USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 679B - COMMISSIONER OF INSURANCE
1. The chief officer of the Division is the Commissioner appointed
as provided in NRS 232.820 .
2. The Commissioner shall not:
(a) Except as otherwise provided in NRS 284.143 , engage in any other occupation, business or
activity that is in any way inconsistent with the performance of his
duties as Commissioner;
(b) Hold any other public office;
(c) Directly or indirectly solicit or receive, or be in any manner
concerned with soliciting or receiving, any assessment, subscription,
contribution or service, whether voluntary or involuntary, for any
political purpose whatever, from any person within or without the State;
or
(d) Act as an officer or manager for any candidate, political party
or committee organized to promote the candidacy or any person for any
public office.
(Added to NRS by 1971, 1561; A 1991, 1614; 1993, 1897; 1997, 621)
1. The Commissioner shall have had at least 2 years’ responsible
experience in the field of insurance, including, but not limited to, one
or more of the following endeavors: Administration, sales, law,
counseling and education.
2. He shall not be a stockholder in or directly or indirectly
connected with the management or affairs of any insurance company or
insurance brokerage or agency.
(Added to NRS by 1971, 1931)
The Division shall have an official
seal, in form and design as designated by the Commissioner and on file in
the Office of the Secretary of State.
(Added to NRS by 1971, 1561; A 1991, 1614; 1993, 1897)
The Buildings and Grounds Division of
the Department of Administration shall furnish the Division with suitable
office space for the performance of its duties.
(Added to NRS by 1971, 1561; A 1973, 1478; 1991, 1614; 1993, 1897;
1995, 579)
1. The Director of the Department of Business and Industry shall
designate an acting Commissioner when the Office of Commissioner is
vacant or when the Commissioner is unable to perform his duties because
of mental or physical disability.
2. The Commissioner shall designate one of his deputies to serve
as acting Commissioner in the Commissioner’s absence.
3. The deputies have such powers and duties as the Commissioner
delegates and assigns to them.
4. Except as otherwise provided in NRS 284.143 , the deputies shall devote their full time to
the Division.
(Added to NRS by 1971, 1561; A 1983, 1460; 1985, 447; 1991, 1614;
1993, 1897; 1995, 2318)
1. The Commissioner may employ such other technical, actuarial,
rating, clerical and other assistants and examiners as he may reasonably
require for execution of his duties, each of whom must be in the
classified service of the State.
2. The Commissioner may contract for and procure services of
examiners and other or additional specialized technical or professional
assistance, as independent contractors or for a fee, as he may reasonably
require. None of the persons providing those services or assistance on
contract or for a fee may be in the classified service of the State.
3. The Commissioner may contract with a person outside the
Division for administering examinations, processing applications for
licenses and collecting fees.
4. The Commissioner may adopt regulations to carry out the
provisions of subsections 2 and 3.
(Added to NRS by 1971, 1562; A 1975, 352; 1983, 1126; 1985, 447,
1367; 2001, 2180 )
1. The Commissioner, his deputy or any examiner, assistant or
employee of the Division shall not be connected with the management or be
a stockholder, or be otherwise financially interested in any insurer,
insurance holding company or its parent, subsidiaries or affiliates,
insurance agency or broker, insurance trade association, premium finance
company, adjuster or other licensee under this Code, or be pecuniarily
interested in any insurance transaction except as a policyholder or
claimant under a policy, except that as to matters wherein a conflict of
interests does not exist on the part of any such person, the Commissioner
may employ or retain from time to time insurance actuaries, examiners,
accountants, attorneys or other technicians who are independently
practicing their professions even though from time to time similarly
employed or retained by insurers or others.
2. Subsection 1 does not prohibit:
(a) Receipt by any such person of fully vested commissions or fully
vested retirement benefits to which he is entitled by reason of services
performed before becoming Commissioner or before employment by the
Commissioner;
(b) Investment in shares of regulated diversified investment
companies; or
(c) Mortgage loans made under customary terms and in the ordinary
course of business.
3. Any person knowingly violating this section is guilty of a
misdemeanor.
(Added to NRS by 1971, 1562; A 1971, 1932; 1991, 1614; 1993, 1897)
1. The Commissioner may delegate to his deputy, examiner or an
employee of the Division the exercise or discharge in the Commissioner’s
name of any power, duty or function, whether ministerial, discretionary
or of whatever character, vested in or imposed upon the Commissioner.
2. The official act of any such person acting in the
Commissioner’s name and by his authority shall be deemed an official act
of the Commissioner.
