2005 Nevada Revised Statutes - Chapter 686A — Trade Practices and Frauds; Financing of Premiums

CHAPTER 686A - TRADE PRACTICES AND FRAUDS;FINANCING OF PREMIUMS

GENERAL PROVISIONS

NRS 686A.010 Purpose.

NRS 686A.015 Jurisdictionof Commissioner; Commissioner to establish program to investigate unfair anddeceptive trade practices.

NRS 686A.020 Unfairmethods and deceptive acts prohibited.

NRS 686A.025 Unfairacts and practices: Disclosure of nonpublic personal information in mannercontrary to federal law.

NRS 686A.030 Misrepresentationand false advertising of policies prohibited.

NRS 686A.040 Falseinformation and advertising prohibited.

NRS 686A.050 Twistingprohibited.

NRS 686A.055 Prohibiteduse of fact that insurance is covered by Nevada Insurance Guaranty Associationor Nevada Life and Health Insurance Guaranty Association.

NRS 686A.060 Replacementof life insurance.

NRS 686A.070 Falsificationof records or financial statements prohibited; penalty.

NRS 686A.080 Defamatorystatement concerning person engaged or proposing to engage in business ofinsurance prohibited.

NRS 686A.085 Bankprohibited from requiring customers to purchase insurance from parent,subsidiary or affiliate of bank.

NRS 686A.090 Boycott,coercion or intimidation tending to result in unreasonable restraint of ormonopoly in business of insurance prohibited.

NRS 686A.095 Cancellationor restriction of agents authority based solely on submission of claimsprohibited.

NRS 686A.100 Lifeinsurance, annuities and health insurance: Unfair discrimination prohibited.

NRS 686A.110 Lifeinsurance, annuities and health insurance: Rebates and other inducementsprohibited.

NRS 686A.120 Lifeinsurance, annuities and health insurance: Exceptions to provisions limitingdiscrimination, rebates and use of securities as inducements.

NRS 686A.130 Property,casualty, surety and title insurance: Unfair discrimination and rebatesprohibited.

NRS 686A.140 Violationsconcerning rebates and inducements: Penalties; effect.

NRS 686A.150 Usingsecurity, advisory board contract or agreement offering or promising profit asinducement prohibited.

NRS 686A.160 Enforcement:Prohibited practices.

NRS 686A.170 Enforcement:Undefined practices.

NRS 686A.180 Serviceof process upon unauthorized insurers.

NRS 686A.183 Ceaseand desist orders and penalties for prohibited practices; modification andsetting aside of Commissioners orders.

NRS 686A.185 Reviewand finality of Commissioners orders.

NRS 686A.187 Penaltiesfor violating cease and desist order.

NRS 686A.190 Interlockingownership or management.

NRS 686A.200 Favoredagent or insurer.

NRS 686A.210 Serviceand processing charges prohibited.

NRS 686A.220 Favoredagent or surety for bonds under public building or construction contract.

NRS 686A.225 Certaininsurers to retain adjuster who resides in this State.

NRS 686A.230 Illegaldealing in premiums; excess charges for insurance; regulations related to feesof broker, consultant or financial planner; written contract for consultation.

NRS 686A.240 Favoritismto groups prohibited; exceptions.

NRS 686A.250 Useof insurance or annuity as inducement for purchase or rental of property orservices prohibited; exceptions.

NRS 686A.260 Revocationor suspension of license for violation of laws of other state.

NRS 686A.270 Knowledgeof insurer of prohibited acts.

NRS 686A.280 Useof name deceptively implying person is insurer prohibited.

INSURANCE FRAUD

NRS 686A.281 Definitions.

NRS 686A.2815 Insurancefraud defined.

NRS 686A.282 Investigativeor law enforcement agency defined.

NRS 686A.2825 Practitionerdefined.

NRS 686A.283 Reportingrequirements; duties of Commissioner and Attorney General; prosecution bydistrict attorney.

NRS 686A.285 Reportby insurer of suspicion that loss to insured was caused by other thanaccidental or natural occurrence.

NRS 686A.287 Provisionby insurer of information concerning fraud upon request by Attorney General,Commissioner or certain agencies.

NRS 686A.289 Provisionto insurer of information concerning fraud upon completion of investigation orprosecution; confidentiality of information.

NRS 686A.290 Applicationsfor insurance: Prohibited acts and penalties.

NRS 686A.291 Criminalpenalty for insurance fraud.

NRS 686A.292 Additionalpenalties for insurance fraud; payment of expenses of Fraud Control Unit;persons who are victims for purposes of restitution.

NRS 686A.295 Commissionerand Attorney General to notify agency when person licensed by or registeredwith agency is convicted of insurance fraud; agency to submit report toLegislature setting forth action taken.

CLAIMS

NRS 686A.300 Delayin payment of claim for damages to motor vehicle after receipt of statement ofcharges prohibited; settling claim without providing for repair of vehiclepermitted; exception.

NRS 686A.310 Unfairpractices in settling claims; liability of insurer for damages.

NRS 686A.315 Noticerequired with certain billing and claim forms submitted to insurers.

NRS 686A.325 Settlementof third-party liability claims; written notice of payment; failure to servenotice.

FINANCING OF PREMIUMS

NRS 686A.330 Definitions.

NRS 686A.335 Applicabilityof chapter 696B of NRS.

NRS 686A.340 Engagingin business of company without license prohibited.

NRS 686A.350 Exemptionsfrom requirement of licensing.

NRS 686A.360 Applicationfor license.

NRS 686A.370 Truename and fictitious name of licensee; grounds for disapproval of name.

NRS 686A.380 Renewalof license.

NRS 686A.385 Scheduleof rates and charges to be filed with Commissioner.

NRS 686A.390 Approvalof forms.

NRS 686A.400 Records:Maintenance; form of preservation; open to Commissioner.

NRS 686A.410 Examinationof company by Commissioner.

NRS 686A.420 Contentsof agreement.

NRS 686A.430 Furnishingof completed copy of agreement to insured.

NRS 686A.440 Interest;prepayment.

NRS 686A.450 Permissiblecharges: Late payment; returned check; collection costs or attorneys fees.

NRS 686A.460 Cancellationof insurance policy by company.

NRS 686A.470 Returnof unearned premium.

NRS 686A.480 Prohibitedpayments: Membership in motor club; policy of insurance covering death ordismemberment.

NRS 686A.490 Norecourse against agent; limitation on inducements; prohibited acts by company,agent or broker.

NRS 686A.500 Disclosureof financial interest required; agent or broker who submits or performsservices in connection with agreement prohibited from receiving compensation.

NRS 686A.510 Penalties.

NRS 686A.520 Applicabilityof other provisions.

USE OF CONSUMER CREDIT INFORMATION

NRS 686A.600 Definitions.

NRS 686A.610 Adverseaction defined.

NRS 686A.620 Affiliatedefined.

NRS 686A.630 Consumercredit report defined.

NRS 686A.640 Consumerreporting agency defined.

NRS 686A.650 Creditinformation defined.

NRS 686A.660 Insurancescore defined.

NRS 686A.670 Applicability.

NRS 686A.680 Consumercredit reports: Uses; limitations.

NRS 686A.690 Reunderwritingor rerating of insured; refund of premium.

NRS 686A.700 Disclosureof use of credit information.

NRS 686A.710 Noticerequirements after taking adverse action.

NRS 686A.720 Indemnificationof agent by insurer.

NRS 686A.730 Consumerreporting agencies: Prohibitions; exemptions.

_________

GENERAL PROVISIONS

NRS 686A.010 Purpose. The purpose of NRS686A.010 to 686A.310, inclusive,is to regulate trade practices in the business of insurance in accordance withthe intent of Congress as expressed in the Act of Congress approved March 9,1945, being c. 20, 59 Stat. 33, also designated as 15 U.S.C. 1011 to 1015,inclusive, and Title V of Public Law 106-102, 15 U.S.C. 6801 et seq.

(Added to NRS by 1971, 1688; A 2001, 2214)

NRS 686A.015 Jurisdictionof Commissioner; Commissioner to establish program to investigate unfair anddeceptive trade practices.

1. Notwithstanding any other provision of law, theCommissioner has exclusive jurisdiction in regulating the subject of trade practicesin the business of insurance in this state.

2. The Commissioner shall establish a program withinthe Division to investigate any act or practice which constitutes an unfair ordeceptive trade practice in violation of the provisions of NRS 686A.010 to 686A.310, inclusive.

(Added to NRS by 1975, 1284; A 1995, 2698)

NRS 686A.020 Unfairmethods and deceptive acts prohibited. Aperson shall not engage in this state in any practice which is defined in NRS 686A.010 to 686A.310, inclusive, as, or determinedpursuant to NRS 686A.170 to be, anunfair method of competition or an unfair or deceptive act or practice in thebusiness of insurance.

(Added to NRS by 1971, 1688; A 1975, 1287; 1977, 432)

NRS 686A.025 Unfairacts and practices: Disclosure of nonpublic personal information in mannercontrary to federal law.

1. Disclosure of nonpublic personal information in amanner contrary to the provisions of subchapter 1 of Title V of Public Law 106-102,15 U.S.C. 6801-6809 is an unfair act or practice in the business ofinsurance within the meaning of this chapter.

