2005 Nevada Revised Statutes - Chapter 687B — Contracts of Insurance

CHAPTER 687B - CONTRACTS OF INSURANCE

NRS 687B.010 Scope.

NRS 687B.015 Binderdefined.

NRS 687B.021 Signatures.

NRS 687B.030 Waiverof payment of premium.

NRS 687B.040 Insurableinterest: Personal insurance.

NRS 687B.050 Insurableinterest: Exception when certain institutions designated beneficiary.

NRS 687B.060 Insurableinterest: Property.

NRS 687B.070 Powerto contract: Purchase of insurance and annuities by minors.

NRS 687B.080 Consentof insured to life or health insurance required; exceptions; notice ofapplication for or request to increase coverage of insurance upon life ofanother required.

NRS 687B.090 Alterationof application: Life and health insurance.

NRS 687B.100 Applicationas evidence.

NRS 687B.110 Representationsin applications.

NRS 687B.113 Controlof cost of health care: Provisions encouraging use of certain services andfacilities.

NRS 687B.117 Controlof cost of health care: Insurer required to use three or more practices thatcontrol cost in administering benefits.

NRS 687B.120 Filingand approval of forms.

NRS 687B.122 Readabilityof policies: Applicability of requirements.

NRS 687B.124 Readabilityof policies: Flesch test; style, arrangement and overall appearance; index ortable of contents.

NRS 687B.126 Readabilityof policies: Filing policy for Commissioners approval; exceptions to scorerequirements on Flesch test.

NRS 687B.128 Readabilityof policies: Approval by Commissioner.

NRS 687B.130 Groundsfor disapproval.

NRS 687B.140 Standardprovisions.

NRS 687B.145 Provisionsin policies of casualty insurance: Proration of recovery or benefits; uninsuredand underinsured motorist coverage; coverage for medical expenses; insurer notentitled to subrogation upon payment made because of underinsured vehiclecoverage.

NRS 687B.147 Exclusion,reduction or limitation of certain coverage in motor vehicle insurance policiesallowed; conditions; form and contents of disclosure.

NRS 687B.150 Inclusionof portion of charter or bylaws.

NRS 687B.160 Executionof policies.

NRS 687B.170 Underwritersand combination policies.

NRS 687B.180 Validityand construction of noncomplying forms.

NRS 687B.182 Binders:Issuance; effective dates.

NRS 687B.183 Binders:Forms; required statement; delivery.

NRS 687B.184 Binders:Form and premium for policy issued as replacement.

NRS 687B.185 Binders:Prohibition of use to lower premiums.

NRS 687B.186 Binders:Proof of insurance coverage.

NRS 687B.187 Binders:Disapproval of insurer.

NRS 687B.190 Deliveryof policy.

NRS 687B.200 Assignability.

NRS 687B.210 Paymentdischarges insurer.

NRS 687B.220 Formsfor proof of loss to be furnished.

NRS 687B.225 Requirementsfor contracts for payment of cost of medical or dental care which require priorauthorization of care.

NRS 687B.240 Administrationof claims not waiver.

NRS 687B.250 Paymentnot to constitute admission of liability or waiver of defenses.

NRS 687B.255 Insurerto pay claim with negotiable instrument.

NRS 687B.260 Exemptionof proceeds of certain policies.

NRS 687B.270 Exemptionof proceeds: Health insurance.

NRS 687B.280 Exemptionof proceeds: Group insurance.

NRS 687B.290 Exemptionof proceeds: Annuities; assignability of rights.

NRS 687B.300 Retentionof proceeds of policy by insurer.

NRS 687B.310 Cancellationsand nonrenewals; scope of application.

NRS 687B.320 Midtermcancellation; exception.

NRS 687B.325 Industrialinsurance policies: Midterm cancellation; notice to policyholder.

NRS 687B.330 Anniversarycancellation.

NRS 687B.340 Nonrenewals.

NRS 687B.345 Annualreview of coverage and benefits provided in policy.

NRS 687B.350 Renewalwith altered terms.

NRS 687B.355 Informationabout claims paid on behalf of policyholder; regulations.

NRS 687B.360 Informationabout grounds.

NRS 687B.370 Informationabout applying for insurance through certain plans; exception.

NRS 687B.380 Immunity.

NRS 687B.385 Cancellation,nonrenewal or increase in premium due to claims for which insured was not atfault prohibited.

NRS 687B.390 Cancellationor nonrenewal on sole basis of age, residence, race, color, creed, nationalorigin, ancestry or occupation prohibited.

NRS 687B.400 Discriminationon sole basis of age prohibited; burden of proof; exception.

NRS 687B.410 Withdrawalof insurance for particular class of insureds: Notice; administrative review.

NRS 687B.420 Noticeof proposed cancellation, nonrenewal or alteration of terms of certain policiesor contracts of insurance.

NRS 687B.430 Regulations:Policies which provide for payment of expenses not covered by Medicare; sale ofmore than one policy of health insurance to same person.

NRS 687B.440 Umbrellapolicies: Disclosure statement indicating whether policy includes uninsured orunderinsured motorist coverage; form.

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NRS 687B.010 Scope. This chapter applies to all insurance contracts andannuity contracts other than:

1. Reinsurance.

2. Policies or contracts not issued for delivery inthis state nor delivered in this state.

3. Wet marine and transportation insurance.

(Added to NRS by 1971, 1712)

NRS 687B.015 Binderdefined. As used in this chapter, unless thecontext otherwise requires, binder means an oral or written contract fortemporary insurance which is used when a policy is not immediately issued to evidencethat the coverage attaches at a specified time and continues until the policyis issued or the risk is declined.

(Added to NRS by 1983, 1120)

NRS 687B.021 Signatures. Unless otherwise provided by a specific statute, if asignature is required of any person, the person may provide as the signature ofthe person:

1. An original signature;

2. A facsimile signature; or

3. An electronic signature pursuant to the provisionsof chapter 719 of NRS.

(Added to NRS by 2003, 2806)

NRS 687B.030 Waiverof payment of premium. With respect to anykind of insurance and any type of insurance contract, the insurer may providefor waiver of payment of premium for such causes and subject to such terms andconditions as may be specified in the contract.

(Added to NRS by 1971, 1712; A 1981, 1142)

NRS 687B.040 Insurableinterest: Personal insurance.

1. Any natural person of competent legal capacity mayprocure or effect an insurance contract upon his own life or body for thebenefit of any person. But a person shall not procure or cause to be procuredany insurance contract upon the life or body of another individual unless thebenefits under the contract are payable to the person insured or his personalrepresentatives, or to a person having, at the time when the contract was made,an insurable interest in the person insured.

2. If the beneficiary, assignee or other payee underany contract made in violation of this section receives from the insurer anybenefits thereunder accruing upon the death, disablement or injury of theperson insured, the person insured or his executor or administrator, as thecase may be, may maintain an action to recover such benefits from the person soreceiving them.

3. As used in this section, insurable interest as tosuch personal insurance means that every person has an insurable interest inthe life, body and health of himself, and of other persons as follows:

(a) In the case of persons related closely by blood orby law, a substantial interest engendered by love and affection; and

(b) In the case of other persons, a lawful andsubstantial economic interest in having the life, health or bodily safety ofthe person insured continue, as distinguished from an interest which wouldarise only by, or would be enhanced in value by, the death, disablement orinjury of the person insured.

4. Before, on or after January 1, 1972, an individualparty to a contract or option for the purchase or sale of an interest in abusiness partnership or firm, or of shares of stock of a corporation or of aninterest in such shares, has an insurable interest in the life, body and healthof each individual party to the contract and for the purposes of the contractonly, in addition to any insurable interest which may otherwise exist as to theperson.

5. An insurer is entitled to rely upon all statements,declarations and representations made by an applicant for insurance relative tothe insurable interest of the applicant in the insured. An insurer does notincur legal liability except as otherwise set forth in the policy, by virtue ofany untrue statements, declarations or representations so relied upon in goodfaith by the insurer.

