2005 Nevada Revised Statutes - Chapter 690A — Credit Insurance

CHAPTER 690A - CREDIT INSURANCE

NRS 690A.010 Scope.

NRS 690A.011 Definitions.

NRS 690A.012 Compensationdefined.

NRS 690A.013 Contingentcompensation defined. [Repealed.]

NRS 690A.0135 Creditaccident and health insurance defined.

NRS 690A.014 Creditdisability insurance defined. [Repealed.]

NRS 690A.015 Creditinsurance and consumer credit insurance defined.

NRS 690A.016 Creditlife insurance defined.

NRS 690A.0163 Credittransaction defined.

NRS 690A.0167 Creditunemployment insurance defined.

NRS 690A.017 Creditordefined.

NRS 690A.018 Debtordefined.

NRS 690A.019 Grosscoverage defined. [Repealed.]

NRS 690A.0195 Grossdebt defined.

NRS 690A.0205 Identifiablecharge defined.

NRS 690A.021 Indebtednessdefined. [Repealed.]

NRS 690A.022 Involuntaryunemployment insurance defined. [Repealed.]

NRS 690A.023 Jointlife insurance defined. [Repealed.]

NRS 690A.024 Levelterm plan defined. [Repealed.]

NRS 690A.0243 Netdebt defined.

NRS 690A.0247 Open-endcredit defined.

NRS 690A.025 Outstandingbalance basis defined. [Repealed.]

NRS 690A.026 Primarycompensation defined. [Repealed.]

NRS 690A.027 Producerdefined. [Repealed.]

NRS 690A.028 Singlepremium basis defined. [Repealed.]

NRS 690A.030 Limitationson form of issuance and type of insurance. [Repealed.]

NRS 690A.040 Amountsof credit life insurance. [Repealed.]

NRS 690A.045 Amountsof credit life insurance.

NRS 690A.050 Amountsof credit accident and health insurance or credit unemployment insurance.

NRS 690A.055 Combinationsof consumer credit insurance; prohibition or limitation by regulation.

NRS 690A.060 Term.[Repealed.]

NRS 690A.063 Commencementof consumer credit insurance; prohibited charging or retention of payment.

NRS 690A.067 Termand cancellation of consumer credit insurance.

NRS 690A.070 Policiesand certificates of insurance: Contents; delivery. [Repealed.]

NRS 690A.073 Requireddisclosures.

NRS 690A.075 Acceptanceof insurance by insurer other than named insurer; nonacceptance.

NRS 690A.077 Policiesand certificates of insurance: Contents; delivery.

NRS 690A.080 Forms,schedules and formulas: Filing; approval; regulations; withdrawal of approval.[Repealed.]

NRS 690A.083 Deliveryof application or notice of proposed insurance; contents; use of application ornotice to meet certain requirements.

NRS 690A.085 Policies,forms and schedules: Filing; approval; withdrawal of approval.

NRS 690A.087 Adoptionof forms by regulation; use of forms by insurer.

NRS 690A.090 Premiumsand refunds. [Repealed.]

NRS 690A.093 Establishmentof reasonable rates by regulation; use of certain rates without filing withCommissioner.

NRS 690A.095 Filingof revised schedule of premium rates.

NRS 690A.097 Refundof unearned premiums; regulations; approval of refund formula.

NRS 690A.100 Collectionof premium or other charge. [Repealed.]

NRS 690A.103 Paymentfor consumer credit insurance without issuance of individual policy or groupcertificate.

NRS 690A.107 Amountcharged for consumer credit insurance.

NRS 690A.110 Premiumsand gains not deemed interest. [Repealed.]

NRS 690A.120 Issuanceof policies and certificates of consumer credit insurance.

NRS 690A.130 Claims.

NRS 690A.140 Existinginsurance; choice of insurer.

NRS 690A.150 Maintenanceof statistics regarding insurance and records regarding creditors. [Repealed.]

NRS 690A.160 Useor continuation of compensating balances or accounts of special depositsprohibited. [Repealed.]

NRS 690A.170 Insurerrequired to conduct audits and reviews; retention of results; payment of costs;Commissioner may order audit or review. [Repealed.]

NRS 690A.180 Orderissued by Commissioner for noncompliance with chapter. [Repealed.]

NRS 690A.190 Excessiverates; approval of higher rate; filing of statistical experience for higherrate; restrictive provisions in policy. [Repealed.]

NRS 690A.200 Rates:Credit life insurance. [Repealed.]

