33-33 insurance may describe himself as an underwriter or “chartered life
33-34 underwriter” if entitled to do so;
33-35 (2) A natural person licensed for property and casualty insurance
33-36 may use the designation “chartered property and casualty underwriter” if
33-37 entitled thereto; and
33-38 (3) An insurance agent or brokers’ trade association may use a
33-39 name containing the word “underwriter.”
33-40 (e) The licensee has already filed and not discontinued the use of
33-41 more than two names, including the true name.
33-42 3. A licensee shall not use a name after written notice from the
33-43 commissioner that its use violates the provisions of this section. If the
33-44 commissioner determines that the use is justified by mitigating
33-45 circumstances, he may permit, in writing, the use of the name to continue
33-46 for a specified reasonable period upon conditions imposed by him for the
33-47 protection of the public consistent with this section.
33-48 4. Paragraphs (a), (c) and (d) of subsection 2 do not apply to the true
33-49 name of an organization which on July 1, 1965, held under that name a
34-1 type of license similar to those governed by this chapter, or to a fictitious
34-2 name used on July 1, 1965, by a natural person or organization holding
34-3 such a license, if the fictitious name was filed with the commissioner on
34-4 or before July 1, 1965.
34-5 Sec. 92. 1. The commissioner may issue a temporary license as a
34-6 producer of insurance to any of the following for 180 days or less without
34-7 requiring an examination if he believes that the temporary license is
34-8 necessary to carry on the business of insurance:
34-9 (a) The surviving spouse, personal representative or guardian of a
34-10 licensed producer who dies or becomes incompetent, to allow adequate
34-11 time for the sale of the business, the recovery or return of the producer,
34-12 or the training and licensing of new personnel to operate the business;
34-13 (b) A member or employee of a business organization licensed as a
34-14 producer, upon the death or disability of the natural person designated in
34-15 it application or license;
34-16 (c) The designee of a licensed producer entering active service in the
34-17 armed forces of the United States; or
34-18 (d) A person in any other circumstance where the commissioner
34-19 believes that the public interest will be best served by issuing the license.
34-20 2. The commissioner may limit by order the authority of a temporary
34-21 licensee as he believes necessary to protect persons insured and the
34-22 public. He may require the temporary licensee to have a suitable sponsor
34-23 who is licensed as a producer of insurance or authorized as an insurer
34-24 and who assumes responsibility for all acts of the temporary licensee,
34-25 and may impose similar requirements to protect persons insured and the
34-26 public. The commissioner may revoke a temporary license by order if the
34-27 interests of persons insured or the public are endangered. A temporary
34-28 license expires when the owner or his personal representative or
34-29 guardian disposes of the business.
34-30 Sec. 93. The commissioner may refuse to issue a license or
34-31 certificate pursuant to this chapter or may place any person to whom a
34-32 license or certificate is issued pursuant to this chapter on probation,
34-33 suspend him for not more than 12 months, or revoke or refuse to renew
34-34 his license or certificate, or may impose an administrative fine or take
34-35 any combination of the foregoing actions, for one or more of the
34-36 following causes:
34-37 1. Providing incorrect, misleading, incomplete or partially untrue
34-38 information in his application for a license.
34-39 2. Violating a law regulating insurance, or violating a regulation,
34-40 order or subpoena of the commissioner or an equivalent officer of
34-41 another state.
34-42 3. Obtaining or attempting to obtain a license through
34-43 misrepresentation or fraud.
34-44 4. Misappropriating, converting or improperly withholding money or
34-45 property received in the course of the business of insurance.
34-46 5. Intentionally misrepresenting the terms of an actual or proposed
34-47 contract of or application for insurance.
34-48 6. Conviction of a felony.
35-1 7. Admitting or being found to have committed an unfair trade
35-2 practice or fraud.
35-3 8. Using fraudulent, coercive or dishonest practices, or demonstrated
35-4 incompetence, untrustworthiness or financial irresponsibility in the
35-5 conduct of business in this state or elsewhere.
35-6 9. Denial, suspension or revocation of a license as a producer of
35-7 insurance, or its equivalent, in any other state, territory or province.
35-8 10. Forging another’s name to an application for insurance or any
35-9 other document relating to the transaction of insurance.
35-10 11. Improperly using notes or other reference material to complete
35-11 an examination for a license related to insurance.
35-12 12. Knowingly accepting business related to insurance from an
35-13 unlicensed person.
35-14 13. Failing to comply with an administrative or judicial order
35-15 imposing an obligation of child support.
35-16 Sec. 94. 1. If the commissioner denies an application for, or
35-17 refuses to renew, a license, he shall notify the applicant or licensee and
35-18 state in writing the reason for the denial or refusal. The applicant or
35-19 licensee may apply in writing, pursuant to NRS 679B.310, for a hearing
35-20 before the commissioner to determine the reasonableness of the denial or
35-21 refusal. The hearing must be held within 30 days and conducted
35-22 pursuant to NRS 679B.330. The applicant or licensee may waive the
35-23 requirement to hold the hearing within 30 days, in writing, before a
35-24 hearing is held.
35-25 2. The commissioner may suspend, revoke or refuse to renew the
35-26 license of a business organization if he finds, after hearing, that a
35-27 violation by a natural person was known or should have been known by
35-28 one or more of the partners, officers or managers acting on behalf of the
35-29 organization, the violation was not reported to the commissioner, and no
35-30 corrective action was taken.
35-31 3. In addition to or in lieu of a denial, suspension or revocation of,
35-32 or refusal to renew, a license, an administrative fine of not less than $25
35-33 nor more than $500 may be imposed for each violation or act. An order
35-34 imposing a fine must specify the date, not less than 15 days nor more
35-35 than 30 days after the date of the order, before which the fine must be
35-36 paid. If the fine is not paid when due, the commissioner shall
35-37 immediately revoke the license of a licensee and the fine must be
35-38 recovered in a civil action brought on behalf of the commissioner by the
35-39 attorney general. The commissioner shall immediately deposit all such
35-40 fines collected with the state treasurer for credit to the state general fund.
35-41 4. The commissioner retains the authority to enforce the provisions
35-42 of, and impose any penalty or pursue any remedy authorized by, this Title
35-43 against any person who is under investigation for or charged with a
35-44 violation of a provision of this Title even if his license or registration has
35-45 been surrendered or has lapsed by operation of law.
35-46 5. A licensee must pay all applicable fees, including renewal fees,
35-47 and maintain any required education during a period of suspension of
35-48 his license.
36-1 Sec. 95. 1. An insurer or a producer of insurance shall not pay a
36-2 commission, brokerage, fee for service or other valuable consideration to
36-3 a person for selling, soliciting or negotiating insurance in this state if his
36-4 activities require him to be licensed under this Title and he is not so
36-5 licensed.
36-6 2. A person shall not accept a commission, brokerage, fee for service
36-7 or other valuable consideration for selling, soliciting or negotiating
36-8 insurance in this state if his activities require him to be licensed under
36-9 this Title and he is not so licensed.
36-10 3. Commissions for renewal and other deferred commissions may be
36-11 paid to a person whose activities required him to be licensed under this
36-12 Title at the time of the sale, solicitation or negotiation and he was so
36-13 licensed at that time.
36-14 4. An insurer or producer of insurance may pay or assign
36-15 commissions, brokerage, fees for service or other valuable considerations
36-16 to an insurance agency or a person who does not sell, solicit or negotiate
36-17 insurance in this state unless the payment would violate the provisions of
36-18 NRS 686A.110 or 686A.120.
36-19 Sec. 96. 1. A producer of insurance shall not act as an agent of an
36-20 insurer unless he is appointed as an agent of the insurer. A producer
36-21 who is not acting as an agent of the insurer need not be appointed and is
36-22 an agent of the insured.
36-23 2. To appoint a producer of insurance as its agent, an insurer must
36-24 file, in a form approved by the commissioner, a notice of appointment
36-25 within 15 days after the contract is executed or the first application for
36-26 insurance is submitted. An insurer may appoint a producer to act as
36-27 agent for all or some insurers within its holding company or group by
36-28 filing a single notice of appointment. A notice of appointment may
36-29 include several agents.
36-30 3. Upon receipt of a notice of appointment, the commissioner shall
36-31 determine within 30 days whether the producer of insurance is eligible
36-32 for appointment. If he is not, the commissioner shall so notify the insurer
36-33 within 5 days after the determination is made.
36-34 4. An insurer shall pay an appointment fee and remit an annual
36-35 renewal fee for each producer of insurance appointed as its agent. A
36-36 payment or remittance may include fees for several agents.
36-37 5. For the purposes of this section:
36-38 (a) “Agent of the insured” means a producer of insurance who is
36-39 compensated only by the insured or consumer and receives no
36-40 compensation from an insurer for a transaction of insurance with the
36-41 insured or consumer.
36-42 (b) “Agent of the insurer” means a producer of insurance who is
36-43 compensated by the insurer and sells, solicits or negotiates insurance for
36-44 the insurer.
36-45 Sec. 97. 1. An insurer or its authorized representative who
36-46 terminates the appointment, employment or other relationship of a
36-47 producer of insurance to the insurer for any reason shall notify the
36-48 commissioner within 30 days after the effective date of the termination,
36-49 in a form prescribed by the commissioner. The insurer shall provide
37-1 additional information or documents if so requested in writing by the
37-2 commissioner.
37-3 2. If the reason for termination is an activity described in section 93
37-4 of this act as a cause for disciplinary action or the insurer knows that the
37-5 producer has been found to have engaged in such an activity by a court,
37-6 governmental agency or self-regulatory organization authorized by law,
37-7 the insurer or its authorized representative shall notify the commissioner,
37-8 in a form acceptable to the commissioner, if upon further review or
37-9 investigation the insurer discovers additional information that would
37-10 have been reportable originally to the commissioner if the insurer had
37-11 then known it.
37-12 3. Within 15 days after notifying the commissioner under subsection
37-13 1 or 2, the insurer shall mail a copy of the notification to the producer of
37-14 insurance at his last known address. If the termination was for an
37-15 activity described in subsection 2, the copy must be sent by certified mail,
37-16 return receipt requested, or by overnight delivery using a nationally
37-17 recognized carrier.
37-18 4. Within 30 days after the producer has received the original or
37-19 additional notification, he may file written comments concerning the
37-20 substance of the notification with the commissioner. The producer shall
37-21 send a copy of the comments, by the same means and at the same time, to
37-22 the reporting insurer. The comments become a part of the
37-23 commissioner’s file and must accompany every copy of the underlying
37-24 report that is distributed or disclosed by the commissioner.
37-25 5. In the absence of actual malice, an insurer, its authorized
37-26 representative, a producer of insurance, the commissioner, and any
37-27 organization of which the commissioner is a member which compiles
37-28 information and makes it available to other commissioners of insurance
37-29 or to regulatory or law enforcement agencies are not subject to civil
37-30 liability, and no cause of action arises against any of them or their
37-31 respective agents or employees, as a result of any statement or
37-32 information required by or provided pursuant to this section or any
37-33 statement by a terminating insurer or a producer to another insurer or
37-34 producer limited to whether a termination for a cause described in
37-35 subsection 2 was reported to the commissioner, if in the latter case the
37-36 propriety of termination for that cause is certified in writing by an officer
37-37 or authorized representative of the insurer or by the producer.
37-38 6. In an action brought against a person who may have immunity
37-39 under subsection 5 for making a statement or providing information
37-40 required by this section or requested by the commissioner under this
37-41 section, the plaintiff must plead specifically that subsection 5 does not
37-42 apply because the person making the statement or providing the
37-43 information did so with actual malice.
37-44 7. Subsections 5 and 6 do not abrogate or modify any other privilege
37-45 or immunity under statute or the common law.
37-46 Sec. 98. An insurer or its authorized representative who fails to
37-47 report as required by section 97 of this act or is found by a court of
37-48 competent jurisdiction to have reported with actual malice is subject to
38-1 the suspension or revocation of its license, after notice and hearing, and
38-2 may be further punished by a fine under NRS 679A.180.