(Added to NRS by 1971, 1712; A 1997, 1624)

NRS 687B.050 Insurableinterest: Exception when certain institutions designated beneficiary.

1. Life insurance contracts may be entered into inwhich the person paying the consideration for the insurance has no insurableinterest in the life of the individual insured, where charitable, benevolent,educational or religious institutions or their agencies are designatedirrevocably as the beneficiaries thereof.

2. In making such contracts the person paying thepremium shall make and sign the application therefor as owner, and shalldesignate irrevocably a charitable, benevolent, educational or religiousinstitution or an agency thereof as the beneficiary or beneficiaries of suchcontract. The application shall be signed also by the individual whose life isto be insured.

3. Nothing in this section shall prohibit anycombination of the applicant, premium payer, owner and beneficiary from beingthe same person.

4. Such a contract shall be valid and binding amongthe parties thereto, notwithstanding the absence otherwise of an insurableinterest in the life of the individual insured.

(Added to NRS by 1971, 1713)

NRS 687B.060 Insurableinterest: Property.

1. No contract of insurance of property or of anyinterest in property or arising from property shall be enforceable as to theinsurance except for the benefit of persons having an insurable interest in thethings insured as at the time of the loss.

2. Insurable interest as used in this section meansany actual, lawful and substantial economic interest in the safety orpreservation of the subject of the insurance free from loss, destruction orpecuniary damage or impairment.

(Added to NRS by 1971, 1714)

NRS 687B.070 Powerto contract: Purchase of insurance and annuities by minors.

1. Any person of competent legal capacity may contractfor insurance.

2. Any minor not less than 16 years of age may,notwithstanding his minority, contract for or own annuities or insurance, oraffirm by novation or otherwise preexisting contracts for annuities orinsurance, upon his own life, body, health, property, liabilities or other interests,or on the person of another in whom the minor has an insurable interest.Notwithstanding such minority such a minor shall be deemed competent toexercise all rights and powers with respect to or under:

(a) Any annuity or insurance contract upon his ownlife, body or health;

(b) Any contract which such minor effected upon his ownproperty, liabilities or other interests; or

(c) Any contract effected or owned by the minor on theperson of another, as might be exercised by a person of full legal age.

3. Such a minor may at any time surrender his interestin any such contracts and give valid discharge for any benefit accruing ormoney payable thereunder. Such a minor shall not, by reason of his minority, beentitled to rescind, avoid or repudiate the contract, or to rescind, avoid orrepudiate any exercise of a right or privilege thereunder, except that such aminor, not otherwise emancipated, shall not be bound by any unperformedagreement to pay, by promissory note or otherwise, any premium on any suchannuity or insurance contract.

4. All insurance contracts made by a minor under theage of 16 years shall be made only with the written consent of a parent orguardian, and the exercise of all contractual rights under such contracts, orthe surrender thereof, or the giving of a valid discharge for any benefitaccruing or money payable thereunder shall have the written consent of a parentor guardian if made or given while such minor is under the age of 16 years.

5. All such contracts made by a minor which may resultin any personal liability for assessment shall have the written assumption ofany such liability by a parent or guardian in consideration of the issuance ofthe contract. Such assumption shall be in a form approved by the Commissioner,reasonably designed to inform the parent or guardian of the liability thusassumed. Such assumption of liability may be made a part of and included withany written consent of such parent or guardian required under the provisions ofthis section, and it may be provided therein that such assumption shall coveronly up to the anniversary date of the policy nearest the insureds birthdayupon which he attains the age of 18 years.

6. Any annuity contract or policy of life or healthinsurance procured by or for a minor under subsection 2 or 3, shall be madepayable either to the minor or his estate or to a person having an insurableinterest in the life of the minor.

(Added to NRS by 1971, 1714; A 1973, 1581)

NRS 687B.080 Consentof insured to life or health insurance required; exceptions; notice ofapplication for or request to increase coverage of insurance upon life ofanother required.

1. Except as otherwise provided in subsection 2, nolife or health insurance contract upon a person, except a contract of grouplife insurance or of group or blanket health insurance, may be made oreffectuated unless at the time of the making of the contract the personinsured, being of competent legal capacity to contract, applies therefor or hasconsented thereto in writing.

2. The following persons may enter into a contract forlife or health insurance upon another person without the insureds writtenconsent:

(a) A spouse may effectuate such insurance upon theother spouse.

(b) Any person having an insurable interest in the lifeof a minor, or any person upon whom a minor is dependent for support andmaintenance, may effectuate insurance upon the life of or pertaining to theminor.

(c) Family policies may be issued insuring any two ormore members of a family on an application signed by either parent, a stepparent,a guardian, or by a husband or wife.

3. An insurer who receives:

(a) An application in accordance with subsection 2 fora contract for insurance upon the life of another; or

(b) A request to increase the existing coverage uponthe life of an insured by a person other than the insured,

shall,unless the application or request relates to a contract of group life insuranceor of group or blanket health insurance, cause notice of the application orrequest to be mailed to the insured at his home or business within 48 hoursafter receiving the application or request.

(Added to NRS by 1971, 1715; A 1993, 173)

NRS 687B.090 Alterationof application: Life and health insurance. Noalteration of any written application for any life or health insurance policyshall be made by any person other than the applicant without his writtenconsent, except that insertions may be made by the insurer, for administrativepurposes only, in such manner as to indicate clearly that such insertions arenot to be ascribed to the applicant.

(Added to NRS by 1971, 1715)

NRS 687B.100 Applicationas evidence.

1. No application for the issuance of any life orhealth insurance policy or annuity contract shall be admissible in evidence inany action relative to such policy or contract, unless a true copy of theapplication was attached to or otherwise made a part of the policy or contract whenissued. This subsection does not apply to industrial life insurance policies.

2. If any policy of life or health insurance deliveredin this state is reinstated or renewed, and the insured or the beneficiary orassignee of the policy makes written request to the insurer for a copy of theapplication, if any, for such reinstatement or renewal, the insurer shall,within 30 days after receipt of such request at its home office, deliver ormail to the person making such request a copy of such application reproduced byany legible means. If such copy is not so delivered or mailed after having beenso requested, the insurer shall be precluded from introducing the applicationin evidence in any action or proceeding based upon or involving the policy orits reinstatement or renewal. In the case of such a request from a beneficiaryor assignee, the time within which the insurer is required to furnish a copy ofsuch application shall not begin to run until after receipt of evidencesatisfactory to the insurer of the beneficiarys or assignees vested interestin the policy or contract.

3. As to kinds of insurance other than life or healthinsurance, no application for insurance signed by or on behalf of the insuredshall be admissible in evidence in any action between the insured and theinsurer arising out of the policy so applied for, if the insurer has failed, atthe expiration of 30 days after receipt by the insurer of written demandtherefor by or on behalf of the insured, to furnish to the insured a copy ofsuch application reproduced by any legible means.

(Added to NRS by 1971, 1715)

NRS 687B.110 Representationsin applications. All statements and descriptionsin any application for an insurance policy or annuity contract, by or in behalfof the insured or annuitant, shall be deemed to be representations and not warranties.Misrepresentations, omissions, concealment of facts and incorrect statementsshall not prevent a recovery under the policy or contract unless either:

1. Fraudulent; or

2. Material either to the acceptance of the risk, orto the hazard assumed by the insurer; or

3. The insurer in good faith would either not haveissued the policy or contract, or would not have issued it at the same premiumrate, or would not have issued a policy or contract in as large an amount, orwould not have provided coverage with respect to the hazard resulting in theloss, if the true facts had been made known to the insurer as required eitherby the application for the policy or contract or otherwise.

(Added to NRS by 1971, 1716)

NRS 687B.113 Controlof cost of health care: Provisions encouraging use of certain services andfacilities. An insurer shall includeprovisions in a policy of health insurance encouraging the insureds use, ifmedically appropriate, of services and facilities that are the most efficientor that tend to control or reduce the cost of health care. Any policy or otherform filed with the Commissioner pursuant to NRS 687B.120 must specifically indicatewhich provisions satisfy the requirements of this section.