NRS 690A.210 Rates:Credit disability insurance. [Repealed.]

NRS 690A.220 Rates:Involuntary unemployment insurance. [Repealed.]

NRS 690A.230 Restrictionsbased on age. [Repealed.]

NRS 690A.240 Paymentof compensation to producer. [Repealed.]

NRS 690A.250 Formulafor refund. [Repealed.]

NRS 690A.260 Transfersto unauthorized insurer.

NRS 690A.270 Foreigninsurers. [Repealed.]

NRS 690A.273 Creditoras agent of insurer.

NRS 690A.277 Regulations.

NRS 690A.280 Administrativepenalties; revocation or suspension of license or certificate of authority.

_________

NRS 690A.010 Scope. Any consumer credit insurance issued in connection withloans or other credit transactions for personal, family or household use is subjectto the provisions of this chapter except:

1. Insurance written in connection with a credit transactionthat is:

(a) Secured by a first mortgage or deed of trust; and

(b) Made to finance the purchase of real property orthe construction of a dwelling thereon, or to refinance a prior credittransaction made for that purpose;

2. Insurance that is sold as an isolated transactionon the part of the insurer and not related to an agreement or a plan forinsuring debtors of the creditor;

3. Insurance for which no identifiable charge is madeto the debtor; or

4. Insurance on accounts receivable.

(Added to NRS by 1971, 1771; A 1987, 2296; 2005, 2144)

NRS 690A.011 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS690A.012 to 690A.0247, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1987, 2287; A 2005, 2144)

NRS 690A.012 Compensationdefined. Compensation means any valuableconsideration, direct or indirect, paid by or on behalf of the insurer, or byany subsidiary or parent, or subsidiary of the parent of the insurer, or by anyother person to or on behalf of any group policyholder or producer or withheldfrom an insurer by any group policyholder or producer, and includes:

1. Paid or credited commissions or contingentcommissions.

2. Fees for services, consulting fees or any other feepaid or credited within or outside this State in direct relation to the volumeof premiums produced or written in this State.

3. The use of electronic data processing equipment orservices, except for devices provided in lieu of books and charts of rates andrefunds usable only for that purpose.

4. The furnishing of supplies, except forms approvedby the Commissioner, the usual forms for claims and reports, envelopes fortransmitting claims and brochures, and books and charts of rates and refunds.

5. Providing rental equipment of any type.

6. Advertising.

7. Providing telephone service without charge or at acharge less than the usual cost.

8. Participation in a profit-sharing plan.

9. Dividends and refunds or credits based onexperience ratings.

10. An allowance for expenses.

11. Participation in stock plans or bonuses.

12. Any form of credit, including the use of money.

13. Commissions for reinsurance, ceded or assumed.

14. Reinsurance with a nonauthorized insurer owned orcontrolled by a creditor or producer or with a nonauthorized insurer in which acreditor or producer is a stockholder.

15. Any commission or fee, inducement or intention toinduce, or any other consideration arising from the sale of insurance or otherproduct or service, except consumer credit insurance as part of the transactionin which the indebtedness is arranged or the application for the consumercredit insurance is made.

(Added to NRS by 1987, 2287; A 2005, 2144)

NRS 690A.013 Contingentcompensation defined. Repealed. (See chapter456, Statutes ofNevada 2005, at page 2160.)

 

NRS 690A.0135 Creditaccident and health insurance defined. Creditaccident and health insurance means insurance on a debtor to provide indemnityfor payments or debt becoming due on a specific loan or other credittransaction while the debtor is disabled as defined in the policy.

(Added to NRS by 2005, 2137)

NRS 690A.014 Creditdisability insurance defined. Repealed. (Seechapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.015 Creditinsurance and consumer credit insurance defined. Creditinsurance or consumer credit insurance means any or all of the following:

1. Credit life insurance;

2. Credit accident and health insurance;

3. Credit unemployment insurance; or

4. Any other insurance defined in this chapter.

(Added to NRS by 1987, 2288; A 2005, 2145)

NRS 690A.016 Creditlife insurance defined. Credit lifeinsurance means insurance on the life of a debtor pursuant to or in connectionwith a specific loan or other credit transaction to provide for satisfaction ofa debt, in whole or in part, upon the death of an insured debtor.

(Added to NRS by 1987, 2288; A 2005, 2145)

NRS 690A.0163 Credittransaction defined. Credit transactionmeans any transaction for which the terms of repayment of money loaned or loancommitment made, or payment of goods, services or properties sold or leased, isto be made at a future date or dates.

