2005 Nevada Revised Statutes - Chapter 691C — Credit Personal Property Insurance

CHAPTER 691C - CREDIT PERSONAL PROPERTYINSURANCE

NRS 691C.010 Definitions.

NRS 691C.020 Closed-endcredit defined.

NRS 691C.030 Collateraldefined.

NRS 691C.040 Compensationdefined.

NRS 691C.050 Creditagreement defined.

NRS 691C.060 Creditpersonal property insurance defined.

NRS 691C.070 Credittransaction defined.

NRS 691C.080 Creditordefined.

NRS 691C.090 Creditor-placedinsurance defined.

NRS 691C.100 Debtordefined.

NRS 691C.110 Dual-interestinsurance defined.

NRS 691C.120 Experiencedefined.

NRS 691C.130 Experienceperiod defined.

NRS 691C.140 Financecharge defined.

NRS 691C.150 Grossdebt defined.

NRS 691C.160 Identifiablecharge defined.

NRS 691C.170 Incurredlosses defined.

NRS 691C.180 Lossratio defined.

NRS 691C.190 Netdebt defined.

NRS 691C.200 Nonfilinginsurance defined.

NRS 691C.210 Open-endcredit defined.

NRS 691C.220 Reversecompetition defined.

NRS 691C.230 Single-interestinsurance defined.

NRS 691C.240 Scope.

NRS 691C.250 Creditpersonal property insurance sold in conjunction with closed-end credittransaction; insurer prohibited from issuing or selling certain insurance.

NRS 691C.260 Coverage.

NRS 691C.270 Insurerprohibited from requiring other credit insurance coverage with credit personalproperty insurance; using gross debt to determine premiums.

NRS 691C.280 Requireddisclosures.

NRS 691C.290 Offerto extend coverage.

NRS 691C.300 Individualpolicy or certificate of insurance: Contents; required statement.

NRS 691C.310 Deliveryof individual policy or certificate of insurance.

NRS 691C.320 Policies,forms and schedules: Filing; approval; withdrawal of approval.

NRS 691C.330 Adoptionof forms by regulation; use of forms by insurer.

NRS 691C.340 Establishmentof reasonable rates by regulation; use of certain rates without filing rateswith Commissioner.

NRS 691C.350 Approvedrates; period of effectiveness; filing of revised schedule of premium rates.

NRS 691C.360 Open-endcredit transactions.

NRS 691C.370 Reportof credit personal property insurance.

NRS 691C.380 Transfersto unauthorized insurer.

NRS 691C.390 Refundof unearned premiums; regulations; approval of refund formula.

NRS 691C.400 Claims.

NRS 691C.410 Settlementor adjustment of claims.

NRS 691C.420 Debtorineligible for coverage; refund.

NRS 691C.430 Regulations.

NRS 691C.440 Administrativefines; revocation, suspension or limitation of license or certificate ofauthority.

_________

NRS 691C.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS691C.020 to 691C.230, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 2005, 2105)

NRS 691C.020 Closed-endcredit defined. Closed-end credit means acredit transaction that is not open-end credit.

(Added to NRS by 2005, 2105)

NRS 691C.030 Collateraldefined. Collateral means personal propertyin which a purchase money security interest is retained or personal propertythat is pledged as security for the satisfaction of a debt.

(Added to NRS by 2005, 2105)

NRS 691C.040 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 credit personal property insurance as part of thetransaction in which the indebtedness is arranged or the application for thecredit personal property insurance is made.

(Added to NRS by 2005, 2105)

NRS 691C.050 Creditagreement defined. Credit agreement meansthe written document that sets forth the terms of the credit transaction andincludes the security agreement.

(Added to NRS by 2005, 2106)

NRS 691C.060 Creditpersonal property insurance defined. Creditpersonal property insurance means a policy, endorsement, rider, binder,certificate or other instrument or evidence of insurance written in connectionwith a credit transaction that:

1. Covers perils to the goods purchased through acredit transaction or used as collateral for a credit transaction and thatconcerns the interest of a creditor in the purchased goods or pledgedcollateral either in whole or in part; or

2. Covers perils to goods purchased in connection withan open-end credit transaction.

(Added to NRS by 2005, 2106)

NRS 691C.070 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.

(Added to NRS by 2005, 2106)

NRS 691C.080 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 2005, 2106)

NRS 691C.090 Creditor-placedinsurance defined. Creditor-placedinsurance means single-interest insurance or dual-interest insurance that ispurchased by the creditor, as the named insured, after a credit transaction:

1. According to the terms of the credit agreement as aresult of the debtors failing to provide required insurance, the cost forwhich is charged to the debtor; and

2. For coverage against loss, expense or damage topersonal property used as collateral as a result of fire, theft, collision orother risk of loss that would impair the interest of the creditor or adverselyaffect the value of the collateral.