(Added to NRS by 1985, 1227)

NRS 687B.117 Controlof cost of health care: Insurer required to use three or more practices thatcontrol cost in administering benefits. The Commissionershall not approve any proposed policy of health insurance unless he determinesthat the insurer has adopted and is using three or more practices inadministering benefits that control or reduce the cost of health care.

(Added to NRS by 1985, 1227)

NRS 687B.120 Filingand approval of forms.

1. No life or health insurance policy or contract,annuity contract form, policy form, health care plan or plan for dental care,whether individual, group or blanket, including those to be issued by a healthmaintenance organization, organization for dental care or prepaid limitedhealth service organization, or application form where a written application isrequired and is to be made a part of the policy or contract, or printed rideror endorsement form or form of renewal certificate, or form of individualcertificate or statement of coverage to be issued under group or blanketcontracts, or by a health maintenance organization, organization for dentalcare or prepaid limited health service organization, may be delivered or issuedfor delivery in this state, unless the form has been filed with and approved bythe Commissioner. This subsection does not apply to any special rider orendorsement which relates to the manner of distribution of benefits or to thereservation of rights and benefits under life or health insurance policies,which special riders or endorsements are used at the request of the individualpolicyholder, contract holder or certificate holder. As to group insurancepolicies effectuated and delivered outside this state but covering personsresident in this state, the group certificates to be delivered or issued fordelivery in this state must be filed, for informational purposes only, with theCommissioner at his request.

2. Every such filing must be made not less than 45days in advance of any such delivery. At the expiration of 45 days the form sofiled shall be deemed approved unless prior thereto it has been affirmativelyapproved or disapproved by order of the Commissioner. Approval of any such formby the Commissioner constitutes a waiver of any unexpired portion of suchwaiting period. The Commissioner may extend by not more than an additional 30days the period within which he may so affirmatively approve or disapprove anysuch form, by giving notice to the insurer of the extension before expirationof the initial 45-day period. At the expiration of any such period as soextended, and in the absence of prior affirmative approval or disapproval, anysuch form shall be deemed approved. The Commissioner may at any time, after noticeand for cause shown, withdraw any such approval.

3. Any order of the Commissioner disapproving any suchform or withdrawing a previous approval must state the grounds therefor and theparticulars thereof in such detail as reasonably to inform the insurer thereof.Any such withdrawal of a previously approved form is effective at theexpiration of such a period, not less than 30 days after the giving of noticeof withdrawal, as the Commissioner in such notice prescribes.

4. The Commissioner may, by order, exempt from therequirements of this section for so long as he deems proper any insurancedocument or form or type thereof specified in the order, to which, in hisopinion, this section may not practicably be applied, or the filing andapproval of which are, in his opinion, not desirable or necessary for theprotection of the public.

5. Appeals from orders of the Commissionerdisapproving any such form or withdrawing a previous approval may be taken asprovided in NRS 679B.310 to 679B.370, inclusive.

(Added to NRS by 1971, 1716; A 1993, 2398; 1995,1624)

NRS 687B.122 Readabilityof policies: Applicability of requirements.

1. The provisions of NRS 687B.122 to 687B.128, inclusive:

(a) Apply to all policies, certificates or contracts oflife or health insurance, including credit insurance as defined in NRS 690A.015, delivered or issued fordelivery in this state, including policies, certificates or contracts issued byfraternal benefit societies and hospital, medical or dental servicecorporations, health maintenance organizations and other similar organizations,and certificates issued pursuant to a policy of group insurance delivered or issuedfor delivery in this state, except:

(1) Any policy which is a security subject tofederal jurisdiction;

(2) Any policy covering the lives of a group of1,000 or more persons as of its date of issuance, other than a group policy forcredit insurance and any certificate issued pursuant to any group policy;

(3) Any group annuity which serves to financepension, profit-sharing or deferred compensation plans; or

(4) Any form used in connection with, as aconversion from, as an addition to or in exchange for a policy delivered orissued for delivery on a form approved or permitted to be issued before July 1,1983.

(b) Are not intended to increase any risk assumed by aninsurer.

(c) Do not supersede the provisions of this Title orother law applicable to the delivery or issuance of policies of insurance.

(d) Are not intended to restrict or discourage thedevelopment of new policies and provisions.

(e) Do not require standardization of forms for orprovisions of policies.

2. Any policy written in a language other than Englishshall be deemed to comply with NRS687B.124 if the insurer certifies that it is translated from a policy writtenin English which complies with that section.

3. The provisions of NRS 687B.122 to 687B.128, inclusive, apply to renewals onor after July 1, 1983, of policies delivered or issued for delivery before thatdate.

(Added to NRS by 1981, 927; A 1987, 2286)

NRS 687B.124 Readabilityof policies: Flesch test; style, arrangement and overall appearance; index ortable of contents.

1. Except as provided by NRS 687B.122, a policy must not bedelivered or issued for delivery in this state on or after July 1, 1983,unless:

(a) The text of the policy achieves a score of at least40 on the Flesch test of reading ease or an equivalent score on any comparabletest which is approved by the Commissioner;

(b) It is printed, except for pages which containspecifications, schedules or tables, in not less than 10-point type, one pointleaded;

(c) The style, arrangement and overall appearance ofthe policy give no undue prominence to any portion of the text of orendorsements or riders to the policy; and

(d) It contains a table of contents or an index of theprincipal sections of the policy if it contains more than 3,000 words or hasmore than three pages.

2. The score for the Flesch test of reading ease mustbe calculated in the following manner:

(a) If a form contains 10,000 words or less of text,the entire text must be used as a basis for calculating the score. If itcontains more than 10,000 words, two samples, which are separated from eachother by at least 20 printed lines, of 200 words per page must be used as thebasis for calculating the score.

(b) The number of words and sentences used in the basisfor the calculation must be counted and the total number of words divided bythe total number of sentences. This figure must be multiplied by 1.015.

(c) The number of syllables must be counted and thetotal divided by the total number of words. This figure must be multiplied by84.6.

(d) The results of the calculations made pursuant toparagraphs (b) and (c) must be added together and the total must be subtractedfrom 206.835.

(e) The result of the calculation made pursuant toparagraph (d) is the score for the policy.

3. For the purposes of performing the calculationsrequired by subsection 2:

(a) A contraction, hyphenated word or numbers andletters when separated by spaces must be counted as one word;

(b) A sequence of words which ends with a period,semicolon or colon, except for headings and captions, must be counted as asentence; and

(c) Where a dictionary shows two or more equallyacceptable pronunciations of a word, the pronunciation containing fewersyllables may be used.

4. As used in this section, text includes allprinted matter except:

(a) The name and address of the insurer, the name,number or title of the policy, the table of contents or index, captions andsubcaptions and pages which contain specifications, schedules and tables; and

(b) Any language of the policy which is drafted in aparticular manner so as to meet the requirements of:

(1) Any federal or state law or regulation orany interpretation of a law or regulation by a federal or state agency;

(2) Any collective bargaining agreement;

(3) Usage of medical terms; and

(4) Definitions contained in the policy,

if theinsurer so identifies this language and certifies in writing that it isexcepted by this paragraph.

5. An insurer may score riders, endorsements,applications and other forms as separate forms or as part of the policy withwhich they are used.

(Added to NRS by 1981, 927)

NRS 687B.126 Readabilityof policies: Filing policy for Commissioners approval; exceptions to scorerequirements on Flesch test.

1. An insurer shall file a copy of the policy with theCommissioner accompanied by a certificate signed by an officer of the insurerstating that the policy meets the score required for reading ease or statingthat the score is lower than the minimum required and requesting that it beapproved in accordance with subsection 2. Upon the request of the Commissioner,the insurer shall furnish additional information to verify the accuracy of thecertification.

2. The Commissioner may approve a policy which has ascore lower than required whenever he finds that a lower score:

(a) Provides a more accurate reflection of thereadability of a policy;

(b) Is necessitated by the nature of a particular typeor class of policy; or

(c) Is caused by language in the policy which isdrafted in a particular manner so as to meet the requirements of any state law,regulation or interpretation of that law or regulation by a state agency.