(Added to NRS by 2005, 2137)

NRS 690A.0167 Creditunemployment insurance defined. Credit unemploymentinsurance means insurance on a debtor to provide indemnity for payments or adebt becoming due on a specific loan or other credit transaction while thedebtor is involuntarily unemployed as defined in the policy.

(Added to NRS by 2005, 2137)

NRS 690A.017 Creditordefined. Creditor means the lender of moneyor vendor or lessor of goods, services, property, rights or privileges forwhich payment is arranged through a credit transaction, and includes:

1. The successor to the right, title or interest of;

2. An affiliate, associate or subsidiary of;

3. Any director, officer or employee of; or

4. Any other person in any way associated with,

any suchlender, vendor or lessor.

(Added to NRS by 1987, 2288)

NRS 690A.018 Debtordefined. Debtor means a borrower of money ora purchaser or lessee of goods, services, property, rights or privileges forwhich payment is arranged through a credit transaction.

(Added to NRS by 1987, 2288)

NRS 690A.019 Grosscoverage defined. Repealed. (See chapter 456,Statutes of Nevada2005, at page 2160.)

 

NRS 690A.0195 Grossdebt defined. Gross debt means the sum ofthe remaining payments owed to a creditor by a debtor.

(Added to NRS by 2005, 2137)

NRS 690A.0205 Identifiablecharge defined. Identifiable charge means acharge for consumer credit insurance that is made to debtors who have thatinsurance and not made to debtors who do not have that insurance. The termincludes a charge for insurance that is disclosed in the credit agreement orother instrument furnished to the debtor which sets forth the financialelements of the credit transaction and any difference in the finance, interest,service or other similar charge made to debtors who are in similarcircumstances except for the insured or noninsured status of the debtor or ofthe property used as security for the credit transaction.

(Added to NRS by 2005, 2137)

NRS 690A.021 Indebtednessdefined. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.022 Involuntaryunemployment insurance defined. Repealed.(See chapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.023 Jointlife insurance defined. Repealed. (Seechapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.024 Levelterm plan defined. Repealed. (See chapter456, Statutes ofNevada 2005, at page 2160.)

 

NRS 690A.0243 Netdebt defined. Net debt means the amountrequired to liquidate the remaining debt in a single lump-sum payment,excluding all unearned interest and other unearned finance charges.

(Added to NRS by 2005, 2138)

NRS 690A.0247 Open-endcredit defined. Open-end credit meanscredit extended by a creditor under an agreement in which:

1. The creditor reasonably contemplates repeatedtransactions;

2. The creditor periodically imposes a finance chargeon any outstanding unpaid balance; and

3. The amount of credit that may be extended to thedebtor during the term of the agreement up to any limit set by the creditor isgenerally made available to the extent that any outstanding balance is repaid.

(Added to NRS by 2005, 2138)

NRS 690A.025 Outstandingbalance basis defined. Repealed. (See chapter456, Statutes ofNevada 2005, at page 2160.)

 

NRS 690A.026 Primarycompensation defined. Repealed. (See chapter456, Statutes ofNevada 2005, at page 2160.)

 

NRS 690A.027 Producerdefined. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.028 Singlepremium basis defined. Repealed. (See chapter456, Statutes ofNevada 2005, at page 2160.)

 

NRS 690A.030 Limitationson form of issuance and type of insurance. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.040 Amountsof credit life insurance. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.045 Amountsof credit life insurance.

1. Except as otherwise provided in this section, theamount of credit life insurance must not exceed the greater of the actual netdebt or the scheduled net debt.

2. If coverage is written on the actual net debt, theamount payable at the time of loss must not be less than the actual net debtless any payments that are more than 2 months past due.

3. If the coverage is written on any scheduled netdebt, the amount payable at the time of loss must not be less than:

(a) If the actual net debt is less than or equal to thescheduled net debt, the scheduled net debt;

(b) If the actual net debt is greater than thescheduled net debt but less than or equal to the scheduled net debt plus 2months of payments, the actual net debt; or

(c) If the actual net debt is greater than thescheduled net debt plus 2 months of payments, the scheduled net debt plus 2months of payments.

4. If a premium is assessed to the debtor on a monthlybasis and is based on the actual net debt, the amount payable at the time ofloss must not be less than the actual net debt on the date of death. If thepremium is based on a balance that does not include accrued past due interest,the amount payable at the time of loss must not be less than the actual netdebt less any accrued interest that is more than 2 months past due.