38-3 Sec. 99. A producer of insurance shall report to the commissioner:
38-4 1. Any administrative action taken against him in another
38-5 jurisdiction or by another governmental agency in this state, within 30
38-6 days after the final disposition of the matter. The report must include a
38-7 copy of the complaint filed, the order issued, and any other relevant legal
38-8 documents.
38-9 2. Any criminal prosecution against him in any jurisdiction, within
38-10 30 days after the initial pretrial hearing. The report must include a copy
38-11 of the complaint filed, the order as a result of the pretrial hearing, and
38-12 other relevant legal documents.
38-13 Sec. 100. NRS 683A.020 is hereby amended to read as follows:
38-14 683A.020 As used in this code, unless the context otherwise requires,
38-15 the words and terms defined in NRS 683A.025 to [683A.080,] 683A.060,
38-16 inclusive, and sections 75 to 83, inclusive, of this act, have the meanings
38-17 ascribed to them in those sections.
38-18 Sec. 101. NRS 683A.025 is hereby amended to read as follows:
38-19 683A.025 1. Except as limited by this section, “administrator” means
38-20 a person who:
38-21 (a) Directly or indirectly underwrites or collects charges or premiums
38-22 from or adjusts or settles claims of residents of this state or any other state
38-23 from within this state in connection with workers’ compensation insurance,
38-24 life or health insurance coverage or annuities, including coverage or
38-25 annuities provided by an employer for his employees;
38-26 (b) Administers an internal service fund pursuant to NRS 287.010;
38-27 (c) Administers a program of self-insurance for an employer;
38-28 (d) Administers a program which is funded by an employer and which
38-29 provides pensions, annuities, health benefits, death benefits or other similar
38-30 benefits for his employees; or
38-31 (e) Is an insurance company that is licensed to do business in this state
38-32 or is acting as an insurer with respect to a policy lawfully issued and
38-33 delivered in a state where the insurer is authorized to do business, if the
38-34 insurance company performs any act described in paragraphs (a) to (d),
38-35 inclusive, for or on behalf of another insurer.
38-36 2. “Administrator” does not include:
38-37 (a) An employee authorized to act on behalf of an administrator who
38-38 holds a certificate of registration from the commissioner.
38-39 (b) An employer acting on behalf of his employees or the employees of
38-40 a subsidiary or affiliated concern.
38-41 (c) A labor union acting on behalf of its members.
38-42 (d) Except as otherwise provided in paragraph (e) of subsection 1, an
38-43 insurance company licensed to do business in this state or acting as an
38-44 insurer with respect to a policy lawfully issued and delivered in a state in
38-45 which the insurer was authorized to do business.
38-46 (e) A producer of life or health insurance [agent or broker] licensed in
38-47 this state, when his activities are limited to the sale of insurance.
38-48 (f) A creditor acting on behalf of his debtors with respect to insurance
38-49 covering a debt between the creditor and debtor.
39-1 (g) A trust and its trustees, agents and employees acting for it, if the
39-2 trust was established under the provisions of 29 U.S.C. § 186.
39-3 (h) A trust which is exempt from taxation under section 501(a) of the
39-4 Internal Revenue Code, 26 U.S.C. § 501(a), its trustees and employees, and
39-5 a custodian, his agents and employees acting under a custodial account
39-6 which meets the requirements of section 401(f) of the Internal Revenue
39-7 Code, 26 U.S.C. § 401(f).
39-8 (i) A bank, credit union or other financial institution which is subject to
39-9 supervision by federal or state banking authorities.
39-10 (j) A company which issues credit cards, and which advances for and
39-11 collects premiums or charges from credit card holders who have authorized
39-12 it to do so, if the company does not adjust or settle claims.
39-13 (k) An attorney at law who adjusts or settles claims in the normal course
39-14 of his practice or employment, but who does not collect charges or
39-15 premiums in connection with life or health insurance coverage or with
39-16 annuities.
39-17 Sec. 102. NRS 683A.060 is hereby amended to read as follows:
39-18 683A.060 1. A “managing general agent” is a person who:
39-19 (a) Negotiates and binds ceding reinsurance contracts on behalf of an
39-20 insurer or manages all or part of the insurance business of an insurer,
39-21 including the management of a separate division, department of
39-22 underwriting office; [and] or
39-23 (b) Acts as an agent for [such] the insurer and with or without the
39-24 authority, either separately or together with affiliates:
39-25 (1) Produces, directly or indirectly, and underwrites an amount of
39-26 gross direct written premiums equal to or more than 5 percent of the
39-27 policyholder surplus as reported in the last annual statement of the insurer
39-28 in any one quarter or year; and
39-29 (2) Adjusts or pays claims in excess of an amount determined by the
39-30 commissioner or negotiates reinsurance on behalf of the insurer.
39-31 2. A managing general agent includes a person with authority to
39-32 appoint and to terminate the appointment of an agent for an insurer.
39-33 3. For the purposes of this chapter, the following are not managing
39-34 general agents:
39-35 (a) An employee of the insurer;
39-36 (b) A manager of the United States branch of an alien insurer;
39-37 (c) An attorney authorized by and acting for the subscribers of a
39-38 reciprocal insurer or interinsurance exchange; and
39-39 (d) An underwriting manager who, pursuant to a contract, manages all
39-40 or part of the insurance operations of the insurer, is under common control
39-41 with the insurer, is subject to the provisions of chapter 692C of NRS and
39-42 whose compensation is not based on the volume of premiums written or the
39-43 profit of the business written.
39-44 Sec. 103. NRS 683A.08522 is hereby amended to read as follows:
39-45 683A.08522 Each application for a certificate of registration as an
39-46 administrator must include or be accompanied by:
39-47 1. A financial statement that is certified by an officer of the applicant
39-48 and must include:
40-1 (a) The amount of money that the applicant expects to collect from or
40-2 disburse to residents of this state during the next calendar year;
40-3 (b) Financial information for the 90 days immediately preceding the
40-4 date the application was filed with the commissioner; and
40-5 (c) An income statement and balance sheet for the 2 years immediately
40-6 preceding the application that are prepared in accordance with generally
40-7 accepted accounting principles. The submission by the applicant of his
40-8 consolidated income statement and balance sheet does not constitute
40-9 compliance with the provisions of this paragraph.
40-10 2. The documents used to create the business association of the
40-11 administrator, including[, without limitation,] articles of incorporation,
40-12 articles of association, a partnership agreement, a trust agreement and a
40-13 [shareholder] shareholders’ agreement.
40-14 3. The documents used to regulate the internal affairs of the
40-15 administrator, including[, without limitation,] the bylaws, rules or
40-16 regulations of the administrator.
40-17 4. A certificate of registration issued pursuant to NRS 600.350 for a
40-18 trade name or trade-mark used by the administrator.
40-19 5. An organizational chart that identifies each person who directly or
40-20 indirectly controls the administrator and each affiliate of the administrator.
40-21 6. A notarized affidavit from each person who manages or controls the
40-22 administrator, including[, without limitation,] each member of the board of
40-23 directors or board of trustees, each officer, partner and member of the
40-24 business association of the administrator, and each shareholder of the
40-25 administrator who holds not less than 10 percent of the voting stock of the
40-26 administrator. The affidavit must include : [, without limitation:]
40-27 (a) The personal history, business record and insurance experience of
40-28 the affiant;
40-29 (b) Whether the affiant has been investigated by any regulatory
40-30 authority or has had any license or certificate denied, suspended or revoked
40-31 in any state; and
40-32 (c) Any other information that the commissioner may require.
40-33 7. The complete name and address of each office of the administrator,
40-34 including offices located outside this state.
40-35 8. A statement that sets forth whether the administrator has:
40-36 (a) Held a license or certificate to transact any kind of insurance in this
40-37 state or any other state and whether that license or certificate has been
40-38 refused, suspended or revoked;
40-39 (b) Been indebted to any person and, if so, the circumstances of that
40-40 debt; and
40-41 (c) Had an administrative agreement canceled and, if so, the
40-42 circumstances of that cancellation.
40-43 9. A statement that describes the business plan of the administrator.
40-44 The statement must include information:
40-45 (a) Concerning the number of persons on the staff of the administrator
40-46 and the activities proposed in this state or in any other state.
40-47 (b) That demonstrates the capability of the administrator to provide a
40-48 sufficient number of experienced and qualified persons for the processing
40-49 of claims, the keeping of records and, if applicable, underwriting.
41-1 10. If the applicant intends to solicit new or renewal business, proof
41-2 that the applicant employs or has contracted with [an agent] a producer of
41-3 insurance licensed in this state to solicit and take applications. An
41-4 applicant who intends to solicit insurance contracts directly or to act as [an
41-5 insurance agent] a producer must provide proof that he is licensed as [an
41-6 insurance agent] a producer in this state.
41-7 Sec. 104. NRS 683A.090 is hereby amended to read as follows:
41-8 683A.090 1. [A person shall not in this state be, act as or hold
41-9 himself out to be, with respect to subjects of insurance resident, located or
41-10 to be performed in this state or elsewhere, an agent, broker or solicitor
41-11 unless licensed as such under this code.] A managing general agent,
41-12 whether or not located in this state, shall not be or act as such with respect
41-13 to the business of an insurer in this state unless licensed as such under this
41-14 code.
41-15 2. [An agent, broker or solicitor shall not take an application for,
41-16 procure or place for others any kind of insurance as to which he is not then
41-17 so licensed.
41-18 3. Except as otherwise provided in NRS 683A.440 concerning the
41-19 sharing of commissions, an agent shall not place any insurance with any
41-20 insurer as to which he does not then hold a license and an appointment as
41-21 agent under this code.
41-22 4.] A person who acts as [an agent, broker or solicitor] a managing
41-23 general agent in this state without a license may be assessed an
41-24 administrative fine of not more than $1,000 for each violation.
41-25 [5. In addition to or in lieu of any applicable denial, suspension or
41-26 revocation of license or administrative fine, any person violating this
41-27 section is guilty of a misdemeanor.]
41-28 Sec. 105. NRS 683A.105 is hereby amended to read as follows:
41-29 683A.105 If a short-term lessor of passenger vehicles licensed
41-30 pursuant to NRS 482.363 holds a limited [agent’s] license as a producer of
41-31 insurance issued pursuant to [NRS 683A.260,] section 89 of this act, an
41-32 employee of the short-term lessor may engage in the solicitation and sale of
41-33 insurance requested by a lessee pursuant to NRS 482.3158 without a
41-34 license issued pursuant to this chapter if the solicitation and sale of such
41-35 insurance is done on behalf of, and under the supervision of, the short-term
41-36 lessor.
41-37 Sec. 106. NRS 683A.110 is hereby amended to read as follows:
41-38 683A.110 1. For the purposes of this section:
41-39 (a) “Affiliate” means a person that directly, or indirectly through one or
41-40 more intermediaries, is controlled by, or is under common control with, a
41-41 bank.
41-42 (b) “Bank” means any institution that accepts deposits that the depositor
41-43 has a legal right to withdraw on demand.
41-44 (c) “Financial holding company” means a bank holding company a
41-45 defined in section 4(1)(1) of the Bank Holding Company Act of 1956, 12
41-46 U.S.C. § 1841(l)(1).
41-47 (d) “Parent” means a person that owns or controls a bank, directly or
41-48 indirectly, in whole or in part.
42-1 [(d)] (e) “Subsidiary” means a person owned or controlled by a bank,
42-2 directly or indirectly, in whole or in part.
42-3 2. A bank [must not directly or indirectly] may be licensed [to sell] as
42-4 a producer of insurance in this state [except as to] :
42-5 (a) To the extent permitted by Title V of Public Law 106-102, 15
42-6 U.S.C. §§ 6801 et seq.; and
42-7 (b) For credit insurance, as defined in NRS 690A.015, and credit
42-8 property insurance . [, or]
42-9 3. A bank must not be licensed or admitted as an insurer.