(Added to NRS by 1971, 1563; A 1991, 1615; 1993, 1898)
1. The Commissioner and the employees of the Division, in the
absence of fraud or bad faith, are not subject to civil liability for
publishing any report or bulletin related to the official activities of
the Commissioner or the Division.
2. This section does not abrogate or modify any privilege or
immunity which applies to the Commissioner or the employees of the
Division.
(Added to NRS by 1985, 1063; A 1991, 1615; 1993, 1898)
The Commissioner shall:
1. Organize and manage the Division, and direct and supervise all
its activities;
2. Execute the duties imposed upon him by this Code;
3. Enforce the provisions of this Code;
4. Have the powers and authority expressly conferred upon him by
or reasonably implied from the provisions of this Code;
5. Conduct such examinations and investigations of insurance
matters, in addition to examinations and investigations expressly
authorized, as he may deem proper upon reasonable and probable cause to
determine whether any person has violated any provision of this Code or
to secure information useful in the lawful enforcement or administration
of any such provision; and
6. Have such additional powers and duties as may be provided by
other laws of this State.
(Added to NRS by 1971, 1563; A 1979, 630; 1991, 1615; 1993, 1898)
1. In addition to the authority conferred upon him pursuant to NRS
679B.120 , the Commissioner may:
(a) Enter into and comply with any cooperative or coordination
agreement with any governmental entity within or outside this state
relating to the regulation and administration of insurance and persons
who are materially involved in the business of insurance;
(b) Share any document, material or other information, including
any document, material or information that is confidential or privileged,
with any state, federal or international regulatory, law enforcement or
legislative agency, and the National Association of Insurance
Commissioners and any of its affiliates or subsidiaries, if the recipient
of the document, material or other information agrees:
(1) To ensure that the document, material or other
information remains confidential and privileged; and
(2) To submit to the jurisdiction of the courts of this
state if the recipient violates a provision of subparagraph (1); and
(c) Receive any document, material or other information from any
agency, association, affiliate or subsidiary specified in paragraph (b).
The Commissioner shall ensure that any document, material or information
received pursuant to this paragraph remains confidential if the document,
material or information is provided to the Commissioner with a notice or
the understanding that it is confidential or privileged under the laws of
the jurisdiction from which it is submitted.
2. The sharing or receipt of any document, material or other
information by the Commissioner pursuant to this section does not waive
any applicable privilege or claim of confidentiality in the document,
material or other information.
(Added to NRS by 2003, 3275 )
The Commissioner may observe the conduct of each
authorized insurer and other persons who have a direct material
involvement with the insurance business to ensure that:
1. An unqualified, disqualified or unsuitable person is not
involved in insurance; and
2. The insurance business is not conducted in an unsuitable manner.
Ê The Commissioner shall, by regulation, define the terms “unsuitable
person” and “unsuitable manner” for use in carrying out the provisions of
this section and NRS 679B.310 and
680A.200 .
(Added to NRS by 1991, 807)
1. The Commissioner may participate in a program which provides
counseling to elderly persons concerning health insurance, including a
program established pursuant to 42 U.S.C. § 1395b-4.
2. The Commissioner may adopt regulations necessary to carry out
the provisions of this section.
(Added to NRS by 1993, 2381)
1. The Commissioner may adopt reasonable regulations:
(a) For the administration of any provision of this Code, NRS
287.04335 or chapters 616A to 617 , inclusive, of
NRS; or
(b) As required to ensure compliance by the Commissioner with any
federal law or regulation relating to insurance.
2. A person who willfully violates any regulation of the
Commissioner is subject to such suspension or revocation of a certificate
of authority or license, or administrative fine in lieu of such
suspension or revocation, as may be applicable under this Code or chapter
616A , 616B ,
616C , 616D or
617 of NRS for violation of the provision to
which the regulation relates. No penalty applies to any act done or
omitted in good faith in conformity with any such regulation,
notwithstanding that the regulation may, after the act or omission, be
amended, rescinded or determined by a judicial or other authority to be
invalid for any reason.
(Added to NRS by 1971, 1563; A 1977, 97; 1995, 2048; 2001, 2938
; 2003, 3276 )
1. If a health care plan that provides coverage for prescription
drugs or devices issues a single identification card or other device to
an insured that contains information solely needed to process a claim for
a prescription drug or device, the card or other device must conform to
the requirements of the National Council for Prescription Drug Programs
set forth in the NCPDP Pharmacy ID Card Implementation Guide that are
consistent with applicable regulations adopted pursuant to the Health
Insurance Portability and Accountability Act of 1996, Public Law 104-191,
as they may be amended from time to time, or must contain at least the
following elements:
(a) The name or logo of the administrator issuing the card or
device.