2. As used in this section, nonpublic personalinformation has the meaning ascribed to it in 15 U.S.C. 6809(4).

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

(Added to NRS by 2001, 2214)

NRS 686A.030 Misrepresentationand false advertising of policies prohibited. Aperson shall not make, issue, circulate or cause to be made, issued or circulated,any estimate, illustration, circular, statement, sales presentation orcomparison which:

1. Misrepresents the benefits, advantages, conditionsor terms of any insurance policy;

2. Misrepresents the dividends or share of the surplusto be received on any insurance policy;

3. Makes any false or misleading statement as to thedividends or share of surplus previously paid on any insurance policy;

4. Is misleading or is a misrepresentation as to thefinancial condition of any person, or as to the legal reserve system upon whichany life insurer operates;

5. Uses any name or title of any policy or class ofinsurance policies misrepresenting the true nature thereof;

6. Is a misrepresentation for the purpose of inducingor tending to induce the lapse, forfeiture, exchange, conversion or surrenderof any insurance policy;

7. Is a misrepresentation for the purpose of effectinga pledge or assignment of or effecting a loan against any insurance policy; or

8. Misrepresents any insurance policy as being sharesof stock.

(Added to NRS by 1971, 1688; A 1975, 1287)

NRS 686A.040 Falseinformation and advertising prohibited. Noperson shall make, publish, disseminate, circulate or place before the public,or cause, directly or indirectly, to be made, published, disseminated,circulated or placed before the public, in a newspaper, magazine or otherpublication, or in the form of a notice, circular, pamphlet, letter or poster,or over any radio or television station, or in any other way, anyadvertisement, announcement or statement containing any assertion,representation or statement with respect to the business of insurance or withrespect to any person in the conduct of his insurance business, which isuntrue, deceptive or misleading.

(Added to NRS by 1971, 1688)

NRS 686A.050 Twistingprohibited. No person shall make or issue, orcause to be made or issued, any written or oral statement misrepresenting ormaking misleading comparison as to the terms, conditions, benefits oradvantages of any insurance policy for the purpose of inducing, or attemptingor tending to induce, any other person to lapse, forfeit, surrender, borrowagainst, retain, exchange, convert or otherwise deal with or dispose of anyinsurance policy.

(Added to NRS by 1971, 1688)

NRS 686A.055 Prohibiteduse of fact that insurance is covered by Nevada Insurance Guaranty Associationor Nevada Life and Health Insurance Guaranty Association. A person who is an insurer or an agent or employee of an insurershall not place before the public by any means any advertisement, announcementor statement which uses the existence of the Nevada Insurance GuarantyAssociation or the Nevada Life and Health Insurance Guaranty Association forthe purpose of inducing the purchase of, or discouraging the termination of,any insurance covered by the Association. This section does not apply to eitherof the associations named.

(Added to NRS by 1977, 432; A 1991, 882)

NRS 686A.060 Replacementof life insurance. In addition to other powersof the Commissioner in respect thereto, the Commissioner may by regulationrequire persons who replace or offer or propose to replace existing lifeinsurance with other life insurance, to leave with the policyholder written,signed and dated statements which fully and accurately compare the terms,conditions and benefits of the existing policy with the proposed policy.

(Added to NRS by 1971, 1689)

NRS 686A.070 Falsificationof records or financial statements prohibited; penalty.

1. A person subject to regulation under this Codeshall not knowingly make or cause to be made any false entry of a material factin any book, report or statement of any person or knowingly omit to make a trueentry of any material fact pertaining to such persons business in any book,report or statement of such person.

2. A person shall not knowingly file with anysupervisory or other public officer, or knowingly make, publish, disseminate,circulate or deliver to any person, or place before the public, or knowinglycause directly or indirectly, to be made, published, disseminated, circulated,delivered to any person, or placed before the public, any false materialstatement of fact as to the financial condition of a person.

3. Any person who violates, or with like intent, aidsor abets any violation of this section is guilty of a gross misdemeanor.

(Added to NRS by 1971, 1689; A 1975, 1287)

NRS 686A.080 Defamatorystatement concerning person engaged or proposing to engage in business ofinsurance prohibited. No person shall make,publish, disseminate or circulate, directly or indirectly, or aid, abet orencourage the making, publishing, disseminating or circulating of any oral orwritten statement or any pamphlet, circular, article or literature which isfalse, or maliciously critical of or derogatory to an insurer, or of anorganization proposing to become an insurer, and which is calculated to injureany person engaged or proposing to engage in the business of insurance.

(Added to NRS by 1971, 1689)

NRS 686A.085 Bankprohibited from requiring customers to purchase insurance from parent,subsidiary or affiliate of bank. A bank shallnot in any manner extend credit, lease or sell property of any kind, or furnishany services, or fix or vary the consideration for any of them, on thecondition or requirement that the customer purchase insurance from a parent,subsidiary or affiliate of the bank. For the purposes of this section, theterms affiliate, parent and subsidiary have the meanings ascribed to themin NRS 683A.231.

(Added to NRS by 1997, 782)

NRS 686A.090 Boycott,coercion or intimidation tending to result in unreasonable restraint of ormonopoly in business of insurance prohibited. Noperson shall enter into any agreement to commit, or by any concerted actioncommit, any act of boycott, coercion or intimidation resulting in or tending toresult in unreasonable restraint of, or any monopoly in, any business ofinsurance.

(Added to NRS by 1971, 1689)

NRS 686A.095 Cancellationor restriction of agents authority based solely on submission of claimsprohibited.

1. An insurer shall not, without the written consentof the agent, cancel a written agreement with an agent or reduce or restrictthe agents authority to transact property or casualty insurance based solelyon the loss ratio experience on insurance transacted by that agent, if theagent was required to submit the applications for that insurance forunderwriting approval, all material information on those applications was fullycompleted and the agent did not omit or alter any information provided by theapplicants for that insurance.

2. As used in this section, loss ratio experiencemeans the amount of money received by the insurer in payment of premiumsdivided by the amount of money expended by the insurer in payment of claims fora specified period.

(Added to NRS by 1989, 963)

NRS 686A.100 Lifeinsurance, annuities and health insurance: Unfair discrimination prohibited.

1. No person may make or permit any unfairdiscrimination between persons of the same class and equal expectation of lifein the rates charged for any contract of life insurance or of life annuity orin the dividends or other benefits payable thereon, or in any other of theterms and conditions of such contract.

2. No person may make or permit any unfairdiscrimination between persons of the same class and of essentially the samehazard in the amount of premium, policy fees or rates charged for any policy orcontract of health insurance or in the benefits payable thereunder, or in anyof the terms or conditions of such contract, or in any other manner whatever.

3. No person may make or permit any unfairdiscrimination between persons legally qualified to provide a particularservice, in the amount of the fee or charge for that service payable as abenefit under any policy or contract of health insurance.

(Added to NRS by 1971, 1690; A 1983, 326)

NRS 686A.110 Lifeinsurance, annuities and health insurance: Rebates and other inducementsprohibited. Except as otherwise expresslyprovided by law, no person shall knowingly:

1. Permit to be made or offer to make or make anycontract of life insurance, life annuity or health insurance, or agreement asto such contract, other than as plainly expressed in the contract issuedthereon, or pay or allow, or give or offer to pay, allow or give, directly orindirectly, or knowingly accept, as an inducement to such insurance or annuity,any rebate of premiums payable on the contract, or any special favor oradvantage in the dividends or other benefits thereon, or any paid employment orcontract for services of any kind, or any valuable consideration or inducementwhatever not specified in the contract; or

2. Directly or indirectly give or sell or purchase oroffer or agree to give, sell, purchase, or allow as an inducement to suchinsurance or annuity or in connection therewith, whether or not to be specifiedin the policy or contract, any agreement of any form or nature promisingreturns and profits, or any stocks, bonds or other securities, or interestpresent or contingent therein or as measured thereby, of any insurer or othercorporation, association or partnership, or any dividends or profits accrued orto accrue thereon.

(Added to NRS by 1971, 1690)

NRS 686A.120 Lifeinsurance, annuities and health insurance: Exceptions to provisions limitingdiscrimination, rebates and use of securities as inducements.

1. Nothing in NRS686A.100 and 686A.110 shall beconstrued as including within the definition of discrimination or rebates anyof the following practices:

(a) In the case of any contract of life insurance orlife annuity, paying bonuses to policyholders or otherwise abating theirpremiums in whole or in part out of surplus accumulated from nonparticipatinginsurance, provided that any such bonuses or abatement of premiums shall befair and equitable to policyholders and for the best interests of the insurerand its policyholders.

(b) In the case of life insurance policies issued onthe debit plan, making allowance to policyholders who have continuously for aspecified period made premium payments directly to an office of the insurer inan amount which fairly represents the saving in collection expense.

(c) Readjusting the rate of premium for a groupinsurance policy based on the loss or expense experience thereunder, at the endof the first or any subsequent policy year of insurance thereunder, which maybe made retroactive only for such policy year.

(d) Reducing the premium rate for policies of largeamounts, but not exceeding savings in issuance and administration expensesreasonably attributable to such policies as compared with policies of similarplan issued in smaller amounts.

(e) Reducing the premium rates for life or healthinsurance policies or annuity contracts on salary savings, payroll deduction,preauthorized check, bank draft or similar plans in amounts reasonablycommensurate with the savings made by the use of such plans.

(f) Extending credit for the payment of any premium,and for which credit a reasonable rate of interest is charged and collected.

2. Nothing in NRS686A.010 to 686A.310, inclusive,shall be construed as including within the definition of securities asinducements to purchase insurance the selling or offering for sale,contemporaneously with life insurance, of mutual fund shares or face amountcertificates of regulated investment companies under offerings registered withthe Securities and Exchange Commission where such shares or such face amountcertificates or such insurance may be purchased independently of and not contingentupon purchase of the other, at the same price and upon similar terms andconditions as where purchased independently.

(Added to NRS by 1971, 1690)

NRS 686A.130 Property,casualty, surety and title insurance: Unfair discrimination and rebates prohibited.

1. No property, casualty, surety or title insurer orunderwritten title company or any employee or representative thereof, and nobroker, agent or solicitor may pay, allow or give, or offer to pay, allow orgive, directly or indirectly, as an inducement to insurance, or after insurancehas been effected, any rebate, discount, abatement, credit or reduction of thepremium named in a policy of insurance, or any special favor or advantage inthe dividends or other benefits to accrue thereon, or any valuableconsideration or inducement whatever, not specified or provided for in the policy,except to the extent provided for in an applicable filing with theCommissioner.

