This title shall be known and may be
cited as the Nevada Insurance Code.
(Added to NRS by 1971, 1557)
As used in this Code, unless the
context otherwise requires, the words and terms defined in NRS 679A.030
to 679A.130 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1971, 1557; A 1983, 1933; 1991, 1613; 1993, 1897;
2001, 2179 )
1. An “authorized” insurer is one authorized to transact insurance
or reinsurance in this State under a subsisting certificate of authority
issued by the Commissioner.
2. An “unauthorized” insurer is one not so authorized.
(Added to NRS by 1971, 1557; A 1987, 641)
“Bona fide resident”
means a person who actually resides in this state with domiciliary intent.
(Added to NRS by 1971, 1558)
“Code” means the Nevada Insurance
Code.
(Added to NRS by 1971, 1558)
“Commissioner” means the
Commissioner of Insurance.
(Added to NRS by 1971, 1558)
“Division” means the Division of
Insurance of the Department of Business and Industry.
(Added to NRS by 1993, 1897)
1. A “domestic” insurer is one:
(a) Formed under the laws of Nevada, unless it has converted into a
foreign insurer; or
(b) Which has converted into a domestic insurer.
2. A “foreign” insurer is one:
(a) Formed under the laws of any jurisdiction other than this
state, unless it has converted into a domestic insurer; or
(b) Which has converted into a foreign insurer.
3. An “alien” insurer is one formed under the laws of any country
other than the United States of America or any of its states.
4. Except where distinguished by context, “foreign” insurer
includes also “alien” insurer.
(Added to NRS by 1971, 1558; A 1983, 683)
“Hospice care” has the
meaning ascribed to it in NRS 449.0115 .
(Added to NRS by 1983, 1933; A 1989, 1031)
“Insurer” includes every person
engaged as principal and as indemnitor, surety or contractor in the
business of entering into contracts of insurance.
(Added to NRS by 1971, 1558)
An “individual” is a natural
person.
(Added to NRS by 1971, 1559; A 1985, 537)
“Policy” means the written
contract of or written agreement for or effecting insurance, by whatever
name called, and includes all clauses, riders, endorsements and papers
which are a part thereof.
(Added to NRS by 1981, 1141)
“Premium” means the consideration
for insurance, by whatever name called. The term includes any
“assessment,” or any “membership,” “policy,” “survey,” “inspection,”
“service” or similar fee or other charge assessed or collected by the
insurer or his agent in consideration for an insurance contract or its
procurement.
(Added to NRS by 1981, 1141)
“Producer of
insurance” means a person required to be licensed under the laws of this
state to sell, solicit or negotiate insurance.
(Added to NRS by 2001, 2179 )
“Provider of
insurance” includes an insurer, producer of insurance, managing general
agent, third-party administrator, organization composed of or using
preferred providers of health care, health maintenance organization,
commercial bank, trust company, savings and loan association, credit
union, thrift company, financial holding company, affiliate or subsidiary
of an insurer or financial holding company, broker-dealer in securities,
mortgage lender, and any other person engaged in the business of
insurance.
(Added to NRS by 2001, 2179 )
When used in context signifying a
jurisdiction other than the State of Nevada, “state” means any state,
district, commonwealth, territory or possession of the United States of
America.
(Added to NRS by 1971, 1559; A 1983, 154)
In addition to
other aspects of insurance operations to which provisions of this Code by
their terms apply, “transact” with respect to a business of insurance
includes any of the following, by mail or otherwise or whether or not for
the purpose of profit:
1. Solicitation or inducement.
2. Negotiations.
3. Effectuation of a contract of insurance.
4. Transaction of matters subsequent to effectuation and arising
out of such a contract.
(Added to NRS by 1971, 1559)
1. The purposes of this Code are to:
(a) Protect policyholders and all having an interest under
insurance policies;
(b) Implement the public interest in the business of insurance;
(c) Provide adequate standards of solidity of insurers, and of
integrity and competence in conduct of their affairs in the home offices
and in the field;
(d) Improve and thereby preserve state regulation of insurance;
(e) Insure that policyholders, claimants and insurers are treated
fairly and equitably;
(f) Encourage full cooperation of the office of Commissioner with
other regulatory bodies, both of this and other states and of the Federal
Government;
(g) Insure that the State has an adequate and healthy insurance
market characterized by competitive conditions and the exercise of
initiative;
(h) Prevent misleading, unfair and monopolistic practices in
insurance operations; and
(i) Continue to provide the State of Nevada with a comprehensive,
modern and adequate body of law, in response to the McCarran Act (Public
Law 15, 79th Congress, 15 U.S.C. §§ 1011 to 1015, inclusive), for the
effective regulation and supervision of insurance business transacted
within, or affecting interests of the people of this state.
