2005 Nevada Revised Statutes - Chapter 679B — Commissioner of Insurance

CHAPTER 679B - COMMISSIONER OF INSURANCE

GENERAL PROVISIONS

NRS 679B.020 Appointment;restrictions on other employment and certain political activities.

NRS 679B.030 Qualifications.

NRS 679B.050 Officialseal.

NRS 679B.060 Officespace.

NRS 679B.080 Designationof acting Commissioner; powers and duties of deputies; restrictions on otheremployment of deputies.

NRS 679B.090 Employmentof assistants and examiners; contracts for certain assistance.

NRS 679B.100 Prohibitedinterests of Commissioner, deputy or employee; penalty.

NRS 679B.110 Delegationof powers.

NRS 679B.115 Limitationon civil liability.

NRS 679B.120 Authorityof Commissioner: General powers and duties.

NRS 679B.122 Authorityof Commissioner: Cooperative or coordination agreements; confidentialdocuments.

NRS 679B.125 Observationof conduct of persons in insurance business; regulations.

NRS 679B.127 Counselingelderly persons concerning health insurance; regulations.

NRS 679B.130 Regulations:Adoption; penalties for violation.

NRS 679B.133 Regulations:Requirements regarding use of identification cards and devices to processclaims for prescription drugs and devices.

NRS 679B.135 Regulations:Protections to purchasers, prospective purchasers, holders and former holdersof policies.

NRS 679B.136 Regulations:Use of electronic signatures and records; electronic filing of forms andpayment of fees.

NRS 679B.137 Regulations:Method for maintaining records.

NRS 679B.138 Regulations:Use of uniform claim forms and billing codes; transfer of electronic data.

NRS 679B.139 Regulations:Plans for providing welfare benefits to employees of more than one employer.

NRS 679B.140 Ordersand notices.

NRS 679B.142 Ordersprohibiting insurer from transacting insurance; Commissioner to deliver toSecretary of State; duty of Secretary of State upon receipt.

NRS 679B.144 Commissionerrequired to collect information regarding closed claims for medicalmalpractice; submission to Legislature; regulations.

NRS 679B.145 Publication,maintenance and distribution of guide to rates for policies of insurance formotor vehicles.

NRS 679B.150 Measuresto enhance public understanding of coverages and to encourage competition;standards for policies; criteria to determine suitability of contracts andsales practices.

NRS 679B.152 Reviewof fees for medical or dental care determined to be usual and customary; planslimiting selection of dentist.

NRS 679B.159 Reportof violation to Commissioner; confidentiality of report.

NRS 679B.160 Advisorycouncils.

NRS 679B.170 Privateombudsmen.

NRS 679B.180 Enforcement.

NRS 679B.185 Administrativefine for willfully engaging in unauthorized transaction of insurance:Limitation; enforcement.

NRS 679B.187 Personwho invests or handles money or assets of insurer designated fiduciary; penaltyfor engaging in prohibited conduct.

NRS 679B.190 Maintenance,inspection and destruction of records; confidentiality and use of documents andother information.

NRS 679B.200 Evidentiaryeffect of Commissioners certificates and certified copies of documents.

NRS 679B.220 Interstateand international cooperation.

NRS 679B.225 Inspectionof insurance policies.

NRS 679B.227 Statuteof limitations for commencing proceedings to collect premium tax.

NRS 679B.228 Feefor returned check or other dishonored payment.

EXAMINATIONS

NRS 679B.230 Examinationof insurers.

NRS 679B.240 Examinationof holding companies, subsidiaries, agents, promoters, external revieworganizations and others.

NRS 679B.250 Conductof examination; access to records; corrections; penalty.

NRS 679B.260 Appraisalof asset.

NRS 679B.270 Reportof examination: Contents; evidentiary effect in certain proceedings.

NRS 679B.280 Reportof examination: Right of examinee to review and respond to report; Commissionerto issue order regarding action to be taken on report.

NRS 679B.282 Reportof examination: Hearing; filing; distribution.

NRS 679B.285 Reportof examination: Confidentiality.

NRS 679B.287 Limitationson actions and liability for communicating or delivering information or datapursuant to examination; Commissioner and his representatives and examinersentitled to attorneys fees and costs in certain tort actions.

NRS 679B.290 Expenseof examination; billing for examination; regulations.

NRS 679B.300 InsuranceExamination Fund.

INSURANCE RECOVERY ACCOUNT

NRS 679B.305 Creation;deposits; use; regulations; limit of liability.

HEARINGS

NRS 679B.310 Administrativeprocedures; hearings in general.

NRS 679B.320 Noticeof hearing.

NRS 679B.330 Location;presiding officer; evidence; parties; record of proceedings and evidence.

NRS 679B.340 Witnessesand evidence; penalties.

NRS 679B.350 Testimonycompelled; immunity from prosecution.

NRS 679B.360 Orderon hearing.

NRS 679B.370 Appealfrom Commissioner.

ADMINISTRATIVE FINANCES

NRS 679B.380 Financingof administration.

STABILIZATION OF INSURANCE COSTS

NRS 679B.400 Legislativefindings and declarations; purposes.

NRS 679B.410 Dutiesof Commissioner.

NRS 679B.420 Employmentof technical and professional consultants.

NRS 679B.430 Commissionermay issue orders for compliance with provisions; regulation of recording andreporting of information by insurers; insurer to report information and payfee.

NRS 679B.440 Contentsof reports.

NRS 679B.450 Feefor administration and enforcement; cost of report; schedule of fees.

NRS 679B.460 Penaltiesfor violation of or noncompliance with provisions or regulations.

PROTECTIONS FOR CONSUMERS OF HEALTH CARE

NRS 679B.510 Definitions.

NRS 679B.520 Healthcare plan defined.

NRS 679B.530 Insureddefined.

NRS 679B.540 Insurerdefined.

NRS 679B.550 Dutiesof Division.

NRS 679B.560 Insurerrequired to provide information to insured.

INVESTIGATIONS

NRS 679B.600 Definitions.

NRS 679B.610 FraudControl Unit defined.

NRS 679B.620 Insurancefraud defined.

NRS 679B.630 Programto investigate acts or practices of fraud.

NRS 679B.640 Commissionerrequired to investigate fraudulent claims for benefits.

NRS 679B.650 Investigativeauthority of Commissioner.

NRS 679B.660 Cooperationbetween Commissioner, Attorney General and investigative and law enforcementagencies.

NRS 679B.670 Liabilityfor disclosure of information on fraudulent claim or suspicious fire.

NRS 679B.680 Effectof certain powers and duties of Attorney General and Fraud Control Unit onjurisdiction of Commissioner.

NRS 679B.690 Confidentialityof records and other information related to investigation by Attorney Generaland Fraud Control Unit.

NRS 679B.700 SpecialInvestigative Account.

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GENERAL PROVISIONS

NRS 679B.020 Appointment;restrictions on other employment and certain political activities.

1. The chief officer of the Division is theCommissioner appointed as provided in NRS232.820.

2. The Commissioner shall not:

(a) Except as otherwise provided in NRS 284.143, engage in any other occupation,business or activity that is in any way inconsistent with the performance of hisduties as Commissioner;

(b) Hold any other public office;

(c) Directly or indirectly solicit or receive, or be inany manner concerned with soliciting or receiving, any assessment,subscription, contribution or service, whether voluntary or involuntary, forany political purpose whatever, from any person within or without the State; or

(d) Act as an officer or manager for any candidate,political party or committee organized to promote the candidacy or any personfor any public office.

(Added to NRS by 1971, 1561; A 1991, 1614; 1993,1897; 1997, 621)

NRS 679B.030 Qualifications.

1. The Commissioner shall have had at least 2 yearsresponsible experience in the field of insurance, including, but not limitedto, one or more of the following endeavors: Administration, sales, law,counseling and education.

2. He shall not be a stockholder in or directly orindirectly connected with the management or affairs of any insurance company orinsurance brokerage or agency.

(Added to NRS by 1971, 1931)

NRS 679B.050 Officialseal. The Division shall have an officialseal, in form and design as designated by the Commissioner and on file in theOffice of the Secretary of State.

(Added to NRS by 1971, 1561; A 1991, 1614; 1993,1897)

NRS 679B.060 Officespace. The Buildings and Grounds Division ofthe Department of Administration shall furnish the Division with suitableoffice space for the performance of its duties.

(Added to NRS by 1971, 1561; A 1973, 1478; 1991,1614; 1993, 1897; 1995, 579)

NRS 679B.080 Designationof acting Commissioner; powers and duties of deputies; restrictions on otheremployment of deputies.

1. The Director of the Department of Business andIndustry shall designate an acting Commissioner when the Office of Commissioneris vacant or when the Commissioner is unable to perform his duties because ofmental or physical disability.

2. The Commissioner shall designate one of hisdeputies to serve as acting Commissioner in the Commissioners absence.

3. The deputies have such powers and duties as theCommissioner delegates and assigns to them.

4. Except as otherwise provided in NRS 284.143, the deputies shall devotetheir full time to the Division.

(Added to NRS by 1971, 1561; A 1983, 1460; 1985, 447;1991, 1614; 1993, 1897; 1995, 2318)

NRS 679B.090 Employmentof assistants and examiners; contracts for certain assistance.

1. The Commissioner may employ such other technical,actuarial, rating, clerical and other assistants and examiners as he mayreasonably require for execution of his duties, each of whom must be in theclassified service of the State.

2. The Commissioner may contract for and procureservices of examiners and other or additional specialized technical orprofessional assistance, as independent contractors or for a fee, as he mayreasonably require. None of the persons providing those services or assistanceon contract or for a fee may be in the classified service of the State.

3. The Commissioner may contract with a person outsidethe Division for administering examinations, processing applications forlicenses and collecting fees.