(Added to NRS by 2005, 2106)

NRS 691C.100 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 2005, 2106)

NRS 691C.110 Dual-interestinsurance defined. Dual-interest insurancemeans credit personal property insurance covering the interest of the creditoror seller and any portion of the interest of the borrower in goods purchasedthrough the credit transaction or pledged as collateral for the credittransaction.

(Added to NRS by 2005, 2106)

NRS 691C.120 Experiencedefined. Experience means earned premiumsand incurred losses during the experience period.

(Added to NRS by 2005, 2106)

NRS 691C.130 Experienceperiod defined. Experience period means themost recent period of time that is not more than 3 years and for which earnedpremiums and incurred losses are reported.

(Added to NRS by 2005, 2106)

NRS 691C.140 Financecharge defined. Finance charge means anycharge payable directly or indirectly as an incident to or condition of anextension of credit, including, without limitation, interest, time-pricedifferentials, amounts payable under a discount system of additional charges,service, transaction or carrying charges, loan fees, points or similar charges,appraisal fees or charges incurred for investigating the creditworthiness ofthe consumer. The term does not include charges as a result of default, taxes,license fees, delinquency charges or filing fees.

(Added to NRS by 2005, 2106)

NRS 691C.150 Grossdebt defined. Gross debt means the sum ofthe remaining payments owed to a creditor by a debtor.

(Added to NRS by 2005, 2107)

NRS 691C.160 Identifiablecharge defined. Identifiable charge means acharge for credit personal property insurance that is made to debtors who havethat insurance 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 similar circumstancesexcept for the insured or noninsured status of the debtor.

(Added to NRS by 2005, 2107)

NRS 691C.170 Incurredlosses defined. Incurred losses means totalclaims and claim adjustment expenses paid during the experience period plus anychange in claim and claim adjustment expense reserves.

(Added to NRS by 2005, 2107)

NRS 691C.180 Lossratio defined. Loss ratio means incurredlosses divided by the sum of earned premiums.

(Added to NRS by 2005, 2107)

NRS 691C.190 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, 2107)

NRS 691C.200 Nonfilinginsurance defined. Nonfiling insurancemeans insurance that indemnifies the creditor for loss of its interest in thecollateral due to failure to perfect a security interest in the collateral.

(Added to NRS by 2005, 2107)

NRS 691C.210 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 the debtorduring 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, 2107)

NRS 691C.220 Reversecompetition defined. Reverse competitionmeans competition among insurers that regularly takes the form of insurerscompeting for the favor of a person who controls or may control the placementof insurance with insurers that tends to increase insurance premiums orprevents a decrease in insurance premiums in order to give greater compensationto a person who controls or may control the placement of insurance withinsurers.

(Added to NRS by 2005, 2107)

NRS 691C.230 Single-interestinsurance defined. Single-interest insurancemeans credit personal property insurance covering only the interest of theseller or creditor in goods purchased through a credit transaction or pledgedas collateral in a credit transaction.

(Added to NRS by 2005, 2107)

NRS 691C.240 Scope. All credit personal property insurance, includingguaranteed asset protection insurance, written in connection with credittransactions for personal, family or household purposes is subject to theprovisions of this chapter, except:

1. Credit transactions involving extensions of creditprimarily for business or commercial purposes;

2. Insurance written in connection with a credittransaction that is secured by a real estate mortgage or deed of trust;

3. Creditor-placed insurance;

4. Title insurance;

5. Nonfiling insurance;

6. Insurance purchased by a creditor afterrepossession or a similar event in which the creditor acquired possession ofthe property; and

7. Insurance for which an identifiable charge is notmade to or collected from the debtor.

(Added to NRS by 2005, 2107)

NRS 691C.250 Creditpersonal property insurance sold in conjunction with closed-end credittransaction; insurer prohibited from issuing or selling certain insurance. For credit personal property insurance sold in conjunctionwith a closed-end credit transaction, an insurer shall not:

1. Issue credit personal property insurance unless theamount financed exceeds $300;

2. Issue credit personal property insurance in anamount that exceeds the amount of the underlying credit transaction; and

3. Sell credit personal property insurance with a termthat exceeds the scheduled term of the underlying credit transaction.

(Added to NRS by 2005, 2108)

NRS 691C.260 Coverage. Credit personal property insurance must:

1. At a minimum, include the coverage in the standardfire policy with coverage attachment and extended coverage endorsement; and

2. Cover a substantial risk of loss of or damage tothe property related to the credit transaction.

(Added to NRS by 2005, 2108)

NRS 691C.270 Insurerprohibited from requiring other credit insurance coverage with credit personalproperty insurance; using gross debt to determine premiums.

1. An insurer shall not:

(a) Require the bundling of other credit insurancecoverage with the purchase of credit personal property insurance; and

(b) Use gross debt in any manner to determine thepremiums for credit personal property insurance.