42-10 [3.] 4. The provisions of subsection [2] 3 do not prohibit the licensing
42-11 by the commissioner[:
42-12 (a) Of] of an affiliate, financial holding company, parent or subsidiary
42-13 of a bank to sell insurance or be admitted as an insurer . [; or
42-14 (b) Of a bank to sell annuities. As used in this paragraph, “annuity” has
42-15 the meaning ascribed to it in NRS 688A.020.]
42-16 Sec. 107. NRS 683A.140 is hereby amended to read as follows:
42-17 683A.140 1. A firm or corporation may be licensed [only as an agent
42-18 or broker, resident or nonresident, or] as a managing general agent.
42-19 2. A resident firm or corporation which has more than one office in
42-20 this state is a single licensee for the purposes of being appointed by
42-21 insurers and the authority of natural persons to act for the firm or
42-22 corporation. Such a firm or corporation must obtain a copy of its license for
42-23 each location, but only must obtain one original license as [an agent or
42-24 broker.] a managing general agent.
42-25 3. For licensing as [an agent or broker,] a managing general agent,
42-26 each general partner and each natural person to act for the firm, or each
42-27 natural person to act for the corporation, must be named in the license [or
42-28 registered with the commissioner,] and must qualify as an individual
42-29 licensee. A natural person who is authorized to act for a firm or corporation
42-30 and who also wishes to be licensed in an individual capacity must obtain a
42-31 separate license in his own name. The commissioner shall charge
42-32 appropriate fees for each person who is licensed to act for a firm or
42-33 corporation and who is named on the license . [or registered with the
42-34 commissioner.
42-35 4. A natural person who is not a resident of this state as provided in
42-36 paragraph (a) of subsection 1 of NRS 683A.130 must not be so named or
42-37 registered as to the license of a resident agent or resident broker, and shall
42-38 not exercise the license powers thereof. A natural person who is a resident
42-39 of this state must not be so named or registered as to the license of a
42-40 nonresident agent or nonresident broker, and shall not exercise the powers
42-41 thereof.
42-42 5. A license as a resident agent or resident broker must not be issued to
42-43 a firm or corporation unless it maintains a principal place of business in
42-44 this state, and the transaction of business under the license is specifically
42-45 authorized in the firm’s partnership agreement or the corporation’s articles.
42-46 6.] 4. The licensee shall promptly notify the commissioner of all
42-47 changes among its members, directors and officers, and among other
42-48 persons [designated in or registered as to] named in the license. The
42-49 licensee shall provide to the commissioner upon request information
43-1 concerning officers or owners of the firm or corporation who are not
43-2 named in the license . [or registered with the commissioner.]
43-3 Sec. 108. NRS 683A.150 is hereby amended to read as follows:
43-4 683A.150 [1.] Written application for [an agent’s, broker’s or
43-5 solicitor’s] a managing general agent’s license must be filed with the
43-6 commissioner by the applicant, accompanied by the applicable fee . [shown
43-7 in NRS 680B.010. The application form must be accompanied by the
43-8 applicant’s fingerprints, and must require full answers to questions
43-9 reasonably necessary to determine the applicant’s:
43-10 (a) Identity and residence;
43-11 (b) Business record or occupations for not less than the 2 years next
43-12 preceding, with the name and address of each employer, if any; and
43-13 (c) Experience or instruction in the kind or kinds of insurance business
43-14 he proposes to transact, and relative to the insurance laws of this state,
43-15 and other facts reasonably required by the commissioner to determine the
43-16 applicant’s qualifications for the license applied for.
43-17 2. If for an agent’s license, the application must state the kinds of
43-18 insurance proposed to be transacted, and be accompanied by a written
43-19 appointment by an authorized insurer or insurers as agent for such kinds of
43-20 insurance, subject to issuance of the license.
43-21 3. If for a solicitor’s license, the application must be accompanied by
43-22 the written requisition and certification by a licensed resident general lines
43-23 agent or licensed resident broker, showing that the applicant is his bona
43-24 fide employee, or is so employed as a solicitor subject to issuance of the
43-25 license.
43-26 4. If the applicant for an agent’s or broker’s license is a firm or
43-27 corporation, the application must also show the names of all members,
43-28 officers and directors, and must designate each natural person who is to
43-29 exercise the powers of a licensee. Each person who is to exercise the power
43-30 of a licensee shall furnish information as to himself as though he were
43-31 applying personally for a license. The commissioner may require members,
43-32 officers, directors or owners who will not exercise the powers of a licensee
43-33 to submit such information.
43-34 5. The application must show whether and where the applicant is now
43-35 or ever was previously licensed as to insurance and whether any such
43-36 license was ever refused, suspended, revoked or renewal or continuance
43-37 refused. The application also must indicate whether any insurer, general
43-38 agent, agent or broker claims the applicant has ever had an agency contract
43-39 canceled, and the facts thereof and, if the applicant is married, like
43-40 information with respect to the applicant’s spouse.
43-41 6. The application must be verified by the applicant, and an applicant
43-42 for a license under this chapter shall not knowingly misrepresent or
43-43 withhold any fact or information called for in the application form or
43-44 relevant thereto.]
43-45 Sec. 109. NRS 683A.350 is hereby amended to read as follows:
43-46 683A.350 1. Every nonresident licensed by this state as [an agent or
43-47 broker pursuant to NRS 683A.340] a producer of insurance shall appoint
43-48 the commissioner in writing as his attorney upon whom may be served all
43-49 legal process issued in connection with any action or proceeding brought or
44-1 pending in this state against or involving the licensee and relating to
44-2 transactions under his Nevada license. The appointment is irrevocable and
44-3 continues in force for so long as any such action or proceeding may arise or
44-4 exist. Duplicate copies of process must be served upon the commissioner
44-5 or other person in apparent charge of the division during the
44-6 commissioner’s absence, accompanied by payment of the fee for service of
44-7 process . [as specified in NRS 680B.010.] Upon such service the
44-8 commissioner shall promptly forward a copy of the process by certified
44-9 mail with return receipt requested to the nonresident licensee at his
44-10 business address last of record with the division. Process served and the
44-11 copy thereof forwarded as provided in this subsection constitutes for all
44-12 purposes personal service thereof upon the licensee.
44-13 2. Every such licensee shall likewise file with the commissioner his
44-14 written agreement to appear before the commissioner pursuant to notice of
44-15 hearing, show cause order or subpoena issued by the commissioner and
44-16 deposited, postage paid, by certified mail with the United States Postal
44-17 Service, addressed to the licensee at his address last of record in the
44-18 division, and that upon failure of the licensee so to appear the licensee
44-19 thereby consents to any subsequent suspension, revocation or refusal of the
44-20 commissioner to continue the licensee’s license.
44-21 Sec. 110. NRS 683A.370 is hereby amended to read as follows:
44-22 683A.370 1. A licensed [resident agent] producer of insurance or
44-23 insurer may solicit for and issue personal travel accident insurance policies
44-24 by means of mechanical vending machines supervised by the [agent]
44-25 producer and placed at airports and similar places of convenience to the
44-26 traveling public, if the commissioner finds that:
44-27 (a) The policy provides reasonable coverage and benefits, is suitable for
44-28 sale and issuance by vending machine, and that use of such a machine in a
44-29 proposed location would be of material convenience to the public;
44-30 (b) The type of machine proposed to be used is reasonably suitable for
44-31 the purpose;
44-32 (c) Reasonable means are provided for informing prospective
44-33 purchasers of policy coverages and restrictions;
44-34 (d) Reasonable means are provided for the refund of money inserted in
44-35 defective machines and for which insurance so paid for is not received; and
44-36 (e) The cost of maintaining such a machine at a particular location is
44-37 reasonable in amount.
44-38 2. For each machine to be used, the commissioner shall issue to the
44-39 [agent] producer upon his application a special vending machine license.
44-40 [The license shall specify the name and address of the insurer and agent,
44-41 the name of the policy to be sold, the serial number and operating location
44-42 of the machine.] The license [shall be] is subject to annual continuation, to
44-43 expiration, suspension or revocation coincidentally with that of the [agent.]
44-44 producer. The commissioner shall also revoke the license of any machine
44-45 as to which he finds that the license qualifications no longer exist. [The
44-46 license fee shall be as specified in NRS 680B.010 (fee schedule) for each
44-47 license year or part thereof for each respective machine.] Proof of the
44-48 existence of a subsisting license [shall] must be displayed on or about each
44-49 machine in use in such manner as the commissioner reasonably requires.
45-1 Sec. 111. NRS 683A.376 is hereby amended to read as follows:
45-2 683A.376 As used in NRS 683A.375 to 683A.379, inclusive:
45-3 1. “Agent who performs utilization review” includes any person who
45-4 performs such review except a person acting on behalf of the Federal
45-5 Government, but only to the extent that the person provides the service for
45-6 the Federal Government or an agency thereof.
45-7 2. “Insured” means a natural person who has contracted for or
45-8 participates in coverage under a policy of insurance, a contract with a
45-9 health maintenance organization, a plan for hospital, medical or dental
45-10 services or any other program providing payment, reimbursement or
45-11 indemnification for the costs of health care for himself, his dependents, or
45-12 both.
45-13 3. “Utilization review” means a system that provides, at a minimum,
45-14 for review of the necessity and appropriateness of the allocation of health
45-15 care resources and services provided or proposed to be provided to an
45-16 insured[.] or to any person claiming benefits against a policy of the
45-17 insured. The term does not include responding to requests made by an
45-18 insured for clarification of his coverage.
45-19 Sec. 112. NRS 683A.383 is hereby amended to read as follows:
45-20 683A.383 1. A natural person who applies for the issuance or
45-21 renewal of a certificate of registration as an administrator or a license as
45-22 [an agent, broker, solicitor] a producer of insurance or managing general
45-23 agent shall submit to the commissioner the statement prescribed by the
45-24 welfare division of the department of human resources pursuant to NRS
45-25 425.520. The statement must be completed and signed by the applicant.
45-26 2. The commissioner shall include the statement required pursuant to
45-27 subsection 1 in:
45-28 (a) The application or any other forms that must be submitted for the
45-29 issuance or renewal of the certificate of registration or license; or
45-30 (b) A separate form prescribed by the commissioner.
45-31 3. A certificate of registration as an administrator or a license as [an
45-32 agent, broker, solicitor] a producer of insurance or managing general
45-33 agent may not be issued or renewed by the commissioner if the applicant is
45-34 a natural person who:
45-35 (a) Fails to submit the statement required pursuant to subsection 1; or
45-36 (b) Indicates on the statement submitted pursuant to subsection 1 that he
45-37 is subject to a court order for the support of a child and is not in
45-38 compliance with the order or a plan approved by the district attorney or
45-39 other public agency enforcing the order for the repayment of the amount
45-40 owed pursuant to the order.
45-41 4. If an applicant indicates on the statement submitted pursuant to
45-42 subsection 1 that he is subject to a court order for the support of a child and
45-43 is not in compliance with the order or a plan approved by the district
45-44 attorney or other public agency enforcing the order for the repayment of
45-45 the amount owed pursuant to the order, the commissioner shall advise the
45-46 applicant to contactthe district attorney or other public agency enforcing
45-47 the order to determine the actions that the applicant may take to satisfy the
45-48 arrearage.
46-1 Sec. 113. NRS 683A.385 is hereby amended to read as follows:
46-2 683A.385 1. If the commissioner receives a copy of a court order
46-3 issued pursuant to NRS 425.540 that provides for the suspension of all
46-4 professional, occupational and recreational licenses, certificates and
46-5 permits issued to a person who is the holder of a certificate of registration
46-6 as an administrator or a license as [an agent, broker, solicitor] a producer
46-7 of insurance or managing general agent, the commissioner shall [deem]
46-8 suspend the certificate of registration or license issued to that person [to be
46-9 suspended] at the end of the 30th day after the date on which the court
46-10 order was issued unless the commissioner receives a letter issued to the
46-11 holder of the certificate of registration or license by the district attorney or
46-12 other public agency pursuant to NRS 425.550 stating that the holder of the
46-13 certificate of registration or license has complied with the subpoena or
46-14 warrant or has satisfied the arrearage pursuant to NRS 425.560.