5. Insurance on agricultural loan commitments that donot exceed 1 year in duration may be written for not more than the amount ofthe loan on a nondecreasing or level term plan.

6. Insurance on educational loan commitments may bewritten for the net unpaid debt plus any unused commitment.

7. Coverage may be written for less than the net debtthrough the following methods:

(a) The amount of insurance may be the lesser of astated level amount and the amount determined in accordance with subsection 2;

(b) The amount of insurance may be the lesser of astated level amount and the amount determined in accordance with subsection 3;

(c) The amount of insurance may be a constantpercentage of the amount determined in accordance with subsection 2;

(d) The amount of insurance may be a constantpercentage of the amount determined in accordance with subsection 3; or

(e) In the absence of any exclusions for a preexistingcondition, the amount of insurance payable in the event of death by naturalcauses may be limited to the balance as it existed 6 months before the date ofdeath if:

(1) There have been one or more increases in theoutstanding balance during the 6-month period other than increases resultingfrom the accrual of interest or late charges; and

(2) Evidence of individual insurability has notbeen required during the 6-month period.

8. Other kinds of insurance may be used if those kindsare not inconsistent with the provisions of this section.

(Added to NRS by 2005, 2138)

NRS 690A.050 Amountsof credit accident and health insurance or credit unemployment insurance.

1. Except as otherwise provided in subsection 2, thetotal amount of periodic indemnity payable pursuant to a policy of credit accidentand health insurance or credit unemployment insurance in the event ofdisability or unemployment, as defined in the policy, must not exceed theaggregate of the periodic scheduled unpaid installments of the gross debt, andthe amount of each periodic indemnity payment must not exceed the originalgross debt divided by the number of periodic installments.

2. For credit accident and health insurance or creditunemployment insurance written in connection with an open-end credit agreement,the amount of insurance must not exceed the gross debt which would accrue onthat amount using the periodic indemnity. Subject to any policy maximum, theperiodic indemnity must not be less than the minimum repayment schedule of thecreditor.

(Added to NRS by 1971, 1773; A 1987, 2297; 2005, 2145)

NRS 690A.055 Combinationsof consumer credit insurance; prohibition or limitation by regulation. The types of consumer credit insurance defined in thischapter may be written separately or in combination with other types ofconsumer credit insurance on an individual policy or group policy basis. TheCommissioner may by regulation prohibit or limit any combination.

(Added to NRS by 2005, 2138)

NRS 690A.060 Term.Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.063 Commencementof consumer credit insurance; prohibited charging or retention of payment.

1. Except as otherwise provided in this section, forconsumer credit insurance that is made available to and elected by a debtorbefore or with the credit transaction to which it relates, the term of theinsurance must, subject to acceptance by the insurer, commence on the date onwhich the debtor becomes obligated to the creditor. If the insurer requiresevidence of individual insurability and the evidence is provided to the insurermore than 30 days after the date on which the debtor becomes obligated to thecreditor, the insurance may commence on the date on which the insurerdetermines the evidence to be satisfactory.

2. Except as otherwise provided in this section, forconsumer credit insurance that is made available to and elected by a debtorafter the credit transaction to which it relates, the term of the insurancemust, subject to acceptance by the insurer, commence on a date not earlier thanthe date the election is made by the debtor and not later than 30 days afterthe date on which the insurance company accepts the risk for coverage. If thecoverage does not commence on the date on which the insurance company acceptsthe risk for coverage, the date that coverage commences must be related to anobjective method for determining the date, including, without limitation, thebilling cycle, the payment cycle or a calendar month.

3. If a group policy provides coverage with respect todebts existing on the effective date of the policy, the insurance related to adebt must not commence before the effective date of the group policy.

4. A creditor or insurer shall not charge or retainpayment from a debtor before commencement of the insurance to which the chargeis related.

(Added to NRS by 2005, 2139)

NRS 690A.067 Termand cancellation of consumer credit insurance.

1. The term of any consumer credit insurance must notextend beyond the date of termination specified in the policy. The date oftermination of the insurance must not occur more than 15 days after thescheduled maturity date of the debt to which it relates unless:

(a) The date is extended at no additional cost to thedebtor; or

(b) The date is extended pursuant to a writtenagreement signed by the debtor and relates to a variable rate credittransaction or a deferral, renewal, refinancing or consolidation of debt.