2. No title insurer or underwritten title company may:

(a) Pay, directly or indirectly, to the insured or anyperson acting as agent, representative, attorney or employee of the owner,lessee, mortgagee, existing or prospective, of the real property or interesttherein which is the subject matter of title insurance or as to which a serviceis to be performed, any commission, rebate or part of its fee or charges orother consideration as inducement or compensation for the placing of any orderfor a title insurance policy or for performance of any escrow or other serviceby the insurer or underwritten title company with respect thereto; or

(b) Issue any policy or perform any service inconnection with which it or any agent or other person has paid or contemplatespaying any commission, rebate or inducement in violation of this section.

3. No insured named in a policy or any employee ofthat insured may knowingly receive or accept, directly or indirectly, any suchrebate, discount, abatement, credit or reduction of premium, or any suchspecial favor or advantage or valuable consideration or inducement.

4. No such insurer may make or permit any unfairdiscrimination between insured or property having like insuring or riskcharacteristics, in the premium or rates charged for insurance, or in thedividends or other benefits payable thereon, or in any other of the terms andconditions of insurance.

5. No casualty insurer may make or permit any unfairdiscrimination between persons legally qualified to provide a particularservice, in the amount of the fee or charge for that service payable as abenefit under any policy or contract of casualty insurance.

6. The provisions of this section do not prohibit:

(a) The payment of commissions or other compensation tolicensed agents, brokers or solicitors.

(b) The extension of credit to an insured for thepayment of any premium and for which credit a reasonable rate of interest ischarged and collected.

(c) Any insurer from allowing or returning to itsparticipating policyholders, members or subscribers, dividends, savings orunabsorbed premium deposits.

(d) With respect to title insurance, bulk rates or specialrates for customers of prescribed classes if the bulk or special rates areprovided for in the effective schedule of fees and charges of the title insureror underwritten title company.

7. The provisions of this section do not apply to wetmarine and transportation insurance.

(Added to NRS by 1971, 1691; A 1983, 326; 1999, 2799)

NRS 686A.140 Violationsconcerning rebates and inducements: Penalties; effect.

1. Any person violating the provisions of NRS 686A.110 or 686A.130 is guilty of a misdemeanor.

2. No agent or broker violating any of such provisionsshall be entitled to receive any commission for the sale of any policy on whichany rebate or inducement prohibited by NRS686A.110 or 686A.130 has beengiven or offered, and the full amount of any commission so paid may berecovered by the insurer so paying.

3. The amount of any insurance upon which the insuredhas knowingly received or accepted, either directly or indirectly, any unlawfulrebate of the premium or agents, solicitors or brokers commission shall bereduced in such proportion as the amount or value of such rebate, commission orother consideration so received by the insured bears to the total premium onsuch policy.

4. A title insurer or underwritten title company shallbe liable to the State of Nevada for five times the amount of any unlawfulcommission or rebate paid in violation of NRS686A.130, which amount may be recovered by the Commissioner in addition toany other penalty imposed by law.

(Added to NRS by 1971, 1692)

NRS 686A.150 Usingsecurity, advisory board contract or agreement offering or promising profit asinducement prohibited. Except as provided insubsection 2 of NRS 686A.120(contemporaneous sales of life insurance and mutual fund shares), no personshall sell, agree or offer to sell, or give or offer to give, directly orindirectly in any manner whatsoever, as an inducement to insurance or inconnection therewith, any stock, shares, bonds or other securities of any kind,or any advisory board contract or other contract or agreement of any kindoffering or promising returns and profits.

(Added to NRS by 1971, 1693)

NRS 686A.160 Enforcement:Prohibited practices. If the Commissioner hascause to believe that any person has been engaged or is engaging, in thisstate, in any unfair method of competition or any unfair or deceptive act orpractice prohibited by NRS 686A.010 to686A.310, inclusive, and that aproceeding by him in respect thereto would be in the interest of the public, hemay issue and serve upon such person a statement of the charges and a notice ofthe hearing to be held thereon. The statement of charges and notice of hearingshall comply with the requirements of NRS679B.320 and shall be served upon such person directly or by certified orregistered mail, return receipt requested.

(Added to NRS by 1971, 1693; A 1975, 1288; 1977, 432)

NRS 686A.170 Enforcement:Undefined practices.

1. If the Commissioner believes that any personengaged in the insurance business is in the conduct of such business engagingin this state in any method of competition or in any act or practice notdefined in NRS 686A.010 to 686A.310, inclusive, which is unfair ordeceptive and that a proceeding by him in respect thereto would be in thepublic interest, the Commissioner shall, after a hearing of which notice and ofthe charges against such person are given him, make a written report of hisfindings of fact relative to such charges and serve a copy thereof upon suchperson and any intervener at the hearing.

2. If such report charges a violation of NRS 686A.010 to 686A.310, inclusive, and if such methodof competition, act or practice has not been discontinued, the Commissionermay, through the Attorney General, at any time after 20 days after the serviceof such report cause an action to be instituted in the district court of thecounty wherein the person resides or has his principal place of business toenjoin and restrain such person from engaging in such method, act or practice.The court shall have jurisdiction of the proceeding and shall have power tomake and enter appropriate orders in connection therewith and to issue suchwrits or orders as are ancillary to its jurisdiction or necessary in itsjudgment to prevent injury to the public pendente lite; but the State of Nevadashall not be required to give security before the issuance of any such order orinjunction under this section. If a stenographic record of the proceedings inthe hearing before the Commissioner was made, a certified transcript thereofincluding all evidence taken and the report and findings shall be received inevidence in such action.

3. If the court finds that:

(a) The method of competition complained of is unfairor deceptive;

(b) The proceedings by the Commissioner with respectthereto are to the interest of the public; and

(c) The findings of the Commissioner are supported bythe weight of the evidence,

it shallissue its order enjoining and restraining the continuance of such method ofcompetition, act or practice.

4. Either party may appeal from such final judgment ororder or decree of court in a like manner as provided for appeals in civilcases.

5. If the Commissioners report made under subsection1 or order on hearing made under NRS679B.360 does not charge a violation of NRS686A.010 to 686A.310, inclusive,then any intervener in the proceedings may appeal therefrom within the time andin the manner provided in this Code for appeals from the Commissionergenerally.

6. Upon violation of any injunction issued under thissection, the Commissioner, after a hearing thereon, may impose the appropriatepenalties provided for in NRS 686A.187.

(Added to NRS by 1971, 1693; A 1975, 1288)

NRS 686A.180 Serviceof process upon unauthorized insurers.

1. Service of all process, statements of charges andnotices under NRS 686A.010 to 686A.310, inclusive, upon unauthorizedinsurers shall be made by delivering to and leaving with the Commissioner orsome person in apparent charge of his office two copies thereof, or in themanner provided for by subsection 2 of NRS685B.050 (service of process).

2. The Commissioner shall forward all such process,statements of charges and notices to the insurer in the manner provided insubsection 3 of NRS 685B.050.

3. No default shall be taken against any suchunauthorized insurer until expiration of 30 days after the date of forwardingby the Commissioner under subsection 2, or date of service of process if undersubsection 2 of NRS 685B.050.

4. NRS 685B.050applies to all process, statements of charges and notices under this section.

(Added to NRS by 1971, 1694)

NRS 686A.183 Ceaseand desist orders and penalties for prohibited practices; modification andsetting aside of Commissioners orders.

1. After the hearing provided for in NRS 686A.160, the Commissioner shallissue his order on hearing pursuant to NRS679B.360. If the Commissioner determines that the person charged hasengaged in an unfair method of competition or an unfair or deceptive act orpractice in violation of NRS 686A.010to 686A.310, inclusive, he shall orderhim to cease and desist from engaging in that method of competition, act orpractice, and may order one or both of the following:

(a) If the person knew or reasonably should have knownthat he was in violation of NRS 686A.010to 686A.310, inclusive, payment of anadministrative fine of not more than $5,000 for each act or violation, exceptthat as to licensed agents, brokers, solicitors and adjusters, theadministrative fine must not exceed $500 for each act or violation.

(b) Suspension or revocation of the persons license ifhe knew or reasonably should have known that he was in violation of NRS 686A.010 to 686A.310, inclusive.

2. Until the expiration of the time allowed for takingan appeal, pursuant to NRS 679B.370,if no petition for review has been filed within that time, or, if a petitionfor review has been filed within that time, until the official record in the proceedinghas been filed with the court, the Commissioner may, at any time, upon suchnotice and in such manner as he deems proper, modify or set aside, in whole orin part, any order issued by him under this section.

3. After the expiration of the time allowed for takingan appeal, if no petition for review has been filed, the Commissioner may atany time, after notice and opportunity for hearing, reopen and alter, modify orset aside, in whole or in part, any order issued by him under this sectionwhenever in his opinion conditions of fact or of law have so changed as torequire such action or if the public interest so requires.

(Added to NRS by 1975, 1284; A 1977, 432; 1993, 2394;1997, 783)

NRS 686A.185 Reviewand finality of Commissioners orders.

1. An order issued by the Commissioner under NRS 686A.183 is subject to reviewpursuant to the provisions of NRS 679B.370.

2. An order issued by the Commissioner under NRS 686A.183 or 686A.187 shall become final:

(a) Upon the expiration of the time allowed for takingan appeal, if no petition for review has been duly filed within such time,except that the Commissioner may thereafter modify or set aside his order tothe extent provided in subsection 3 of NRS686A.183; or

(b) Upon the final decision of the court if the courtdirects that the order of the Commissioner be affirmed or the petition forreview dismissed.

(Added to NRS by 1975, 1285)

NRS 686A.187 Penaltiesfor violating cease and desist order. Anyperson who violates a cease and desist order of the Commissioner issued under NRS 686A.183, except one issued withrespect to NRS 686A.170, is subject,in the discretion of the Commissioner, after notice and hearing and upon orderof the Commissioner, to one or both of the following:

1. Payment of an administrative fine of not more than$5,000 for each and every violation.

2. Suspension or revocation of the license.

(Added to NRS by 1975, 1285)

NRS 686A.190 Interlockingownership or management.

1. Any insurer may retain, invest in or acquire thewhole or any part of the capital stock of any other insurer or insurers, orhave a common management with any other insurer or insurers, unless suchretention, investment, acquisition or common management is inconsistent withany other provision of this Code, or unless by reason thereof the business ofsuch insurers with the public is conducted in a manner which substantiallylessens competition generally in the insurance business or tends to create anymonopoly therein.