4. The Commissioner may adopt regulations to carry outthe provisions of subsections 2 and 3.

(Added to NRS by 1971, 1562; A 1975, 352; 1983, 1126;1985, 447, 1367; 2001,2180)

NRS 679B.100 Prohibitedinterests of Commissioner, deputy or employee; penalty.

1. The Commissioner, his deputy or any examiner,assistant or employee of the Division shall not be connected with themanagement or be a stockholder, or be otherwise financially interested in anyinsurer, insurance holding company or its parent, subsidiaries or affiliates,insurance agency or broker, insurance trade association, premium financecompany, adjuster or other licensee under this Code, or be pecuniarilyinterested in any insurance transaction except as a policyholder or claimant undera policy, except that as to matters wherein a conflict of interests does notexist on the part of any such person, the Commissioner may employ or retainfrom time to time insurance actuaries, examiners, accountants, attorneys orother technicians who are independently practicing their professions eventhough from time to time similarly employed or retained by insurers or others.

2. Subsection 1 does not prohibit:

(a) Receipt by any such person of fully vestedcommissions or fully vested retirement benefits to which he is entitled byreason of services performed before becoming Commissioner or before employmentby the Commissioner;

(b) Investment in shares of regulated diversifiedinvestment companies; or

(c) Mortgage loans made under customary terms and inthe ordinary course of business.

3. Any person knowingly violating this section isguilty of a misdemeanor.

(Added to NRS by 1971, 1562; A 1971, 1932; 1991,1614; 1993, 1897)

NRS 679B.110 Delegationof powers.

1. The Commissioner may delegate to his deputy,examiner or an employee of the Division the exercise or discharge in theCommissioners name of any power, duty or function, whether ministerial,discretionary or of whatever character, vested in or imposed upon theCommissioner.

2. The official act of any such person acting in theCommissioners name and by his authority shall be deemed an official act of theCommissioner.

(Added to NRS by 1971, 1563; A 1991, 1615; 1993,1898)

NRS 679B.115 Limitationon civil liability.

1. The Commissioner and the employees of the Division,in the absence of fraud or bad faith, are not subject to civil liability forpublishing any report or bulletin related to the official activities of theCommissioner or the Division.

2. This section does not abrogate or modify anyprivilege or immunity which applies to the Commissioner or the employees of theDivision.

(Added to NRS by 1985, 1063; A 1991, 1615; 1993,1898)

NRS 679B.120 Authority of Commissioner: General powers and duties. TheCommissioner shall:

1. Organize and manage the Division, and direct andsupervise all its activities;

2. Execute the duties imposed upon him by this Code;

3. Enforce the provisions of this Code;

4. Have the powers and authority expressly conferredupon him by or reasonably implied from the provisions of this Code;

5. Conduct such examinations and investigations ofinsurance matters, in addition to examinations and investigations expresslyauthorized, as he may deem proper upon reasonable and probable cause todetermine whether any person has violated any provision of this Code or tosecure information useful in the lawful enforcement or administration of anysuch provision; and

6. Have such additional powers and duties as may beprovided by other laws of this State.

(Added to NRS by 1971, 1563; A 1979, 630; 1991, 1615;1993, 1898)

NRS 679B.122 Authorityof Commissioner: Cooperative or coordination agreements; confidential documents.

1. In addition to the authority conferred upon himpursuant to NRS 679B.120, theCommissioner may:

(a) Enter into and comply with any cooperative orcoordination agreement with any governmental entity within or outside thisstate relating to the regulation and administration of insurance and personswho are materially involved in the business of insurance;

(b) Share any document, material or other information,including any document, material or information that is confidential orprivileged, with any state, federal or international regulatory, lawenforcement or legislative agency, and the National Association of InsuranceCommissioners and any of its affiliates or subsidiaries, if the recipient ofthe document, material or other information agrees:

(1) To ensure that the document, material orother information remains confidential and privileged; and

(2) To submit to the jurisdiction of the courtsof this state if the recipient violates a provision of subparagraph (1); and

(c) Receive any document, material or other informationfrom any agency, association, affiliate or subsidiary specified in paragraph(b). The Commissioner shall ensure that any document, material or informationreceived pursuant to this paragraph remains confidential if the document,material or information is provided to the Commissioner with a notice or theunderstanding that it is confidential or privileged under the laws of thejurisdiction from which it is submitted.

2. The sharing or receipt of any document, material orother information by the Commissioner pursuant to this section does not waiveany applicable privilege or claim of confidentiality in the document, materialor other information.

(Added to NRS by 2003, 3275)

NRS 679B.125 Observationof conduct of persons in insurance business; regulations. The Commissioner may observe the conduct of eachauthorized insurer and other persons who have a direct material involvementwith the insurance business to ensure that:

1. An unqualified, disqualified or unsuitable personis not involved in insurance; and

2. The insurance business is not conducted in anunsuitable manner.

The Commissionershall, by regulation, define the terms unsuitable person and unsuitablemanner for use in carrying out the provisions of this section and NRS 679B.310 and 680A.200.

(Added to NRS by 1991, 807)

NRS 679B.127 Counselingelderly persons concerning health insurance; regulations.

1. The Commissioner may participate in a program whichprovides counseling to elderly persons concerning health insurance, including aprogram established pursuant to 42 U.S.C. 1395b-4.

2. The Commissioner may adopt regulations necessary tocarry out the provisions of this section.

(Added to NRS by 1993, 2381)

NRS 679B.130 Regulations:Adoption; penalties for violation.

1. The Commissioner may adopt reasonable regulations:

(a) For the administration of any provision of thisCode, NRS 287.04335 or chapters 616A to 617,inclusive, of NRS; or

(b) As required to ensure compliance by theCommissioner with any federal law or regulation relating to insurance.

2. A person who willfully violates any regulation ofthe Commissioner is subject to such suspension or revocation of a certificateof authority or license, or administrative fine in lieu of such suspension orrevocation, as may be applicable under this Code or chapter 616A, 616B,616C, 616Dor 617 of NRS for violation of the provisionto which the regulation relates. No penalty applies to any act done or omittedin good faith in conformity with any such regulation, notwithstanding that theregulation may, after the act or omission, be amended, rescinded or determinedby a judicial or other authority to be invalid for any reason.

(Added to NRS by 1971, 1563; A 1977, 97; 1995, 2048; 2001, 2938; 2003, 3276)

NRS 679B.133 Regulations:Requirements regarding use of identification cards and devices to processclaims for prescription drugs and devices.

1. If a health care plan that provides coverage forprescription drugs or devices issues a single identification card or otherdevice to an insured that contains information solely needed to process a claimfor a prescription drug or device, the card or other device must conform to therequirements of the National Council for Prescription Drug Programs set forthin the NCPDP Pharmacy ID Card Implementation Guide that are consistentwith applicable regulations adopted pursuant to the Health InsurancePortability and Accountability Act of 1996, Public Law 104-191, as they may beamended from time to time, or must contain at least the following elements:

(a) The name or logo of the administrator issuing thecard or device.

(b) The insureds identification number, which must bedisplayed on the front side of the card or device.

(c) The name and address of the administrator to whichprescription claims that are not processed electronically or correspondenceshould be sent.

(d) The telephone number that providers may call forassistance concerning pharmacy benefits.

(e) Complete information concerning routing ofelectronic transactions, including, without limitation, the internationalidentification number and, if required by the administrator to process theclaim, the processing control number and group number.

Theinformation on the card or device must be arranged in a manner that correspondsboth in content and form to the content and form required by the plan toprocess the claim.

2. The Commissioner shall adopt such regulations asare necessary to carry out the provisions of this section.

3. As used in this section:

(a) Administrator has the meaning ascribed to it in NRS 683A.025, and includes a pharmacy benefitsmanager.

(b) Health care plan has the meaning ascribed to itin NRS 679B.520.

(Added to NRS by 2001, 838)

NRS 679B.135 Regulations:Protections to purchasers, prospective purchasers, holders and former holdersof policies. The Commissioner may adoptregulations which provide in substance the same protections to purchasers,prospective purchasers, holders and former holders of policies and otherevidence of insurance as are provided in the Insurance Information and PrivacyProtection Model Act, as amended in December 1980, of the National Associationof Insurance Commissioners.

(Added to NRS by 1981, 1860)

NRS 679B.136 Regulations:Use of electronic signatures and records; electronic filing of forms andpayment of fees.

1. The Commissioner shall adopt regulations governing:

(a) The use of electronic signatures, and theacceptance and transmission of electronic records, in transactions relating toinsurance; and

(b) The electronic filing of forms and payment of fees,and the storage and reproduction of records, filed with the Division.

2. As used in this section:

(a) Electronic means relating to technology havingelectrical, digital, magnetic, wireless, optical, electromagnetic or similarcapabilities.

(b) Electronic record means a record created,generated, sent, communicated, received or stored by electronic means.

(c) Electronic signature means an electronic sound,symbol or process attached to or logically associated with a record andexecuted or adopted by a person with the intent to sign the record.

(d) Record means information that is inscribed on atangible medium or that is stored in an electronic or other medium and isretrievable in perceivable form.

(e) Transaction means an action or set of actionsoccurring between two or more persons relating to the transaction of business,commercial or governmental affairs.

(Added to NRS by 2001, 2180)

NRS 679B.137 Regulations:Method for maintaining records. The Commissionermay adopt regulations which prescribe the method for maintaining the records ofinsurers and the period for which the records must be maintained.

(Added to NRS by 1985, 1063)

NRS 679B.138 Regulations:Use of uniform claim forms and billing codes; transfer of electronic data.

1. The Commissioner shall adopt regulations whichrequire the use of uniform claim forms and billing codes and the ability tomake compatible electronic data transfers for all insurers and administratorsauthorized to conduct business in this state relating to a health care plan orhealth insurance or providing or arranging for the provision of health careservices, including, without limitation, an insurer that issues a policy ofhealth insurance, an insurer that issues a policy of group health insurance, acarrier serving small employers, a fraternal benefit society, a hospital ormedical service corporation, a health maintenance organization, a plan fordental care and a prepaid limited health service organization. The regulationsmust include, without limitation, a uniform billing format to be used for thesubmission of claims to such insurers and administrators.