46-15 2. The commissioner shall reinstate a certificate of registration as an
46-16 administrator or a license as [an agent, broker, solicitor] a producer of
46-17 insurance or managing general agent that has been suspended by a district
46-18 court pursuant to NRS 425.540 if the commissioner receives a letter issued
46-19 by the district attorney or other public agency pursuant to NRS 425.550 to
46-20 the person whose certificate of registration or license was suspended
46-21 stating that the person whose certificate of registration or license was
46-22 suspended has complied with the subpoena or warrant or has satisfied the
46-23 arrearage pursuant to NRS 425.560.
46-24 Sec. 114. NRS 683A.387 is hereby amended to read as follows:
46-25 683A.387 The application of a natural person who applies for the
46-26 issuance of a certificate of registration as an administrator or a license as
46-27 [an agent, broker, solicitor] a producer of insurance or managing general
46-28 agent must include the social security number of the applicant.
46-29 Sec. 115. NRS 683A.390 is hereby amended to read as follows:
46-30 683A.390 1. Every [general lines agent, general lines broker, life
46-31 agent and health agent] producer of insurance shall keep complete records
46-32 of transactions under his license . [and those of his solicitors.] The records
46-33 must show, for each insurance policy placed or countersigned by or
46-34 through the licensee, not less than the names of the insurer and insured, the
46-35 number and expiration date of, and premium payable as to, the policy or
46-36 contract, the names of all other persons from whom business is accepted or
46-37 to whom commissions are promised or paid, all premiums collected, and
46-38 such additional information as the commissioner may reasonably require.
46-39 2. The records must be open to examination of the commissioner at all
46-40 times, and the commissioner may at any time require the licensee to furnish
46-41 to him, in such manner or form as he requires, any information kept or
46-42 required to be kept in those records.
46-43 3. Records of a particular policy or contract may be destroyed 3 years
46-44 after expiration of the policy or contract.
46-45 Sec. 116. NRS 683A.400 is hereby amended to read as follows:
46-46 683A.400 1. All money of others received by any person in any way
46-47 licensed or acting as [an insurance agent, broker, solicitor,] a producer of
46-48 insurance, surplus lines broker, motor club agent or bail agent under any
46-49 insurance policy or undertaking of bail[, are] is received and held by [the
47-1 person] him in a fiduciary capacity. Any such person who diverts or
47-2 appropriates such fiduciary money to his own use is guilty of
47-3 embezzlement.
47-4 2. Each such person who does not make immediate remittance of the
47-5 money to the insurer or other person entitled thereto, shall elect and follow
47-6 with respect to money received for the account of a particular insurer or
47-7 person either of the following methods:
47-8 (a) Remit received premiums, less applicable commissions, if any, and
47-9 return premiums to the insurer or other person entitled thereto within 15
47-10 days after receipt; or
47-11 (b) Establish and maintain in a commercial bank, credit union or other
47-12 established financial institution depositary in this state one or more
47-13 accounts, separate from accounts holding his general personal, firm or
47-14 corporate money, and forthwith deposit and retain in the accounts pending
47-15 transmittal to the insurer or other person entitled thereto, all such
47-16 premiums, net of applicable commissions, if any, and return premiums.
47-17 Money belonging to more than one principal may be so deposited and held
47-18 in the same such account if the amount so held for each principal is readily
47-19 ascertainable from the records of the depositor. The depositor may
47-20 commingle with such fiduciary money in a particular account such
47-21 additional money as he may deem prudent to advance premiums, establish
47-22 reserves for the payment of return commissions, or for other contingencies
47-23 arising in his business of receiving and transmitting premiums or return
47-24 premiums.
47-25 3. Such a person may commingle with his own money to an unlimited
47-26 amount money of a particular principal if the principal in writing
47-27 in advance has specifically waived the segregation requirements of
47-28 subsection 2.
47-29 4. Any commingling of money with money of any such person
47-30 permitted under this section does not alter the fiduciary capacity of [such]
47-31 that person with respect to the money of others.
47-32 Sec. 117. NRS 683A.410 is hereby amended to read as follows:
47-33 683A.410 1. If within 30 days after the contractual due date of any
47-34 premium received by him, [any agent, broker] a producer of insurance or
47-35 surplus lines broker fails to remit the premium to the insurer or agency to
47-36 whom it is owing, the insurer or agency, as the case may be, shall promptly
47-37 report [such] the failure to the commissioner in writing.
47-38 2. The commissioner may suspend the licenses of [any such agent,
47-39 broker] the producer or surplus lines broker so failing to remit, until the
47-40 remittance has been made or the insurer or agency has filed with the
47-41 commissioner a release of the indebtedness satisfactory to the
47-42 commissioner.
47-43 3. The applicable procedures provided for in [NRS 683A.450
47-44 (suspension, revocation, refusal of license) and NRS 683A.460 (certain
47-45 procedure for suspension, revocation of license)] section 93 of this act
47-46 apply to suspensions of license under this section . [, except that the 12-
47-47 month limit of suspension periods provided in NRS 683A.450 does not
47-48 apply.]
48-1 4. If the commissioner, by the admission of the [agent, broker]
48-2 producer or surplus lines broker, or by examination of the records of the
48-3 [agent, broker] producer or surplus lines broker, determines that the
48-4 charged failure to remit is true, he may suspend the license without
48-5 hearing.
48-6 Sec. 118. Chapter 683C of NRS is hereby amended by adding thereto
48-7 the provisions set forth as sections 119 to 121, inclusive, of this act.
48-8 Sec. 119. 1. A nonresident who is licensed by this state as an
48-9 insurance consultant shall appoint the commissioner, in writing, as his
48-10 attorney upon whom may be served all legal process issued in connection
48-11 with any action or proceeding brought or pending in this state against or
48-12 involving him and relating to transactions under his Nevada license. The
48-13 appointment is irrevocable and remains in force so long as such an
48-14 action or proceeding exists or may arise. Duplicate copies of process
48-15 must be served upon the commissioner, or other person in apparent
48-16 charge of the division during his absence, accompanied by payment of
48-17 the fee for service of process. Promptly after any such service, the
48-18 commissioner shall forward a copy of the process by certified mail,
48-19 return receipt requested, to the nonresident licensee at his business
48-20 address of most recent record with the division. Process so served and the
48-21 copy so forwarded constitutes personal service upon the licensee for all
48-22 purposes.
48-23 2. Each such nonresident licensee shall also file with the
48-24 commissioner his written promise to appear before the commissioner
48-25 pursuant to notice of hearing, order to show cause, or subpoena issued
48-26 by the commissioner and sent by certified mail to the licensee at his
48-27 business address of most recent record with the division, and that if he
48-28 fails to appear, he thereby consents to any subsequent suspension,
48-29 revocation or refusal to renew his license.
48-30 Sec. 120. 1. The commissioner may place an insurance consultant
48-31 on probation, suspend his license for not more than 12 months, or revoke
48-32 or refuse to renew his license, or may impose an administrative fine or
48-33 take any combination of the foregoing actions, for one or more of the
48-34 causes set forth in section 93 in this act.
48-35 2. The provisions of section 94 of this act also apply to an insurance
48-36 consultant.
48-37 Sec. 121. 1. Upon suspension, limitation or revocation of the
48-38 license of an insurance consultant, the commissioner shall immediately
48-39 notify the licensee in person or by mail addressed to him at his most
48-40 recent address of record with the division. Notice by mail is effective
48-41 when mailed.
48-42 2. The commissioner shall not again issue a license under this
48-43 chapter to any natural person whose license has been revoked until at
48-44 least 1 year after the revocation has become final, and thereafter not
48-45 until the person again qualifies for it under this chapter. A person whose
48-46 license has been revoked twice is not eligible for any license under this
48-47 Title.
48-48 3. If the license of a business organization is suspended, limited or
48-49 revoked, no member, officer or director of the organization may be
49-1 licensed, or designated in a license to exercise its powers, during the
49-2 period of suspension or revocation, unless the commissioner determines
49-3 upon substantial evidence that the member, officer or director was not
49-4 personally at fault and did not knowingly aid, abet, assist or acquiesce in
49-5 the matter for which the license was suspended or revoked.
49-6 Sec. 122. NRS 683C.040 is hereby amended to read as follows:
49-7 683C.040 A license may be renewed for additional 3-year periods by
49-8 submitting to the commissioner an application for renewal and:
49-9 1. If the application is made:
49-10 (a) On or before the expiration date of the license, [a] the applicable
49-11 renewal fee [of $78] and an additional fee of $15 for deposit in the
49-12 insurance recovery account; or
49-13 (b) Not more than 30 days after the expiration date of the license, [a]
49-14 the applicable renewal fee [of $117] plus any late fee required and an
49-15 additional fee of $15 for deposit in the insurance recovery account;
49-16 2. If the applicant is a natural person, the statement required pursuant
49-17 to NRS 683C.043; and
49-18 3. [Proof] If the applicant is a resident, proof of the successful
49-19 completion of appropriate courses of study required for renewal, as
49-20 established by the commissioner by regulation.
49-21 Sec. 123. NRS 683C.090 is hereby amended to read as follows:
49-22 683C.090 [The qualifications required for the licensing of a natural
49-23 person pursuant to subsection 1 of NRS 683A.130 also apply to an
49-24 insurance consultant.]
49-25 1. The commissioner shall prescribe the form of application by a
49-26 natural person for a license as an insurance consultant. The applicant
49-27 must declare, under penalty of refusal to issue, or suspension or
49-28 revocation of, the license, that the statements made in the application are
49-29 true, correct and complete to the best of his knowledge and belief. Before
49-30 approving the application, the commissioner must find that the applicant
49-31 has:
49-32 (a) Attained the age of 18 years.
49-33 (b) Not committed any act that is a ground for refusal to issue, or
49-34 suspension or revocation of, a license.
49-35 (c) Paid the fee prescribed for the license and a fee of $15 for deposit
49-36 in the insurance recovery account, neither of which may be refunded.
49-37 (d) Passed each examination required for the license and successfully
49-38 complete each course of instruction which the commissioner requires by
49-39 regulation, unless he is a resident of another state and holds a similar
49-40 license in that state.
49-41 2. A business organization must be licensed as an insurance
49-42 consultant in order to act as such. Application must be made on a form
49-43 prescribed by the commissioner. Before approving the application, the
49-44 commissioner must find that the applicant has:
49-45 (a) Paid the fee prescribed for the license and a fee of $15 for deposit
49-46 in the insurance recovery account, neither of which may be refunded;
49-47 and
50-1 (b) Designated a natural person licensed as an insurance consultant
50-2 to be responsible for the organization’s compliance with the laws and
50-3 regulations of this state relating to insurance.
50-4 3. The commissioner may require any document reasonably
50-5 necessary to verify information contained in an application.
50-6 4. A license issued pursuant to this chapter is valid for 3 years after
50-7 the date of issuance or until it is suspended, revoked or otherwise
50-8 terminated.
50-9 Sec. 124. Chapter 684A of NRS is hereby amended by adding thereto
50-10 a new section to read as follows:
50-11 An adjuster whose license expires is exempt from retaking the
50-12 examination required by NRS 684A.100 if he applies and is relicensed
50-13 within 6 months after the date of expiration.
50-14 Sec. 125. NRS 684A.040 is hereby amended to read as follows:
50-15 684A.040 1. No person [shall] may act as, or hold himself out to be,
50-16 an adjuster or associate adjuster in this state unless then licensed as such
50-17 under the applicable independent adjuster’s license, public adjuster’s
50-18 license or associate adjuster’s license, as the case may be, issued under the
50-19 provisions of this chapter.
50-20 2. For purposes of this chapter the commissioner may[, in his
50-21 discretion,] issue a limited license to an adjuster handling claims under a
50-22 contract of one or more of the kinds of insurance defined in NRS 681A.010
50-23 to 681A.080, inclusive.
50-24 3. Any person violating the provisions of this section is guilty of a
50-25 gross misdemeanor.