2. Any person otherwise qualified may be a director oftwo or more insurers which are competitors, unless the effect thereof is tolessen substantially competition between insurers generally or tends materiallyto create any monopoly.

(Added to NRS by 1971, 1694)

NRS 686A.200 Favoredagent or insurer.

1. Except as otherwise provided in NRS 616B.710, no person shall require,directly or indirectly, or through any trustee, director, officer, agent oremployee or affiliate, as a condition, agreement or understanding to selling orfurnishing any other person any loan, or extension thereof, credit, sale,goods, property, contract, lease or service, that such other person shallplace, continue (other than as to life insurance) or renew any policy ofinsurance of any kind through any particular agent, broker or insurer. Noagent, broker or insurer shall knowingly participate in any such prohibitedplan or transaction. No person shall fix a price charged for such thing orservice, or discount from or rebate upon price, on the condition, agreement orunderstanding that any insurance is to be obtained through a particular agent,broker or insurer.

2. Subsection 1 does not prevent:

(a) The exercise by any such person upon a reasonablebasis of any right to approve or disapprove of the insurer and representativeto underwrite the insurance. Such basis shall relate only to the adequacy andterms of the coverage with respect to the interest of the vendor, lender,lessor or provider of service to be insured thereunder, the financial standardsto be met by the insurer, and the ability of the insurer or representative toservice the policy.

(b) The exercise by the vendor, lender, lessor orprovider of service of the right to furnish or renew the insurance, and tocharge the account of the other person with the costs thereof, if such otherperson fails to deliver such insurance to the lender, vendor, lessor orprovider of service, where otherwise called for and in order, at least 15 daysprior to expiration of the existing policy.

(Added to NRS by 1971, 1695; A 1999, 3147)

NRS 686A.210 Serviceand processing charges prohibited. Nomortgagee, lessor, vendor or other person whose interest is insured under aninsurance policy paid for by another shall make, receive or accept any monetarycharge or fee paid or payable by such other person, for handling, servicing orprocessing the insurance policy, or endorsements thereon or cancellationthereof.

(Added to NRS by 1971, 1696)

NRS 686A.220 Favoredagent or surety for bonds under public building or construction contract.

1. Except as otherwise provided in NRS 616B.710, no officer or employee ofthis state, or of any public agency, public authority or public corporation(except a public corporation or public authority created pursuant to agreementor compact with another state), and no person acting or purporting to act onbehalf of such officer or employee, or public agency or public authority orpublic corporation, shall, with respect to any public building or constructioncontract which is about to be or which has been competitively bid, require thebidder to make application or furnish financial data to, or to obtain orprocure any of the surety bonds or contracts of insurance specified inconnection with such contracts or by any law from, a particular insurer oragent or broker.

2. Except as otherwise provided in NRS 616B.710, no such officer or employeeor any person acting or purporting to act on behalf of such officer or employeeshall negotiate, make application for, obtain or procure any of such suretybonds or contracts of insurance (except contracts of insurance for buildersrisk or owners protective liability) which can be obtained or procured by thebidder, contractor or subcontractor.

3. This section does not, however, prevent theexercise by such officer or employee on behalf of the State or such publicagency, public authority or public corporation of its right to approve theform, sufficiency or manner of execution of the surety bonds or contracts ofinsurance furnished by the insurer selected by the bidder to underwrite suchbonds or contracts of insurance.

4. Any provisions in any invitation for bids or in anyof the contract documents in conflict with this section are declared to becontrary to the public policy of this state.

5. A violation of this section is subject to thepenalties provided by NRS 679A.180(general penalty).

(Added to NRS by 1971, 1942; A 1999, 3148)

NRS 686A.225 Certaininsurers to retain adjuster who resides in this State.

1. Except as otherwise provided in NRS 684A.060, any insurer who:

(a) Transacts property, casualty or surety insurance inthis State; and

(b) Retains an adjuster to investigate and settle anyclaim arising under an insurance contract,

shall retainan adjuster who resides in this State.

2. As used in this section, adjuster has the meaningascribed to it in NRS 684A.020.

(Added to NRS by 1989, 1110; A 1993, 2394; 1995,1621)

NRS 686A.230 Illegaldealing in premiums; excess charges for insurance; regulations related to feesof broker, consultant or financial planner; written contract for consultation.

1. A person shall not willfully collect any sum as apremium or charge for insurance which is not then provided or is not in duecourse to be provided, subject to acceptance of the risk by the insurer, by aninsurance policy issued by an insurer as authorized by this Code.

2. Except as otherwise provided in subsection 3, aperson shall not willfully collect as a premium or charge for insurance any sumin excess of the premium or charge applicable to the insurance and as specifiedin the policy, in accordance with the applicable classifications and rates asfiled with and approved by the Commissioner. In cases where classifications,premiums or rates are not required by this Code to be so filed and approved,the premiums and charges must not be in excess of those specified in the policyand as fixed by the insurer. This subsection does not prohibit:

(a) The charging and collection by surplus linesbrokers licensed under chapter 685A of NRSof the amount permitted by chapter 685A of NRSand regulations adopted by the Commissioner.

(b) The charging and collection by a life insurer ofamounts actually to be expended for the medical examination of any applicantfor life insurance or for reinstatement of a life insurance policy.

3. The Commissioner may adopt regulations to allow thecharging and collection of a fee by an insurance broker, consultant orfinancial planner:

(a) In lieu of any other charge or commission forsolicitation, negotiation or procurement of a policy of insurance which coverscommercial or business risks;

(b) For consultation or any related advice on theinsuring of commercial or business risks which does not result in theprocurement of a policy of insurance; and

(c) For consultation or related advice on the purchaseof life or health insurance or an annuity, whether or not it results in thepurchase of a policy of insurance or annuity. In such a case, the fee must beset forth in a written contract signed by the client before the consultationbegins.

4. An agent or broker who provides consultation orrelated advice pursuant to this section shall do so pursuant to a writtencontract specifying the compensation he will receive. The compensation may bein addition to or in lieu of a commission and is not a premium as defined in NRS 679A.115.

(Added to NRS by 1971, 1696; A 1981, 1142; 1985,1549; 1987, 1038; 1995, 1621)

NRS 686A.240 Favoritismto groups prohibited; exceptions.

1. No form or plan of insurance covering any group orcombination of persons or risks shall be written or delivered within or outsidethis state to cover persons or risks in this state at any preferred rate or onany form other than as offered to persons not in such group or combination andto the public generally, unless such form, plan of insurance, and the rates orpremiums to be charged therefor have been submitted to and approved by theCommissioner.

2. Any such plan of insurance described in subsection1 shall not be approved by the Commissioner unless it is made available to allindividuals of the group who seek to be insured. No insurer or agent shall denycoverage to any individual of such group who seeks the type of insurance whichis being made available to other members of the group.

3. This section does not apply to life insurance,health insurance, annuity contracts or wet marine and transportation insurance.

(Added to NRS by 1971, 1942)

NRS 686A.250 Useof insurance or annuity as inducement for purchase or rental of property orservices prohibited; exceptions.

1. No person shall arrange, provide or participate inany plan to offer or effect any kind or kinds of insurance or annuities in thisstate as an inducement to the purchase or rental by the public of any propertyor services, without a separate charge to the insured for such insurance.

2. This section does not apply to:

(a) Insurance written in connection with a subscriptionto newspapers of general circulation;

(b) Insurance issued to credit unions or membersthereof in connection with the purchase of shares in such credit union;

(c) Insurance offered as guarantee to the performanceof goods and designed to protect the purchasers or users of such goods;

(d) Title insurance;

(e) Life or health insurance written in connection withan indebtedness for the purpose of paying the balance of the indebtedness ondeath or disability of the individual insured; or

(f) Services provided by motor clubs.

(Added to NRS by 1971, 1696)

NRS 686A.260 Revocationor suspension of license for violation of laws of other state. The Commissioner may revoke or suspend the license of anyperson domiciled or resident in Nevada and licensed to transact insurance inNevada as insurer, agent, broker or otherwise, upon a hearing and proof thatsuch person, as the result of a hearing before the commissioner, director orsuperintendent of insurance or insurance department of another state, or in ajudicial proceeding in another state, has been found to have violated theinsurance laws of that state relating to unfair methods of competition orunfair or deceptive acts or practices in the conduct of the business ofinsurance, and as a result thereof either has had his license revoked orsuspended in that state or has been found guilty of failing to comply with anyorder, decree or judgment issued pursuant to such hearing or judicialproceeding in that state.

(Added to NRS by 1971, 1697)

NRS 686A.270 Knowledgeof insurer of prohibited acts. No insurershall be held guilty of having committed any of the acts prohibited by NRS 686A.010 to 686A.310, inclusive, by reason of the actof any agent, solicitor or employee not an officer, director or department headthereof, unless an officer, director or department head of the insurer hasknowingly permitted such act or has had prior knowledge thereof.

(Added to NRS by 1971, 1697)

NRS 686A.280 Useof name deceptively implying person is insurer prohibited. No person who is not an insurer shall assume or use anyname which deceptively implies or suggests that it is an insurer.

(Added to NRS by 1971, 1697)

INSURANCE FRAUD

NRS 686A.281 Definitions. As used in NRS686A.281 to 686A.295, inclusive,unless the context otherwise requires, the words and terms defined in NRS 686A.2815, 686A.282 and 686A.2825 have the meanings ascribed tothem in those sections.

(Added to NRS by 1983, 1387; A 1997, 1541; 2001, 1096)

NRS 686A.2815 Insurancefraud defined. Insurance fraud meansknowingly and willfully:

1. Presenting or causing to be presented any statementto an insurer, a reinsurer, a producer, a broker or any agent thereof, if theperson who presents or causes the presentation of the statement knows that thestatement conceals or omits facts, or contains false or misleading informationconcerning any fact material to an application for the issuance of a policy ofinsurance pursuant to this title.