2. The provisions of this Code shall be given reasonable and
liberal construction for the fulfillment of these purposes.
(Added to NRS by 1971, 1559)
No person shall transact a
business of insurance in Nevada, or relative to a subject of insurance
resident, located or to be performed in Nevada or elsewhere, without
complying with the applicable provisions of this Code.
(Added to NRS by 1971, 1560)
Except as otherwise provided by specific statute, no provision of this
Code applies to:
1. Fraternal benefit societies, as identified in chapter 695A
of NRS, except as stated in chapter 695A
of NRS.
2. Hospital, medical or dental service corporations, as identified
in chapter 695B of NRS, except as stated in
chapter 695B of NRS.
3. Motor clubs, as identified in chapter 696A of NRS, except as stated in chapter 696A of NRS.
4. Bail agents, as identified in chapter 697 of NRS, except as stated in NRS 680B.025 to 680B.039 , inclusive, and chapter 697 of NRS.
5. Risk retention groups, as identified in chapter 695E of NRS, except as stated in chapter 695E of NRS.
6. Captive insurers, as identified in chapter 694C of NRS, with respect to their activities as
captive insurers, except as stated in chapter 694C of NRS.
7. Health and welfare plans arising out of collective bargaining
under chapter 288 of NRS, except that the
Commissioner may review the plan to ensure that the benefits are
reasonable in relation to the premiums and that the fund is financially
sound.
(Added to NRS by 1971, 1560; A 1971, 1931; 1983, 712; 1987, 1333;
1993, 2381; 1995, 467; 1997, 299, 3374; 1999, 3217 )
A person who
is required by statute to obtain insurance or any other type of security
as a condition of licensure or conducting business must obtain the
insurance or other security in the manner set forth in NRS 277.067 , 277.069 or
277.0695 or from an insurer who is
licensed or otherwise allowed to transact insurance under this title.
(Added to NRS by 1993, 2380)
Provisions of this
Code relative to a particular kind of insurance or type of insurer or
particular matter shall prevail over provisions relating to insurance in
general or insurers in general or to such matter in general.
(Added to NRS by 1971, 1560)
1. Unless the same is defined as a felony under any other law of
this state, or punishment provided therefor classifies it otherwise,
every violation of any provision of this Code is a misdemeanor.
2. Every penalty imposed by this Code shall be in addition to any
applicable suspension, revocation or denial of a license or certificate
of authority.
(Added to NRS by 1971, 1560)
The expiration or voluntary surrender of a license or
certificate issued pursuant to the provisions of this Code does not:
1. Prohibit the Commissioner from initiating or continuing a
disciplinary proceeding against the holder of the license or certificate;
or
2. Prevent the imposition or collection of any fine or penalty
authorized pursuant to the provisions of this Code against the holder of
the license or certificate.
(Added to NRS by 1999, 2783 )
1. If an organization establishes a panel of providers of health
care and makes the panel available for use by an insurer when offering
health care services pursuant to chapter 689A , 689B , 689C , 695A , 695B or 695C of NRS, the
organization shall not charge the insurer or a provider of health care:
(a) A fee to include the name of the provider on the panel of
providers of health care; or
(b) Any other fee related to establishing a provider of health care
as a provider for the organization.
2. If an organization violates the provisions of subsection 1, the
organization shall pay to the insurer or provider of health care, as
appropriate, an amount that is equal to twice the fee charged to the
insurer or provider of health care.
3. A court shall award costs and reasonable attorney’s fees to the
prevailing party in an action brought pursuant to this section.
4. In addition to any relief granted pursuant to this section, if
an organization violates the provisions of subsection 1, and if an
insurer offering health care services pursuant to chapter 689A , 689B , 689C , 695A , 695B or 695C of NRS has a
contract with or otherwise uses the services of the organization, the
Division shall require the insurer to suspend its performance under the
contract or discontinue using those services until the organization, as
determined by the Division:
(b) Refunds to all providers of health care any fees obtained by
the organization in violation of subsection 1.
(Added to NRS by 2003, 3349 )
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