50-26 4. A person who acts as an adjuster in this state without a license is
50-27 subject to an administrative fine of not more than $1,000 for each
50-28 violation.
50-29 Sec. 126. NRS 684A.110 is hereby amended to read as follows:
50-30 684A.110 1. If the commissioner finds that the application is
50-31 complete, that the applicant has passed all required examinations and is
50-32 otherwise eligible and qualified for the license as an adjuster, the
50-33 commissioner shall promptly issue the license. If the commissioner refuses
50-34 to issue the license, he shall promptly notify the applicant in writing of the
50-35 refusal, stating the grounds for the refusal.
50-36 2. All fees paid by an applicant with his application for a license shall
50-37 be deemed earned when received and may not be refunded.
50-38 3. An applicant for a license who desires to use a name other than his
50-39 true name must comply with the provisions of [NRS 683A.240.] section 91
50-40 of this act.
50-41 Sec. 127. NRS 684A.200 is hereby amended to read as follows:
50-42 684A.200 Nonresidents of this state who are granted licenses as
50-43 adjusters pursuant to subsection 2 of NRS 684A.070 [shall also be] are
50-44 also subject to NRS 683A.350 . [(nonresident agents, brokers: Service of
50-45 process, agreement to appear).]
50-46 Sec. 128. NRS 684A.210 is hereby amended to read as follows:
50-47 684A.210 1. The commissioner may suspend, revoke, limit or refuse
50-48 to continue any adjuster’s license or associate adjuster’s license:
50-49 (a) For any cause specified in any other provision of this chapter;
51-1 (b) For any [such] applicable cause [as] for revocation of [an agent’s or
51-2 broker’s license under NRS 683A.450;] the license of a producer of
51-3 insurance under section 93 of this act; or
51-4 (c) If the licensee has for compensation represented or attempted to
51-5 represent both the insurer and the insured in the same transaction.
51-6 2. The license of a firm or corporation may be suspended, revoked,
51-7 limited or continuation refused for any cause which relates to any
51-8 individual designated in or with respect to the license to exercise its
51-9 powers.
51-10 3. The holder of any license which has been suspended or revoked
51-11 shall forthwith surrender the license to the commissioner.
51-12 Sec. 129. NRS 684A.220 is hereby amended to read as follows:
51-13 684A.220 NRS [683A.460 (certain procedure for suspension,
51-14 revocation of license), NRS 683A.470 (procedure following suspension,
51-15 revocation) and NRS 683A.480 (return of license to commissioner) shall]
51-16 683A.480 and sections 93 and 94 of this act also apply to suspension,
51-17 revocation, limitation or refusal to continue adjusters’ licenses and
51-18 associate adjusters’ licenses, except where in conflict with the express
51-19 provisions of this chapter.
51-20 Sec. 130. NRS 684B.020 is hereby amended to read as follows:
51-21 684B.020 1. No person [shall] may act as a motor vehicle physical
51-22 damage appraiser for motor vehicle physical damage claims on behalf of
51-23 any insurance company or [firm or corporation] business organization
51-24 engaged in the adjustment or appraisal of motor vehicle claims unless
51-25 [such person] he has:
51-26 (a) Secured a license from the commissioner.
51-27 (b) Paid the applicable license fee.
51-28 2. Any person who has been engaged in the business as a motor
51-29 vehicle physical damage appraiser for a period of 2 consecutive years
51-30 immediately [prior to] before January 1, 1972, [shall be granted] is entitled
51-31 to a license upon application to the commissioner without further
51-32 qualification.
51-33 3. The provisions of this section do not apply to:
51-34 (a) A licensed insurance adjuster.
51-35 (b) An employee of any authorized insurer, motor club, motor vehicle
51-36 dealer or automobile body repair shop.
51-37 4. A person who acts as a motor vehicle physical damage appraiser
51-38 in this state without a license, unless exempt under subsection 3, is
51-39 subject to an administrative fine of not more than $1,000 for each
51-40 violation.
51-41 Sec. 131. NRS 684B.040 is hereby amended to read as follows:
51-42 684B.040 1. An applicant for a license as a motor vehicle physical
51-43 damage appraiser must file a written application therefor with the
51-44 commissioner on forms prescribed and furnished by the commissioner. The
51-45 applicant must furnish information as to his identity, personal history,
51-46 experience, financial responsibility, business record and other pertinent
51-47 matters as reasonably required by the commissioner to determine the
51-48 applicant’s eligibility and qualifications for the license.
52-1 2. If the applicant is a natural person, the application must include the
52-2 social security number of the applicant.
52-3 3. If the applicant is a [firm or corporation,] business organization, the
52-4 application must include the names of all members , [of the firm,
52-5 corporate] officers and [corporate] directors, and must designate each
52-6 natural person who is to exercise the [license powers. Each such member,
52-7 officer, director and natural person must qualify as an individual licensee.]
52-8 licensee’s powers. A natural person who is authorized to act for a [firm or
52-9 corporation] business organization and who also wishes to be licensed in
52-10 an individual capacity must obtain a separate license in his own name.
52-11 4. The application must be accompanied by the applicable license fee .
52-12 [specified in NRS 680B.010.] The commissioner shall charge a separate
52-13 fee for each person authorized to act for a [firm or corporation.] business
52-14 organization.
52-15 5. An applicant for a license who desires to use a name other than his
52-16 true name must comply with the provisions of [NRS 683A.240.] section 91
52-17 of this act. The commissioner shall not issue a license in a trade name
52-18 unless the name has been registered pursuant to NRS 600.240 to 600.450,
52-19 inclusive.
52-20 6. An applicant for a license shall not willfully misrepresent or
52-21 withhold any fact or information called for in the application form or in
52-22 connection with his application. A violation of this subsection is a gross
52-23 misdemeanor.
52-24 Sec. 132. NRS 684B.110 is hereby amended to read as follows:
52-25 684B.110 1. The commissioner may suspend, revoke, limit or refuse
52-26 to continue any motor vehicle physical damage appraiser’s license:
52-27 (a) For any cause specified in any other provision of this chapter;
52-28 (b) For any such applicable cause as for revocation of [an agent’s or
52-29 broker’s license under NRS 683A.450;] the license of a producer of
52-30 insurance under section 93 of this act; or
52-31 (c) If the licensee has for compensation represented or attempted to
52-32 represent both the insurer and the insured in the same transaction.
52-33 2. The license of a [firm or corporation] business organization may be
52-34 suspended, revoked, limited or continuation refused for any cause which
52-35 relates to any individual designated in or with respect to the license to
52-36 exercise its powers.
52-37 3. The holder of any license which has been suspended or revoked
52-38 shall forthwith surrender the license to the commissioner.
52-39 Sec. 133. NRS 684B.120 is hereby amended to read as follows:
52-40 684B.120 NRS [683A.460 (certain procedure for suspension,
52-41 revocation of license), NRS 683A.470 (procedure following suspension,
52-42 revocation) and NRS 683A.480 (return of license to commissioner) shall]
52-43 683A.480 and sections 93 and 94 of this act also apply to suspension,
52-44 revocation, limitation or refusal to continue motor vehicle physical damage
52-45 appraiser’s licenses, except where in conflict with the express provisions of
52-46 this chapter.
52-47 Sec. 134. NRS 685A.220 is hereby amended to read as follows:
52-48 685A.220 In addition to those referred to in other provisions of [the
52-49 Surplus Lines Law,] this chapter, the following provisions of chapter 683A
53-1 of NRS , [(agents, brokers and solicitors) shall,] to the extent applicable
53-2 and not inconsistent with the express provisions of this chapter, also apply
53-3 to surplus lines brokers:
53-4 1. [NRS 683A.270 (continuation, expiration of license);
53-5 2.] NRS 683A.400 ; [(fiduciary funds);
53-6 3.] 2. NRS 683A.410 ; [(failure to remit premiums);
53-7 4. NRS 683A.450 (suspension, revocation, refusal of license);
53-8 5. NRS 683A.460 (certain procedure for suspension, limitation or
53-9 revocation of license);
53-10 6. NRS 683A.470 (procedure following suspension, revocation);
53-11 7. NRS 683A.480 (return of license to commissioner); and
53-12 8.] 3. Section 94 of this act;
53-13 4. Section 95 of this act;
53-14 5. Section 99 of this act;
53-15 6. NRS 683A.480; and
53-16 7. NRS 683A.490 . [(penalties).]
53-17 Sec. 135. Chapter 686A of NRS is hereby amended by adding thereto
53-18 a new section to read as follows:
53-19 1. Disclosure of nonpublic personal information in a manner
53-20 contrary to the provisions of subchapter 1 of Title V of Public Law 106-
53-21 102, 15 U.S.C. §§ 6801-6809 is an unfair act or practice in the business
53-22 of insurance within the meaning of this chapter.
53-23 2. As used in this section “nonpublic personal information” has the
53-24 meaning ascribed to it in 15 U.S.C. § 6809(4).
53-25 3. The commissioner shall adopt regulations necessary to carry out
53-26 the provisions of this section.
53-27 Sec. 136. NRS 686A.010 is hereby amended to read as follows:
53-28 686A.010 The purpose of NRS 686A.010 to 686A.310, inclusive, and
53-29 section 135 of this act is to regulate trade practices in the business of
53-30 insurance in accordance with the intent of Congress as expressed in the Act
53-31 of Congress approved March 9, 1945, being c. 20, 59 Stat. 33, also
53-32 designated as 15 U.S.C. §§ 1011 to 1015, inclusive, [by defining, or
53-33 providing for the determination of, all such practices in this state which
53-34 constitute unfair methods of competition or unfair or deceptive acts or
53-35 practices and by prohibiting the trade practices so defined or determined.]
53-36 and Title V of Public Law 106-102, 15 U.S.C. §§ 6801 et seq.
53-37 Sec. 137. NRS 686A.520 is hereby amended to read as follows:
53-38 686A.520 1. The provisions of NRS [683A.450 to 683A.480,
53-39 inclusive, and] 683A.480 and sections 93, 94 and 99 of this act and NRS
53-40 686A.010 to 686A.310, inclusive, apply to companies.
53-41 2. For the purposes of subsection 1, unless the context requires that a
53-42 section apply only to insurers, any reference in those sections to “insurer”
53-43 must be replaced by a reference to “company.”
53-44 Sec. 137.5. NRS 687A.033 is hereby amended to read as follows:
53-45 687A.033 1. “Covered claim” means an unpaid claim or judgment,
53-46 including a claim for unearned premiums, which arises out of and is within
53-47 the coverage of an insurance policy to which this chapter applies issued by
53-48 an insurer which becomes an insolvent insurer, if one of the following
53-49 conditions exists:
54-1 (a) The claimant or insured, if a natural person, is a resident of this state
54-2 at the time of the insured event.
54-3 (b) The claimant or insured, if other than a natural person, maintains its
54-4 principal place of business in this state at the time of the insured event.
54-5 (c) The property from which the first party property damage claim
54-6 arises is permanently located in this state.
54-7 (d) The claim is not a covered claim pursuant to the laws of any other
54-8 state and the premium tax imposed on the insurance policy is payable in
54-9 this state pursuant to NRS 680B.027.
54-10 2. The term does not include:
54-11 (a) An amount that is directly or indirectly due a reinsurer, insurer,
54-12 insurance pool or underwriting association, as recovered by subrogation,
54-13 indemnity or contribution, or otherwise.
54-14 (b) That part of a loss which would not be payable because of a
54-15 provision for a deductible or a self-insured retention specified in the policy.
54-16 (c) Except as otherwise provided in this paragraph, any claim filed with
54-17 the association after:
54-18 (1) Eighteen months after the date of the order of liquidation; or
54-19 (2) The final date set by the court for the filing of claims against the
54-20 liquidator or receiver of the insolvent insurer,
54-21 whichever is earlier. The provisions of this paragraph do not apply to a
54-22 claim for workers’ compensation that is reopened pursuant to the
54-23 provisions of NRS 616C.390.
54-24 (d) A claim filed with the association for a loss that is incurred but is
54-25 not reported to the association before the expiration of the period specified
54-26 in subparagraph (1) or (2) of paragraph (c).