2. Presenting or causing to be presented any statementas a part of, or in support of, a claim for payment or other benefits under apolicy of insurance issued pursuant to this title, if the person who presentsor causes the presentation of the statement knows that the statement concealsor omits facts, or contains false or misleading information concerning any factmaterial to that claim.

3. Assisting, abetting, soliciting or conspiring withanother person to present or cause to be presented any statement to an insurer,a reinsurer, a producer, a broker or any agent thereof, if the person whoassists, abets, solicits or conspires knows that the statement conceals oromits facts, or contains false or misleading information concerning any factmaterial to an application for the issuance of a policy of insurance pursuantto this title or a claim for payment or other benefits under such a policy.

4. Acting or failing to act with the intent ofdefrauding or deceiving an insurer, a reinsurer, a producer, a broker or anyagent thereof, to obtain a policy of insurance pursuant to this title or anyproceeds or other benefits under such a policy.

5. As a practitioner, an insurer or any agent thereof,acting to assist, conspire with or urge another person to commit any act oromission specified in this section through deceit, misrepresentation or otherfraudulent means.

6. Accepting any proceeds or other benefits under apolicy of insurance issued pursuant to this title, if the person who acceptsthe proceeds or other benefits knows that the proceeds or other benefits arederived from any act or omission specified in this section.

7. Employing a person to procure clients, patients orother persons who obtain services or benefits under a policy of insuranceissued pursuant to this title for the purpose of engaging in any act oromission specified in this section, except that such insurance fraud does notinclude contact or communication by an insurer or his agent or representativewith a client, patient or other person if the contact or communication is madefor a lawful purpose, including, without limitation, communication by aninsurer with a holder of a policy of insurance issued by the insurer or with aclaimant concerning the settlement of any claims against the policy.

8. Participating in, aiding, abetting, conspiring tocommit, soliciting another person to commit, or permitting an employee or agentto commit any act or omission specified in this section.

(Added to NRS by 2001, 1095)

NRS 686A.282 Investigativeor law enforcement agency defined. Investigativeor law enforcement agency includes:

1. The State Fire Marshal;

2. The chief or other officer of the fire departmentin whose jurisdiction a fire has occurred;

3. The district attorney of the county where anyfraudulent activity has occurred or where a fraudulent claim has been made; and

4. Any other officer of an agency in this state whohas the authority to investigate the fraudulent activity or claim.

(Added to NRS by 2001, 1096)

NRS 686A.2825 Practitionerdefined. Practitioner means:

1. A physician, dentist, nurse, dispensing optician,optometrist, physical therapist, podiatric physician, psychologist,chiropractor, doctor of Oriental medicine in any form, director or technicianof a medical laboratory, pharmacist or other provider of health services who isauthorized to engage in his occupation by the laws of this state or anotherstate; and

2. An attorney admitted to practice law in this stateor any other state.

(Added to NRS by 2001, 1096)

NRS 686A.283 Reportingrequirements; duties of Commissioner and Attorney General; prosecution bydistrict attorney.

1. Any person, governmental entity, insurer orauthorized representative of an insurer shall report any information concerninginsurance fraud to the Commissioner and Attorney General on a form prescribedby the Commissioner and Attorney General.

2. The Commissioner and Attorney General shall eachindependently:

(a) Review each report of insurance fraud; and

(b) Determine whether an investigation should be madeof the facts in the report.

3. During their respective investigations, theCommissioner and Attorney General shall independently determine whether thereis probable cause to believe that insurance fraud has occurred.

4. A district attorney of any county where fraudulentactivity has occurred or is occurring or where a fraudulent claim that wouldconstitute insurance fraud has been made may, with the permission of theAttorney General or at the request of the Attorney General, instituteproceedings in the name of the State of Nevada.

(Added to NRS by 1983, 1387; A 2001, 1097)

NRS 686A.285 Reportby insurer of suspicion that loss to insured was caused by other thanaccidental or natural occurrence.

1. If an insurer has a reasonable suspicion that aloss to an insured may have been caused by other than an accidental or anatural occurrence, the insurer shall notify the Commissioner and AttorneyGeneral in writing of the insurers reasons for the suspicion.

2. Any insurer making such a report shall provide theCommissioner and Attorney General with any information the insurer obtainedduring its investigation of the claim.

3. If the loss referred to in subsection 1 is believedto be caused by fire, the insurer shall also so notify an investigative or lawenforcement agency.

(Added to NRS by 1983, 1387; A 2001, 1097)

NRS 686A.287 Provisionby insurer of information concerning fraud upon request by Attorney General,Commissioner or certain agencies.

1. Every insurer shall provide information concerninginsurance fraud to the Attorney General, the Commissioner, any investigative orlaw enforcement agency or any agency of the Federal Government, if the insurerreceives a request in writing for that information.

2. The information requested from an insurer mayinclude:

(a) Information about the policy of insurance on theproperty which was demolished or destroyed, including information from theapplication for insurance;

(b) Information on previous claims made by the insured;

(c) Records of the premiums paid for the policy ofinsurance; and

(d) Information concerning the insurers investigationof the claim, including statements of any person, information submitted asproof of the loss or any other relevant information on the claim.

(Added to NRS by 1983, 1387; A 2001, 1097)

NRS 686A.289 Provisionto insurer of information concerning fraud upon completion of investigation orprosecution; confidentiality of information.

1. Any insurer giving information to the AttorneyGeneral, the Commissioner or any investigative or law enforcement agencyconcerning an act or omission alleged to be insurance fraud is entitled toreceive, upon completion of the investigation or prosecution of the insurancefraud, whichever occurs later, any relevant information concerning thefraudulent activity.

2. The Attorney General, the Commissioner or anyinvestigative or law enforcement agency receiving information from anotherperson, agency or insurer shall:

(a) Keep the information confidential and not releasethe information except pursuant to subsection 1;

(b) Provide information concerning its investigation ofthe insurance fraud to the insurer reporting the fraudulent activity upon thecompletion of its investigation or a criminal prosecution, whichever occurslater; and

(c) Provide any documents necessary or allow itsemployees or agents to testify in any action by or against the insurer if theinsurer or its insured furnished the information for the investigation or acriminal prosecution.

(Added to NRS by 1983, 1388; A 2001, 1097)

NRS 686A.290 Applicationsfor insurance: Prohibited acts and penalties.

1. An agent, broker, solicitor, examining physician,applicant or other person shall not knowingly or willfully make any false orfraudulent statement or representation in or with reference to any applicationfor insurance.

2. A person who violates this section is guilty of acategory D felony and shall be punished as provided in NRS 193.130. In addition to any otherpenalty, the court shall order the person to pay restitution.

(Added to NRS by 1971, 1697; A 1977, 153; 1983, 1388;1995, 1318)

NRS 686A.291 Criminalpenalty for insurance fraud. A person whocommits insurance fraud is guilty of a category D felony and shall be punishedas provided in NRS 193.130.

(Added to NRS by 1983, 1388; A 1991, 1042; 1995,1318, 2698; 1997, 1541; 2001, 1098)

NRS 686A.292 Additionalpenalties for insurance fraud; payment of expenses of Fraud Control Unit;persons who are victims for purposes of restitution.

1. A court may, in addition to imposing the penaltiesset forth in NRS 193.130, order a personwho is convicted of, or who pleads guilty or nolo contendere to, insurancefraud to pay:

(a) Court costs; and

(b) The cost of the investigation and prosecution ofthe insurance fraud for which the person was convicted or to which the personpleaded guilty or nolo contendere.

2. Any money received by the Attorney General pursuantto paragraph (b) of subsection 1 must be accounted for separately and used topay the expenses of the Fraud Control Unit for Insurance established pursuantto NRS 228.412, and is hereby authorizedfor expenditure for that purpose. The money in the account does not revert tothe State General Fund at the end of any fiscal year and must be carried forwardto the next fiscal year.

3. An insurer or other organization, or any otherperson, subject to the jurisdiction of the Commissioner pursuant to this titleshall be deemed to be a victim for the purposes of restitution in a case thatinvolves insurance fraud or that is related to a claim of insurance fraud.

(Added to NRS by 2001, 1096)

NRS 686A.295 Commissionerand Attorney General to notify agency when person licensed by or registeredwith agency is convicted of insurance fraud; agency to submit report toLegislature setting forth action taken. If aperson who is licensed or registered under the laws of the State of Nevada toengage in a business or profession is convicted of or pleads guilty to engagingin an act of insurance fraud, the Commissioner and the Attorney General shallforward to each agency by which the convicted person is licensed or registereda copy of the conviction or plea and all supporting evidence of the act ofinsurance fraud. An agency that receives information from the Commissioner andAttorney General pursuant to this section shall, not later than 1 year afterthe date on which it receives the information, submit a report which sets forththe action taken by the agency against the convicted person, including, but notlimited to, the revocation or suspension of the license or any otherdisciplinary action, to the Director of the Legislative Counsel Bureau fortransmittal to the Legislature.

(Added to NRS by 1997; 1540; A 2001, 1099)

CLAIMS

NRS 686A.300 Delayin payment of claim for damages to motor vehicle after receipt of statement ofcharges prohibited; settling claim without providing for repair of vehiclepermitted; exception.

1. An insurer who issues insurance covering damage toa motor vehicle shall not delay making payment for any claim involving damageto a motor vehicle after receiving a statement of charges, pursuant to theprovisions of NRS 487.035, from anygarage or licensed body shop previously authorized by the insured to performthe repairs required by that claim.

2. A delay, within the meaning of this section, isfailure to issue a check or draft, payable to the garage or licensed body shopor jointly to the insured and the garage or licensed body shop, within 30 daysafter the insurers receipt of the statement of charges for repairs which havebeen satisfactorily completed.

3. If the damaged vehicle is subject to a securityinterest or the legal owner of the damaged vehicle is different from theregistered owner, the vehicle must be repaired by a garage or licensed bodyshop unless:

(a) The insurer has declared the vehicle a total loss;or

(b) The total charge for the repair of the vehicle, asset forth in the statement of charges presented pursuant to NRS 487.035, is $300 or less.