(Added to NRS by 1981, 928)

NRS 687B.128 Readabilityof policies: Approval by Commissioner. Apolicy which complies with subsection 1 of NRS687B.124 must be approved by the Commissioner, notwithstanding any otherprovision of law which specifies the content of a policy, if the policyprovides the policyholder and claimant with protection at least equal to thatto which they are entitled under those other provisions.

(Added to NRS by 1981, 929)

NRS 687B.130 Groundsfor disapproval. The Commissioner shall disapproveany form filed under NRS 687B.120, orwithdraw any previous approval thereof, only on one or more of the followinggrounds:

1. The form is in any respect in violation of or doesnot comply with this Code.

2. The form contains, or incorporates by referencewhere such incorporation is otherwise permissible, any inconsistent, ambiguousor misleading clauses, or exceptions and conditions which deceptively affectthe risk purported to be assumed in the general coverage of the contract, orany provision or provisions prejudicial to the interest of the insured orpolicyholder.

3. The form has any title, heading or other indicationof its provisions which is misleading, or is printed in such size of type ormanner of reproduction as to be difficult to read.

4. As to an individual health insurance policy, if thebenefits provided therein are unreasonable in relation to the premium charged,or if it contains any unjust, unfair, inequitable or prejudicial provision orprovisions.

5. As to a life insurance or individual healthinsurance policy, if it contains a provision or provisions such as to encouragemisrepresentation.

(Added to NRS by 1971, 1717)

NRS 687B.140 Standardprovisions.

1. Insurance contracts shall contain such standard oruniform provisions as are required by the applicable provisions of this Codepertaining to contracts of particular kinds of insurance. The Commissioner maywaive the required use of a particular provision in a particular insurancepolicy form if:

(a) He finds such provision unnecessary for orunrelated to the protection of the insured and inconsistent with the purposesof the policy; and

(b) The policy is otherwise approved by him.

2. No policy shall contain any provision inconsistentwith or contradictory to any standard or uniform provision used or required tobe used, but the Commissioner may approve any substitute provision which is, inhis opinion, not less favorable in any particular to the insured, owner orbeneficiary than the provisions otherwise required.

3. In lieu of the provisions required by this Code forcontracts for particular kinds of insurance, substantially similar provisionsrequired by the law of the domicile of a foreign or alien insurer may be usedwhen approved by the Commissioner.

4. A policy issued by a domestic insurer for deliveryin another jurisdiction may contain any provision required or permitted by thelaws of such jurisdiction.

(Added to NRS by 1971, 1718)

NRS 687B.145 Provisionsin policies of casualty insurance: Proration of recovery or benefits; uninsuredand underinsured motorist coverage; coverage for medical expenses; insurer notentitled to subrogation upon payment made because of underinsured vehiclecoverage.

1. Any policy of insurance or endorsement providingcoverage under the provisions of NRS690B.020 or other policy of casualty insurance may provide that if theinsured has coverage available to him under more than one policy or provisionof coverage, any recovery or benefits may equal but not exceed the higher ofthe applicable limits of the respective coverages, and the recovery or benefitsmust be prorated between the applicable coverages in the proportion that theirrespective limits bear to the aggregate of their limits. Any provision whichlimits benefits pursuant to this section must be in clear language and beprominently displayed in the policy, binder or endorsement. Any limitingprovision is void if the named insured has purchased separate coverage on thesame risk and has paid a premium calculated for full reimbursement under thatcoverage.

2. Except as otherwise provided in subsection 5,insurance companies transacting motor vehicle insurance in this State mustoffer, on a form approved by the Commissioner, uninsured and underinsuredvehicle coverage in an amount equal to the limits of coverage for bodily injurysold to an insured under a policy of insurance covering the use of a passengercar. The insurer is not required to reoffer the coverage to the insured in anyreplacement, reinstatement, substitute or amended policy, but the insured maypurchase the coverage by requesting it in writing from the insurer. Eachrenewal must include a copy of the form offering such coverage. Uninsured andunderinsured vehicle coverage must include a provision which enables theinsured to recover up to the limits of his own coverage any amount of damagesfor bodily injury from his insurer which he is legally entitled to recover fromthe owner or operator of the other vehicle to the extent that those damagesexceed the limits of the coverage for bodily injury carried by that owner oroperator. If an insured suffers actual damages subject to the limitation ofliability provided pursuant to NRS 41.035,underinsured vehicle coverage must include a provision which enables theinsured to recover up to the limits of his own coverage any amount of damagesfor bodily injury from his insurer for the actual damages suffered by theinsured that exceed that limitation of liability.

3. An insurance company transacting motor vehicleinsurance in this State must offer an insured under a policy covering the useof a passenger car, the option of purchasing coverage in an amount of at least$1,000 for the payment of reasonable and necessary medical expenses resultingfrom an accident. The offer must be made on a form approved by theCommissioner. The insurer is not required to reoffer the coverage to theinsured in any replacement, reinstatement, substitute or amended policy, butthe insured may purchase the coverage by requesting it in writing from theinsurer. Each renewal must include a copy of the form offering such coverage.

4. An insurer who makes a payment to an injured personon account of underinsured vehicle coverage as described in subsection 2 is notentitled to subrogation against the underinsured motorist who is liable fordamages to the injured payee. This subsection does not affect the right orremedy of an insurer under subsection 5 of NRS690B.020 with respect to uninsured vehicle coverage. As used in this subsection,damages means the amount for which the underinsured motorist is alleged to beliable to the claimant in excess of the limits of bodily injury coverage set bythe underinsured motorists policy of casualty insurance.

5. An insurer need not offer, provide or makeavailable uninsured or underinsured vehicle coverage in connection with ageneral commercial liability policy, an excess policy, an umbrella policy orother policy that does not provide primary motor vehicle insurance forliabilities arising out of the ownership, maintenance, operation or use of aspecifically insured motor vehicle.

6. As used in this section:

(a) Excess policy means a policy that protects aperson against loss in excess of a stated amount or in excess of coverageprovided pursuant to another insurance contract.

(b) Passenger car has the meaning ascribed to it in NRS 482.087.

(c) Umbrella policy means a policy that protects aperson against losses in excess of the underlying amount required to be coveredby other policies.

(Added to NRS by 1979, 1090; A 1981, 15; 1983, 1105;1989, 1567, 1846; 1991, 1943; 1997, 3032; 2003, 3312)

NRS 687B.147 Exclusion,reduction or limitation of certain coverage in motor vehicle insurance policiesallowed; conditions; form and contents of disclosure. Apolicy of motor vehicle insurance covering a private passenger car may bedelivered or issued for delivery in this state if it contains an exclusion,reduction or other limitation of coverage for the liability of any namedinsured for bodily injury to:

1. Another named insured; or

2. Any member of the household of a named insured,

unless thenamed insured rejects the exclusion, reduction or other limitation of coverageafter full disclosure of the limitation by the insurer on a form approved bythe Commissioner. The form must be written in a manner which is easilyunderstood, printed in at least 12-point type and contain the statement Iunderstand that this policy excludes, reduces and limits coverage for bodilyinjury to members of my family and other named insureds, including thefollowing persons: (followed by a list of the names of the family members andother named insureds whose coverage has been excluded, reduced or limited). Thelist of names must be handwritten by the insured and followed by his fullsignature. The disclosed exclusion, reduction or other limitation of coveragecontinues until the named insured notifies the insurer in writing of his desireto reject it. The insurer must disclose upon renewal of the policy thatcoverage has been excluded, reduced or limited and that the named insured hasthe right to reject the exclusion, reduction or limitation. The insurer mustalso disclose to the named insured upon renewal any additional motor vehiclecoverages that the insurer sells. These disclosures must be written in a formeasily understood and printed in at least 12-point type.

(Added to NRS by 1989, 1851)

NRS 687B.150 Inclusionof portion of charter or bylaws.