2. As used in this section:

(a) Administrator has the meaning ascribed to it in NRS 683A.025.

(b) Health care plan means a policy, contract,certificate or agreement offered or issued by an insurer to provide, deliver,arrange for, pay for or reimburse any of the costs of health care services.

(Added to NRS by 1999, 3042; A 2001, 2728)

NRS 679B.139 Regulations:Plans for providing welfare benefits to employees of more than one employer.

1. The Commissioner may adopt regulations governingplans for providing welfare benefits to employees of more than one employer.The regulations must provide standards requiring the maintenance of specifiedlevels of reserves and specified levels of contributions which any such plan,or any trust established under such a plan, must meet. If a plan does not meetthe standards, no benefits may be paid under the plan.

2. The Commissioner may conduct an examination of anyinsurer which administers a plan for providing welfare benefits to employees ofmore than one employer to determine whether the insurer is complying with theCommissioners regulations. The cost of the examination must be borne by theinsurer in the manner provided in NRS679B.290. If the Commissioner determines that the insurer is not complyingwith the Commissioners regulations, the Commissioner shall require the insurernot to pay benefits under the plan.

3. As used in this section, the term plan forproviding welfare benefits for employees of more than one employer is intendedto be equivalent to the term employee welfare benefit plan which is a multipleemployer welfare arrangement as used in federal statutes and regulations.

(Added to NRS by 1985, 606)

NRS 679B.140 Ordersand notices.

1. Orders and notices of the Commissioner areeffective only when in writing signed by him or by his authority.

2. Except as otherwise expressly provided by law as toparticular orders, every order of the Commissioner must state its effectivedate, and concisely state:

(a) Its intent or purpose;

(b) The grounds on which it is based; and

(c) The provisions of this Code pursuant to whichaction is taken or proposed to be taken but failure to so designate aparticular provision does not deprive the Commissioner of the right to relythereon.

3. Except as otherwise provided as to particularprocedures, an order or notice may be given by delivery to the person to be orderedor notified, or by mailing it, postage prepaid, addressed to that person at hisprincipal place of business or residence as last of record in the Division. Theorder or notice shall be deemed to have been given when deposited with theUnited States Postal Service, and of which the affidavit of the person who somailed the order or notice is prima facie evidence.

(Added to NRS by 1971, 1564; A 1987, 734; 1991, 1615;1993, 1898)

NRS 679B.142 Ordersprohibiting insurer from transacting insurance; Commissioner to deliver toSecretary of State; duty of Secretary of State upon receipt.

1. The Commissioner shall deliver to the Secretary ofState a copy of an order of the Commissioner or of the district courtprohibiting an insurer from transacting insurance in this state as acorporation, limited-liability company, limited partnership orlimited-liability partnership.

2. Upon receiving the order, the Secretary of Stateshall nullify the charter of the corporation or limited-liability company orthe certificate of the limited partnership or limited-liability partnership.

3. The Secretary of State shall not accept for filinga document with the same name as a corporation, limited-liability company,limited partnership or limited-liability partnership whose charter orcertificate has been nullified.

(Added to NRS by 1997, 3016)

NRS 679B.144 Commissionerrequired to collect information regarding closed claims for medicalmalpractice; submission to Legislature; regulations.

1. The Commissioner shall collect and maintain theinformation provided by insurers pursuant to NRS 690B.260 regarding each closed claimfor medical malpractice filed against a person who is covered by a policy ofinsurance for medical malpractice in this state, including, without limitation:

(a) The cause of the loss;

(b) A description of the injury for which the claim wasfiled;

(c) The sex of the injured person;

(d) The names and number of defendants in each claim;

(e) The type of coverage provided;

(f) The amount of the initial, highest and lastreserves of an insurer for each claim before final resolution of the claim bysettlement or trial;

(g) The disposition of each claim;

(h) The amount of money awarded through settlement orby verdict;

(i) The sum of money paid to each claimant and thesource of that sum;

(j) Any sum of money allocated to expenses for theadjustment of losses; and

(k) Any other information the Commissioner determinesto be necessary or appropriate.

2. The Commissioner shall submit with his report tothe Legislature required pursuant to NRS679B.410 a summary of the information collected pursuant to this section.

3. The Commissioner shall adopt regulations necessaryto carry out the provisions of this section.

4. As used in this section, policy of insurance formedical malpractice means a policy that provides coverage for any medicalprofessional liability of the insured under the policy.

(Added to NRS by 1997, 507; A 2003, 3276)

NRS 679B.145 Publication,maintenance and distribution of guide to rates for policies of insurance formotor vehicles. The Commissioner shall:

1. Publish a guide to rates for policies of insurancefor motor vehicles which contains:

(a) An explanation of the various types of coverageavailable.

(b) A list of all insurers which offer insurance formotor vehicles in Nevada.

(c) Comparisons of the cost for each type of insurancewhen purchased from the five insurers who offer it at the highest price and thefive insurers who offer it at the lowest price, using one or more hypotheticalexamples developed by him.

(d) Any other information which he deems appropriateand useful to the public.

2. Maintain the guide by republishing it with revisedinformation at least once each year.

3. Distribute the guide and the information containedin the guide in any manner he deems appropriate.

(Added to NRS by 1989, 577)

NRS 679B.150 Measuresto enhance public understanding of coverages and to encourage competition;standards for policies; criteria to determine suitability of contracts andsales practices.

1. The Commissioner may:

(a) Take measures to enhance the public understandingof insurance coverages purchased by consumers and encourage price competitionamong insurers and a public understanding of the standards promulgated underparagraph (b).

(b) Develop, promulgate and revise as he deemsappropriate, standards in each of the several areas of insurance appropriate tobe applied to policies sold in the State of Nevada. The standards must seek toensure that policies are not unjust, unfair, inequitable, unfairlydiscriminatory, misleading, deceptive, obscure or encourage misrepresentationor misunderstanding of the contract.

(c) Develop criteria to determine the suitability ofinsurance contracts and the practices used in the sale of insurance.

2. This section does not prohibit an insurer fromoffering policies encompassing standards more favorable to the insured thanthose promulgated under this section.

(Added to NRS by 1971, 1564; A 1971, 1932; 2001, 2180)

NRS 679B.152 Reviewof fees for medical or dental care determined to be usual and customary; planslimiting selection of dentist.

1. Every insurer or organization for dental care whichpays claims on the basis of fees for medical or dental care which are usualand customary shall submit to the Commissioner a complete description of themethod it uses to determine those fees. This information must be keptconfidential by the Commissioner. The fees determined by the insurer ororganization to be the usual and customary fees for that care are subject tothe approval of the Commissioner as being the usual and customary fees in thatlocality. The provisions of this subsection apply to medical or dental careprovided to a claimant under any contract of insurance.

2. Any contract for group, blanket or individualhealth insurance and any contract issued by a nonprofit hospital, medical ordental service corporation or organization for dental care, which provides aplan for dental care to its insureds or members which limits their choice of adentist, under the plan to those in a preselected group, must offer itsinsureds or members the option of selecting a plan of benefits which does notrestrict the choice of a dentist. The selection of that option does not entitlethe insured or member to any increase in contributions by his employer or otherorganization toward the premium or cost of the optional plan over thatcontributed under the restricted plan.

(Added to NRS by 1983, 2028; A 1985, 1148; 2001, 2181)

NRS 679B.159 Reportof violation to Commissioner; confidentiality of report.

1. Every insurer, agent, solicitor, broker,administrator or other person who has knowledge of a violation of any provisionof this Code shall promptly report the facts and circumstances pertaining tothe violation to the Commissioner.

2. If a person who submits information pursuant tosubsection 1 so requests, the Commissioner shall keep the persons name and theinformation confidential.

(Added to NRS by 1985, 1063)

NRS 679B.160 Advisorycouncils.

1. The Commissioner may create advisory councils andcommittees to assist him in dealing with regulatory problems. He may appointmembers and may provide by rule for the creation, governance, duties andtermination of any council or committee he establishes.

2. The Commissioner may create at least one advisorycouncil to represent the consumer interest in insurance, to be made up ofmembers with no substantial interest in any aspect of the insurance industry,except as insureds.

(Added to NRS by 1971, 1565)

NRS 679B.170 Privateombudsmen. The Commissioner may by rule orregulation require any or all insurers to designate a special complaintrepresentative, who may be an officer, employee or agent, to investigate andreport on complaints received from insureds or other persons. In order to achievesome degree of independence and authority in such representatives, theCommissioner may require that they report directly to the board of directors orother specified office, or that they have additional authority or status.

(Added to NRS by 1971, 1565; A 1971, 1933)

NRS 679B.180 Enforcement.

1. The Commissioner may invoke the aid of the courtsthrough injunction or other proper process, mandatory or otherwise, to enjoinany existing or threatened violation of any provision of this Code, or toenforce any proper order made by him or action taken by him.

2. If the Commissioner has reason to believe that anyperson has violated any provision of this Code, or other law applicable toinsurance operations, for which criminal prosecution in his opinion would be inorder, he shall give the information relative thereto to the appropriatedistrict attorney or to the Attorney General. The district attorney or AttorneyGeneral shall promptly institute such action or proceedings against such personas in his opinion the information may require or justify.

3. Except as otherwise provided in this Code, theAttorney General shall act as legal counsel to the Division and theCommissioner in all matters pertaining to the administration and enforcement ofthis Code.

(Added to NRS by 1971, 1565; A 1975, 1286; 1983,1385; 1991, 1616; 1993, 1899; 1995, 2697)

NRS 679B.185 Administrativefine for willfully engaging in unauthorized transaction of insurance:Limitation; enforcement.