2. A debtor must have a choice to purchase creditpersonal property insurance separately from other credit insurance coverage.

(Added to NRS by 2005, 2108)

NRS 691C.280 Requireddisclosures.

1. Before a debtor elects to purchase credit personalproperty insurance in connection with a credit transaction, the followinginformation must be disclosed to the debtor in writing:

(a) That the purchase of credit personal propertyinsurance from the creditor is not mandatory and is not a condition forobtaining credit approval;

(b) If more than one type of credit insurance is madeavailable to the debtor, whether the debtor may purchase credit personalproperty insurance separately from any other credit insurance;

(c) The conditions of eligibility;

(d) That if the debtor has other insurance that coversthe risk, the debtor may not want or need credit personal property 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, extensions, limitations, perils andexclusions, the insured event, any waiting or elimination period, anydeductible, any applicable waiver of premium, the person who would receive anybenefits, and the premium or premium rate for the credit personal propertyinsurance; and

(g) If the premium or charge for the insurance isfinanced, it will be subject to finance charges at the rate applicable to thecredit transaction.

2. The disclosures required pursuant to subsection 1:

(a) If made in connection with credit personal propertyinsurance 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 credit personal propertyinsurance 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 by the creditor to the debtor.

(Added to NRS by 2005, 2108)

NRS 691C.290 Offerto extend coverage. An offer to extendcoverage for an open-end credit transaction must include, at the time of theinvitation to contract, a written disclosure or, if the solicitation is made bytelephone and the written disclosure is mailed to the debtor not later than 10days after enrollment, an oral summary of the written disclosure. The writtendisclosure must be in not smaller than 12-point type and be in substantiallythe following form:

 

This coverage may duplicateexisting coverage if you have a residential property insurance policy. Itapplies to any item of covered property on which you owe a debt. This coverageis primary, so it is the first source to be used in the event of a loss onproperty it covers. You may cancel this coverage at any time by calling theinsurer during business hours at the telephone number provided to you or bywriting to the insurer. We are charging you a premium that may be based onsubjects for which a claim cannot be made, such as services, meals or otherconsumables, entertainment, finance or service fees, loan interest, deliverycharges or other insurance premiums.

 

(Added to NRS by 2005, 2109)

NRS 691C.300 Individualpolicy or certificate of insurance: Contents; required statement.

1. All credit personal property insurance must beevidenced by an individual policy or a certificate of insurance that isdelivered to the debtor.

2. The individual policy or certificate of insurancemust, in addition 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 debtoror, for open-end credit, the premium rate, basis of the calculation of premiumsand balance to which 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 or to repair or replace theproperty and that if the benefits exceed the unpaid debt, any excess benefitmust be paid to the debtor;

(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; and

(g) If the policy is related to open-end credit, astatement that the debtor will, at least once each year, receive the statementas required pursuant to subsection 3.

3. For credit personal property insurance related toopen-end credit, the creditor must provide to the debtor at least once eachyear with the account statement a statement in the following form in at least12-point type:

 

You are paying a premium forcredit personal property insurance based on the outstanding balance of thisaccount. You may cancel this coverage at any time by calling the insurer duringbusiness hours at the telephone number provided to you or by writing to theinsurer. You are being charged a premium that may be based on subjects forwhich a claim cannot be made, such as services, meals or other consumables,entertainment, finance or service fees, loan interest, delivery charges orother insurance premiums.

 

(Added to NRS by 2005, 2109)

NRS 691C.310 Deliveryof individual policy or certificate of insurance.

1. Except as otherwise provided in subsection 2, theindividual policy or certificate of insurance must be delivered to the debtorupon acceptance of the insurance by the insurer.

2. An individual policy or certificate of insurancemade in connection with an open-end credit agreement or any credit personalproperty insurance requested by the debtor after the date the debt is incurredmust be delivered to the debtor not more than 30 days after the debtorrequested the insurance.

(Added to NRS by 2005, 2110)

NRS 691C.320 Policies,forms and schedules: Filing; approval; withdrawal of approval.

1. Except as otherwise provided in NRS 691C.330 and 691C.340, 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 until 60 days after it is filed with theCommissioner or until the written prior approval of the Commissioner isobtained.

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, 2110)

NRS 691C.330 Adoptionof forms by regulation; use of forms by insurer.

1. The Commissioner may adopt by regulation forms foruse in the issuance of credit personal property insurance, includingapplications, policies, forms for claims and any other forms required for thesale, issuance and administration of credit personal property insurance. Aninsurer may elect to use those 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 NRS691C.320.

(Added to NRS by 2005, 2111)

NRS 691C.340 Establishmentof reasonable rates by regulation; use of certain rates without filing rateswith Commissioner.