4. Except as otherwise provided in subsection 3,nothing in this section shall be deemed to prohibit an insurer and insured fromsettling a claim involving damage to a motor vehicle without providing for therepair of the vehicle.

5. As used in this section, licensed body shop meansa body shop for which a license has been issued pursuant to chapter 487 of NRS.

(Added to NRS by 1973, 977; A 1987, 1098; 1993, 338)

NRS 686A.310 Unfairpractices in settling claims; liability of insurer for damages.

1. Engaging in any of the following activities is consideredto be an unfair practice:

(a) Misrepresenting to insureds or claimants pertinentfacts or insurance policy provisions relating to any coverage at issue.

(b) Failing to acknowledge and act reasonably promptlyupon communications with respect to claims arising under insurance policies.

(c) Failing to adopt and implement reasonable standardsfor the prompt investigation and processing of claims arising under insurancepolicies.

(d) Failing to affirm or deny coverage of claims withina reasonable time after proof of loss requirements have been completed andsubmitted by the insured.

(e) Failing to effectuate prompt, fair and equitablesettlements of claims in which liability of the insurer has become reasonablyclear.

(f) Compelling insureds to institute litigation torecover amounts due under an insurance policy by offering substantially lessthan the amounts ultimately recovered in actions brought by such insureds, whenthe insureds have made claims for amounts reasonably similar to the amounts ultimatelyrecovered.

(g) Attempting to settle a claim by an insured for lessthan the amount to which a reasonable person would have believed he wasentitled by reference to written or printed advertising material accompanyingor made part of an application.

(h) Attempting to settle claims on the basis of anapplication which was altered without notice to, or knowledge or consent of,the insured, his representative, agent or broker.

(i) Failing, upon payment of a claim, to informinsureds or beneficiaries of the coverage under which payment is made.

(j) Making known to insureds or claimants a practice ofthe insurer of appealing from arbitration awards in favor of insureds orclaimants for the purpose of compelling them to accept settlements or compromisesless than the amount awarded in arbitration.

(k) Delaying the investigation or payment of claims byrequiring an insured or a claimant, or the physician of either, to submit apreliminary claim report, and then requiring the subsequent submission of formalproof of loss forms, both of which submissions contain substantially the sameinformation.

(l) Failing to settle claims promptly, where liabilityhas become reasonably clear, under one portion of the insurance policy coveragein order to influence settlements under other portions of the insurance policycoverage.

(m) Failing to comply with the provisions of NRS 687B.310 to 687B.390, inclusive, or 687B.410.

(n) Failing to provide promptly to an insured areasonable explanation of the basis in the insurance policy, with respect tothe facts of the insureds claim and the applicable law, for the denial of hisclaim or for an offer to settle or compromise his claim.

(o) Advising an insured or claimant not to seek legalcounsel.

(p) Misleading an insured or claimant concerning anyapplicable statute of limitations.

2. In addition to any rights or remedies available tothe Commissioner, an insurer is liable to its insured for any damages sustainedby the insured as a result of the commission of any act set forth in subsection1 as an unfair practice.

(Added to NRS by 1975, 1285; A 1987, 1067; 1991,2202)

NRS 686A.315 Noticerequired with certain billing and claim forms submitted to insurers.

1. If a hospital submits to an insurer the formcommonly referred to as the UB-82, the form must contain or be accompanied bya statement in substantially the following form:

 

Any person who misrepresentsor falsifies essential information requested on this form may, upon conviction,be subject to a fine and imprisonment under state or federal law, or both.

 

2. If a person who is licensed to practice one of thehealth professions regulated by title 54 of NRS submits to an insurer the formcommonly referred to as the HCFA-1500 for a patient who is not covered by anygovernmental program which offers insurance coverage for health care, the formmust be accompanied by a statement in substantially the following form:

 

Any person who knowinglyfiles a statement of claim containing any misrepresentation or any false,incomplete or misleading information may be guilty of a criminal act punishableunder state or federal law, or both, and may be subject to civil penalties.

 

3. The failure to provide any of the statementsrequired by this section is not a defense in a prosecution for insurance fraudpursuant to NRS 686A.291.

(Added to NRS by 1991, 1042; A 1991, 1978; 2001, 1099)

NRS 686A.325 Settlementof third-party liability claims; written notice of payment; failure to servenotice.

1. In any third-party liability claim, an insurershall not issue a check or draft or otherwise make payment of $5,000 or more insettlement of the claim to a representative of the claimant, including, withoutlimitation, the lawyer for the claimant, unless the insurer, at the time ofmaking the payment or as soon as practicable thereafter, mails written noticeof the payment to the claimant at his last known address.

2. The failure of an insurer to serve notice asrequired by subsection 1 or defective service of the notice does not:

(a) Create, and must not be construed to create, acause of action for any natural person or entity other than the Commissioner.

(b) Establish, and must not be construed to establish,a defense for any party to any cause of action.

3. As used in this section, third-party liabilityclaim means a claim brought under a liability insurance policy by a personother than the insured, where the claimant is a natural person.

(Added to NRS by 2005, 1001)

FINANCING OF PREMIUMS

NRS 686A.330 Definitions. As used in NRS686A.330 to 686A.520, inclusive,unless the context otherwise requires:

1. Agreement means a contract between a person andan insured or prospective insured under which the person agrees to pay apremium in advance on behalf of the insured or prospective insured in exchangefor repayment of the amount advanced with interest or for some otherconsideration.

2. Company means a person engaged in the business ofentering into agreements or purchasing agreements. The term does not include aperson who finances a premium in connection with the sale of a motor vehicleupon which he holds a lien.

(Added to NRS by 1985, 1153; A 1993, 2394; 1995,1622)

NRS 686A.335 Applicabilityof chapter 696Bof NRS.

1. A company is subject to the provisions of chapter 696B of NRS.

2. For the purposes of chapter696B of NRS, a company shall be deemed to be an insurer.

(Added to NRS by 1995, 1621)

NRS 686A.340 Engagingin business of company without license prohibited. Exceptas provided in NRS 686A.350, a personshall not engage in the business of a company or hold himself out as a companywithout first having received a license from the Commissioner to engage in thebusiness of a company.

(Added to NRS by 1985, 1154)

NRS 686A.350 Exemptionsfrom requirement of licensing.

1. A license to engage in the business of a company isnot required of any:

(a) State or federally chartered building associationor savings and loan association.

(b) State or federally chartered bank.

(c) State or federally chartered credit union.

(d) Thrift company licensed pursuant to chapter 677 of NRS.

(e) Insurance agent financing his own accounts.

(f) Insurer authorized to do business in this statefinancing its own policies or those of an affiliated company.

(g) Business, in addition to those included inparagraphs (a) to (d), inclusive, which is licensed and regulated by theDivision of Financial Institutions of the Department of Business and Industry.

2. The provisions of NRS 686A.330 to 686A.520, inclusive, other than thosewhich concern licensing, apply to persons exempt from licensing pursuant tosubsection 1.

(Added to NRS by 1985, 1154; A 1993, 1917)

NRS 686A.360 Applicationfor license.

1. An application for a license to engage in thebusiness of a company must be filed with the Commissioner on a form prescribedby him and must include:

(a) A nonrefundable fee for application and forinvestigation of the applicant of $500;

(b) A surety bond payable to the State of Nevada in theamount of $50,000, executed by a surety company which is authorized to dobusiness in Nevada;

(c) A current certified financial statement or anotherfinancial statement if individually approved by the Commissioner;

(d) An appointment of the Commissioner and hissuccessors in office as the applicants attorney to receive service of process;and

(e) If the applicant is a corporation, a copy of itsarticles of incorporation.

2. The applicant shall provide the Commissioner withany material change concerning information contained in the application within10 days after the change occurs.

(Added to NRS by 1985, 1154; A 1991, 1629; 1993,2395)

NRS 686A.370 Truename and fictitious name of licensee; grounds for disapproval of name.

1. An unincorporated licensee or unincorporated applicantfor a license who desires the issuance of a license under a fictitious namemust file with the Commissioner a certified copy of the entry in the countyclerks register and of the certificate or any renewal certificate filedpursuant to chapter 602 of NRS. Anincorporated licensee and incorporated applicant must file with theCommissioner in writing the corporations true name and the fictitious namesunder which it conducts or intends to conduct business in this state. Afterlicensing, each licensee shall file promptly with the Commissioner writtennotice of any change in or discontinuance of any fictitious name.

2. The Commissioner may in writing disapprove the useof any true name, other than the bona fide natural name of a natural person, orany fictitious name used or proposed to be used by any applicant or licensee,on any of the following grounds:

(a) The name interferes with or is deceptively similarto a name already filed and in use by another licensee;

(b) Use of the name may mislead the public in anyrespect; or

(c) The name states or implies that the licensee orapplicant is an insurer or is entitled to engage in insurance activities notauthorized under the licenses which he holds or for which he has applied.

(Added to NRS by 1985, 1154; A 2001, 814)

NRS 686A.380 Renewalof license.

1. A company must renew its license on or before March1 of each year. An application for renewal must be submitted on a formprescribed by the Commissioner and must be accompanied by:

(a) A financial statement for the preceding year; and

(b) A fee of $500 and any penalty imposed pursuant tosubsection 2.

2. The Commissioner may grant an extension allowing acompany to file an application for renewal after March 1 if the company showsthat for reasons beyond its control it cannot apply before that date. If acompany which has not been granted an extension files its application forrenewal after March 1, the company shall pay a penalty of $25 for each day theapplication is late.

(Added to NRS by 1985, 1155; A 1987, 463; 1991, 1629)

NRS 686A.385 Scheduleof rates and charges to be filed with Commissioner.

1. A company shall, immediately after it has beenissued a license, file with the Commissioner a schedule of rates and charges itintends to use in this state. The schedule must include, and separatelyidentify, any commission which is required to be paid to an agent or broker whocompletes an agreement. Any change in the schedule must be filed with theCommissioner at least 60 days before the rates become effective.