1. If any person willfully engages in the unauthorizedtransaction of insurance, the Commissioner may impose an administrative fine ofnot more than $10,000 for each act or violation.

2. An administrative fine imposed pursuant to thissection is in addition to any other administrative fine or penalty provided forin this title, except a fine or penalty imposed pursuant to NRS 686A.183, 686A.187, 696B.500 or 696B.520.

3. If the administrative fine is not paid when due,the fine must be recovered in a civil action brought by the Attorney General onbehalf of the Commissioner.

4. Except as otherwise provided by specific statute,the Commissioner shall commence a proceeding to impose an administrative finepursuant to subsection 1 not later than 5 years after the date on which the actor violation occurred.

(Added to NRS by 1993, 2381; A 1997, 3017)

NRS 679B.187 Personwho invests or handles money or assets of insurer designated fiduciary; penaltyfor engaging in prohibited conduct.

1. An officer, director, employee or agent of adomestic or foreign insurer who has the duty or power of investing or handlingthe money or assets of the insurer located in this state is a fiduciary of thatmoney or those assets. Such an officer, director, employee or agent shall notappropriate, divert or convert to his own use such money or assets.

2. A person who violates subsection 1 is guilty ofembezzlement and, in addition to any other penalty provided by law, shall bepunished in accordance with NRS 205.300.

(Added to NRS by 1997, 3016)

NRS 679B.190 Maintenance,inspection and destruction of records; confidentiality and use of documents andother information.

1. TheCommissioner shall carefully preserve in the Division and in permanent form allpapers and records relating to the business and transactions of the Divisionand shall hand them over to his successor in office.

2. Except asotherwise provided in subsections 3 and 5 to 9, inclusive, other provisions ofthis Code and NRS 616B.015, the papersand records must be open to public inspection.

3. Any recordsor information in the possession of the Division related to an investigationconducted by the Commissioner is confidential unless:

(a) TheCommissioner releases, in the manner that he deems appropriate, all or any partof the records or information for public inspection after determining that therelease of the records or information:

(1) Willnot harm his investigation or the person who is being investigated; or

(2) Servesthe interests of a policyholder, the shareholders of the insurer or the public;or

(b) A courtorders the release of the records or information after determining that theproduction of the records or information will not damage any investigationbeing conducted by the Commissioner.

4. TheCommissioner may destroy unneeded or obsolete records and filings in theDivision in accordance with provisions and procedures applicable in general toadministrative agencies of this State.

5. TheCommissioner may classify as confidential:

(a) Specifiedrecords and information obtained from a governmental agency; and

(b) Documentsobtained or received from other sources upon the express condition that theyremain confidential.

6. All information and documents in the possession ofthe Division or any of its employees which are related to cases or mattersunder investigation by the Commissioner or his staff are confidential for theperiod of the investigation and may not be made public unless the Commissionerfinds the existence of an imminent threat of harm to the safety or welfare ofthe policyholder, shareholders or the public and determines that the interestsof the policyholder, shareholders or the public will be served by publicationthereof, in which event he may make a record public or publish all or any partof the record in any manner he deems appropriate.

7. The Commissioner may classify as confidential therecords of a consumer or information relating to a consumer to protect thehealth, welfare or safety of the consumer.

8. In performing his duties, the Commissioner may:

(a) Share documents, materials or other information,including any documents, materials or information classified as confidential,with other state, federal and international regulatory or law enforcementagencies or with the National Association of Insurance Commissioners and itsaffiliates and subsidiaries if the recipient agrees to maintain theconfidentiality and privileged status of the documents, materials or otherinformation.

(b) May receive documents, materials or otherinformation, including any documents, materials or information otherwiseconfidential and privileged, from other state, federal and internationalregulatory or law enforcement agencies or from the National Association ofInsurance Commissioners and its affiliates and subsidiaries, and shall maintainas confidential or privileged any document, material or information receivedwith notice or the understanding that it is confidential or privileged underthe law of the jurisdiction from which it was received.

(c) Enter into agreements, consistent with thissubsection, governing the sharing and use of information.

9. No waiver of confidentiality or privilege withrespect to any document, material or information occurs as a result ofdisclosure to the Commissioner under this section or of sharing as authorizedunder this chapter.

(Added to NRS by 1971, 1565; A 1983, 1386; 1991,1617; 1993, 1900; 1995, 1611, 2165, 2698; 1997, 660, 661; 1999, 2783; 2001, 2181)

NRS 679B.200 Evidentiaryeffect of Commissioners certificates and certified copies of documents.

1. All certificates issued by the Commissioner inaccordance with the provisions of this Code and all copies of documents filedin his office in accordance with the provisions of this Code when certified byhim must be taken and received in all courts and public offices and by officialbodies of this state as prima facie evidence of the facts therein stated.

2. A certificate by the Commissioner under the seal ofthe Division as to facts relating to insurers which would not appear from acertified copy of any of the documents or certificates specified in subsection1 must be taken and received in all courts and public offices and by officialbodies as prima facie evidence of the facts therein stated.

(Added to NRS by 1971, 1566; A 1991, 1617; 1993,1900)

NRS 679B.220 Interstateand international cooperation.

1. The Commissioner shall communicate on request ofthe regulatory officer for insurance in any state, province or country anyinformation which it is his duty by law to ascertain respecting authorizedinsurers.

2. The Commissioner may:

(a) Be a member of the National Association ofInsurance Commissioners or any successor organization;

(b) Exchange with the association or any successororganization any information, not otherwise confidential, relating toapplicants and licensees under this title;

(c) Communicate with the association or any successororganization concerning the business of insurance generally;

(d) Enter into compacts with the regulatory officers inother states to further the uniform treatment of insurers throughout the UnitedStates; and

(e) Participate in and support other cooperativeactivities of public officers having supervision of the business of insurance.

(Added to NRS by 1971, 1566; A 1987, 594; 2001, 2182)

NRS 679B.225 Inspectionof insurance policies. The Commissioner, atany time, may inspect any insurance policy covering any risk in this state.Every policyholder, upon request, shall produce any insurance policy in hispossession or under his control for inspection by the Commissioner.

(Added to NRS by 1977, 454)

NRS 679B.227 Statuteof limitations for commencing proceedings to collect premium tax. The Commissioner has 7 years in which to begin proceedingsto collect the premium tax and associated penalties and fines imposed pursuantto NRS 680B.027, 680B.039, 680B.040, 685A.180, 685A.190 and 685B.035, where the tax has beenunreported or has been concealed by error or omission, and where the amount ofthe tax is known or through reasonable diligence should have been known.

(Added to NRS by 1995, 1611)

NRS 679B.228 Feefor returned check or other dishonored payment. TheDivision shall charge a person a fee in the amount established by the StateController pursuant to NRS 353C.115for each check or other method of payment that is returned to the Division orotherwise dishonored because the person had insufficient money or credit withthe drawee or financial institution to pay the check or other method of paymentor because the person stopped payment on the check or other method of payment.

(Added to NRS by 1997, 3016; A 2001, 1880; 2003, 20thSpecial Session, 228; 2005, 592)

EXAMINATIONS

NRS 679B.230 Examinationof insurers.

1. For the purpose of determining its financialcondition, fulfillment of its contractual obligations and compliance with law,the Commissioner shall, as often as he deems advisable, examine the affairs,transactions, accounts, records and assets of each authorized insurer, and ofany person as to any matter relevant to the financial affairs of the insurer orto the examination. Except as otherwise expressly provided in this title, heshall so examine each authorized insurer not less frequently than every 5years. Examination of an alien insurer must be limited to its insurance transactions,assets, trust deposits and affairs in the United States, except as otherwiserequired by the Commissioner.

2. The Commissioner shall in like manner examine eachinsurer applying for an initial certificate of authority to transact insurancein this state.

3. In lieu of an examination under this chapter, theCommissioner may accept a report of the examination of a foreign or alieninsurer prepared by the Division for a foreign insurers state of domicile oran alien insurers state of entry into the United States.

4. As far as practical the examination of a foreign oralien insurer must be made in cooperation with the insurance supervisoryofficers of other states in which the insurer transacts business.

(Added to NRS by 1971, 1567; A 1995, 1750)

NRS 679B.240 Examinationof holding companies, subsidiaries, agents, promoters, external revieworganizations and others. To ascertaincompliance with law, or relationships and transactions between any person andany insurer or proposed insurer, the Commissioner may, as often as he deemsadvisable, examine the accounts, records, documents and transactions relatingto such compliance or relationships of:

1. Any insurance agent, solicitor, broker, surpluslines broker, general agent, adjuster, insurer representative, bail agent,motor club agent or any other licensee or any other person the Commissioner hasreason to believe may be acting as or holding himself out as any of theforegoing.

2. Any person having a contract under which he enjoysin fact the exclusive or dominant right to manage or control an insurer.

3. Any insurance holding company or other personholding the shares of voting stock or the proxies of policyholders of adomestic insurer, to control the management thereof, as voting trustee orotherwise.

4. Any subsidiary of the insurer.

5. Any person engaged in this state in, or proposingto be engaged in this state in, or holding himself out in this state as soengaging or proposing, or in this state assisting in, the promotion, formationor financing of an insurer or insurance holding corporation, or corporation orother group to finance an insurer or the production of its business.

6. Any external review organization, as defined in NRS 695G.018.

(Added to NRS by 1971, 1567; A 1983, 1102; 1997,3374; 2003, 3277)

NRS 679B.250 Conductof examination; access to records; corrections; penalty.

1. When the Commissioner determines to examine theaffairs of any person, he shall designate one or more examiners and instructthem as to the scope of the examination. The examiner shall, upon demand,exhibit his official credentials to the person under examination.