54-27 (e) An obligation to make a supplementary payment for adjustment or
54-28 attorney’s fees and expenses, court costs or interest and bond premiums
54-29 incurred by the insolvent insurer before the appointment of a liquidator,
54-30 unless the expenses would also be a valid claim against the insured.
54-31 (f) A first party or third party claim brought by or against an insured, if
54-32 the aggregate net worth of the insured and any affiliate of the insured, as
54-33 determined on a consolidated basis, is more than $25,000,000 on
54-34 December 31 of the year immediately preceding the date the insurer
54-35 becomes an insolvent insurer. The provisions of this paragraph do not
54-36 apply to a claim for workers’ compensation.
54-37 Sec. 138. NRS 689.065 is hereby amended to read as follows:
54-38 689.065 “Net purchase price” means the [net amount of the] purchase
54-39 price , including interest earned on the trust funds attributable to the
54-40 buyer, remaining after deduction of the sales commission.
54-41 Sec. 139. NRS 689.160 is hereby amended to read as follows:
54-42 689.160 1. The provisions of NRS [683A.450 to 683A.480,
54-43 inclusive, and] 683A.480 and sections 93, 94 and 99 of this act and NRS
54-44 686A.010 to 686A.310, inclusive, apply to agents and sellers.
54-45 2. For the purposes of subsection 1, unless the context requires that a
54-46 section apply only to insurers, any reference in those sections to “insurer”
54-47 must be replaced by a reference to “agent” and “seller.”
54-48 3. The provisions of NRS 679B.230 to 679B.300, inclusive, apply to
54-49 sellers. Unless the context requires that a provision apply only to insurers,
55-1 any reference in those sections to “insurer” must be replaced by a reference
55-2 to “seller.”
55-3 Sec. 140. NRS 689.225 is hereby amended to read as follows:
55-4 689.225 1. It is unlawful for any person to solicit the sale of a
55-5 prepaid contract in this state on behalf of a seller unless he holds a valid
55-6 agent’s license issued by the commissioner.
55-7 2. This section does not apply to a seller who holds a valid seller’s
55-8 certificate of authority.
55-9 3. A person who solicits the sale of a prepaid contract in this state
55-10 without a license is subject to an administrative fine of not more than
55-11 $1,000 for each violation.
55-12 Sec. 141. NRS 689.355 is hereby amended to read as follows:
55-13 689.355 1. Except as otherwise provided in subsection 2, if the buyer
55-14 moves to another geographic area beyond the normal facilities of the seller
55-15 and performers under the prepaid contract, the contract automatically
55-16 terminates upon the buyer’s written notice to the seller and trustee of his
55-17 move and of his desire to terminate the contract. The trustee, as soon as
55-18 reasonably possible after receipt of the notice, shall refund to the buyer all
55-19 money in the trust fund , including earned interest, held [to] for the
55-20 buyer’s account.
55-21 2. If the contract continues in force and the buyer is not in default
55-22 thereunder, upon the demise of the contract beneficiary, the contract
55-23 automatically terminates. Upon termination, the seller shall refund to the
55-24 buyer or to his representative or estate, or transfer to a substituted
55-25 performer, if any, all money paid on the contract.
55-26 Sec. 142. NRS 689.365 is hereby amended to read as follows:
55-27 689.365 1. An executory prepaid contract automatically terminates if
55-28 the seller or any performer under the contract goes out of business, dies,
55-29 becomes insolvent or bankrupt, makes an assignment for the benefit of
55-30 creditors or is otherwise unable to fulfill the obligations under the contract
55-31 unless, within 30 days after the going out of business, death, insolvency or
55-32 bankruptcy of the seller, or within any extension of time granted by the
55-33 commissioner, the contract is assigned to a holder of a valid seller’s
55-34 certificate of authority who agrees in writing to accept the liabilities under
55-35 the contract and agrees to fulfill all obligations set forth therein.
55-36 2. Upon any such termination, the money in the trust fund , including
55-37 earned interest, held by the trustee for the account of the buyer must be
55-38 distributed by the trustee to the buyer or to a qualified seller or performer
55-39 assuming the outstanding contractual liabilities, as authorized by the
55-40 commissioner.
55-41 Sec. 143. NRS 689.485 is hereby amended to read as follows:
55-42 689.485 1. It is unlawful for any cemetery authority, or any person
55-43 on behalf of a cemetery authority, to offer or sell any burial merchandise or
55-44 services under a prepaid contract unless the cemetery authority has been
55-45 issued a seller’s permit by the commissioner.
55-46 2. Subsection 1 does not apply to cemeteries owned and operated by
55-47 governmental agencies.
55-48 3. A person who offers or sells any burial merchandise or services
55-49 under a prepaid contract in this state in violation of the provisions of this
56-1 section is subject to an administrative fine of not more than $1,000 for
56-2 each violation.
56-3 Sec. 144. NRS 689.515 is hereby amended to read as follows:
56-4 689.515 1. It is unlawful for any person to solicit the sale of a
56-5 prepaid contract in this state on behalf of a seller unless he holds a valid
56-6 agent’s license issued by the commissioner.
56-7 2. This section does not apply to a seller who holds a valid seller’s
56-8 permit.
56-9 3. A person who solicits the sale of a prepaid contract in this state
56-10 without a license or seller’s permit is subject to an administrative fine of
56-11 not more than $1,000 for each violation.
56-12 Sec. 145. NRS 689.575 is hereby amended to read as follows:
56-13 689.575 1. Except as otherwise provided in subsection 2, if the buyer
56-14 moves to another geographic area beyond the normal service facilities of
56-15 the seller and performers under the prepaid burial merchandise and service
56-16 contract, the contract automatically terminates upon the buyer’s written
56-17 notice to the seller and trustee of his move and of his desire to terminate
56-18 the contract. The trustee, as soon as reasonably possible after receipt of the
56-19 notice, shall refund to the buyer all money , including earned interest, in
56-20 the trust fund held [to] for the buyer’s account.
56-21 2. If the contract continues in force and the buyer is not in default
56-22 thereunder, upon the demise of the buyer, the contract automatically
56-23 terminates. Upon termination, the seller shall:
56-24 (a) Furnish the merchandise and perform or arrange to perform the
56-25 services;
56-26 (b) Make arrangements for the fulfillment of the agreement on a dollar-
56-27 for-dollar basis with another performer serving the area to which the buyer
56-28 has moved; or
56-29 (c) Refund to the buyer or his representative or estate, or transfer to a
56-30 substituted performer, all money , including earned interest, in the trust
56-31 fund held [to] for the buyer’s account.
56-32 3. The cemetery authority shall include a provision in each prepaid
56-33 contract substantially stating: “If the purchaser defaults in making any
56-34 payment under this contract, the cemetery authority may terminate the
56-35 contract and is entitled to retain as damages not more than 40 percent of the
56-36 total purchase price. The balance remaining, if any, must be refunded to the
56-37 purchaser.”
56-38 Sec. 146. NRS 689.580 is hereby amended to read as follows:
56-39 689.580 1. An executory prepaid contract automatically terminates if
56-40 the seller or any performer under the contract goes out of business, dies,
56-41 becomes insolvent or bankrupt, makes an assignment for the benefit of
56-42 creditors or is otherwise unable to fulfill the obligations under the contract,
56-43 unless the successors or assignees of the business agree to accept all
56-44 liability and to fulfill all obligations as originally set forth in the contract.
56-45 2. Upon any such termination, the money in the trust fund , including
56-46 earned interest, held by the trustee for the account of the buyer must be
56-47 distributed by the trustee to the buyer or to a qualified seller or performer
56-48 assuming the outstanding contractual liabilities, as authorized by the
56-49 commissioner.
57-1 Sec. 147. NRS 689.595 is hereby amended to read as follows:
57-2 689.595 1. The provisions of NRS [683A.450 to 683A.480,
57-3 inclusive, and] 683A.480 and sections 93, 94 and 99 of this act and NRS
57-4 686A.010 to 686A.310, inclusive, apply to agents and sellers.
57-5 2. For the purposes of subsection 1, unless the context requires that a
57-6 section apply only to insurers, any reference in those sections to “insurer”
57-7 must be replaced by a reference to “agent” and “seller.”
57-8 3. The provisions of NRS 679B.230 to 679B.300, inclusive, apply to
57-9 sellers. Unless the context requires that a provision apply only to insurers,
57-10 any reference in those sections to “insurer” must be replaced by a reference
57-11 to “seller.”
57-12 Sec. 148. NRS 689A.041 is hereby amended to read as follows:
57-13 689A.041 1. [Any] A policy of health insurance which provides
57-14 coverage for the surgical procedure known as a mastectomy must also
57-15 provide commensurate coverage for [at least two prosthetic devices and for
57-16 reconstructive surgery incident to the mastectomy. Except as otherwise
57-17 provided in subsection 2, this coverage must be subject to the same terms
57-18 and conditions that apply to the coverage for the mastectomy.] :
57-19 (a) Reconstruction of the breast on which the mastectomy has been
57-20 performed;
57-21 (b) Surgery and reconstruction of the other breast to produce a
57-22 symmetrical structure; and
57-23 (c) Prostheses and physical complications for all stages of
57-24 mastectomy, including lymphedemas.
57-25 2. The provision of services must be determined by the attending
57-26 physician and the patient.
57-27 3. The plan or issuer may require deductibles and coinsurance
57-28 payments if they are consistent with those established for other benefits.
57-29 4. Written notice of the availability of the coverage must be given
57-30 upon enrollment and annually thereafter. The notice must be sent to all
57-31 participants:
57-32 (a) In the next mailing made by the plan or issuer to the participant or
57-33 beneficiary; or
57-34 (b) As part of any annual information packet sent to the participant or
57-35 beneficiary,
57-36 whichever is earlier.
57-37 5. A plan or issuer may not:
57-38 (a) Deny eligibility, or continued eligibility, to enroll or renew
57-39 coverage, in order to avoid the requirements of subsections 1 to 4,
57-40 inclusive; or
57-41 (b) Penalize, or limit reimbursement to, a provider of care, or provide
57-42 incentives to a provider of care, in order to induce the provider not to
57-43 provide the care listed in subsections 1 to 4, inclusive.
57-44 6. A plan or issuer may negotiate rates of reimbursement with
57-45 providers of care.
57-46 7. If reconstructive surgery is begun within 3 years after a mastectomy,
57-47 the amount of the benefits for that surgery must equal the amounts
57-48 provided for in the policy at the time of the mastectomy. If the surgery is
57-49 begun more than 3 years after the mastectomy, the benefits provided are
58-1 subject to all of the terms, conditions and exclusions contained in the
58-2 policy at the time of the reconstructive surgery.
58-3 [3.] 8. A policy subject to the provisions of this chapter which is
58-4 delivered, issued for delivery or renewed on or after October 1, [1989,]
58-5 2001, has the legal effect of including the coverage required by this
58-6 section, and any provision of the policy or the renewal which is in conflict
58-7 with this section is void.
58-8 [4.] 9. For the purposes of this section, “reconstructive surgery”
58-9 means a surgical procedure performed following a mastectomy on one
58-10 breast or both breasts to reestablish symmetry between the two breasts. The
58-11 term includes[, but is not limited to,] augmentation mammoplasty,
58-12 reduction mammoplasty and mastopexy.
58-13 Sec. 149. NRS 689A.500 is hereby amended to read as follows:
58-14 689A.500 “Converted policy” means a basic or standard health benefit
58-15 plan issued in accordance with NRS 689B.120 to [689B.240,] 689B.210,
58-16 inclusive, and 689B.590.
58-17 Sec. 150. Chapter 689B of NRS is hereby amended by adding thereto
58-18 the provisions set forth as sections 151, 152 and 153 of this act.
58-19 Sec. 151. “Blanket accident and health insurance” has the meaning
58-20 ascribed to it in NRS 689B.070.
58-21 Sec. 152. 1. An insurer shall provide to each policyholder, or
58-22 producer of insurance acting on behalf of a policyholder, on a form
58-23 approved by the commissioner, a summary of the coverage provided by
58-24 each policy of group or blanket health insurance offered by the insurer.