2. A company may not impose a charge included in anagreement unless the charge is included in the schedule filed with theCommissioner.

3. The Commissioner shall not approve any chargelisted in the schedule which is unfairly discriminatory in relation to similarrisks.

(Added to NRS by 1993, 2393)

NRS 686A.390 Approvalof forms.

1. Before using a form for an agreement or noticerequired by this chapter, a company must submit the proposed form to theCommissioner for approval. If the Commissioner does not disapprove a formwithin 60 days after it is submitted, the form shall be deemed approved.

2. The Commissioner shall not approve any form unlessit complies with the provisions of NRS686A.330 to 686A.520, inclusive.

3. An insurer, including any subsidiary of an insureror corporation under substantially the same management or control as aninsurer, shall file all forms for agreements and any related forms. The filingrequired in this subsection is in addition to the filings required pursuant to chapter 686B of NRS.

(Added to NRS by 1985, 1155; A 1993, 2395)

NRS 686A.400 Records:Maintenance; form of preservation; open to Commissioner.

1. A company shall maintain records of eachtransaction for 3 years after making the final entry with respect to thetransaction. The records may be preserved in photographic form, on microfilm ormicrofiche or in a form approved by the Commissioner.

2. The records must be open to the Commissioner at alltimes. The Commissioner may require a company to furnish to him in any form herequires any information maintained in the companys records.

(Added to NRS by 1985, 1155)

NRS 686A.410 Examinationof company by Commissioner. The Commissionermay conduct an examination of a company at any time in accordance with NRS 679B.250 to 679B.287, inclusive. The expense of theexamination must be borne by the company in accordance with NRS 679B.290 as if the company were aninsurer.

(Added to NRS by 1985, 1155; A 1995, 1773)

NRS 686A.420 Contentsof agreement.

1. An agreement executed in this state must be datedand signed by the insured. The printed portion of the agreement must be in notless than 8-point type. The agreement must include:

(a) The name and the address and telephone number ofthe business of the insurance agent for the insurance contract to which theagreement relates;

(b) The name and the address of the business orresidence of the insured;

(c) The name, address and telephone number of the companyto which payments must be made;

(d) A brief description of any insurance policyinvolved; and

(e) Such other information as may be required by theCommissioner.

2. An agreement must have at its top in type which ismore prominent than the text of the agreement, the words Agreement ForFinancing Premium or words of similar meaning. An agreement must contain anotice in type which is more prominent than the text of the agreement whichreads as follows:

 

Notice:

1. Do not sign thisagreement before you have read it or if it contains any blank spaces.

2. You are entitled to acopy of this agreement which is complete.

 

(Added to NRS by 1985, 1155)

NRS 686A.430 Furnishingof completed copy of agreement to insured. Theagent, broker or other person preparing an agreement shall furnish a completedcopy of the agreement to the insured immediately after the insured signs theagreement.

(Added to NRS by 1985, 1156)

NRS 686A.440 Interest;prepayment.

1. A company shall not charge or collect a charge forinterest which is not permitted by this section.

2. Interest must be computed on the balance due, aftersubtracting the down payment, from the effective date of the insurance contractor agreement, whichever is earlier, through the date on which the finalinstallment is payable.

3. The rate of interest must be specified in theagreement. The agreement may provide for a service charge of not more than $25,and that the charge is not refundable.

4. An insured may prepay in full at any time the unpaidbalance of the principal. The insured is entitled to a refund of the unearnedportion of the prepaid interest. The refund must be at least as great aproportion of the prepaid interest as the sum of the periodic balances for eachperiod beginning one period after the prepayment is made bears to the sum ofall the periodic balances under the schedule of payments in the agreement. Ifthe amount of the refund is less than $1, no refund need be made.

5. Any provision which purports to limit the insuredsright of prepayment pursuant to this section is void.

(Added to NRS by 1985, 1156)

NRS 686A.450 Permissiblecharges: Late payment; returned check; collection costs or attorneys fees.

1. A company shall not impose or collect a fee orcharge which is not authorized by this section.

2. An agreement may provide for a charge for any latepayment of an installment of not less than $1 and not more than 5 percent ofthe installment.

3. A company may collect a fee of not more than $15for each check returned to the company because the insured had insufficientmoney or credit with the drawee to pay the check or because the insured stoppedpayment on the check.

4. An agreement may provide for payment of collectioncosts or attorneys fees, equal to 20 percent of the outstanding indebtednessif the agreement is referred for collection to a collection agency or attorneywho is not an employee of the company.

(Added to NRS by 1985, 1156; A 1993, 2395)

NRS 686A.460 Cancellationof insurance policy by company.

1. When an agreement contains a power of attorneyenabling the company, in the name of the insured, to cancel any insurancepolicy listed in the agreement, the insurance policy must not be cancelled bythe company unless it is cancelled in accordance with this section.

2. A company shall mail written notice of its intentto cancel an insurance policy because of a default in payment under anagreement to the insured at his last known address as indicated in the recordsof the company and to the agent who submitted the agreement at least 10 daysbefore the cancellation. If the default is cured within this 10-day period, thecompany shall not cancel the insurance policy.

3. If the default is not cured within the 10-dayperiod, the company may cancel the policy if it mails to the insured at hislast known address as indicated in the records of the company and to theinsurer a notice of cancellation which must include the effective date ofcancellation. The policy must be cancelled as if the notice of cancellation hadbeen submitted by the insured, but without requiring the return of the policy.

4. No insurance policy may be cancelled for nonpaymentof a charge for a late payment.

5. This section does not authorize the cancellation ofan insurance policy without giving any other notice required by law orsatisfying other conditions for cancellation.

6. A company shall not impose or collect a fee for thecancellation of a policy or agreement.

(Added to NRS by 1985, 1157; A 1993, 2396)

NRS 686A.470 Returnof unearned premium.

1. When an insurance policy is cancelled pursuant to NRS 686A.460, the insurer shall returnthe unearned premium to the company for credit to the account of the insured.The premium must be mailed to the company:

(a) Within 45 days after receipt of the notice ofcancellation; or

(b) Immediately following an audit performed todetermine the amount of the premium. If such an audit is performed, it must becompleted within 60 days after receipt of the notice of cancellation.

2. If the returned portion of the premium exceeds theinsureds obligation to the company, the company shall pay the excess to theinsured within 30 days after receipt, except that no refund is required if theexcess is less than $1.

3. If the returned portion of the premium is less thanthe insureds obligation to the company, the company shall notify the insuredwithin 15 days making a demand for payment, except that the company shall notmake a demand for payment if the obligation is less than $1.

4. The company shall notify the agent who submittedthe agreement of any refund paid directly to the insured pursuant to subsection2 at the time the refund is paid. Within 15 days after receipt of this notice,the agent shall refund to the insured any unearned commissions which are owedto the insured as a result of the cancellation.

5. The company shall notify the agent who submittedthe agreement of any deficiency. Within 30 days after receipt of the notice,the agent shall refund to the insured any unearned commissions which are owedto the insured as a result of the cancellation.

(Added to NRS by 1985, 1157; A 1993, 2396)

NRS 686A.480 Prohibitedpayments: Membership in motor club; policy of insurance covering death ordismemberment. An agreement must not includeany payment for:

1. Membership in a motor club, as that term is definedin NRS 696A.050; or

2. A policy of insurance covering accidental death ordismemberment, whether or not the policy is sold in combination with anotherpolicy.

(Added to NRS by 1985, 1157)

NRS 686A.490 Norecourse against agent; limitation on inducements; prohibited acts by company,agent or broker.

1. No agreement may contain a provision allowing acompany recourse against the agent who submitted the agreement based upon theinsureds default in payments.

2. A company, broker or an agent of a company shallnot offer to any person as an inducement to enter an agreement any gift, rebateor other consideration unless the consideration is an article of less than $2in value which includes an advertisement of the company. This subsection doesnot prohibit a company from providing to a broker or an agent who submits theagreement to the company any supplies or equipment necessary to submit theagreement to the company. Any such supplies or equipment which is notdisposable remains the property of the company.

3. A company or an agent or broker submitting anagreement shall not:

(a) Induce or attempt to induce an insured to becomeobligated under more than one agreement to obtain more than one initial chargefor entering the agreement.

(b) Write any insurance in connection with the agreement,including life or health insurance limited to the amount advanced on behalf ofthe insured.

(Added to NRS by 1985, 1158; A 1993, 2397)

NRS 686A.500 Disclosureof financial interest required; agent or broker who submits or performsservices in connection with agreement prohibited from receiving compensation.

1. Any licensed resident or nonresident agent orbroker who has any financial interest in a company, other than in submittingagreements through the company, shall disclose to the insured, in the mannerprescribed by the Commissioner, his interest in the company.

2. A licensed resident or nonresident agent or brokerwho submits any agreement shall not accept any compensation for arranging,directing or performing services in connection with the agreement. A companyshall not pay or offer to pay any compensation to a licensed resident ornonresident agent or broker who submits an agreement to the company.

(Added to NRS by 1985, 1158; A 1993, 2397)

NRS 686A.510 Penalties.

1. A person who violates the provisions of NRS 686A.340 shall be punished by a fineof not more than $200 per day or $500 per agreement per day for every day theviolation continues, whichever is greater.

2. A person who violates any other provision of NRS 686A.330 to 686A.520, inclusive, shall be punished bya fine of not more than $1,000.

3. A person who fails or refuses to comply with anorder issued by the Commissioner pursuant to NRS 686A.330 to 686A.520, inclusive, shall be punished bya fine of not more than $1,000.

(Added to NRS by 1985, 1158; A 1993, 2397)

NRS 686A.520 Applicabilityof other provisions.

1. The provisions of NRS 683A.341, 683A.451, 683A.461, 683A.480 and 686A.010 to 686A.310, inclusive, apply to companies.

2. For the purposes of subsection 1, unless the contextrequires that a section apply only to insurers, any reference in those sectionsto insurer must be replaced by a reference to company.