2. The Commissioner shall conduct each examination inan expeditious, fair and impartial manner.

3. Upon any such examination the Commissioner, or theexaminer if specifically so authorized in writing by the Commissioner, mayadminister oaths, and examine under oath any person as to any matter relevantto the affairs under examination or relevant to the examination.

4. Every person being examined, its officers,attorneys, employees, agents and representatives shall make freely available tothe Commissioner or his examiners the accounts, records, documents, files,information, assets and matters of the person examined in his possession orcontrol relating to the subject of the examination and shall facilitate theexamination.

5. If the Commissioner or examiner finds any accountsor records to be inadequate, or inadequately kept or posted, he may employexperts to reconstruct, rewrite, post or balance them at the expense of theperson being examined if that person has failed to maintain, complete orcorrect the records or accounting after the Commissioner or examiner has givenhim written notice and a reasonable opportunity to do so.

6. Neither the Commissioner nor any examiner mayremove any record, account, document, file or other property of the personbeing examined from the offices or place of the person examined except with hiswritten consent before removal or pursuant to an order of court duly obtained.This provision does not affect the making and removal of copies or abstracts ofany such record, account, document or file.

7. Any person who refuses without just cause to beexamined under oath or who willfully obstructs or interferes with the examinersin the exercise of their authority pursuant to this section is guilty of amisdemeanor.

8. This chapter does not limit the Commissionersauthority:

(a) To terminate or suspend an examination in order topursue other legal or regulatory action.

(b) During any hearing or any legal action, to use and,if so ordered by a court, to make public a final or preliminary report of an examination,working papers or other documents of an examiner or insurer, or any otherinformation discovered or developed during the course of an examination. Suchdocuments must be given their appropriate evidentiary weight and must not beaccepted as prima facie evidence of the facts contained therein.

(Added to NRS by 1971, 1567; A 1995, 1750)

NRS 679B.260 Appraisalof asset.

1. If the Commissioner deems it necessary to value anyasset involved in such an examination, he may make written request of theperson being examined to appoint one or more appraisers who by reason ofeducation, experience or special training, and disinterest, are competent toappraise the asset. Selection of any such appraiser shall be subject to thewritten approval of the Commissioner. If no such appointment is made within 10days after the request therefor was delivered to such person, the Commissionermay appoint the appraiser or appraisers.

2. Any such appraisal shall be expeditiously made, anda copy thereof furnished to the Commissioner and to the person being examined.

3. The reasonable expense of the appraisal shall beborne by the person being examined.

(Added to NRS by 1971, 1568)

NRS 679B.270 Reportof examination: Contents; evidentiary effect in certain proceedings.

1. No later than 60 days after the completion of anexamination, the examiner designated by the Commissioner shall make a truereport thereof which must comprise only facts appearing upon the books, recordsor other documents of the person examined, or as ascertained from the sworntestimony of the officers or agents or other persons examined concerning itsaffairs, and such conclusions and recommendations as may reasonably bewarranted from the facts. The report of examination must be verified by theoath of the examiner making the report.

2. Such a report of examination of an insurer soverified is prima facie evidence in any action or proceeding for thereceivership, conservation or liquidation of the insurer brought in the name ofthe state against the insurer, its officers or agents upon the facts statedtherein.

(Added to NRS by 1971, 1569; A 1977, 693; 1995, 1751)

NRS 679B.280 Reportof examination: Right of examinee to review and respond to report; Commissionerto issue order regarding action to be taken on report.

1. Upon receipt of the verified report of theexamination, the Commissioner shall deliver a copy of the report to the personexamined, together with a notice affording him 10 days or such additionalreasonable period as the Commissioner for good cause may allow within which toreview the report and make a written submission or rebuttal with respect torecommended changes or any matters contained in the report.

2. Within 30 days after the end of the period allowedfor the receipt of written submissions or rebuttals, the Commissioner shallfully consider and review the report, together with any written submissions orrebuttals and any relevant portions of the examiners working papers and enteran order:

(a) Adopting the report as filed or with modificationor corrections;

(b) Rejecting the report with directions to theexaminer to reopen the examination for purposes of obtaining additional data,documentation or information, and requiring the refiling of the report pursuantto subsection 1 of NRS 679B.270; or

(c) For an investigatory hearing for purposes ofobtaining additional documentation, data, information and testimony.

3. If the report reveals that the insurer is operatingin violation of any law, regulation or previous order of the Commissioner, theCommissioner may order the insurer to take any action the Commissionerconsiders necessary or appropriate to cure the violation.

(Added to NRS by 1971, 1569; A 1991, 1618; 1993,2901; 1995, 1751)

NRS 679B.282 Reportof examination: Hearing; filing; distribution.

1. If requested by the person examined, within theperiod allowed under subsection 1 of NRS679B.280, or if ordered pursuant to subsection 2 of that section, theCommissioner shall hold a hearing relative to the report and shall not file thereport in the Division for public inspection until after the hearing and hisorder thereon.

2. If no hearing has been requested or ordered, theexamination report, with such modifications, if any, thereof as theCommissioner deems proper, must be filed in the Division for public inspectionwithin 30 days after the expiration of the period allowed for review by theperson examined. Otherwise the report must be so filed within 30 days afterfinal hearing thereon, except that the Commissioner may withhold from publicinspection any report for so long as he deems such withholding to be necessaryfor the protection of the person examined against unwarranted injury or to bein the public interest.

3. The Commissioner shall forward to the personexamined a copy of the examination report as filed, together with anyrecommendations or statements relating thereto which he deems proper.

4. If the report concerns the examination of adomestic insurer, a copy of the report, or a summary thereof approved by theCommissioner must be presented by the insurers chief executive officer to theinsurers board of directors or similar governing body at its next regularboard meeting. A copy of the report must also be furnished by the secretary ofthe insurer, if incorporated, or by the attorney-in-fact if a reciprocalinsurer, within 30 days after receipt of the report in final form by the insurer,to each member of the insurers board of directors or board of governors, if areciprocal insurer, and the certificate of the secretary or attorney-in-factthat a copy of the examination report has been so furnished shall be deemed toconstitute knowledge of the contents of the report by each such member.

(Added to NRS by 1995, 1749)

NRS 679B.285 Reportof examination: Confidentiality.

1. The Commissioner may disclose the content of areport, preliminary report, or the results of an examination, or any matterrelating thereto, to the Division or any agency of any other state or countrythat regulates insurance, or to law enforcement officers of this or any otherstate, or to an agency of the Federal Government at any time, if the agency oroffice receiving the report or matter relating thereto agrees in writing tohold it confidential in a manner consistent with this chapter. Access may alsobe granted to the National Association of Insurance Commissioners.

2. All working papers, recorded information, documentsand copies thereof produced by, obtained by or disclosed to the Commissioner orany other person in the course of an examination made under this chapter areconfidential, are not subject to subpoena, and may not be made public by theCommissioner or any other person, except as necessary for a hearing or asprovided in this section and subsection 4 of NRS 679B.282. A person to whom informationis given must agree in writing before receiving the information to provide toit the same confidential treatment as required by this section, unless theprior written consent of the insurer to which it pertains has been obtained.

(Added to NRS by 1995, 1749)

NRS 679B.287 Limitationson actions and liability for communicating or delivering information or datapursuant to examination; Commissioner and his representatives and examinersentitled to attorneys fees and costs in certain tort actions.

1. No cause of action arises, nor may any liability beimposed against any person for the act of communicating or deliveringinformation or data to the Commissioner or his authorized representative orexaminer pursuant to an examination made under this chapter, if the act ofcommunication or delivery was performed in good faith and without fraudulentintent, the intent to deceive or gross negligence.

2. The Commissioner, his authorized representative orany examiner appointed by him is entitled to an award of attorneys fees andcosts if he is the prevailing party in a civil cause of action for libel,slander or any other relevant tort arising out of activities in carrying outthe provisions of NRS 679B.230 to 679B.300, inclusive, and the partybringing the action was not substantially justified in doing so. For thepurposes of this subsection, an action is substantially justified if it had areasonable basis in law or fact at the time that it was brought.

(Added to NRS by 1995, 1748)

NRS 679B.290 Expenseof examination; billing for examination; regulations.

1. Except as otherwise provided in subsection 2:

(a) The expense of examination of an insurer, or of anyperson referred to in subsection 1, 2, 5 or 6 of NRS 679B.240, must be borne by the personexamined. Such expense includes only the reasonable and proper hotel and travelexpenses of the Commissioner and his examiners and assistants, including expertassistance, reasonable compensation as to such examiners and assistants andincidental expenses as necessarily incurred in the examination. As to expenseand compensation involved in any such examination, the Commissioner shall givedue consideration to scales and limitations recommended by the NationalAssociation of Insurance Commissioners and outlined in the examination manualsponsored by that association.

(b) The person examined shall promptly pay to theCommissioner the expenses of the examination upon presentation by theCommissioner of a reasonably detailed written statement thereof.

2. The Commissioner may bill an insurer for theexamination of any person referred to in subsection 1 of NRS 679B.240 and shall adopt regulationsgoverning such billings.

(Added to NRS by 1971, 1570; A 1995, 1612; 2003, 3277)

NRS 679B.300 InsuranceExamination Fund.

1. The Insurance Examination Fund is hereby created asa special revenue fund. All money received by the Commissioner pursuant to NRS 679B.290 must be deposited in theState Treasury for credit to the Fund.

2. Money for travel, per diem, compensation and othernecessary and authorized expenses incurred by an examiner or other representativeof the Division in the examination of any person required to pay, and makingpayment of, the expense of examination pursuant to NRS 679B.290 must be paid out of theInsurance Examination Fund as other claims against the State are paid.

(Added to NRS by 1971, 1570; A 1979, 121; 1991, 1618;1993, 1901; 1995, 1415)

INSURANCE RECOVERY ACCOUNT

NRS 679B.305 Creation;deposits; use; regulations; limit of liability.