1. No policy shall contain any provision purporting tomake any portion of the charter, bylaws or other constituent document of theinsurer (other than the subscribers agreement or power of attorney of areciprocal insurer) a part of the contract unless such portion is set forth infull in the policy.

2. Any policy provision in violation of this sectionis invalid.

(Added to NRS by 1971, 1718)

NRS 687B.160 Executionof policies.

1. Every insurance policy must be executed in the nameof and on behalf of the insurer by its officer, attorney-in-fact, employee orrepresentative duly authorized by the insurer.

2. Any such executing individual may use, in lieu ofan original signature:

(a) A facsimile signature; or

(b) An electronic signature pursuant to the provisionsof chapter 719 of NRS.

3. An insurance contract issued before, on or afterJanuary 1, 1972, which is otherwise valid is not rendered invalid by reason ofthe apparent execution thereof on behalf of the insurer by the imprintedfacsimile signature of an individual not authorized so to execute as of thedate of the policy.

(Added to NRS by 1971, 1718; A 1997, 1625; 2003, 2806)

NRS 687B.170 Underwritersand combination policies.

1. Two or more authorized insurers may jointly issue,and shall be jointly and severally liable on, an underwriters policy bearingtheir names. Any one insurer may issue policies in the name of an underwritersdepartment and such policy shall plainly show the true name of the insurer.

2. Two or more insurers may, with the approval of theCommissioner, issue a combination policy which shall contain provisionssubstantially as follows:

(a) That the insurers executing the policy shall beseverally liable for the full amount of any loss or damage, according to theterms of the policy, or for specified percentages or amounts thereof,aggregating the full amount of insurance under the policy; and

(b) That service of process, or of any notice or proofof loss required by such policy, upon any of the insurers executing the policy,shall constitute service upon all such insurers.

3. This section does not apply to cosuretyobligations.

(Added to NRS by 1971, 1719)

NRS 687B.180 Validityand construction of noncomplying forms.

1. A policy delivered or issued for delivery afterJanuary 1, 1972, to any person in this state in violation of this Code butotherwise binding on the insurer, shall be held valid, but shall be construedas provided in this Code.

2. Any condition, omission or provision not incompliance with the requirements of this Code and contained in any policy,rider or endorsement issued after January 1, 1972, and otherwise valid shallnot thereby be rendered invalid but shall be construed and applied inaccordance with such condition, omission or provision as would have applied hadthe same been in full compliance with this Code.

(Added to NRS by 1971, 1719)

NRS 687B.182 Binders:Issuance; effective dates.

1. A binder may be issued only by a resident ornonresident agent appointed by the insurer which is to issue the policy.

2. Except as provided in subsection 3, a binder mustnot be effective for more than 90 days.

3. The effective period of a binder may be extended 30days at a time with the written approval of the Commissioner.

(Added to NRS by 1983, 1120)

NRS 687B.183 Binders:Forms; required statement; delivery.

1. All written binders must be made on forms approvedby the Commissioner.

2. A binder related to a policy of insurance whichprovides coverage of less than $1,000,000 must contain a statement printed inat least 10-point bold type that any person who refuses to accept the binder asproof of insurance pursuant to the provisions of NRS 687B.186 is subject to the penaltiesprovided in that section.

3. If a binder is in writing, one copy must bedelivered either in person or by mailing first class to:

(a) The insured; and

(b) The insurer providing coverage under the binder,

within 24hours after the binder becomes effective.

(Added to NRS by 1983, 1120; A 1985, 1161)

NRS 687B.184 Binders:Form and premium for policy issued as replacement.

1. A policy which is issued to replace a binder mustinclude:

(a) Limits of coverage which are equal to the limitsstated in the binder; and

(b) An effective date for the policy which is the sameas the effective date of the initial binder.

2. The premium for such a policy must include thecharge for the period covered by the binder and that charge must be inaccordance with rates filed with the Commissioner pursuant to chapter 686B of NRS.

(Added to NRS by 1983, 1120)

NRS 687B.185 Binders:Prohibition of use to lower premiums. Aninsurer may not use a binder as a means to lower a premium which an insured ischarged.

(Added to NRS by 1983, 1121)

NRS 687B.186 Binders:Proof of insurance coverage.

1. A binder which is issued in accordance with NRS 687B.182 to 687B.187, inclusive, shall be deemed apolicy for the purpose of proving that a person has insurance coverage.

2. Any party to a contract or other agreement whorefuses to accept such a binder as proof of insurance when that proof isrequired by that contract or agreement:

(a) Shall be fined not more than $500.

(b) Is liable to the party presenting the binder as proofof insurance for actual damages sustained therefrom.

3. The provisions of this section do not apply to abinder related to a policy of insurance which provides coverage of at least$1,000,000.

(Added to NRS by 1983, 1121; A 1985, 1161)

NRS 687B.187 Binders:Disapproval of insurer. NRS 687B.182 to 687B.187, inclusive, do not prevent theexercise of a right to disapprove of the insurer or its representative on thebasis of:

1. The adequacy and terms of the coverage with respectto the interest of the vendor, lender, lessor or other person providing aservice to the insured;

2. The financial standards to be met by the insurer;or

3. The ability of the insurer or its representative toservice the policy.

(Added to NRS by 1983, 1120)

NRS 687B.190 Deliveryof policy.

1. If the original policy is delivered or is sorequired to be delivered to or for deposit with any vendor, mortgagee orpledgee of any motor vehicle, in which policy any interest of the vendee,mortgagor or pledgor in or with reference to such vehicle is insured, aduplicate of such policy setting forth the name and address of the insurer,insurance classification of vehicle, type of coverage, limits of liability,premiums for the respective coverages and duration of the policy, or memorandumthereof containing the same such information, shall be delivered by the vendor,mortgagee or pledgee to each such vendee, mortgagor or pledgor named in thepolicy or coming within the group of persons designated in the policy to be soincluded. If the policy does not provide coverage of legal liability for injuryto persons or damage to the property of third parties, a statement of such factshall be printed, written or stamped conspicuously on the face of suchduplicate policy or memorandum.

2. This section does not apply to inland marinefloater policies.

(Added to NRS by 1971, 1719)

NRS 687B.200 Assignability.

1. The purpose of this section is to confirm andclarify the right to provide for an assignment by which a person covered by alife or health insurance policy may divest himself of all incidents ofownership provided by the policy, including the conversion privileges of thepolicy.

2. Any person insured under a life or health insurancepolicy may make an assignment of all or any part of his incidents of ownershipunder the policy, including, but not limited to, the privilege to have issuedto him an individual policy of life or health insurance pursuant to theprovisions of this Code and the right to name a beneficiary. Subject to theterms of the policy or agreement between the insured, the policyholder and theinsurer relating to assignment of incidents of ownership thereunder, such anassignment by an insured, whenever made, is valid for the purpose of vesting inthe assignee all of the incidents of ownership so assigned. Such an assignmentdoes not prejudice the insurer on account of any payment it may make orindividual policy it may issue prior to receipt of notice of the assignment.

3. This section also applies to contracts issued byorganizations for dental care and nonprofit hospital, medical and dentalservice corporations.

(Added to NRS by 1971, 1720; A 1983, 2029)

NRS 687B.210 Paymentdischarges insurer.

1. Whenever the proceeds of or payments under a lifeor health insurance policy or annuity contract issued before, on or afterJanuary 1, 1972, become payable in accordance with the terms of the policy orcontract, or the exercise of any right or privilege thereunder, and the insurermakes payment thereof in accordance therewith or in accordance with any writtenassignment thereof, the person then designated as being entitled thereto isentitled to receive the proceeds or payments and to give full acquittancetherefor, and the payments fully discharge the insurer from all claims underthe policy or contract unless, before payment is made, the insurer has receivedat its home office written notice by or on behalf of some other person that theother person claims to be entitled to the payment or some interest in the policyor contract.

2. This section also applies to contracts issued byorganizations for dental care and nonprofit hospital, medical and dentalservice corporations.