58-25 The summary must disclose any:
58-26 (a) Significant exception, reduction or limitation that applies to the
58-27 policy;
58-28 (b) Restriction on payment for care in an emergency, including
58-29 related definitions of emergency and medical necessity;
58-30 (c) Right of the insurer to change the rate of premium and the factors,
58-31 other than claims experienced, which affect changes in rate;
58-32 (d) Provisions relating to renewability;
58-33 (e) Provisions relating to preexisting conditions; and
58-34 (f) Other information that the commissioner finds necessary for full
58-35 and fair disclosure of the provisions of the policy.
58-36 2. The language of the disclosure must be easily understood. The
58-37 disclosure must state that it is only a summary of the policy and that the
58-38 policy should be read to ascertain the governing contractual provisions.
58-39 3. The commissioner shall not approve a proposed disclosure that
58-40 does not satisfy the requirements of this section and of applicable
58-41 regulations.
58-42 4. In addition to the disclosure, the insurer shall provide information
58-43 about guaranteed availability of basic and standard plans for benefits to
58-44 an eligible person.
58-45 5. The insurer shall provide the summary before the policy is issued.
58-46 Sec. 153. An insurer providing blanket health insurance shall make
58-47 all information concerning rates available to the commissioner upon
58-48 request. The information is proprietary, constitutes a trade secret, and
58-49 may not be disclosed by the commissioner to any person outside the
59-1 division except as agreed by the insurer or ordered by a court of
59-2 competent jurisdiction.
59-3 Sec. 154. NRS 689B.010 is hereby amended to read as follows:
59-4 689B.010 1. This chapter may be cited as the Group or Blanket
59-5 Health Insurance Law.
59-6 2. This chapter applies only to group health insurance contracts and to
59-7 blanket accident and health insurance contracts as provided [for] in this
59-8 chapter.
59-9 Sec. 155. NRS 689B.0375 is hereby amended to read as follows:
59-10 689B.0375 1. [Any] A policy of group health insurance which
59-11 provides coverage for the surgical procedure known as a mastectomy must
59-12 also provide commensurate coverage for [at least two prosthetic devices
59-13 and for reconstructive surgery incident to the mastectomy. Except
59-14 as otherwise provided in subsection 2, this coverage must be subject
59-15 to the same terms and conditions that apply to the coverage for the
59-16 mastectomy.] :
59-17 (a) Reconstruction of the breast on which the mastectomy has been
59-18 performed;
59-19 (b) Surgery and reconstruction of the other breast to produce a
59-20 symmetrical structure; and
59-21 (c) Prostheses and physical complications for all stages of
59-22 mastectomy, including lymphedemas.
59-23 2. The provision of services must be determined by the attending
59-24 physician and the patient.
59-25 3. The plan or issuer may require deductibles and coinsurance
59-26 payments if they are consistent with those established for other benefits.
59-27 4. Written notice of the availability of the coverage must be given
59-28 upon enrollment and annually thereafter. The notice must be sent to all
59-29 participants:
59-30 (a) In the next mailing made by the plan or issuer to the participant or
59-31 beneficiary; or
59-32 (b) As part of any annual information packet sent to the participant or
59-33 beneficiary,
59-34 whichever is earlier.
59-35 5. A plan or issuer may not:
59-36 (a) Deny eligibility, or continued eligibility, to enroll or renew
59-37 coverage, in order to avoid the requirements of subsections 1 to 4,
59-38 inclusive; or
59-39 (b) Penalize, or limit reimbursement to, a provider of care, or provide
59-40 incentives to a provider of care, in order to induce the provider not to
59-41 provide the care listed in subsections 1 to 4, inclusive.
59-42 6. A plan or issuer may negotiate rates of reimbursement with
59-43 providers of care.
59-44 7. If reconstructive surgery is begun within 3 years after a mastectomy,
59-45 the amount of the benefits for that surgery must equal those amounts
59-46 provided for in the policy at the time of the mastectomy. If the surgery is
59-47 begun more than 3 years after the mastectomy, the benefits provided are
59-48 subject to all of the terms, conditions and exclusions contained in the
59-49 policy at the time of the reconstructive surgery.
60-1 [3.] 8. A policy subject to the provisions of this chapter which is
60-2 delivered, issued for delivery or renewed on or after October 1, [1989,]
60-3 2001, has the legal effect of including the coverage required by this
60-4 section, and any provision of the policy or the renewal which is in conflict
60-5 with this section is void.
60-6 [4.] 9. For the purposes of this section, “reconstructive surgery”
60-7 means a surgical procedure performed following a mastectomy on one
60-8 breast or both breasts to reestablish symmetry between the two breasts. The
60-9 term includes[, but is not limited to,] augmentation mammoplasty,
60-10 reduction mammoplasty and mastopexy.
60-11 Sec. 156. NRS 689B.070 is hereby amended to read as follows:
60-12 689B.070 “Blanket accident and health insurance” is that form of
60-13 accident insurance, health insurance , or both, covering groups of persons
60-14 as enumerated in one of the following subsections under a policy or
60-15 contract issued to:
60-16 1. Any common carrier or to any operator, owner or lessee of a means
60-17 of transportation, who or which shall be deemed the policyholder, covering
60-18 a group of persons who may become passengers defined by reference to
60-19 their travel status on [such] the common carrier or [such] means of
60-20 transportation.
60-21 2. An employer, who shall be deemed the policyholder, covering any
60-22 group of employees, dependents or guests, defined by reference to
60-23 specified hazards incident to an activity or activities or operations of the
60-24 policyholder.
60-25 3. A college, school or other institution of learning, a school district or
60-26 districts, or school jurisdictional unit, or to the head, principal or governing
60-27 board of any such educational unit, who or which shall be deemed the
60-28 policyholder, covering students, teachers or employees.
60-29 4. A religious, charitable, recreational, educational or civic
60-30 organization, or branch thereof, which shall be deemed the policyholder,
60-31 covering any group of members or participants defined by reference to
60-32 specified hazards incident to an activity or activities or operations
60-33 sponsored or supervised by [such] the policyholder.
60-34 5. A sports team, camp or sponsor thereof, which shall be deemed the
60-35 policyholder, covering members, campers, employees, officials or
60-36 supervisors.
60-37 6. A volunteer fire department, organization providing first aid,
60-38 organization for emergency management or other such volunteer
60-39 organization, which shall be deemed the policyholder, covering any group
60-40 of members or participants defined by reference to specified hazards
60-41 incident to an activity or activities or operations sponsored or supervised
60-42 by [such] the policyholder.
60-43 7. A newspaper or other publisher, which shall be deemed the
60-44 policyholder, covering its carriers.
60-45 8. An association, including a labor union, which has a constitution
60-46 and bylaws and which has been organized and is maintained in good faith
60-47 for purposes other than that of obtaining insurance, which shall be deemed
60-48 the policyholder, covering any group of members or participants defined
61-1 by reference to specified hazards incident to an activity or activities or
61-2 operations sponsored or supervised by [such] the policyholder.
61-3 9. Cover any other risk or class of risks which, in the discretion of the
61-4 commissioner, may be properly eligible for blanket accident and health
61-5 insurance. The discretion of the commissioner may be exercised on the
61-6 basis of an individual risk or class of risks, or both.
61-7 Sec. 157. NRS 689B.080 is hereby amended to read as follows:
61-8 689B.080 Any insurer authorized to write health insurance in this
61-9 state, including a nonprofit corporation for hospital, medical or dental
61-10 services that has a certificate of authority issued pursuant to chapter 695B
61-11 of NRS, may issue blanket accident and health insurance. No blanket
61-12 policy, except as provided in subsection 4 of NRS 687B.120, may be
61-13 issued or delivered in this state unless a copy of the form thereof has been
61-14 filed in accordance with NRS 687B.120. Every blanket policy must contain
61-15 provisions which in the opinion of the commissioner are not less favorable
61-16 to the policyholder and the individual insured than the following:
61-17 1. A provision that the policy, including endorsements and a copy of
61-18 the application, if any, of the policyholder and the persons insured
61-19 constitutes the entire contract between the parties, and that any statement
61-20 made by the policyholder or by a person insured is in the absence of fraud
61-21 a representation and not a warranty, and that no such statements may be
61-22 used in defense to a claim under the policy, unless contained in a written
61-23 application. The insured, his beneficiary or assignee has the right to make a
61-24 written request to the insurer for a copy of an application, and the insurer
61-25 shall, within 15 days after the receipt of a request at its home office or any
61-26 branch office of the insurer, deliver or mail to the person making the
61-27 request a copy of the application. If a copy is not so delivered or mailed,
61-28 the insurer is precluded from introducing the application as evidence in any
61-29 action based upon or involving any statements contained therein.
61-30 2. A provision that written notice of sickness or of injury must be
61-31 given to the insurer within 20 days after the date when the sickness or
61-32 injury occurred. Failure to give notice within that time does not invalidate
61-33 or reduce any claim if it is shown that it was not reasonably possible to
61-34 give notice and that notice was given as soon as was reasonably possible.
61-35 3. A provision that the insurer will furnish to the claimant or to the
61-36 policyholder for delivery to the claimant such forms as are usually
61-37 furnished by it for filing proof of loss. If the forms are not furnished before
61-38 the expiration of 15 days after giving written notice of sickness or injury,
61-39 the claimant shall be deemed to have complied with the requirements of the
61-40 policy as to proof of loss upon submitting, within the time fixed in the
61-41 policy for filing proof of loss, written proof covering the occurrence, the
61-42 character and the extent of the loss for which claim is made.
61-43 4. A provision that in the case of a claim for loss of time for disability,
61-44 written proof of the loss must be furnished to the insurer within 90 days
61-45 after the commencement of the period for which the insurer is liable, and
61-46 that subsequent written proofs of the continuance of the disability must be
61-47 furnished to the insurer at such intervals as the insurer may reasonably
61-48 require, and that in the case of a claim for any other loss, written proof of
61-49 the loss must be furnished to the insurer within 90 days after the date of the
62-1 loss. Failure to furnish such proof within that time does not invalidate or
62-2 reduce any claim if it is shown that it was not reasonably possible to
62-3 furnish proof and that the proof was furnished as soon as was reasonably
62-4 possible.
62-5 5. A provision that all benefits payable under the policy other than
62-6 benefits for loss of time will be payable immediately upon receipt of
62-7 written proof of loss, and that, subject to proof of loss, all accrued benefits
62-8 payable under the policy for loss of time will be paid not less frequently
62-9 than monthly during the continuance of the period for which the insurer is
62-10 liable, and that any balance remaining unpaid at the termination of that
62-11 period will be paid immediately upon receipt of proof.
62-12 6. A provision that the insurer at its own expense has the right and
62-13 opportunity to examine the person of the insured when and so often as it
62-14 may reasonably require during the pendency of claim under the policy and
62-15 also the right and opportunity to make an autopsy where it is not prohibited
62-16 by law.
62-17 7. A provision, if applicable, setting forth the provisions of NRS
62-18 689B.035.
62-19 8. A provision for benefits for expense arising from care at home or
62-20 health supportive services if that care or service was prescribed by a
62-21 physician and would have been covered by the policy if performed in a
62-22 medical facility or facility for the dependent as defined in chapter 449 of
62-23 NRS.
62-24 9. A provision that no action at law or in equity may be brought to
62-25 recover under the policy before the expiration of 60 days after written
62-26 proof of loss has been furnished in accordance with the requirements of the
62-27 policy and that no such action may be brought after the expiration of 3
62-28 years after the time written proof of loss is required to be furnished.