(b) The insured’s identification number, which must be displayed on
the front side of the card or device.
(c) The name and address of the administrator to which prescription
claims that are not processed electronically or correspondence should be
sent.
(d) The telephone number that providers may call for assistance
concerning pharmacy benefits.
(e) Complete information concerning routing of electronic
transactions, including, without limitation, the international
identification number and, if required by the administrator to process
the claim, the processing control number and group number.
Ê The information on the card or device must be arranged in a manner that
corresponds both in content and form to the content and form required by
the plan to process the claim.
2. The Commissioner shall adopt such regulations as are necessary
to carry out the provisions of this section.
3. As used in this section:
(a) “Administrator” has the meaning ascribed to it in NRS 683A.025
, and includes a pharmacy benefits
manager.
(b) “Health care plan” has the meaning ascribed to it in NRS
679B.520 .
(Added to NRS by 2001, 838 )
The Commissioner may
adopt regulations which provide in substance the same protections to
purchasers, prospective purchasers, holders and former holders of
policies and other evidence of insurance as are provided in the Insurance
Information and Privacy Protection Model Act, as amended in December
1980, of the National Association of Insurance Commissioners.
(Added to NRS by 1981, 1860)
1. The Commissioner shall adopt regulations governing:
(a) The use of electronic signatures, and the acceptance and
transmission of electronic records, in transactions relating to
insurance; and
(b) The electronic filing of forms and payment of fees, and the
storage and reproduction of records, filed with the Division.
2. As used in this section:
(a) “Electronic” means relating to technology having electrical,
digital, magnetic, wireless, optical, electromagnetic or similar
capabilities.
(b) “Electronic record” means a record created, generated, sent,
communicated, received or stored by electronic means.
(c) “Electronic signature” means an electronic sound, symbol or
process attached to or logically associated with a record and executed or
adopted by a person with the intent to sign the record.
(d) “Record” means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
(e) “Transaction” means an action or set of actions occurring
between two or more persons relating to the transaction of business,
commercial or governmental affairs.
(Added to NRS by 2001, 2180 )
The
Commissioner may adopt regulations which prescribe the method for
maintaining the records of insurers and the period for which the records
must be maintained.
(Added to NRS by 1985, 1063)
1. The Commissioner shall adopt regulations which require the use
of uniform claim forms and billing codes and the ability to make
compatible electronic data transfers for all insurers and administrators
authorized to conduct business in this state relating to a health care
plan or health insurance or providing or arranging for the provision of
health care services, including, without limitation, an insurer that
issues a policy of health insurance, an insurer that issues a policy of
group health insurance, a carrier serving small employers, a fraternal
benefit society, a hospital or medical service corporation, a health
maintenance organization, a plan for dental care and a prepaid limited
health service organization. The regulations must include, without
limitation, a uniform billing format to be used for the submission of
claims to such insurers and administrators.
2. As used in this section:
(a) “Administrator” has the meaning ascribed to it in NRS 683A.025
.
(b) “Health care plan” means a policy, contract, certificate or
agreement offered or issued by an insurer to provide, deliver, arrange
for, pay for or reimburse any of the costs of health care services.
(Added to NRS by 1999, 3042 ; A 2001, 2728 )
1. The Commissioner may adopt regulations governing plans for
providing welfare benefits to employees of more than one employer. The
regulations must provide standards requiring the maintenance of specified
levels of reserves and specified levels of contributions which any such
plan, or any trust established under such a plan, must meet. If a plan
does not meet the standards, no benefits may be paid under the plan.
2. The Commissioner may conduct an examination of any insurer
which administers a plan for providing welfare benefits to employees of
more than one employer to determine whether the insurer is complying with
the Commissioner’s regulations. The cost of the examination must be borne
by the insurer in the manner provided in NRS 679B.290 . If the Commissioner determines that the
insurer is not complying with the Commissioner’s regulations, the
Commissioner shall require the insurer not to pay benefits under the plan.
3. As used in this section, the term “plan for providing welfare
benefits for employees of more than one employer” is intended to be
equivalent to the term “employee welfare benefit plan which is a multiple
employer welfare arrangement” as used in federal statutes and regulations.
(Added to NRS by 1985, 606)
1. Orders and notices of the Commissioner are effective only when
in writing signed by him or by his authority.
