2005 Nevada Revised Statutes - Chapter 683C — Insurance Consultants

CHAPTER 683C - INSURANCE CONSULTANTS

NRS 683C.010 Insuranceconsultant defined.

NRS 683C.018 Applicabilityof other provisions of NRS.

NRS 683C.020 Licenserequired; exceptions; penalty.

NRS 683C.030 Applicationfor license; requirements; duration of license. [Effective until the date ofthe repeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 683C.030 Applicationfor license; requirements; duration of license. [Effective on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 683C.035 Formand prerequisites for approval of application for license; licensing ofbusiness organization; verification of information; duration of license.

NRS 683C.040 Renewalof license: Application; fee; requirements. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 683C.040 Renewalof license: Application; fee; requirements. [Effective on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 683C.043 Paymentof child support: Statement by applicant for license; grounds for denial oflicense; duty of Commissioner. [Expires by limitation on the date of the repealof the federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

NRS 683C.047 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation on the date of therepeal of the federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

NRS 683C.050 Requirementsfor partnership or corporation licensed as insurance consultant.

NRS 683C.060 Writtenagreement with client required before rendering services.

NRS 683C.070 Licenseeprohibited from holding other licenses concurrently.

NRS 683C.080 Associationwith and compensation from certain persons who sell insurance prohibited.

NRS 683C.100 Obligations.

NRS 683C.105 Submissionof location of business or change in location of business or residence;penalty.

NRS 683C.110 Nonresidentlicensees: Service of process; promise to appear.

NRS 683C.120 Disciplinaryaction by Commissioner.

NRS 683C.130 Noticeand effect of suspension, limitation or revocation of license.

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NRS 683C.010 Insuranceconsultant defined. As used in this chapter,unless the context otherwise requires, insurance consultant means a personwho, for a fee, holds himself out to the public as engaged in the business ofoffering advice, counsel, opinion or service with respect to the benefits,advantages or disadvantages promised pursuant to any policy of insurance thatcould be issued in this State.

(Added to NRS by 1995, 1610)

NRS 683C.018 Applicabilityof other provisions of NRS. The provisions of chapters 679A and 679Bof NRS and NRS 683A.301, 683A.341 and 683A.351 apply to an insuranceconsultant.

(Added to NRS by 2003, 3297)

NRS 683C.020 Licenserequired; exceptions; penalty.

1. Except as otherwise provided in subsection 2, noperson may engage in the business of an insurance consultant unless a licensehas been issued to him by the Commissioner.

2. An insurance consultants license is not requiredfor:

(a) An attorney licensed to practice law in this Statewho is acting in his professional capacity;

(b) A licensed insurance agent, broker or surplus linesbroker;

(c) A trust officer of a bank who is acting in thenormal course of his employment; or

(d) An actuary or a certified public accountant whoprovides information, recommendations, advice or services in his professionalcapacity.

3. A person required to be licensed in this State whoacts as an insurance consultant without a license is subject to anadministrative fine of not more than $1,000 for each act or violation.

(Added to NRS by 1995, 1610; A 2003, 3297)

NRS 683C.030 Applicationfor license; requirements; duration of license. [Effective until the date ofthe repeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. An application for a license to act as an insuranceconsultant must be submitted to the Commissioner on forms prescribed by theCommissioner and must be accompanied by the applicable license fee set forth inNRS 680B.010 and an additional feeestablished by the Commissioner of not more than $15 which must be deposited inthe Insurance Recovery Account created pursuant to NRS 679B.305. The license fee and theadditional fee are not refundable. If the applicant is a natural person, theapplication must include the social security number of the applicant.

2. An applicant for an insurance consultants licensemust successfully complete an examination and a course of instruction which theCommissioner shall establish by regulation.

3. Each license issued pursuant to this chapter isvalid for 3 years from the date of issuance or until it is suspended, revokedor otherwise terminated.

(Added to NRS by 1995, 1610; A 1997, 2189; 2003, 3297; 2005, 2125)

NRS 683C.030 Application for license;requirements; duration of license. [Effective on the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. An application for a license to act as an insuranceconsultant must be made to the Commissioner on forms prescribed by theCommissioner and must be accompanied by the applicable license fee set forth inNRS 680B.010 and an additional feeestablished by the Commissioner of not more than $15 which must be deposited inthe Insurance Recovery Account created pursuant to NRS 679B.305. The license fee and theadditional fee are not refundable.

2. An applicant for an insurance consultants licensemust successfully complete an examination and a course of instruction which theCommissioner shall establish by regulation.

3. Each license issued pursuant to this chapter isvalid for 3 years from the date of issuance or until it is suspended, revokedor otherwise terminated.

(Added to NRS by 1995, 1610; A 1997, 2189; 2003, 3297; 2005, 2125, 2126, effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 683C.035 Formand prerequisites for approval of application for license; licensing ofbusiness organization; verification of information; duration of license.