1. There is hereby created the Insurance RecoveryAccount in the State General Fund. The Commissioner shall promptly deposit withthe State Treasurer for credit to the Account all recovery fees received fromlicensees pursuant to the provisions of this title.

2. A balance of not more than $40,000 must bemaintained in the Account to be used for satisfying claims against personslicensed pursuant to chapters 683A, 684A, 685Aand 692A of NRS. Any balance over $40,000 inthe Account at the end of any fiscal year must be set aside and used by theCommissioner for insurance education and research.

3. The Commissioner shall adopt reasonable regulationsfor the administration of the Account, including the manner, time, procedureand grounds for recovery against the Account.

4. The limit of liability of the insurance recoveryaccount is $5,000 per fiscal year for any one licensee.

(Added to NRS by 1977, 1326; A 1981, 1796; 1987, 149;1991, 1818)

HEARINGS

NRS 679B.310 Administrativeprocedures; hearings in general.

1. The Commissioner may hold a hearing, withoutrequest by others, to determine whether an insurer or an employee of an insurerhas engaged in unsuitable conduct and for any other purpose within the scope ofthis Code.

2. The Commissioner shall hold a hearing:

(a) If required by any other provision of this Code; or

(b) Upon written application for a hearing by a personaggrieved by any act, threatened act, or failure of the Commissioner to act, orby any report, rule, regulation or order of the Commissioner, other than anorder for the holding of a hearing, or an order issued on a hearing of whichthe person had notice. The application must be filed in the Division within 60days after the person knew or reasonably should have known of the act,threatened act, failure, report, rule, regulation or order, unless a differentperiod is provided for by any other law applicable to the particular matter, inwhich case the other law governs.

3. Any such application for a hearing must brieflystate the respects in which the applicant is so aggrieved, together with thegrounds to be relied upon as a basis for the relief to be sought at thehearing.

4. If the Commissioner finds that the application ismade in good faith, that the applicant would be so aggrieved if his grounds areestablished and that the grounds otherwise justify the hearing, he shall holdthe hearing within 30 days after the filing of the application, unlesspostponed by mutual consent. Failure to hold the hearing upon applicationtherefor of a person entitled thereto as provided in this section constitutes adenial of the relief sought, and is the equivalent of a final order of theCommissioner on hearing for the purpose of an appeal pursuant to NRS 679B.370.

5. Pending the hearing and decision thereon, theCommissioner may suspend or postpone the effective date of his previous action.

(Added to NRS by 1971, 1570; A 1991, 807, 1619, 1636;1993, 1902)

NRS 679B.320 Noticeof hearing.

1. Except where a different period is expresslyprovided, the Commissioner shall give written notice of the hearing not lessthan 20 days in advance. The notice shall state the date, time and place of thehearing and specify the matters to be considered thereat. If the persons to begiven notice are not specified in the provision pursuant to which the hearingis held, the Commissioner shall give such notice to all persons whose pecuniaryinterest, to the Commissioners knowledge or belief, are to be directly and immediatelyaffected by the hearing.

2. If any person is entitled to a hearing by anyprovision of this Code before any proposed action is taken, the notice of thehearing may be in the form of a notice to show cause, stating that the proposedaction may be taken unless such person shows cause at a hearing to be held asspecified in the notice why the proposed action should not be taken, andstating the basis of the proposed action.

3. If any such hearing is to be held for considerationof rules and regulations of the Commissioner, or of other matters which, undersubsection 1, would otherwise require separate notices to more than 30 persons,in lieu of other notice the Commissioner may give notice of the hearing bypublication thereof in a newspaper of general circulation in this state, atleast once each week during the fourth and second weeks next preceding the weekin which the hearing is to be held; but the Commissioner shall mail such noticeto all persons who had requested the same in writing in advance and had paid tothe Commissioner the reasonable amount fixed by him to cover the cost thereof.

4. All such notices, other than published notices,shall be given as provided in NRS 679B.140.

(Added to NRS by 1971, 1571)

NRS 679B.330 Location;presiding officer; evidence; parties; record of proceedings and evidence.

1. The Commissioner may hold a hearing in Carson City,Nevada, or any other place of convenience to parties and witnesses, as theCommissioner determines. The Commissioner, his deputy or assistant, or a personappointed by the Commissioner, shall preside at the hearing, and shall expeditethe hearing and all procedures involved therein.

2. The Commissioner may appoint a person who is notassociated with the Division to conduct a hearing if the hearing requires adisinterested or impartial hearing officer. A person so appointed shall complywith the provisions which govern hearings conducted by the Commissioner. Anorder issued by such a person has the same effect as an order issued by theCommissioner.

3. Testimony may be taken orally or by deposition, andany party has the same right to introduce evidence by interrogatories ordeposition as he would have in a district court.

4. Upon good cause shown the Commissioner shall permitto become a party to the hearing by intervention, if timely, only such persons,not original parties thereto, whose pecuniary interests are to be directly andimmediately affected by the Commissioners order made upon the hearing.

5. The Commissioner shall cause a record of theproceedings to be made. If transcribed, a copy of the record must be part ofthe Commissioners record of the hearing and a copy must be furnished to anyother party to the hearing, at the request and expense of the other party. Ifno such record is transcribed, the Commissioner shall prepare a summary recordof the proceedings and evidence.

(Added to NRS by 1971, 1572; A 1977, 97; 1985, 1063;1991, 1619; 1993, 1902)

NRS 679B.340 Witnessesand evidence; penalties.

1. The Commissioner or any individual conducting ahearing, examination or investigation by his authority shall have power tosubpoena witnesses, compel their attendance, administer oaths, examine any personunder oath relative to the subject of the hearing, examination orinvestigation, and to compel any person to subscribe to his testimony after ithas been correctly reduced to writing, and, in connection therewith, to requirethe production of any books, papers, records, correspondence or other documentswhich he deems relevant to the inquiry. Any delegation by the Commissioner ofthe power to administer oaths or of subpoena shall be in writing.

2. A subpoena issued pursuant to this section shallhave the same force and effect and shall be served in the same manner as ifissued from a court of record.

3. If any individual fails to obey a subpoena, orrefuses to testify as to any matter concerning which he may lawfully beinterrogated, the Commissioner may file his written report thereof and proof ofservice of his subpoena in any court of competent jurisdiction in the countywhere the examination or hearing is being conducted, for such action as thecourt may determine.

4. Witness fees and mileage, if claimed, shall beallowed the same as for testimony in a court of record, but no officer,director, agent or employee of an insurer or person being examined orinvestigated shall be entitled to witness or mileage fees.

5. Every person subpoenaed under this section whowillfully fails to appear at the time and place named in the subpoena or toproduce documents required by the subpoena, or who refuses to be sworn oranswer as a witness, is guilty of a misdemeanor.

(Added to NRS by 1971, 1572)

NRS 679B.350 Testimonycompelled; immunity from prosecution.

1. If any individual asks to be excused from attendingor testifying or from producing any books, papers, records, contracts,correspondence or other documents in connection with any examination, hearingor investigation being conducted by the Commissioner or his examiner, on theground that the testimony or evidence required of him may tend to incriminatehim or subject him to a penalty or forfeiture, and nonetheless is directed bythe Attorney General to give such testimony or produce such evidence, he mustcomply with such direction; but he shall not thereafter be prosecuted orsubjected to any penalty or forfeiture for or on account of any transaction,matter or thing concerning which he may have so testified or produced evidence,and no testimony so given or evidence produced shall be received against himupon any criminal action, investigation or proceeding. No such individual sotestifying shall be exempt from:

(a) Prosecution or punishment for any perjury committedby him in such testimony, and the testimony or evidence so given or producedshall be admissible against him upon any criminal action, investigation orproceeding concerning such perjury.

(b) The refusal, suspension or revocation of anylicense, permission or authority conferred, pursuant to this Code.

2. Any such individual may execute, acknowledge andfile in the office of the Commissioner and of the Attorney General a statementexpressly waiving such immunity or privilege in respect to any transaction,matter or thing specified in such statement, and thereupon the testimony ofsuch individual or such evidence in relation to such transaction, matter orthing may be received or produced before any judge or justice, court, tribunal,grand jury or otherwise, and if such testimony or evidence is so received orproduced such individual shall not be entitled to any immunity or privileges onaccount of any testimony or evidence he may so give or produce.

(Added to NRS by 1971, 1573)

NRS 679B.360 Orderon hearing.

1. In the conduct of hearings under this Code andmaking his order thereon, the Commissioner shall act in a quasi-judicialcapacity.

2. Except as otherwise provided in this subsection,within 30 days after termination of a hearing, or of any rehearing thereof orreargument thereon, or within such other period as may be specified in thisCode as to particular proceedings, the Commissioner shall make his order onhearing covering matters involved in such hearing, and give a copy of the orderto each party to the hearing in the same manner as notice of the hearing wasgiven to such party. With respect to hearings held concerning merger,consolidation, bulk reinsurance, conversion, affiliation or change of controlof a domestic insurer as provided in chapter693A of NRS (corporate powers, procedures of domestic stock and mutualinsurers), where notice of the hearing was given to all stockholders andpolicyholders or to all stockholders or policyholders of an insurer involved,the Commissioner is required to give a copy of the order on hearing to thecorporation and insurer parties, to intervening parties, to a reasonable numberof such stockholders or policyholders as representative of the class, and toother parties only upon written request of such parties.

3. The order shall contain:

(a) A concise statement of facts found by theCommissioner upon evidence adduced at the hearing;

(b) A concise statement of the Commissionersconclusions from the facts so found;

(c) His order, and the effective date thereof; and

(d) Citation of the provisions of this Code upon whichthe order is based; but failure so to designate a particular provision shallnot deprive the Commissioner of the right thereafter to rely thereon.