(Added to NRS by 1971, 1720; A 1983, 2029; 1997,1625)

NRS 687B.220 Formsfor proof of loss to be furnished. Uponreceiving due notice of a claim of loss under an insurance contract issued orassumed by it, an insurer shall promptly furnish to the insured claimant suchforms of proof of loss as it may require, for completion by such person, butsuch insurer shall not, by reason of the requirement so to furnish forms, haveany responsibility for or with reference to the completion of such proof or themanner of any such completion or attempted completion.

(Added to NRS by 1971, 1720)

NRS 687B.225 Requirementsfor contracts for payment of cost of medical or dental care which require priorauthorization of care.

1. Except as otherwise provided in NRS 689A.0405, 689A.0413, 689B.031, 689B.0374, 695B.1912, 695B.1914, 695C.1713, 695C.1735 and 695G.170, any contract for group, blanketor individual health insurance or any contract by a nonprofit hospital, medicalor dental service corporation or organization for dental care which providesfor payment of a certain part of medical or dental care may require the insuredor member to obtain prior authorization for that care from the insurer or organization.The insurer or organization shall:

(a) File its procedure for obtaining approval of carepursuant to this section for approval by the Commissioner; and

(b) Respond to any request for approval by the insuredor member pursuant to this section within 20 days after it receives therequest.

2. The procedure for prior authorization may notdiscriminate among persons licensed to provide the covered care.

(Added to NRS by 1983, 2028; A 1985, 2098; 1997, 307,1729; 1999, 1943)

NRS 687B.240 Administrationof claims not waiver. Without limitation ofany right or defense of an insurer otherwise, none of the following acts by oron behalf of an insurer shall be deemed to constitute a waiver of any provisionof a policy or of any defense of the insurer thereunder:

1. Acknowledgment of the receipt of notice of loss orclaim under the policy.

2. Furnishing forms for reporting a loss or claim, forgiving information relative thereto, or for making proof of loss, or receivingor acknowledging receipt of any such forms or proofs completed or uncompleted.

3. Investigating any loss or claim under any policy orengaging in negotiations looking toward a possible settlement of any such lossor claim.

(Added to NRS by 1971, 1721)

NRS 687B.250 Paymentnot to constitute admission of liability or waiver of defenses.

1. No payment or payments made by any person, or byhis insurer by virtue of a liability insurance policy, on account of bodilyinjury or death or damage to or loss of property of another shall constitute anadmission of liability or waiver of defenses as to such injury, death, loss ordamage, or be admissible in evidence in any action brought against the insuredperson or his insurer for damages, indemnity or benefits arising out of suchinjury, death, loss or damage, unless pleaded as a defense to the action.

2. All such payments shall be credited upon anysettlement made by, or judgment rendered in such an action against, the payeror his insurer, and in favor of any person to whom or on whose account paymentwas made.

(Added to NRS by 1971, 1721)

NRS 687B.255 Insurerto pay claim with negotiable instrument. If aninsurer is required to pay a claim, the insurer shall pay that claim with aninstrument which is immediately negotiable. An insurer shall be deemed to havecomplied with the provisions of this section if the insurer enters into anagreement, with a bank located in this state, which provides that the bank willaccept the insurers drafts in as timely a manner as it accepts the insurerschecks.

(Added to NRS by 1989, 1799)

NRS 687B.260 Exemptionof proceeds of certain policies.

1. If a policy of insurance, whether issued before, onor after January 1, 1972, is effected by any person on his own life, or onanother life, in favor of a person other than himself, or, except in cases oftransfer with intent to defraud creditors, if a policy of life insurance isassigned or in any way made payable to any such person, the lawful beneficiaryor assignee thereof, other than the insured or the person so effecting suchinsurance or executors or administrators of the insured or the person so effectingsuch insurance, is entitled to its proceeds and avails against the creditorsand representatives of the insured and of the person effecting the same,whether or not the right to change the beneficiary is reserved or permitted andwhether or not the policy is made payable to the person whose life is insuredor to the executors or administrators of such person if the beneficiary orassignee predeceases the person. Except as otherwise provided in thissubsection, such proceeds and avails are exempt from all liability for any debtof the beneficiary existing at the time the proceeds and avails are madeavailable for his use. Subject to the statute of limitations, the amount of anypremiums for such insurance paid with intent to defraud creditors, with interestthereon, inures to the benefit of the creditors from the proceeds of thepolicy. The insurer issuing the policy is discharged of all liability thereonby payment of its proceeds in accordance with its terms, unless, before thepayment, the insurer has received written notice at its home office, by or inbehalf of a creditor, of a claim to recover for transfer made or premiums paidwith intent to defraud creditors, with specification of the amount claimedalong with such facts as will assist the insurer to ascertain the particularpolicy.

2. For the purposes of subsection 1, a policy shallalso be deemed to be payable to a person other than the insured if and to theextent that a facility-of-payment clause or a similar clause in the policypermits the insurer to discharge its obligation after the death of theindividual insured by paying the death benefits to a person as permitted bysuch a clause.

3. This section does not apply to insurance issuedpursuant to this Code to a creditor covering his debtors to the extent thatsuch proceeds are applied to payment of the obligation for the purpose of whichthe insurance was so issued.

(Added to NRS by 1971, 1722; A 1997, 1625)

NRS 687B.270 Exemptionof proceeds: Health insurance.

1. Except as otherwise expressly provided by thepolicy or contract, the proceeds and avails of all contracts of healthinsurance and of provisions providing benefits on account of the disability ofthe insured which are supplemental to life insurance or annuity contractseffected before, on or after January 1, 1972, are exempt from all liability forany debt of the insured, and from any debt of the beneficiary existing at thetime the proceeds are made available for his use.

2. This section does not apply to insurance issuedpursuant to this Code to a creditor covering his debtors to the extent thatsuch proceeds are applied to payment of the obligation for the purpose of whichthe insurance was so issued.

(Added to NRS by 1971, 1722; A 1997, 1626)

NRS 687B.280 Exemptionof proceeds: Group insurance.

1. A policy of group life insurance or group healthinsurance or the proceeds thereof payable to the individual insured or to thebeneficiary thereunder shall not be liable, either before or after payment, tobe applied by any legal or equitable process to pay any debt or liability ofsuch insured individual or his beneficiary or of any other person having aright under the policy. The proceeds thereof, when not made payable to a namedbeneficiary or to a third person pursuant to a facility-of-payment clause,shall not constitute a part of the estate of the individual insured for the paymentof his debts.

2. This section does not apply to group insuranceissued pursuant to this Code to a creditor covering his debtors, to the extentthat such proceeds are applied to payments of the obligation for the purpose ofwhich the insurance was so issued.

(Added to NRS by 1971, 1723)

NRS 687B.290 Exemptionof proceeds: Annuities; assignability of rights.

1. The benefits, rights, privileges and options whichunder any annuity contract issued prior to or after January 1, 1972, are due orprospectively due the annuitant shall not be subject to execution nor shall theannuitant be compelled to exercise any such rights, powers or options, norshall creditors be allowed to interfere with or terminate the contract, except:

(a) As to amounts paid for or as premium on any suchannuity with intent to defraud creditors, with interest thereon, and of whichthe creditor has given the insurer written notice at its home office prior tothe making of the payment to the annuitant out of which the creditor seeks torecover. Any such notice shall specify the amount claimed or such facts as willenable the insurer to ascertain such amount, and shall set forth such facts aswill enable the insurer to ascertain the annuity contract, the annuitant andthe payment sought to be avoided on the ground of fraud.

(b) The total exemption of benefits presently due andpayable to any annuitant periodically or at stated times under all annuitycontracts under which he is an annuitant shall not at any time exceed $350 permonth for the length of time represented by such installments, and suchperiodic payments in excess of $350 per month shall be subject to garnisheeexecution to the same extent as are wages and salaries.

(c) If the total benefits presently due and payable toany annuitant under all annuity contracts under which he is an annuitant, atany time exceed payment at the rate of $350 per month, then the court may ordersuch annuitant to pay to a judgment creditor or apply on the judgment, ininstallments, such portion of such excess benefits as to the court may appearjust and proper, after due regard for the reasonable requirements of thejudgment debtor and his family, if dependent upon him, as well as any paymentsrequired to be made by the annuitant to other creditors under prior courtorders.