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 691C.320. 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, 2111)

NRS 691C.350 Approvedrates; period of effectiveness; filing of revised schedule of premium rates. Except as otherwise provided in NRS 691C.340:

1. A rate that has been filed and approved pursuant toNRS 691C.320 is effective for a periodnot to exceed 3 years after the date of approval. The insurer shall file a ratefor approval before the expiration of the 3-year period. The insurer may file arate for approval at any time before the expiration of the 3-year period.

2. If an insurer revises its schedule of premiumrates, the insurer shall file the revised schedule with the Commissionerpursuant to NRS 691C.320. An insurershall not issue credit personal property insurance for which the premium ratesexceed the rates determined by the schedule approved by the Commissioner.

(Added to NRS by 2005, 2111)

NRS 691C.360 Open-endcredit transactions. For open-end credittransactions, the rating plan of the insurer must address, by the grouping ofsimilar accounts, the expected variance in the ratio of goods purchased thatare covered under the credit personal property insurance and goods that are notcovered by that insurance. Accounts must be separated into groups that have orare expected to have a similar ratio of goods purchased that are covered underthe credit personal property insurance and goods that are not covered by thatinsurance.

(Added to NRS by 2005, 2111)

NRS 691C.370 Reportof credit personal property insurance. Eachyear, not later than the date specified in the Instructions to the AnnualStatement published by the National Association of Insurance Commissioners,an insurer doing business in this State shall file with the Commissioner andthe National Association of Insurance Commissioners a report of credit personalproperty insurance written on the basis of a calendar year. The report must beprepared using the Credit Insurance Supplement-Annual Statement Blank approvedby the National Association of Insurance Commissioners and must containseparate data for each state.

(Added to NRS by 2005, 2112)

NRS 691C.380 Transfersto unauthorized insurer.

1. Except as otherwise provided in subsection 2, anauthorized insurer issuing credit personal property insurance may not enterinto any agreement whereby the authorized insurer transfers, by reinsurance orotherwise, to an unauthorized insurer, as they relate to credit personalproperty insurance written or issued in this State:

(a) A substantial portion of the risk of loss under thecredit personal property insurance written by the authorized insurer in thisState;

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

(c) All of the credit personal property insuranceproduced through one or more agents, agencies or creditors;

(d) All of the credit personal property insurancewritten or issued in a designated geographical area; or

(e) All of the credit personal property insurance undera policy of 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 political subdivisions.These obligations must be valued at the lower of market value or par 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 credit personal propertyinsurance business pursuant to NRS681B.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 2005, 2112)

NRS 691C.390 Refundof unearned premiums; regulations; approval of refund formula.

1. Each individual policy or certificate of insurancemust provide for a refund of unearned premiums if the credit personal propertyinsurance is cancelled before the scheduled date of termination of theinsurance.

2. Except as otherwise provided in this section, anyrefund must be provided to the person to whom it is entitled as soon as practicableafter 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, 2113)

NRS 691C.400 Claims.

1. All claims must be promptly reported to the insureror its designated claim representative, and the insurer shall maintain adequatefiles on all reported claims. All claims must be settled as soon as practicableand in 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.

(Added to NRS by 2005, 2113)

NRS 691C.410 Settlementor adjustment of claims. A plan or arrangementmay not be used whereby a person other than the insurer or its designated claimrepresentative is authorized to settle or adjust claims. The creditor may notbe designated as the representative for the insurer in adjusting claims, exceptthat a group policyholder may, by arrangement with the group insurer, drawdrafts or checks in payment of claims due the group policyholder subject to theperiodic audit by the insurer.

(Added to NRS by 2005, 2113)

NRS 691C.420 Debtorineligible for coverage; refund. A claim madepursuant to credit personal property insurance must not be denied more than 60days after the initiation of coverage because the debtor was ineligible forcoverage unless the debtor misrepresented a material fact. If a claim is deniedwithin 60 days after the initiation of coverage because the debtor wasineligible for coverage or because the debtor misrepresented a material fact,the insurer shall refund to the debtor any premium paid and the creditor shallrefund to the debtor any finance charge paid on the premium.

(Added to NRS by 2005, 2113)

NRS 691C.430 Regulations. The Commissioner may adopt regulations to carry out theprovisions of this chapter.

(Added to NRS by 2005, 2113)

NRS 691C.440 Administrativefines; revocation, suspension or limitation of license or certificate ofauthority. In addition to any other penaltyprovided by law, a person who violates a provision of this chapter or a finalorder of or a regulation adopted by the Commissioner pursuant to this chapter,after notice and a hearing, upon order of the Commissioner is subject to:

1. The imposition of an administrative fine not toexceed $5,000 per violation, or $10,000 per violation if the Commissionerdetermines that the violation was willful; and

2. Revocation, suspension or limitation of the licenseor certificate of authority held by the person.

(Added to NRS by 2005, 2113)

 

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