2. If a debt is discharged because of any renewal,refinancing or consolidation before the scheduled date of termination of theconsumer credit insurance, the insurance must be cancelled before any newconsumer credit insurance is written in relation to the renewed, refinanced orconsolidated debt.

3. If consumer credit insurance is terminated beforethe scheduled termination date, unless the insurance is terminated because ofthe performance by the insurer of all obligations with respect to theinsurance, the insurer shall make an appropriate refund or credit to the debtorof any unearned charge that was paid by the debtor.

4. A debtor may cancel consumer credit insurance atany time by providing a request to the insurer. The insurer may require therequest to be submitted in writing and may require the debtor to surrender anyindividual policy or group certificate. The right of the debtor to cancel theinsurance may be subject to the terms of the credit transaction.

(Added to NRS by 2005, 2139)

NRS 690A.070 Policiesand certificates of insurance: Contents; delivery. Repealed. (Seechapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.073 Requireddisclosures.

1. Before a debtor elects to purchase consumer creditinsurance in connection with a credit transaction, the following informationmust be disclosed to the debtor in writing:

(a) That the purchase of consumer credit insurance fromthe creditor is not mandatory and is not a condition for obtaining creditapproval;

(b) If more than one type of consumer credit insuranceis made available to the debtor, whether the debtor may purchase eachseparately or only as a package;

(c) The conditions of eligibility;

(d) That if the debtor has other insurance that coversthe risk, the debtor may not want or need consumer credit insurance;

(e) That the debtor may cancel the insurance at anytime, or if evidence of insurance is required for the extension of credit, uponproof of insurance that is acceptable to the creditor, and obtain a refund ofor credit for:

(1) If the cancellation is not more than 30 daysafter the debtor receives the individual policy or certificate of insurance,any premium paid by the debtor; or

(2) If the cancellation is more than 30 daysafter the debtor receives the individual policy or certificate of insurance,any unearned premium paid by the debtor;

(f) A brief description of the coverage, including adescription of the amount, term, exceptions, limitations and exclusions, theinsured event, any waiting or elimination period, any deductible, anyapplicable waiver of premium, the person who would receive any benefits, andthe premium or premium rate for the consumer credit insurance; and

(g) If the premium or insurance charge is financed,that it will be subject to finance charges at the rate applicable to the credittransaction.

2. The disclosures required pursuant to subsection 1:

(a) If made in connection with consumer creditinsurance offered at the same time as the extension of credit or offeredthrough direct mail advertisements, must be made in writing and presented tothe customer in a clear and conspicuous manner; or

(b) If made in connection with consumer creditinsurance offered after the extension of credit other than through direct mailadvertisements, may be provided orally or electronically if written disclosuresare provided not later than the earlier of:

(1) Ten days after the debtor elects to acceptthe coverage; or

(2) The date any other written material isprovided to the debtor.

(Added to NRS by 2005, 2140)

NRS 690A.075 Acceptanceof insurance by insurer other than named insurer; nonacceptance.

1. If a named insurer does not accept the insuranceand another insurer accepts the insurance, the insurer shall provide anindividual policy or group certificate that includes the name and address ofthe home office of the insurer who accepted the insurance and the amount of thepremium to be charged. If the premium is less than the premium paid by thedebtor, the insurer shall provide a refund of the excess premium not more than30 days after the date it was paid by the debtor.

2. If a named insurer does not accept the insuranceand no other insurer accepts the insurance, a person who received any premiumpayment related to the insurance shall refund the payment not more than 30 daysafter the date it was paid by the debtor.

(Added to NRS by 2005, 2141)

NRS 690A.077 Policiesand certificates of insurance: Contents; delivery.

1. All consumer credit insurance must be evidenced byan individual policy or a group certificate that is delivered to the debtor.

2. The individual policy or group certificate must, inaddition to other requirements of law, include:

(a) The name and address of the home office of theinsurer;

(b) The name of each debtor or, on a certificate ofinsurance, the identity by name or otherwise of each debtor;

(c) The amount of the premium or payment of the debtorstated separately for each type of coverage or as a package or, for open-endcredit, the premium rate, basis of the calculation of premiums and balance towhich the premium rate applies;

(d) A complete description of the coverage orcoverages, including the amount, term and any exceptions, limitations andexclusions of coverage;

(e) A statement that all benefits must be paid to thecreditor to reduce or extinguish the unpaid debt and that if the benefitsexceed the unpaid debt, any excess benefit must be paid to the debtor, to abeneficiary, other than the creditor, named by the debtor or to the estate ofthe debtor; and

(f) If the scheduled term of the insurance is less thanthe scheduled term of the credit transaction, a statement indicating that factset forth on the face of the individual policy or certificate of insurance innot less than 10-point bold type.