2. If the contract so provides, the benefits, rights,privileges or options accruing under such contract to a beneficiary or assigneeshall not be transferable or subject to commutation, and if the benefits arepayable periodically or at stated times, the same exemptions and exceptionscontained in this section for the annuitant shall apply with respect to suchbeneficiary or assignee.

(Added to NRS by 1971, 1723)

NRS 687B.300 Retentionof proceeds of policy by insurer.

1. Any life insurer shall have power to hold paymentof proceeds, as has been agreed to in writing by the insurer and the insured orbeneficiary. The insurer shall not be required to segregate funds so held butmay hold them as a part of its general corporate assets.

2. The provisions of this section shall not impair oraffect any rights of creditors under NRS687B.260 or 687B.290.

(Added to NRS by 1971, 1724)

NRS 687B.310 Cancellationsand nonrenewals; scope of application.

1. NRS 687B.310to 687B.420, inclusive, apply to allbinders and all contracts of insurance the general terms of which are requiredto be approved or are subject to disapproval by the Commissioner, except asotherwise provided by statute or by rule pursuant to subsection 3.

2. The contract may provide terms more favorable topolicyholders than are required by NRS687B.310 to 687B.420, inclusive.

3. The Commissioner may by rule exempt from NRS 687B.310 to 687B.420, inclusive, classes of insurancecontracts where the policyholders do not need protection against arbitrarytermination.

4. The rights provided by NRS 687B.310 to 687B.420, inclusive, are in addition toand do not prejudice any other rights the policyholder may have at common lawor under other statutes.

5. NRS 687B.310to 687B.420, inclusive, do not preventthe rescission or reformation of any life or health insurance contract nototherwise denied by the terms of the contract or by any other statute.

6. Any notice to an insured required pursuant to NRS 687B.320 to 687B.350, inclusive, must be personallydelivered to the insured or mailed first class or certified to the insured athis address last known by the insurer. The notice must state the effective dateof the cancellation or nonrenewal and be accompanied by a written explanationof the specific reasons for the cancellation or nonrenewal.

(Added to NRS by 1971, 1724; A 1971, 1949; 1983,1121; 1987, 985, 1063; 1993, 2399; 2003, 3313)

NRS 687B.320 Midtermcancellation; exception.

1. Except as otherwise provided in subsection 3, noinsurance policy that has been in effect for at least 70 days or that has beenrenewed may be cancelled by the insurer before the expiration of the agreedterm or 1 year from the effective date of the policy or renewal, whicheveroccurs first, except on any one of the following grounds:

(a) Failure to pay a premium when due;

(b) Conviction of the insured of a crime arising out ofacts increasing the hazard insured against;

(c) Discovery of fraud or material misrepresentation inthe obtaining of the policy or in the presentation of a claim thereunder;

(d) Discovery of:

(1) An act or omission; or

(2) A violation of any condition of the policy,

whichoccurred after the first effective date of the current policy and substantiallyand materially increases the hazard insured against;

(e) A material change in the nature or extent of therisk, occurring after the first effective date of the current policy, whichcauses the risk of loss to be substantially and materially increased beyondthat contemplated at the time the policy was issued or last renewed;

(f) A determination by the Commissioner thatcontinuation of the insurers present volume of premiums would jeopardize theinsurers solvency or be hazardous to the interests of policyholders of theinsurer, its creditors or the public; or

(g) A determination by the Commissioner that thecontinuation of the policy would violate, or place the insurer in violation of,any provision of the Code.

2. No cancellation under subsection 1 is effectiveuntil in the case of paragraph (a) of subsection 1 at least 10 days and in thecase of any other paragraph of subsection 1 at least 30 days after the noticeis delivered or mailed to the policyholder.

3. The provisions of this section do not apply to apolicy of industrial insurance.

(Added to NRS by 1971, 1724; A 1987, 986; 2003, 3313)

NRS 687B.325 Industrialinsurance policies: Midterm cancellation; notice to policyholder.

1. No policy of industrial insurance that has been ineffect for at least 70 days or that has been renewed may be cancelled by theinsurer before the expiration of the agreed term or 1 year after the effectivedate of the policy or renewal, whichever occurs first, except on any one of thefollowing grounds:

(a) A failure by the policyholder to pay a premium forthe policy of industrial insurance when due, including the failure of thepolicyholder to remit an amount due because of an endorsement for a deductible;

(b) A failure by the policyholder to:

(1) Report any payroll;

(2) Allow the insurer to audit any payroll inaccordance with the terms of the policy or any previous policy issued by theinsurer; or

(3) Pay any additional premium charged becauseof an audit of any payroll as required by the terms of the policy or anyprevious policy issued by the insurer;

(c) A material failure by the policyholder to complywith any federal or state order concerning safety or any written recommendationof the insurers designated representative for loss control;

(d) A material change in ownership of the policyholderor any change in the policyholders business or operations that:

(1) Materially increases the hazard forfrequency or severity of loss;

(2) Requires additional or differentclassifications for the calculation of premiums; or

(3) Contemplates an activity that is excluded byany reinsurance treaty of the insurer;

(e) A material misrepresentation made by thepolicyholder; or

(f) A failure by the policyholder to cooperate with theinsurer in conducting an investigation of a claim.

2. An insurer shall not cancel a policy of industrialinsurance pursuant to paragraph (a) of subsection 1 except upon 10 dayswritten notice submitted by the insurer to the policyholder.

3. Except as otherwise provided in this subsection, aninsurer shall not cancel a policy of industrial insurance pursuant to paragraph(b), (c), (d), (e) or (f) of subsection 1 except upon 30 days written noticeby the insurer to the policyholder. An insurer is not required to provide awritten notice to a policyholder pursuant to this subsection if thepolicyholder and the insurer consent to the cancellation of the policy ofindustrial insurance and to the reissuance of another policy of industrial insuranceeffective upon a material change in the ownership or operations of the insured.If the policyholder corrects the condition to the satisfaction of the insurerwithin the period specified in the policy of insurance, the insurer shall notcancel the policy.

4. Any written notice submitted to a policyholderpursuant to this section must be given by first-class mail addressed to thepolicyholder at the address of the policyholder set forth in the policy ofindustrial insurance. Evidence indicating that a written notice specified inthis section has been mailed is sufficient proof of notice.

5. The provisions of this section do not prohibit,during any period in which a policy of industrial insurance is in force, anychange in the premium rate required or authorized by any law, regulation ororder of the Commissioner, or otherwise agreed upon by the policyholder and theinsurer.

6. For the purposes of this section, any policy ofindustrial insurance that is written for a term of more than 1 year, or anypolicy of industrial insurance with no fixed date of expiration, shall bedeemed to be written for successive periods of 1 year.

(Added to NRS by 2003, 3310; A 2005, 2134)

NRS 687B.330 Anniversarycancellation. A policy issued for a termlonger than 1 year may be cancelled by the insurer by giving notice of thecancellation:

1. For commercial or business policies, 60 days beforeany anniversary date of the policy.

2. For all other policies, 30 days before anyanniversary date of the policy.

(Added to NRS by 1971, 1725; A 1987, 987)

NRS 687B.340 Nonrenewals.

1. Subject to subsection 2, a policyholder has a rightto have his policy renewed, on the terms then being applied by the insurer topersons, similarly situated, for an additional period equivalent to theexpiring term if the agreed term is 1 year or less, or for 1 year if the agreedterm is longer than 1 year, unless:

(a) At least 60 days for commercial or businesspolicies; and

(b) At least 30 days for all other policies,

before thedate of expiration provided in the policy the insurer mails or delivers to hima notice of intention not to renew the policy beyond the agreed expirationdate. If an insurer fails to provide a timely notice of nonrenewal, the insurershall provide the insured with a policy of insurance on the identical terms asin the expiring policy.