62-29 Sec. 158. NRS 689B.130 is hereby amended to read as follows:
62-30 689B.130 Subject to the conditions set forth in NRS 689B.120 to
62-31 [689B.240,] 689B.210, inclusive, the conversion privilege must also be
62-32 made available:
62-33 1. To the surviving spouse, if any, upon the death of the employee or
62-34 member, with respect to the spouse and any child whose coverage under
62-35 the group policy is terminated by reason of [such] the death, or if there is
62-36 no surviving spouse, to each surviving child whose coverage under the
62-37 group policy terminates by reason of [such] the death, or, if the group
62-38 policy provides for continuation of dependents’ coverage following the
62-39 employee’s or member’s death, at the end of the continued coverage;
62-40 2. To the spouse of the employee or member upon termination of
62-41 coverage of the spouse while the employee or member remains insured
62-42 under the group policy, if the spouse ceases to be a qualified family
62-43 member under the group policy, and to any child whose coverage under the
62-44 group policy terminates at the same time; or
62-45 3. To a child solely with respect to himself upon termination of his
62-46 coverage because he ceases to be a qualified family member under the
62-47 group policy, if a conversion privilege is not otherwise provided with
62-48 respect to the termination.
63-1 Sec. 159. NRS 689B.150 is hereby amended to read as follows:
63-2 689B.150 [1.] A person who is entitled to a converted policy must be
63-3 given his choice of [at least three types of policies offering benefits on an
63-4 expense-incurred basis.
63-5 2. At least one choice among the three types of policies must include
63-6 major medical or catastrophic benefits if they were provided under the
63-7 group policy.
63-8 3. For those insureds eligible for Medicare, the insurer may provide a
63-9 supplement to Medicare as the converted policy.] a basic or standard
63-10 health benefit plan in the manner provided in NRS 689B.590.
63-11 Sec. 160. NRS 689B.180 is hereby amended to read as follows:
63-12 689B.180 The insurer shall:
63-13 1. Issue the converted policy , as described in NRS 689B.590, without
63-14 evidence of insurability;
63-15 2. [Base] Establish the premium on the converted policies [for the first
63-16 12 months, and subsequent renewals, upon the insurer’s table of premium
63-17 rates applicable to the age and class of risk of each person to be covered
63-18 under the policy and to the type and amount of insurance provided. The
63-19 frequency of premium payments must be the same as is customarily
63-20 required by the insurer for the policy form and plan selected except that
63-21 premium payments must not be required more often than quarterly;] in the
63-22 manner provided in subsections 3, 4 and 5, or pursuant to subsection 6,
63-23 of NRS 689B.590, and may not require that premiums be paid annually,
63-24 semi-annually or quarterly unless so requested by the employee, a
63-25 member or a dependent;
63-26 3. Provide that the effective date of the converted policy is 12:01 a.m.
63-27 on the day after the termination of insurance under the group policy; and
63-28 4. Provide that the converted policy covers the employee or member
63-29 and his dependents who were covered by the group policy on the date of its
63-30 termination. [At the option of the insurer, a] A separate converted policy
63-31 may be issued to cover any dependent.
63-32 Sec. 161. NRS 689B.250 is hereby amended to read as follows:
63-33 689B.250 Every insurer under a group health insurance contract or a
63-34 blanket accident and health insurance contract and every state agency, for
63-35 its records shall accept from:
63-36 1. A hospital the Uniform Billing and Claims Forms established by the
63-37 American Hospital Association in lieu of its individual billing and claims
63-38 forms.
63-39 2. An individual who is licensed to practice one of the health
63-40 professions regulated by Title 54 of NRS such uniform health insurance
63-41 claims forms as the commissioner shall prescribe, except in those cases
63-42 where the commissioner has excused uniform reporting.
63-43 Sec. 162. NRS 689B.340 is hereby amended to read as follows:
63-44 689B.340 As used in NRS 689B.340 to 689B.600, inclusive, unless
63-45 the context otherwise requires, the words and terms defined in NRS
63-46 689B.350 to 689B.460, inclusive, and section 151 of this act have the
63-47 meanings ascribed to them in those sections.
64-1 Sec. 163. NRS 689B.380 is hereby amended to read as follows:
64-2 689B.380 “Creditable coverage” means health benefits or coverage
64-3 provided to a person pursuant to:
64-4 1. A group health plan;
64-5 2. A health benefit plan;
64-6 3. Part A or Part B of Title XVIII of the Social Security Act, 42 U.S.C.
64-7 §§ 1395c et seq., also known as Medicare;
64-8 4. Title XIX of the Social Security Act, 42 U.S.C. §§ 1396 et seq., also
64-9 known as Medicaid, other than coverage consisting solely of benefits under
64-10 section 1928 of that Title, 42 U.S.C. § 1396s;
64-11 5. The Civilian Health and Medical Program of Uniformed Services,
64-12 CHAMPUS, 10 U.S.C. §§ 1071 et seq.;
64-13 6. A medical care program of the Indian Health Service or of a tribal
64-14 organization;
64-15 7. A state health benefit risk pool;
64-16 8. A health plan offered pursuant to the Federal Employees Health
64-17 Benefits Program, FEHBP, 5 U.S.C. §§ 8901 et seq.;
64-18 9. A public health plan as defined in 45 C.F.R. § 146.113, authorized
64-19 by the Public Health Service Act, 42 U.S.C. § 300gg(c)(1)(I);
64-20 10. A health benefit plan under section 5(e) of the Peace Corps Act, 22
64-21 U.S.C. § 2504(e);
64-22 11. The children’s health insurance program established pursuant to 42
64-23 U.S.C. §§ 1397aa to 1397jj, inclusive;
64-24 12. A short-term health insurance policy; or
64-25 13. A blanket [student] accident and health insurance policy.
64-26 Sec. 164. NRS 689B.490 is hereby amended to read as follows:
64-27 689B.490 1. For the purpose of determining the period of creditable
64-28 coverage of a person accumulated under a health benefit plan , blanket
64-29 accident and health insurance or group health insurance, the insurer shall
64-30 provide written certification on a form prescribed by the commissioner of
64-31 coverage to the person which certifies the length of:
64-32 (a) The period of creditable coverage that the person accumulated under
64-33 the plan and any coverage under any provision of the Consolidated
64-34 Omnibus Budget Reconciliation Act of 1985, as that act existed on July 16,
64-35 1997, relating to the continuation of coverage; and
64-36 (b) Any waiting and affiliation period imposed on the person pursuant
64-37 to that coverage.
64-38 2. The certification of coverage must be provided to the person who
64-39 was insured:
64-40 (a) At the time that he ceases to be covered under the plan, if he does
64-41 not otherwise become covered under any provision of the Consolidated
64-42 Omnibus Budget Reconciliation Act of 1985, as that act existed on July 16,
64-43 1997, relating to the continuation of coverage;
64-44 (b) If he becomes covered under such a provision, at the time that he
64-45 ceases to be covered by that provision; and
64-46 (c) Upon request, if the request is made not later than 24 months after
64-47 the date on which he ceased to be covered as described in paragraphs (a)
64-48 and (b).
65-1 Sec. 165. NRS 689B.500 is hereby amended to read as follows:
65-2 689B.500 1. Except as otherwise provided in this section, a carrier
65-3 that issues a group health plan or coverage under blanket accident and
65-4 health insurance or group health insurance shall not deny, exclude or limit
65-5 a benefit for a preexisting condition for:
65-6 (a) More than 12 months after the effective date of coverage if the
65-7 employee or other insured enrolls through open enrollment or after the
65-8 first day of the waiting period for that enrollment, whichever is earlier; or
65-9 (b) More than 18 months after the effective date of coverage for a late
65-10 enrollee.
65-11 A carrier may not define a preexisting condition more restrictively than
65-12 that term is defined in NRS 689B.450.
65-13 2. The period of any exclusion for a preexisting condition imposed by
65-14 a group health plan or coverage under blanket accident and health
65-15 insurance or group health insurance on a person to be insured in
65-16 accordance with the provisions of this chapter must be reduced by the
65-17 aggregate period of creditable coverage of that person, if the creditable
65-18 coverage was continuous to a date not more than 63 days before the
65-19 effective date of the coverage. The period of continuous coverage must not
65-20 include:
65-21 (a) Any waiting period for the effective date of the new coverage
65-22 applied by the employer or the carrier; or
65-23 (b) Any affiliation period not to exceed 60 days for a new enrollee and
65-24 90 days for a late enrollee required before becoming eligible to enroll in
65-25 the group health plan.
65-26 3. A health maintenance organization authorized to transact insurance
65-27 pursuant to chapter 695C of NRS that does not restrict coverage for a
65-28 preexisting condition may require an affiliation period before coverage
65-29 becomes effective under a plan of insurance if the affiliation period applies
65-30 uniformly to all employees or other persons insured and without regard to
65-31 any health status-related factors. During the affiliation period, the carrier
65-32 shall not collect any premiums for coverage of the employee[.] or other
65-33 insured.
65-34 4. An insurer that restricts coverage for preexisting conditions shall not
65-35 impose an affiliation period.
65-36 5. A carrier shall not impose any exclusion for a preexisting condition:
65-37 (a) Relating to pregnancy.
65-38 (b) In the case of a person who, as of the last day of the 30-day period
65-39 beginning on the date of his birth, is covered under creditable coverage.
65-40 (c) In the case of a child who is adopted or placed for adoption before
65-41 attaining the age of 18 years and who, as of the last day of the 30-day
65-42 period beginning on the date of adoption or placement for adoption,
65-43 whichever is earlier, is covered under creditable coverage. The provisions
65-44 of this paragraph do not apply to coverage before the date of adoption or
65-45 placement for adoption.
65-46 (d) In the case of a condition for which medical advice, diagnosis, care
65-47 or treatment was recommended or received for the first time while the
65-48 covered person held creditable coverage, and the medical advice,
65-49 diagnosis, care or treatment was a benefit under the plan, if the creditable
66-1 coverage was continuous to a date not more than 63 days before the
66-2 effective date of the new coverage.
66-3 The provisions of paragraphs (b) and (c) do not apply to a person after the
66-4 end of the first 63-day period during all of which the person was not
66-5 covered under any creditable coverage.
66-6 6. As used in this section, “late enrollee” means an eligible employee,
66-7 or his dependent, who requests enrollment in a group health plan following
66-8 the initial period of enrollment, if that initial period of enrollment is at least
66-9 30 days, during which the person is entitled to enroll under the terms of the
66-10 health benefit plan. The term does not include an eligible employee or his
66-11 dependent if:
66-12 (a) The employee or dependent:
66-13 (1) Was covered under creditable coverage at the time of the initial
66-14 enrollment;
66-15 (2) Lost coverage under creditable coverage as a result of cessation of
66-16 contributions by his employer, termination of employment or eligibility,
66-17 reduction in the number of hours of employment, involuntary termination
66-18 of creditable coverage, or death of, or divorce or legal separation from, a
66-19 covered spouse; and
66-20 (3) Requests enrollment not later than 30 days after the date on which
66-21 his creditable coverage was terminated or on which the change in
66-22 conditions that gave rise to the termination of the coverage occurred.
66-23 (b) The employee enrolls during the open enrollment period, as
66-24 provided in the contract or as otherwise specifically provided by specific
66-25 statute.
66-26 (c) The employer of the employee offers [multiple] several health
66-27 benefit plans and the employee elected a different plan during an open
66-28 enrollment period.
66-29 (d) A court has ordered coverage to be provided to the spouse or a
66-30 minor or dependent child of an employee under a health benefit plan of the
66-31 employee and a request for enrollment is made within 30 days after the
66-32 issuance of the court order.
66-33 (e) The employee changes status from not being an eligible employee to
66-34 being an eligible employee and requests enrollment, subject to any waiting
66-35 period, within 30 days after the change in status.
66-36 (f) The person has continued coverage in accordance with the
66-37 Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law 99-
66-38 272, and that coverage has been exhausted.
66-39 Sec. 166. NRS 689B.550 is hereby amended to read as follows:
66-40 689B.550 1. A carrier shall not place any restriction on a person or
66-41 his dependent as a condition of being a participant in or a beneficiary of a
66-42 policy of blanket accident and health insurance or group health insurance
66-43 that is inconsistent with the provisions of this chapter.
66-44 2. A carrier that offers coverage under a policy of blanket accident
66-45 and health insurance or group health insurance pursuant to this chapter