(Added to NRS by 1985, 1158; A 2001, 2215)

USE OF CONSUMER CREDIT INFORMATION

NRS 686A.600 Definitions. As used in NRS686A.600 to 686A.730, inclusive,unless the context otherwise requires, the words and terms defined in NRS 686A.610 to 686A.660, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2003, 2801)

NRS 686A.610 Adverseaction defined. Adverse action means adenial or cancellation of, an increase in any charge for, or a reduction orother adverse or unfavorable change in the terms of coverage or amount of, anyinsurance, existing or applied for, in connection with any policy.

(Added to NRS by 2003, 2801)

NRS 686A.620 Affiliatedefined. Affiliate means any company thatcontrols, is controlled by or is under common control with another company.

(Added to NRS by 2003, 2802)

NRS 686A.630 Consumercredit report defined. Consumer credit reportmeans any written, oral or other communication of information by a consumerreporting agency bearing on the credit worthiness, credit standing or creditcapacity of an applicant or policyholder, and which is used or expected to beused or collected in whole or in part for the purpose of serving as a factor todetermine:

1. Whether to issue, cancel or renew a policy; or

2. The amount of the premium for a policy.

(Added to NRS by 2003, 2802)

NRS 686A.640 Consumerreporting agency defined. Consumer reportingagency means any person which, for monetary fees, dues or on a cooperativenonprofit basis, regularly engages in whole or in part in the practice ofassembling or evaluating consumer credit information or other information onconsumers for the purpose of furnishing consumer credit reports to thirdparties.

(Added to NRS by 2003, 2802)

NRS 686A.650 Creditinformation defined. Credit informationmeans any information that is related to credit and derived from a consumercredit report, found on a consumer credit report or provided on an applicationfor a policy. The term does not include information that is not related tocredit, regardless of whether it is contained in a consumer credit report or inan application for a policy, or is used to calculate an insurance score.

(Added to NRS by 2003, 2802)

NRS 686A.660 Insurancescore defined. Insurance score means anumber or rating that is derived from an algorithm, computer application, modelor other process that is based in whole or in part on credit information forthe purposes of predicting the future losses or exposure with regard to anapplicant or policyholder.

(Added to NRS by 2003, 2802)

NRS 686A.670 Applicability. The provisions of NRS686A.600 to 686A.730, inclusive,do not apply to a contract of surety insurance issued pursuant to chapter 691B of NRS or any commercial orbusiness policy.

(Added to NRS by 2003, 2802)

NRS 686A.680 Consumercredit reports: Uses; limitations. An insurerthat uses information from a consumer credit report shall not:

1. Use an insurance score that is calculated usingincome, gender, address, zip code, ethnic group, religion, marital status ornationality of the consumer as a factor, or would otherwise lead to unfair orinvidious discrimination.

2. Deny, cancel or fail to renew a policy on the basisof credit information unless the insurer also considers other applicableunderwriting factors that are independent of credit information and notexpressly prohibited by this section.

3. Base renewal rates for a policy upon creditinformation unless the insurer also considers other applicable factorsindependent of credit information.

4. Take an adverse action against an applicant orpolicyholder based on the applicant or policyholder not having a credit cardaccount unless the insurer also considers other applicable factors independentof credit information.

5. Consider an absence of credit information or aninability to calculate an insurance score in underwriting or rating a policyunless the insurer does any one of the following:

(a) Treats the applicant or policyholder as otherwiseapproved by the Commissioner, after the insurer presents to the Commissionerinformation indicating that such an absence or inability relates to the riskfor the insurer.

(b) Treats the applicant or policyholder as if theapplicant or policyholder had neutral credit information, as defined by theinsurer.

(c) Excludes the use of credit information as a factor,and uses only underwriting criteria other than credit information.

6. Take an adverse action against an applicant orpolicyholder based on credit information, unless an insurer obtains and uses aconsumer credit report issued or an insurance score calculated within 90 daysfrom the date the policy is first written or renewal is issued.

7. Except as otherwise provided in this subsection,use credit information regarding a policyholder without obtaining an updatedconsumer credit report regarding the policyholder and recalculating theinsurance score at least once every 36 months. At the time of the annualrenewal of a policyholders policy, the insurer shall, upon the request of thepolicyholder or the policyholders agent, reunderwrite and rerate the policybased upon a current consumer credit report or insurance score. An insurer neednot, at the request of a policyholder or the policyholders agent, recalculatethe insurance score of or obtain an updated consumer credit report of thepolicyholder more frequently than once in any 12-month period. An insurer may,at its discretion, obtain an updated consumer credit report regarding apolicyholder more frequently than once every 36 months, if to do so isconsistent with the underwriting guidelines of the insurer. An insurer does notneed to obtain an updated consumer credit report for a policyholder if any oneof the following applies:

(a) The insurer is treating the policyholder asotherwise approved by the Commissioner.

(b) The policyholder is in the most favorably-pricedtier of the insurer and all affiliates of the insurer. With respect to such apolicyholder, the insurer may elect to obtain an updated consumer credit reportif to do so is consistent with the underwriting guidelines of the insurer.

(c) Credit information was not used for underwriting orrating the policyholder when the policy was initially written. The fact thatcredit information was not used initially does not preclude an insurer fromusing such information subsequently when underwriting or rating such apolicyholder upon renewal, if to do so is consistent with the underwritingguidelines of the insurer.

(d) The insurer reevaluates the policyholder at leastonce every 36 months based upon underwriting or rating factors other thancredit information.

8. Use the following as a negative factor in anyinsurance scoring methodology or in reviewing credit information for thepurpose of underwriting or rating a policy:

(a) Credit inquiries not initiated by the applicant orpolicyholder, or inquiries requested by the applicant or policyholder for hisor her own credit information.

(b) Inquiries relating to insurance coverage, if soidentified on the consumer credit report.

(c) Collection accounts relating to medical treatment,if so identified on the consumer credit report.

(d) Multiple lender inquiries, if identified on theconsumer credit report as being related to home loans or mortgages and madewithin 30 days of one another, unless only one inquiry is considered.

(e) Multiple lender inquiries, if identified on theconsumer credit report as being related to a loan for an automobile and madewithin 30 days of one another, unless only one inquiry is considered.

(Added to NRS by 2003, 2802)

NRS 686A.690 Reunderwritingor rerating of insured; refund of premium. Ifit is determined pursuant to the dispute resolution process set forth insection 611(a) of the federal Fair Credit Reporting Act, 15 U.S.C. 1681i(a),that the credit information of a policyholder was incorrect or incomplete andif the insurer receives notice of such determination from either the consumerreporting agency or from the policyholder, the insurer shall reunderwrite andrerate the policyholder within 30 days of receiving the notice. Afterreunderwriting or rerating the insured, the insurer shall make any adjustmentsnecessary, consistent with its underwriting and rating guidelines. If aninsurer determines that the policyholder has overpaid a premium, the insurershall refund to the policyholder the amount of overpayment calculated back tothe shorter of either the last 12 months of coverage or the actual period ofthe policy.

(Added to NRS by 2003, 2804)

NRS 686A.700 Disclosureof use of credit information.

1. If an insurer uses credit information inunderwriting or rating an applicant, the insurer or its agent shall disclose,either on the application for the policy or at the time the application istaken, that the insurer may obtain credit information in connection with theapplication. The disclosure must be written or provided to an applicant in thesame medium as the application. The insurer need not provide the disclosurerequired pursuant to this section to a policyholder upon renewal of a policy ifthe policyholder was previously provided the disclosure in connection with thepolicy.

2. An insurer may comply with the requirements of thissection by providing the following statement:

 

In connection with this applicationfor insurance, we may review your credit report or obtain or use a credit-basedinsurance score based on the information contained in that credit report. Wemay use a third party in connection with the development of your insurancescore.

 

(Added to NRS by 2003, 2804)

NRS 686A.710 Noticerequirements after taking adverse action. Ifan insurer takes an adverse action based upon credit information, the insurershall:

1. Provide notice to the applicant or policyholderthat an adverse action has been taken, in accordance with the requirements ofsection 615(a) of the federal Fair Credit Reporting Act, 15 U.S.C. 1681m(a).

2. Provide notice to the applicant or policyholderexplaining the reasons for the adverse action. The reasons must be provided insufficiently clear and specific language so that a person can identify thebasis for the insurers decision to take the adverse action. The notice mustinclude a description of not more than four factors that were the primaryinfluences of the adverse action. The use of generalized terms such as poorcredit history, poor credit rating or poor insurance score does not meetthe requirements of this subsection. Standardized explanations provided byconsumer reporting agencies are deemed to comply with this section.

(Added to NRS by 2003, 2804)

NRS 686A.720 Indemnificationof agent by insurer.

1. An insurer shall indemnify, defend and holdharmless an agent of the insurer from and against all liability, fees and costsarising out of or relating to the actions, errors or omissions of the agentwith regard to obtaining or using credit information or insurance scores forthe insurer, if the agent follows the instructions of or procedures establishedby the insurer and complies with any applicable law or regulation.

2. This section does not provide, expand, limit orprohibit any cause of action an applicant or policyholder may have against anagent of an insurer.

(Added to NRS by 2003, 2804)

NRS 686A.730 Consumerreporting agencies: Prohibitions; exemptions.

1. A consumer reporting agency shall not provide orsell data or lists that include any information that in whole or in part wassubmitted in conjunction with:

(a) An inquiry by or for an insurer about the creditinformation of an applicant or policyholder; or

(b) A request for a credit report or insurance score.

2. The information described in subsection 1 includes,without limitation:

(a) The expiration date of a policy or any otherinformation that may identify time periods during which a policy of an applicantor policyholder may expire; and

(b) The terms and conditions of the coverage providedby a policy of an applicant or policyholder.

3. The restriction set forth in subsection 1 does notapply to data or lists the consumer reporting agency supplies to the insurer,or an agent or affiliate of the insurer, from whom the information wasreceived.

4. The provisions of this section do not restrict anyinsurer from being able to obtain a report regarding a motor vehicle or areport of a history of claims.

(Added to NRS by 2003, 2805)

 

Disclaimer: These codes may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.