2. This section does not apply if the policyholder hasaccepted replacement coverage or has requested or agreed to nonrenewal, or ifthe policy is expressly designated as nonrenewable by a clause approved ordeemed to be approved by the Commissioner.

(Added to NRS by 1971, 1725; A 1971, 1950; 1987, 987)

NRS 687B.345 Annualreview of coverage and benefits provided in policy. Eachinsurer who delivers a policy in this state which is effective for 1 year ormore may, for the period in which the policy is effective, review annually withthe policyholder to whom the policy is delivered the coverage and benefitsprovided in the policy.

(Added to NRS by 1995, 1747)

NRS 687B.350 Renewalwith altered terms.

1. Except as otherwise provided in subsection 2, aninsurer shall not renew a policy on different terms, including different rates,unless the insurer notifies the insured in writing of the different terms orrates at least 30 days before the expiration of the policy. If the insurerfails to provide adequate and timely notice, the insurer shall renew the policyat the expiring terms and rates:

(a) For a period that is equal to the expiring term ifthe agreed term is 1 year or less; or

(b) For 1 year if the agreed term is more than 1 year.

2. The provisions of this section do not apply to apolicy of industrial insurance.

(Added to NRS by 1971, 1725; A 1995, 1747; 2003, 3314)

NRS 687B.355 Informationabout claims paid on behalf of policyholder; regulations.

1. If a policyholder requests information for therenewal of his policy, an insurer shall provide to the policyholder informationregarding claims paid on behalf of the policyholder. The information must beprovided within 30 working days after the insurer receives a written requestfrom the policyholder. The insurer may charge the policyholder a reasonable feefor the information.

2. The Commissioner may adopt regulations to carry outthe provisions of subsection 1.

(Added to NRS by 1991, 2033)

NRS 687B.360 Informationabout grounds. If a notice of cancellation ornonrenewal under NRS 687B.310 to 687B.420, inclusive, does not state withreasonable precision the facts on which the insurers decision is based, theinsurer shall supply that information within 6 days after receipt of a writtenrequest by the policyholder. No notice is effective unless it contains adequateinformation about the policyholders right to make such a request.

(Added to NRS by 1971, 1725; A 1971, 1950; 1993,2399; 2003, 3314)

NRS 687B.370 Informationabout applying for insurance through certain plans; exception. Except for a notice of cancellation for the failure to paya premium when due, no notice required pursuant to NRS 687B.310 to 687B.420, inclusive, is effective unlessit contains adequate instructions enabling the policyholder to apply forinsurance through any voluntary or mandatory risk-sharing plan establishedpursuant to NRS 686B.180 and 686B.200 existing at the time of thenotice, for which the policyholder may be eligible.

(Added to NRS by 1971, 1726; A 1985, 577; 1993, 2400;2003, 3314)

NRS 687B.380 Immunity. There is no liability on the part of and no cause ofaction of any nature may arise against any insurer, its authorizedrepresentative, its agents, its employees, or any person furnishing to theinsurer information as to reasons for cancellation or nonrenewal, for anystatement made by them in complying with NRS687B.310 to 687B.420, inclusive,or for the providing of information pertaining thereto.

(Added to NRS by 1971, 1726; A 1993, 2400; 2003, 3315)

NRS 687B.385 Cancellation,nonrenewal or increase in premium due to claims for which insured was not atfault prohibited. An insurer shall not cancel,refuse to renew or increase the premium for renewal of a policy of motorvehicle insurance covering private passenger cars or commercial vehicles as aresult of any claims made under the policy with respect to which the insuredwas not at fault.

(Added to NRS by 1987, 1063; A 1997, 3033)

NRS 687B.390 Cancellationor nonrenewal on sole basis of age, residence, race, color, creed, nationalorigin, ancestry or occupation prohibited. Noinsurer shall cancel or refuse to renew an automobile liability insurancepolicy solely because of the age, residence, race, color, creed, nationalorigin, ancestry or occupation of anyone who is an insured.

(Added to NRS by 1971, 1726)

NRS 687B.400 Discriminationon sole basis of age prohibited; burden of proof; exception.

1. No insurer shall refuse to issue, reduce liabilitylimits of, or increase the premium of any automobile liability insurance policyissued to a resident of this state for the sole reason that the policyholder hasreached a certain age.

2. Where age is a factor in an increase of rates foran individual policyholder, the increase must be justified to the Commissionerand the burden of proving justification is on the insurer. If a medicalexamination is required for the purpose of a rate increase, such examinationshall be at the expense of the insurer.

3. This section does not apply to applicants andpolicyholders under the age of 25 years.

(Added to NRS by 1973, 251)

NRS 687B.410 Withdrawalof insurance for particular class of insureds: Notice; administrative review.

1. An insurer which intends to withdraw from providinginsurance for a particular class of insureds shall notify the Commissioner ofthat intention at least 60 days before the notice of cancellation or nonrenewalis delivered or mailed to the insureds.

2. Upon receipt of a written request from an insured,the Division shall, within 15 days after the receipt of the request, review theground for cancellation or nonrenewal. If after the review the Division failsto find that the insurer can demonstrate the grounds for cancellation ornonrenewal by clear and convincing evidence, the cancellation or nonrenewalshall be deemed withdrawn by the insurer and the policy reinstated or renewed.Such a request for review by the Division must be made within 30 days after theinsured receives the notice of cancellation or nonrenewal.

(Added to NRS by 1987, 985; A 1991, 1631; 1993, 1918)

NRS 687B.420 Noticeof proposed cancellation, nonrenewal or alteration of terms of certain policiesor contracts of insurance. An insurer shallnot cancel, fail to renew or renew with altered terms a policy or contractissued pursuant to chapter 688B, 689A, 689B, 689C, 695A, 695B, 695C, 695D or 695Fof NRS unless notice in writing of the proposal is given to the insured atleast 60 days before the date the proposed action becomes effective. The noticemust include, without limitation, any changes in specific rates by line of coverage.

(Added to NRS by 1989, 1248; A 1993, 1982, 2400,2405)

NRS 687B.430 Regulations:Policies which provide for payment of expenses not covered by Medicare; sale ofmore than one policy of health insurance to same person.

1. The Commissioner may adopt regulations relating tothe form, content and sale of policies of insurance which provide for thepayment of expenses which are not covered by Medicare.

2. The Commissioner may adopt regulations relating tothe sale of more than one policy of health insurance to the same person.

3. As used in this section, Medicare means theprogram of health insurance for aged and disabled persons established pursuantto Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).

(Added to NRS by 1993, 2398)

NRS 687B.440 Umbrellapolicies: Disclosure statement indicating whether policy includes uninsured orunderinsured motorist coverage; form.

1. An insureroffering an umbrella policy to an individual shall obtain a signed disclosurestatement from the individual indicating whether the umbrella policy includesuninsured or underinsured vehicle coverage.

2. The disclosure statement for an umbrella policythat includes uninsured or underinsured vehicle coverage must be on a formprovided by the Commissioner or in substantially the following form:

 

UMBRELLAPOLICY DISCLOSURE STATEMENT

UNINSURED/UNDERINSUREDVEHICLE COVERAGE

 

Your Umbrella Policy does provide coverage in excess of thelimits of the uninsured/underinsured vehicle coverage in your primaryauto insurance only if the requirements for the uninsured/underinsured vehiclecoverage in your underlying auto insurance are maintained. Youruninsured/underinsured vehicle coverage provided by this umbrella policy islimited to $........ .

 

I understand and acknowledge theabove disclosure.

 

.................................................. ...............................

Insured Date

 

3. The disclosure statement for an umbrella policythat does not include uninsured or underinsured vehicle coverage must be on aform provided by the commissioner or in substantially the following form:

 

Your Umbrella Liability Policy does not provide any uninsured/underinsuredvehicle coverage.

 

I understand and acknowledge theabove disclosure.

 

.................................................. ...............................

Insured Date

 

4. As used in this section, umbrella policy means apolicy that protects a person against losses in excess of the underlying amountrequired to be covered by other policies.

(Added to NRS by 1997, 3031; A 1999, 2801)

 

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