4. The order may affirm, modify or rescind actiontheretofore taken or may constitute taking of new action within the scope ofthe notice of the hearing.

(Added to NRS by 1971, 1573)

NRS 679B.370 Appealfrom Commissioner.

1. Except as to matters arising under chapter 686B of NRS other than those grievancesof employers that must be appealed to the appeals panel for industrialinsurance, an appeal from the Commissioner must be taken only from an order onhearing, or as to a matter on which the Commissioner has refused or failed tohold a hearing after application therefor under NRS 679B.310, or as to a matterconcerning which the Commissioner has refused or failed to make his order onhearing as required by NRS 679B.360.

2. Any person who was a party to a hearing or whosepecuniary interests are directly and immediately affected by any such refusalor failure, and who is aggrieved by the order, refusal or failure, may petitionfor judicial review in the manner provided by chapter233B of NRS.

(Added to NRS by 1971, 1574; A 1977, 98; 1989, 1660; 1999, 3381; 2001, 2256)

ADMINISTRATIVE FINANCES

NRS 679B.380 Financingof administration.

1. Except as otherwise expressly provided in thisCode, funds with which to carry out the administration and enforcement by theCommissioner of this Code shall be provided by legislative appropriation fromthe General Fund and shall be paid out on claims as other claims against theState are paid.

2. No such claim shall be paid unless approved by thecommissioner.

(Added to NRS by 1971, 1575)

STABILIZATION OF INSURANCE COSTS

NRS 679B.400 Legislativefindings and declarations; purposes.

1. The Legislature finds and declares that:

(a) Stabilizing the cost of insurance is of vitalconcern to the residents of this state; and

(b) It is necessary to establish a comprehensive systemto collect, analyze and distribute information concerning the cost of insurancein order to stabilize that cost effectively.

2. The purposes of NRS679B.400 to 679B.460, inclusive,are to:

(a) Promote the public welfare by studying therelationship of premiums and related income of insurers to costs and expensesof insurers;

(b) Develop measures to stabilize prices for insurancewhile continuing to provide insurance of high quality to the residents of thisstate;

(c) Permit and encourage competition between insurerson a sound financial basis to the fullest extent possible;

(d) Establish a mechanism to ensure the provision ofadequate insurance at reasonable rates to the residents of this state; and

(e) Protect the rights of customers of insurance inthis state.

(Added to NRS by 1989, 1226; A 1991, 1620; 1995,1415)

NRS 679B.410 Dutiesof Commissioner. The Commissioner shall:

1. Determine the relationship of premiums and relatedincome of insurers to costs and expenses of insurers, provide this informationto the Legislature and make this information available to the general public.

2. Respond to requests by governmental agencies ofthis state and by the Legislature for special studies and analysis ofinformation collected pursuant to NRS679B.400 to 679B.460, inclusive.

3. Report to each regular session of the Legislatureconcerning his duties and findings pursuant to this section no later thanFebruary 1.

(Added to NRS by 1989, 1227; A 1991, 1620; 1995, 1415)

NRS 679B.420 Employmentof technical and professional consultants. TheCommissioner may employ and fix the compensation of, and enter into agreementswith, such technical and professional consultants as he deems necessary toaccomplish the purposes of NRS 679B.400to 679B.460, inclusive.

(Added to NRS by 1989, 1227)

NRS 679B.430 Commissionermay issue orders for compliance with provisions; regulation of recording andreporting of information by insurers; insurer to report information and payfee.

1. The Commissioner may issue such orders as arenecessary to require compliance with the provisions of NRS 679B.400 to 679B.460, inclusive.

2. The Commissioner shall adopt regulations requiringeach insurer authorized to transact casualty or property insurance in thisstate to record and report its losses, expenses and other information necessaryto assess the relationship of premiums and related income to costs and expensesof insurers. The Commissioner may designate one or more rate serviceorganizations or other advisory organizations to gather and compile thisinformation. The Commissioner shall require each insurer authorized to transactcasualty or property insurance in this state to submit reports, on forms furnishedby the Commissioner, of its transactions in insurance in this state and elsewhere.

3. If a rate service organization or other advisoryorganization designated pursuant to subsection 2 imposes a fee for the filing,processing or review of information required to be filed by this section, theinsurer shall pay that fee and file the information.

(Added to NRS by 1989, 1227)

NRS 679B.440 Contentsof reports.

1. The Commissioner may require that reports submittedpursuant to NRS 679B.430 include,without limitation, information regarding:

(a) Liability insurance provided to:

(1) Governmental agencies and politicalsubdivisions of this state, reported separately for:

(I) Cities and towns;

(II) School districts; and

(III) Other political subdivisions;

(2) Public officers;

(3) Establishments where alcoholic beverages aresold;

(4) Facilities for the care of children;

(5) Labor, fraternal or religious organizations;and

(6) Officers or directors of organizationsformed pursuant to title 7 of NRS, reported separately for nonprofit entitiesand entities organized for profit;

(b) Liability insurance for:

(1) Defective products;

(2) Medical or dental malpractice of:

(I) A practitioner licensed pursuant to chapter 630, 630A,631, 632, 633, 634, 634A, 635, 636, 637, 637A, 637B, 639 or 640 ofNRS;

(II) A hospital or other health carefacility; or

(III) Any related corporate entity.

(3) Malpractice of attorneys;

(4) Malpractice of architects and engineers; and

(5) Errors and omissions by other professionallyqualified persons;

(c) Vehicle insurance, reported separately for:

(1) Private vehicles;

(2) Commercial vehicles;

(3) Liability insurance; and

(4) Insurance for property damage;

(d) Workers compensation insurance; and

(e) In addition to any information provided pursuant tosubparagraph (2) of paragraph (b) or NRS690B.260, a policy of insurance for medical malpractice. As used in thisparagraph, policy of insurance for medical malpractice has the meaningascribed to it in NRS 679B.144.

2. The Commissioner may require that the reportinclude, without limitation, information specifically pertaining to this stateor to an insurer in its entirety, in the aggregate or by type of insurance, andfor a previous or current year, regarding:

(a) Premiums directly written;

(b) Premiums directly earned;

(c) Number of policies issued;

(d) Net investment income, using appropriate estimateswhen necessary;

(e) Losses paid;

(f) Losses incurred;

(g) Loss reserves, including:

(1) Losses unpaid on reported claims; and

(2) Losses unpaid on incurred but not reportedclaims;

(h) Number of claims, including:

(1) Claims paid; and

(2) Claims that have arisen but are unpaid;

(i) Expenses for adjustment of losses, includingallocated and unallocated losses;

(j) Net underwriting gain or loss;

(k) Net operation gain or loss, including netinvestment income; and

(l) Any other information requested by theCommissioner.

3. The Commissioner may also obtain, based upon aninsurer in its entirety, information regarding:

(a) Recoverable federal income tax;

(b) Net unrealized capital gain or loss; and

(c) All other expenses not included in subsection 2.

(Added to NRS by 1989, 1227; A 1999, 2784; 2003, 3278)

NRS 679B.450 Feefor administration and enforcement; cost of report; schedule of fees.

1. Insurers required to file reports pursuant to NRS 679B.430 shall pay to the Division areasonable fee established by the Commissioner of not more than $500 to coverthe costs to the Division of the administration and enforcement of NRS 679B.400 to 679B.460, inclusive, including anyexpenses incident or associated with the requirements of those sections.

2. The cost of furnishing a report, unless furnishedto a Legislator, must be paid by the party requesting the report.

3. The Commissioner may establish a schedule of feesfor the purposes of this section.

(Added to NRS by 1989, 1228; A 1991, 1620; 1993,1903)

NRS 679B.460 Penaltiesfor violation of or noncompliance with provisions or regulations.

1. An insurer who willfully or repeatedly violates orfails to comply with a provision of NRS679B.400 to 679B.450, inclusive,or 690B.260 or a regulation adoptedpursuant to NRS 679B.430 is subject,after notice and a hearing held pursuant to NRS679B.310 to 679B.370, inclusive,to payment of an administrative fine of not more than $1,000 for each day ofthe violation or failure to comply, up to a maximum fine of $50,000.

2. An insurer who fails or refuses to comply with anorder issued by the Commissioner pursuant to NRS 679B.430 is subject, after notice anda hearing held pursuant to NRS 679B.310to 679B.370, inclusive, to suspensionor revocation of his certificate of authority to transact insurance in thisstate.

3. The imposition of an administrative fine pursuantto this section must not be considered by the Commissioner in any otheradministrative proceeding unless the fine has been paid or a court order forpayment of the fine has become final.

(Added to NRS by 1989, 1229; A 2003, 3279)

PROTECTIONS FOR CONSUMERS OF HEALTH CARE

NRS 679B.510 Definitions. As used in NRS679B.510 to 679B.560, inclusive,unless the context otherwise requires, the words and terms defined in NRS 679B.520, 679B.530 and 679B.540 have the meanings ascribed tothem in those sections.

(Added to NRS by 1997, 1731; A 2001, 2183; 2003, 156)

NRS 679B.520 Healthcare plan defined. Health care plan means apolicy, contract, certificate or agreement offered or issued by an insurer toprovide, deliver, arrange for, pay for or reimburse any of the costs of healthcare services.

(Added to NRS by 1971, 1731)

NRS 679B.530 Insureddefined. Insured means a person covered by apolicy of health insurance issued in this state by an insurer.

(Added to NRS by 1997, 1731)

NRS 679B.540 Insurerdefined. Insurer means any insurer ororganization authorized pursuant to this title to conduct business in thisstate that provides or arranges for the provision of health care services,including, without limitation, an insurer that issues a policy of healthinsurance, an insurer that issues a policy of group health insurance, a carrierserving small employers, a fraternal benefit society, a hospital or medicalservice corporation, a health maintenance organization, a plan for dental careand a prepaid limited health service organization.

