2010 Nevada Code
TITLE 57 INSURANCE
Chapter 680B Fees and Taxes
NRS 680B.040 Independently procured coverages: Report; tax; penalty.

NRS 680B.040 Independently procured coverages: Report; tax; penalty.

1. Every insured in this State who procures or causes to be procured or continues or renews insurance in an unauthorized alien or foreign insurer, or any self-insurer in this State who so procures or continues excess loss, catastrophe or other insurance, upon a subject of insurance resident, located or to be performed within this State, other than insurance procured through a surplus line broker pursuant to chapter 685A of NRS or exempted from that chapter, shall within 30 days after the date such insurance was so procured, continued or renewed, file a written report with the Department of Taxation on forms prescribed by the Executive Director of the Department of Taxation in cooperation with the Commissioner and furnished to such an insured upon request. The report must show:

(a) The name and address of the insured or insureds.

(b) The name and address of the insurer.

(c) The subject of the insurance.

(d) A general description of the coverage.

(e) The premium currently charged therefor.

(f) Such additional pertinent information as is reasonably requested by the Commissioner or the Executive Director of the Department of Taxation.

If any such insurance covers also a subject of insurance resident, located or to be performed outside of this State, for the purposes of this section a proper pro rata portion of the entire premium payable for all such insurance must be allocated as to the subjects of insurance resident, located or to be performed in this State.

2. Any insurance in an unauthorized insurer procured through negotiations or an application in whole or in part occurring or made within or from within this State, or for which premiums in whole or in part are remitted directly or indirectly from within this State, shall be deemed to be insurance procured or continued or renewed in this State within the intent of subsection 1.

3. For the general support of the government of this State there is levied upon the obligation, chose in action or right represented by the premium charged or payable for such insurance a tax at the rate prescribed in NRS 680B.027. The insured shall withhold the amount of the tax from the amount of premium charged by and otherwise payable to the insurer for such insurance, and within 30 days after the insurance was so procured, continued or renewed, and coincidentally with the filing of the report provided for in subsection 1, the insured shall pay the amount of the tax to the State Treasurer through the Department of Taxation.

4. If the insured fails to withhold from the premium the amount of tax levied in this section, the insured is liable for the amount of the tax and shall pay it to the Department of Taxation within the time stated in subsection 3.

5. If the insured fails to pay the tax imposed by this section, the insured shall in addition to any other applicable penalty pay a penalty of not more than 10 percent of the amount of the tax which is owed, as determined by the Department of Taxation, in addition to the tax, plus interest at the rate of 1.5 percent per month, or fraction of a month, from the date on which the tax should have been paid until the date of payment.

6. The tax is collectible from the insured by civil action brought by the Department of Taxation, and by the seizure, distraint and sale of any property of the insured situated in this State.

7. This section does not abrogate or modify any other provision of this Code.

8. This section does not apply to life or disability insurances.

9. The provisions of this section do not prohibit the procurement of insurance from an unauthorized alien or foreign insurer by a person in accordance with the requirements of subsection 9 of NRS 680A.070.

10. The Department of Taxation shall report to the Commissioner concerning independently procured insurance transactions reported to the Department of Taxation pursuant to this section.

(Added to NRS by 1971, 1596; A 1985, 599; 1987, 899; 1991, 862; 1993, 1910)