1. The Commissioner shall prescribe the form ofapplication by a natural person for a license as an insurance consultant. Theapplicant must declare, under penalty of refusal to issue, or suspension orrevocation of, the license, that the statements made in the application aretrue, correct and complete to the best of his knowledge and belief. Beforeapproving the application, the Commissioner must find that the applicant has:

(a) Attained the age of 18 years.

(b) Not committed any act that is a ground for refusalto issue, or suspension or revocation of, a license pursuant to NRS 683A.451.

(c) Paid the fee prescribed for the license and a feeestablished by the Commissioner of not more than $15 for deposit in theInsurance Recovery Account, neither of which may be refunded.

(d) Passed each examination required for the licenseand successfully completed each course of instruction which the Commissionerrequires by regulation, unless he is a resident of another state and holds asimilar license in that state.

2. A business organization must be licensed as aninsurance consultant in order to act as such. Application must be made on aform prescribed by the Commissioner. Before approving the application, theCommissioner must find that the applicant has:

(a) Paid the fee prescribed for the license and a feeestablished by the Commissioner of not more than $15 for deposit in theInsurance Recovery Account, neither of which may be refunded; and

(b) Designated a natural person who is licensed as aninsurance consultant in this State and who is affiliated with the businessorganization to be responsible for the organizations compliance with the lawsand regulations of this State relating to insurance.

3. The Commissioner may require any documentreasonably necessary to verify information contained in an application.

4. A license issued pursuant to this chapter is validfor 3 years after the date of issuance or until it is suspended, revoked orotherwise terminated.

5. An insurance consultant may qualify for a licensepursuant to this chapter in one or more of the lines of authority set forth inparagraphs (a) to (d), inclusive, of subsection 1 of NRS 683A.261.

(Added to NRS by 1995, 1611; A 2001, 2211; 2003, 3298; 2005, 2126)

NRS 683C.040 Renewalof license: Application; fee; requirements. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. Alicense may be renewed for additional 3-year periods by submitting to theCommissioner an application for renewal and:

(a) If the application is made:

(1) On or before the expiration date of thelicense, the applicable renewal fee and an additional fee established by theCommissioner of not more than $15 for deposit in the Insurance RecoveryAccount; or

(2) Not more than 30 days after the expirationdate of the license, the applicable renewal fee plus any late fee required andan additional fee established by the Commissioner of not more than $15 fordeposit in the Insurance Recovery Account;

(b) If the applicant is a natural person, the statementrequired pursuant to NRS 683C.043; and

(c) If the applicant is a resident, proof of thesuccessful completion of appropriate courses of study required for renewal, asestablished by the Commissioner by regulation.

2. The fees specified in this section are notrefundable.

(Added to NRS by 1995, 1610; A 1997, 2190; 2001, 2210; 2003, 3298; 2005, 2126)

NRS 683C.040 Renewal of license: Application; fee;requirements. [Effective on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

1. A license may be renewed for additional 3-yearperiods by submitting to the Commissioner an application for renewal and:

(a) If the application is made:

(1) On or before the expiration date of thelicense, the applicable renewal fee and an additional fee established by theCommissioner of not more than $15 for deposit in the Insurance RecoveryAccount; or

(2) Not more than 30 days after the expirationdate of the license, the applicable renewal fee plus any late fee required andan additional fee established by the Commissioner of not more than $15 fordeposit in the Insurance Recovery Account; and

(b) If the applicant is a resident, proof of thesuccessful completion of appropriate courses of study required for renewal, asestablished by the Commissioner by regulation.

2. The fees specified in this section are notrefundable.

(Added to NRS by 1995, 1610; A 1997, 2190; 2001, 2210; 2003, 3298; 2005, 2126, 2127, effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 683C.043 Paymentof child support: Statement by applicant for license; grounds for denial oflicense; duty of Commissioner. [Expires by limitation on the date of the repealof the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. A natural person who applies for the issuance orrenewal of a license to act as an insurance consultant shall submit to theCommissioner the statement prescribed by the Division of Welfare and SupportiveServices of the Department of Health and Human Services pursuant to NRS 425.520. The statement must becompleted and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Commissioner.

3. A license to act as an insurance consultant may notbe issued or renewed by the Commissioner if the applicant is a natural personwho:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 1997, 2188)

NRS 683C.047 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a courtorder issued pursuant to NRS 425.540that provides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who is the holder of a licenseto act as an insurance consultant, the Commissioner shall deem the licenseissued to that person to be suspended at the end of the 30th day after the dateon which the court order was issued unless the Commissioner receives a letterissued to the holder of the license by the district attorney or other publicagency pursuant to NRS 425.550 statingthat the holder of the license has complied with the subpoena or warrant or hassatisfied the arrearage pursuant to NRS425.560.

2. The Commissioner shall reinstate a license to actas an insurance consultant that has been suspended by a district court pursuantto NRS 425.540 if the Commissionerreceives a letter issued by the district attorney or other public agencypursuant to NRS 425.550 to the personwhose license was suspended stating that the person whose license was suspendedhas complied with the subpoena or warrant or has satisfied the arrearagepursuant to NRS 425.560.