3. The insurer shall deliver the individual policy orgroup certificate to the debtor upon acceptance of insurance by the insurer andnot more than 30 days after the debtor elects to purchase the insurance. Anindividual policy or group certificate related to open-end credit or consumercredit insurance that is requested by the debtor after the date of the credit transactionto which it is related shall be deemed to have been delivered at the time thedebtor elected to purchase insurance if the actual delivery is made not morethan 30 days after the date on which the insurer accepts the insurance.

(Added to NRS by 2005, 2140)

NRS 690A.080 Forms,schedules and formulas: Filing; approval; regulations; withdrawal of approval.Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.083 Deliveryof application or notice of proposed insurance; contents; use of application ornotice to meet certain requirements.

1. If the individual policy or group certificate isnot delivered to the debtor at the time the debt is incurred or at such othertime as the debtor purchases consumer credit insurance, a copy of theapplication or a notice of proposed insurance, signed by the debtor, must be deliveredto the debtor. The application or notice of proposed insurance must include:

(a) The name and address of the home office of theinsurer;

(b) The name of each debtor;

(c) The premium or amount of payment by the debtor forthe insurance;

(d) The amount, term and a brief description of thecoverage; and

(e) A statement that upon acceptance by the insurer,the insurance will become effective as described in NRS 690A.063.

2. The application or notice of insurance providedpursuant to subsection 1 must:

(a) Refer exclusively to consumer credit insurance; and

(b) Be separate from the loan, sale or other creditstatement, instrument or agreement unless the information required pursuant tosubsection 1 is prominently set forth in the statement, instrument oragreement.

3. The application or notice of insurance providedpursuant to subsection 1 may be used to meet the requirements of NRS 690A.073 and 690A.077 if it includes the informationrequired by those sections.

(Added to NRS by 2005, 2141)

NRS 690A.085 Policies,forms and schedules: Filing; approval; withdrawal of approval.

1. Except as otherwise provided in NRS 690A.087 and 690A.093, all policies, certificates ofinsurance, applications for insurance, enrollment forms, endorsements andriders delivered or issued for delivery in this State and the schedules ofpremium rates related thereto must be filed with the Commissioner.

2. An item filed with the Commissioner pursuant tosubsection 1 may not be issued or used until 60 days after it is filed with theCommissioner or until the written prior approval of the Commissioner is obtained.

3. The Commissioner shall, not more than 60 days afteran item is submitted to him pursuant to subsection 1, disapprove the item ifthe benefits are not reasonable in relation to the premium charged or if theitem contains provisions that are unjust, unfair, inequitable, misleading ordeceptive or encourage misrepresentation of the coverage or are contrary to anyprovision of the Code or any regulation adopted pursuant to the Code. If theCommissioner does not disapprove an item filed pursuant to subsection 1 inaccordance with this subsection, the item shall be deemed to be approved.

4. If the Commissioner notifies an insurer that anitem is disapproved pursuant to subsection 3, the insurer shall not use theitem. The notice must include the reason for the disapproval and state that ahearing will be granted not more than 30 days after the insurer submits awritten request for a hearing to the Commissioner, unless postponed by mutualconsent or by order of the Commissioner.

5. The Commissioner may hold a hearing to withdrawapproval of an item submitted pursuant to subsection 1 not less than 20 daysafter providing a written notice of the hearing to the insurer. The writtennotice must include one of the reasons described in subsection 3 for theproposed withdrawal of approval of the item. An insurer shall not use an itemif approval of the item is withdrawn pursuant to this subsection.

(Added to NRS by 2005, 2142)

NRS 690A.087 Adoptionof forms by regulation; use of forms by insurer.

1. The Commissioner may adopt by regulation forms foruse in the issuance of consumer credit insurance, including applications,policies, forms for claims and any other forms required for the sale, issuanceand administration of consumer credit insurance. An insurer may elect to usethose forms in lieu of any other forms.

2. If an officer of the insurer submits, in the mannerprescribed by the Commissioner, a written certification to the Commissionerthat the forms used by the insurer are identical to those adopted by theCommissioner, the insurer is not required to file those forms with theCommissioner for approval pursuant to NRS690A.085.