(Added to NRS by 1997, 1731)

NRS 679B.550 Dutiesof Division. The Division shall:

1. Establish a toll-free telephone service forreceiving inquiries and complaints from consumers of health care in this stateconcerning health care plans;

2. Provide answers to inquiries of consumers of healthcare concerning health care plans, or refer the consumers to the appropriateagency, department or other entity that is responsible for addressing thespecific type of inquiry;

3. Refer consumers of health care to the appropriateagency, department or other entity that is responsible for addressing thespecific type of complaint of the consumer;

4. Provide counseling and assistance to consumers ofhealth care concerning health care plans;

5. Educate consumers of health care concerning healthcare plans in this state; and

6. Take such actions as are necessary to ensure publicawareness of the existence and purpose of the services provided by the Divisionpursuant to this section.

(Added to NRS by 1997, 1731)

NRS 679B.560 Insurerrequired to provide information to insured. Eachinsurer shall provide to each insured in a written format that clearly standsout from any surrounding text:

1. The telephone number of the toll-free telephoneservice which is established pursuant to NRS679B.550; and

2. The name of the Division and its hours ofoperation, including, but not limited to, the hours of operation of thetoll-free telephone service.

(Added to NRS by 1997, 1732)

INVESTIGATIONS

NRS 679B.600 Definitions. As used in NRS679B.600 to 679B.700, inclusive,unless the context otherwise requires, the words and terms defined in NRS 679B.610 and 679B.620 have the meanings ascribed tothem in those sections.

(Added to NRS by 2001, 1093)

NRS 679B.610 FraudControl Unit defined. Fraud Control Unitmeans the Fraud Control Unit for Insurance established by the Attorney Generalpursuant to NRS 228.412.

(Added to NRS by 2001, 1093)

NRS 679B.620 Insurancefraud defined. Insurance fraud has themeaning ascribed to it in NRS 686A.2815.

(Added to NRS by 2001, 1093)

NRS 679B.630 Programto investigate acts or practices of fraud. TheCommissioner shall establish a program within the Division to investigate anyact or practice which:

1. Violates the provisions of NRS 686A.010 to 686A.310, inclusive; or

2. Defrauds or is an attempt to defraud an insurer.

(Added to NRS by 1983, 1384; A 1991, 1616; 1993,1899)(Substituted in revision for NRS 679B.153)

NRS 679B.640 Commissionerrequired to investigate fraudulent claims for benefits. The Commissioner, through his investigators, shallinvestigate fraudulent claims for benefits under an insurance policy.

(Added to NRS by 1983, 1385; A 1993,2541)(Substituted in revision for NRS 679B.154)

NRS 679B.650 Investigativeauthority of Commissioner. To investigateviolations of the provisions of this title, or to assist the Attorney Generalor other local, state or federal investigative and law enforcement agencies ininvestigating an act of insurance fraud, the Commissioner may:

1. Designate employees of the Division asinvestigators to carry out the provisions of NRS 679B.600 to 679B.700, inclusive.

2. Conduct investigations into such activitiesoccurring outside this state, if necessary. To conduct these investigations,the Commissioner or his investigators may:

(a) Travel outside this state;

(b) Cooperate with appropriate agencies or personsoutside this state; or

(c) Designate those agencies to conduct investigationsfor the Commissioner.

3. Assist officials of investigative or lawenforcement agencies of any other state or the Federal Government who areinvestigating fraudulent claims and who request assistance from theCommissioner.

(Added to NRS by 1983, 1384; A 1991,1616; 1993, 1899;2001, 1094)(Substitutedin revision for NRS 679B.155)

NRS 679B.660 Cooperationbetween Commissioner, Attorney General and investigative and law enforcementagencies.

1. Every person in charge of an investigative or lawenforcement agency within this state shall:

(a) Cooperate with the Commissioner and hisinvestigators, and the Attorney General and the members of the Fraud ControlUnit; and

(b) Upon request, furnish the Commissioner or AttorneyGeneral, as appropriate, with any information necessary for the investigationof insurance fraud.

2. The Commissioner and the Attorney General shall:

(a) Assist any official of an investigative or a lawenforcement agency of this state, any other state or the Federal Government whorequests assistance in investigating any act of insurance fraud; and

(b) Furnish to those officials any information, nototherwise confidential, concerning his investigation or his report on insurancefraud.

(Added to NRS by 1983, 1385; A 2001, 1094)(Substitutedin revision for NRS 679B.156)

NRS 679B.670 Liabilityfor disclosure of information on fraudulent claim or suspicious fire. Any person, governmental entity, insurer, employee or representativeof an insurer, official of an investigative or law enforcement agency, employeeof the Division, the Commissioner, the Attorney General or a member of theFraud Control Unit is not subject to a criminal penalty or subject to civilliability for libel, slander or any similar cause of action in tort if he,without malice, discloses information on a fraudulent claim or suspicious fire.

(Added to NRS by 1983, 1385; S 1991, 1616; 1993,1899; 2001, 1095)(Substitutedin revision for NRS 679B.157)

NRS 679B.680 Effectof certain powers and duties of Attorney General and Fraud Control Unit onjurisdiction of Commissioner. Nothing in NRS 228.412 limits or diminishes theexclusive jurisdiction of the Commissioner otherwise granted by statute toinvestigate or take administrative or civil action:

1. For any violation of this title by any person orentity who is or has been licensed by the Commissioner pursuant to this title;

2. Against any person or entity who is or has beenengaged in the business of insurance without a license as required by thistitle, including, without limitation, the unauthorized transaction of insurancein violation of chapter 685B of NRS; or

3. Against any person or entity as the Commissionerdeems appropriate.

(Added to NRS by 2001, 1093)

NRS 679B.690 Confidentialityof records and other information related to investigation by Attorney Generaland Fraud Control Unit.

1. All records and other information related to aninvestigation conducted by the Attorney General and the Fraud Control Unit forthe prosecution of insurance fraud are confidential unless:

(a) The Attorney General releases, in such manner as hedeems appropriate, all or any part of the records or information for publicinspection after determining that the release of the records or information:

(1) Will not harm the investigation or theperson who is being investigated; or

(2) Serves the interests of a policyholder, theshareholders of the insurer or the public; or

(b) A court orders the release of the records orinformation after determining that the production of the records or informationwill not damage any investigation being conducted by the Fraud Control Unit.

2. The Attorney General may classify as confidentialspecific records and other information if the records or other information wasobtained from a governmental agency or other source upon the express conditionthat the contents would remain confidential.

3. All information and documents in the possession ofthe Attorney General and the Fraud Control Unit that are related to cases ormatters under investigation are confidential for the duration of theinvestigation and may not be made public unless the Attorney General finds theexistence of an imminent threat of harm to the safety or welfare of thepolicyholder, shareholders or the public and determines that the interests ofthe policyholder, shareholders or the public will be served by publicationthereof, in which event he may make a record public or publish all or any partof the record in any manner he deems appropriate.

(Added to NRS by 2001, 1093)

NRS 679B.700 SpecialInvestigative Account.

1. The Special Investigative Account is herebyestablished in the State General Fund for use by the Commissioner. The Commissionershall deposit all money received pursuant to this section with the StateTreasurer for credit to the Account. Money remaining in the Account at the endof a fiscal year does not lapse to the State General Fund and may be used bythe Commissioner in any subsequent fiscal year for the purposes of thissection.

2. The Commissioner shall:

(a) In cooperation with the Attorney General,biennially prepare and submit to the Governor, for inclusion in the executivebudget, a proposed budget for the program established pursuant to NRS 679B.630; and

(b) Authorize expenditures from the SpecialInvestigative Account to pay the expenses of the program established pursuantto NRS 679B.630 and of any unit establishedin the Office of the Attorney General that investigates and prosecutes insurancefraud.

3. The money authorized for expenditure pursuant toparagraph (b) of subsection 2 must be distributed in the following manner:

(a) Fifteen percent of the money authorized forexpenditure must be paid to the Commissioner to oversee and enforce the programestablished pursuant to NRS 679B.630;and

(b) Eighty-five percent of the money authorized forexpenditure must be paid to the Attorney General to pay the expenses of theunit established in the Office of the Attorney General that investigates andprosecutes insurance fraud.

4. Except as otherwise provided in subsections 5 and6, costs of the program established pursuant to NRS 679B.630 must be paid by the insurersauthorized to transact insurance in this State. The Commissioner shall annuallydetermine the total cost of the program and divide that amount among theinsurers pro rata based upon the total amount of premiums charged to theinsureds in this State by the insurer.

5. The annual amount so assessed on each reinsurerthat has the authority to assume only reinsurance must not exceed $500. For allother insurers subject to the annual assessment, the annual amount so assessedto each insurer:

(a) Must not exceed $500, if the total amount of thepremiums charged to insureds in this State by the insurer is less than$100,000;

(b) Must not exceed $750, if the total amount of thepremiums charged to insureds in this State by the insurer is $100,000 or more,but less than $1,000,000;

(c) Must not exceed $1,000, if the total amount of thepremiums charged to insureds in this State by the insurer is $1,000,000 ormore, but less than $10,000,000;

(d) Must not exceed $1,500, if the total amount of thepremiums charged to insureds in this State by the insurer is $10,000,000 ormore, but less than $50,000,000; and

(e) Must not exceed $2,000, if the total amount of thepremiums charged to insureds in this State by the insurer is $50,000,000 ormore.

6. The provisions of this section do not apply to aninsurer who provides only workers compensation insurance and pays theassessment provided in NRS 232.680.

7. The Commissioner shall adopt regulations to carryout the provisions of this section, including, without limitation, thecalculation and collection of the assessment.

8. As used in this section, reinsurer has themeaning ascribed to it in NRS 681A.370.

(Added to NRS by 1983, 1385; A 1995, 2697; 2001, 479)(Substitutedin revision for NRS 679B.158)

 

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