(Added to NRS by 1997, 2189)

NRS 683C.050 Requirementsfor partnership or corporation licensed as insurance consultant. A partnership or corporation licensed as an insurance consultantmust require a license of each natural person who is authorized to act for thecorporation or partnership. Each natural person must be named in thepartnerships or corporations license and qualify as an individual licensee.

(Added to NRS by 1995, 1611)

NRS 683C.060 Writtenagreement with client required before rendering services. In advance of rendering any service, a written agreementon a form approved by the Commissioner must be prepared by the insuranceconsultant and must be signed by both the consultant and the client. Theagreement must outline the professional services to be provided by theconsultant and state his fee for those services. The consultant shall retain acopy of the agreement for not less than 3 years after completion of theservices. A copy of the agreement must be made available to the Commissionerupon request.

(Added to NRS by 1995, 1611)

NRS 683C.070 Licenseeprohibited from holding other licenses concurrently. Aperson licensed pursuant to this chapter may not concurrently hold a license asa producer of insurance or a surplus lines brokers license in any line.

(Added to NRS by 1995, 1611; A 2003, 3299)

NRS 683C.080 Associationwith and compensation from certain persons who sell insurance prohibited. A licensed insurance consultant shall not employ, beemployed by or be in partnership with, or receive any remuneration arising outof his activities as an insurance consultant from, any licensed producer ofinsurance or surplus lines broker or insurer.

(Added to NRS by 1995, 1611; A 2003, 3299)

NRS 683C.100 Obligations. An insurance consultant is obligated under his license to:

1. Serve with objectivity and complete loyalty the interestsof his client; and

2. Render to his client information, counsel andservice which, to the best of the consultants knowledge, understanding andopinion, best serves the clients insurance needs and interests.

(Added to NRS by 1995, 1611)

NRS 683C.105 Submissionof location of business or change in location of business or residence;penalty. A licensee shall inform theCommissioner of all locations from which business is conducted and of anychange of business or residence address, in writing or by any other meansacceptable to the Commissioner, within 30 days after the change. If a licenseechanges his address without giving written notice and the Commissioner isunable to locate the licensee after making a diligent effort, the Commissionermay revoke the license without a hearing. The mailing of a letter by certifiedmail, return receipt requested, addressed to the licensee at his last mailingaddress appearing on the records of the Division, and the return of the letterundelivered, constitutes a diligent effort by the Commissioner.

(Added to NRS by 2003, 3297)

NRS 683C.110 Nonresidentlicensees: Service of process; promise to appear.

1. A nonresident who is licensed by this state as aninsurance consultant shall appoint the Commissioner, in writing, as hisattorney upon whom may be served all legal process issued in connection withany action or proceeding brought or pending in this state against or involvinghim and relating to transactions under his Nevada license. The appointment isirrevocable and remains in force so long as such an action or proceeding existsor may arise. Duplicate copies of process must be served upon the Commissioner,or other person in apparent charge of the Division during his absence,accompanied by payment of the fee for service of process. Promptly after anysuch service, the Commissioner shall forward a copy of the process by certifiedmail, return receipt requested, to the nonresident licensee at his business addressof most recent record with the Division. Process so served and the copy soforwarded constitutes personal service upon the licensee for all purposes.

2. Each such nonresident licensee shall also file withthe Commissioner his written promise to appear before the Commissioner pursuantto notice of hearing, order to show cause, or subpoena issued by theCommissioner and sent by certified mail to the licensee at his business addressof most recent record with the Division, and that if he fails to appear, hethereby consents to any subsequent suspension, revocation or refusal to renewhis license.

(Added to NRS by 2001, 2210)

NRS 683C.120 Disciplinaryaction by Commissioner.

1. The Commissioner may place an insurance consultanton probation, suspend his license for not more than 12 months, or revoke orrefuse to renew his license, or may impose an administrative fine or take anycombination of the foregoing actions, for one or more of the causes set forthin NRS 683A.451.

2. The provisions of NRS 683A.461 also apply to an insuranceconsultant.

(Added to NRS by 2001, 2210)

NRS 683C.130 Noticeand effect of suspension, limitation or revocation of license.

1. Upon suspension, limitation or revocation of thelicense of an insurance consultant, the Commissioner shall immediately notifythe licensee in person or by mail addressed to him at his most recent addressof record with the Division. Notice by mail is effective when mailed.

2. The Commissioner shall not again issue a licenseunder this chapter to any natural person whose license has been revoked untilat least 1 year after the revocation has become final, and thereafter not untilthe person again qualifies for it under this chapter. A person whose licensehas been revoked twice is not eligible for any license under this title.

3. If the license of a business organization issuspended, limited or revoked, no member, officer or director of theorganization may be licensed, or designated in a license to exercise itspowers, during the period of suspension or revocation, unless the Commissionerdetermines upon substantial evidence that the member, officer or director wasnot personally at fault and did not knowingly aid, abet, assist or acquiesce inthe matter for which the license was suspended or revoked.

(Added to NRS by 2001, 2210)