(Added to NRS by 2005, 2142)

NRS 690A.090 Premiumsand refunds. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.093 Establishmentof reasonable rates by regulation; use of certain rates without filing withCommissioner.

1. The Commissioner shall, by regulation, establishreasonable rates as described in this chapter and in accordance with thestandards established in NRS 686B.050and 686B.060. The rates must bereasonable in relation to the benefits provided and must not be excessive,inadequate or unfairly discriminatory.

2. The Commissioner may, by regulation, establishrates that an insurer may use without filing pursuant to NRS 690A.085. In establishing such rates,the Commissioner shall consider and apply the following factors:

(a) Actual and expected loss experience;

(b) General and administrative expenses;

(c) Loss settlement and adjustment expenses;

(d) Reasonable creditor compensation;

(e) The manner in which premiums are charged;

(f) Other acquisition costs;

(g) Reserves;

(h) Taxes;

(i) Regulatory license fees and fund assessments;

(j) Reasonable insurer profit; and

(k) Other relevant data consistent with generallyaccepted actuarial standards.

(Added to NRS by 2005, 2142)

NRS 690A.095 Filingof revised schedule of premium rates. Exceptas otherwise provided in NRS 690A.093,if an insurer revises its schedule of premium rates, the insurer shall file therevised schedule with the Commissioner pursuant to NRS 690A.085. An insurer shall not issueconsumer credit insurance for which the premium rates differ from the ratesdetermined by the schedule approved by the Commissioner.

(Added to NRS by 2005, 2143)

NRS 690A.097 Refundof unearned premiums; regulations; approval of refund formula.

1. Each individual policy or group certificate mustprovide for a refund of unearned premiums if the consumer credit insurance iscancelled before the scheduled date of termination of the insurance.

2. Except as otherwise provided in this section, anyrefund must be provided to the person to whom it is entitled as soon aspracticable after the date of cancellation of the insurance.

3. The Commissioner shall, by regulation, establishthe minimum amount of unearned premiums that must remain outstanding at thetime of cancellation in order for a person to be entitled to a refund. If theamount of unearned premiums that remains outstanding at the time ofcancellation is less than the minimum amount established by regulation, theperson is not entitled to a refund.

4. The formula that an insurer uses to determine theamount of a refund must be submitted to and approved by the Commissioner beforeit is used.

(Added to NRS by 2005, 2143)

NRS 690A.100 Collectionof premium or other charge. Repealed. (Seechapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.103 Paymentfor consumer credit insurance without issuance of individual policy or groupcertificate. If a creditor requires a debtorto make a payment for consumer credit insurance and an individual policy orgroup certificate is not issued, the creditor shall immediately notify thedebtor in writing and make an appropriate credit to the account of the debtor orissue a refund.

(Added to NRS by 2005, 2143)

NRS 690A.107 Amountcharged for consumer credit insurance. Theamount charged to a debtor for any consumer credit insurance must not exceedthe amount of the premiums charged by the insurer as determined at the timethat the contract was accepted by the debtor.

(Added to NRS by 2005, 2143)

NRS 690A.110 Premiumsand gains not deemed interest. Repealed. (Seechapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.120 Issuanceof policies and certificates of consumer credit insurance. All policies and certificates of consumer credit insurancemay be delivered or issued for delivery in this State only by an insurerauthorized to do an insurance business in this State, and may be issued onlythrough holders of licenses or certificates of authority issued by theCommissioner.

(Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145)

NRS 690A.130 Claims.

1. All claims must be promptly reported to the insureror its designated representative, and the insurer shall maintain adequate fileson all reported claims. All claims must be settled as soon as practicable andin accordance with the terms of the insurance contract.

2. All claims must be paid by draft drawn upon theinsurer, by electronic funds transfer or by check of the insurer to the orderof:

(a) The claimant to whom payment of the claim is duepursuant to the provisions of the policy; or

(b) Any other person designated by the claimant to whompayment is due.

3. A plan or arrangement may not be used whereby aperson other than the insurer or its designated claim representative isauthorized to settle or adjust claims. The creditor may not be designated asthe representative for the insurer in adjusting a claim, except that a grouppolicyholder may, by arrangement with the group insurer, draw drafts,electronic transfers or checks in payment of claims due the group policyholdersubject to the periodic audit by the insurer.

(Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145)

NRS 690A.140 Existinginsurance; choice of insurer. When any form ofconsumer credit insurance is required as additional security for any debt, thedebtor may furnish the required amount of insurance through existing policiesof insurance owned or controlled by him or procure or furnish the requiredcoverage through any insurer authorized to transact the business of insurancein this State.

(Added to NRS by 1971, 1777; A 1987, 2303; 2005, 2146)

NRS 690A.150 Maintenanceof statistics regarding insurance and records regarding creditors. Repealed.(See chapter 456, Statutesof Nevada 2005, at page 2160.)

 

NRS 690A.160 Useor continuation of compensating balances or accounts of special depositsprohibited. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.170 Insurerrequired to conduct audits and reviews; retention of results; payment of costs;Commissioner may order audit or review. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.180 Orderissued by Commissioner for noncompliance with chapter.Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.190 Excessiverates; approval of higher rate; filing of statistical experience for higherrate; restrictive provisions in policy. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.200 Rates:Credit life insurance. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.210 Rates:Credit disability insurance. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.220 Rates:Involuntary unemployment insurance. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.230 Restrictionsbased on age. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.240 Paymentof compensation to producer. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.250 Formulafor refund. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.260 Transfersto unauthorized insurer.

1. Except as otherwise provided in subsection 2, anauthorized insurer issuing consumer credit insurance may not enter into anyagreement whereby the authorized insurer transfers, by reinsurance orotherwise, to an unauthorized insurer, as they relate to consumer creditinsurance written or issued in this State:

(a) A substantial portion of the risk of loss under theconsumer credit insurance written by the authorized insurer in this State;

(b) All of one or more kinds, lines, types or classesof consumer credit insurance;

(c) All of the consumer credit insurance producedthrough one or more agents, agencies or creditors;

(d) All of the consumer credit insurance written orissued in a designated geographical area; or

(e) All of the consumer credit insurance under a policyof group insurance.

2. An authorized insurer may make the transfers listedin subsection 1 to an unauthorized insurer if the unauthorized insurer:

(a) Maintains security on deposit with the Commissionerin an amount which when added to the actual capital and surplus of the insureris equal to the capital and surplus required of an authorized stock insurerpursuant to NRS 680A.120. The securitymay consist only of the following:

(1) Cash.

(2) General obligations of, or obligationsguaranteed by, the Federal Government, this State or any of its politicalsubdivisions. These obligations must be valued at the lower of market value orpar value.

(3) Any other type of security that would beacceptable if posted by a domestic or foreign insurer.

(b) Files an annual statement with the Commissionerpursuant to NRS 680A.270.

(c) Maintains reserves on its consumer credit insurancebusiness pursuant to NRS 681B.050.

(d) Values its assets and liabilities pursuant to NRS 681B.010 to 681B.040, inclusive.

(e) Agrees to examinations conducted by theCommissioner pursuant to NRS 679B.230.

(f) Complies with the standards adopted by theCommissioner pursuant to NRS 679A.150.

(g) Does not hold, issue or have an arrangement forholding or issuing any of its stock for which dividends are paid based on:

(1) The experience of a specific risk of all ofone or more kinds, lines, types or classes of insurance;

(2) All of the business produced through one ormore agents, agencies or creditors;

(3) All of the business written in a designatedgeographical area; or

(4) All of the business written for one or moreforms of insurance.

(Added to NRS by 1987, 2294; A 2005, 2146)

NRS 690A.270 Foreigninsurers. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

NRS 690A.273 Creditoras agent of insurer. Except as otherwise prohibitedby law, any duty imposed on an insurer pursuant to this chapter may be carriedout by a creditor who is acting as an agent of the insurer.

(Added to NRS by 2005, 2143)

NRS 690A.277 Regulations. The Commissioner may adopt regulations to carry out theprovisions of this chapter.

(Added to NRS by 2005, 2143)

NRS 690A.280 Administrativepenalties; revocation or suspension of license or certificate of authority. In addition to any other penalty provided by law, anyperson who violates any provision of this chapter or a regulation adopted or afinal order of the Commissioner issued pursuant to this chapter shall, afternotice and hearing, pay an administrative penalty:

1. In an amount not to exceed $5,000; or

2. If the violation is willful, in an amount not toexceed $10,000,

and theCommissioner may, after notice and a hearing, revoke or suspend the license orcertificate of authority of that person.

(Added to NRS by 1987, 2296; A 2005, 2147)

 

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