2. Except as otherwise expressly provided by law as to particular
orders, every order of the Commissioner must state its effective date,
and concisely state:
(a) Its intent or purpose;
(b) The grounds on which it is based; and
(c) The provisions of this Code pursuant to which action is taken
or proposed to be taken but failure to so designate a particular
provision does not deprive the Commissioner of the right to rely thereon.
3. Except as otherwise provided as to particular procedures, an
order or notice may be given by delivery to the person to be ordered or
notified, or by mailing it, postage prepaid, addressed to that person at
his principal place of business or residence as last of record in the
Division. The order or notice shall be deemed to have been given when
deposited with the United States Postal Service, and of which the
affidavit of the person who so mailed the order or notice is prima facie
evidence.
(Added to NRS by 1971, 1564; A 1987, 734; 1991, 1615; 1993, 1898)
1. The Commissioner shall deliver to the Secretary of State a copy
of an order of the Commissioner or of the district court prohibiting an
insurer from transacting insurance in this state as a corporation,
limited-liability company, limited partnership or limited-liability
partnership.
2. Upon receiving the order, the Secretary of State shall nullify
the charter of the corporation or limited-liability company or the
certificate of the limited partnership or limited-liability partnership.
3. The Secretary of State shall not accept for filing a document
with the same name as a corporation, limited-liability company, limited
partnership or limited-liability partnership whose charter or certificate
has been nullified.
(Added to NRS by 1997, 3016)
1. The Commissioner shall collect and maintain the information
provided by insurers pursuant to NRS 690B.260 regarding each closed claim for medical
malpractice filed against a person who is covered by a policy of
insurance for medical malpractice in this state, including, without
limitation:
(a) The cause of the loss;
(b) A description of the injury for which the claim was filed;
(c) The sex of the injured person;
(d) The names and number of defendants in each claim;
(e) The type of coverage provided;
(f) The amount of the initial, highest and last reserves of an
insurer for each claim before final resolution of the claim by settlement
or trial;
(g) The disposition of each claim;
(h) The amount of money awarded through settlement or by verdict;
(i) The sum of money paid to each claimant and the source of that
sum;
(j) Any sum of money allocated to expenses for the adjustment of
losses; and
(k) Any other information the Commissioner determines to be
necessary or appropriate.
2. The Commissioner shall submit with his report to the
Legislature required pursuant to NRS 679B.410 a summary of the information collected
pursuant to this section.
3. The Commissioner shall adopt regulations necessary to carry out
the provisions of this section.
4. As used in this section, “policy of insurance for medical
malpractice” means a policy that provides coverage for any medical
professional liability of the insured under the policy.
(Added to NRS by 1997, 507; A 2003, 3276 )
The Commissioner
shall:
1. Publish a guide to rates for policies of insurance for motor
vehicles which contains:
(a) An explanation of the various types of coverage available.
(b) A list of all insurers which offer insurance for motor vehicles
in Nevada.
(c) Comparisons of the cost for each type of insurance when
purchased from the five insurers who offer it at the highest price and
the five insurers who offer it at the lowest price, using one or more
hypothetical examples developed by him.
(d) Any other information which he deems appropriate and useful to
the public.
2. Maintain the guide by republishing it with revised information
at least once each year.
3. Distribute the guide and the information contained in the guide
in any manner he deems appropriate.
(Added to NRS by 1989, 577)
1. The Commissioner may:
(a) Take measures to enhance the public understanding of insurance
coverages purchased by consumers and encourage price competition among
insurers and a public understanding of the standards promulgated under
paragraph (b).
(b) Develop, promulgate and revise as he deems appropriate,
standards in each of the several areas of insurance appropriate to be
applied to policies sold in the State of Nevada. The standards must seek
to ensure that policies are not unjust, unfair, inequitable, unfairly
discriminatory, misleading, deceptive, obscure or encourage
misrepresentation or misunderstanding of the contract.
(c) Develop criteria to determine the suitability of insurance
contracts and the practices used in the sale of insurance.
2. This section does not prohibit an insurer from offering
policies encompassing standards more favorable to the insured than those
promulgated under this section.
(Added to NRS by 1971, 1564; A 1971, 1932; 2001, 2180 )
1. Every insurer or organization for dental care which pays claims
on the basis of fees for medical or dental care which are “usual and
customary” shall submit to the Commissioner a complete description of the
method it uses to determine those fees. This information must be kept
confidential by the Commissioner. The fees determined by the insurer or
organization to be the usual and customary fees for that care are subject
to the approval of the Commissioner as being the usual and customary fees
in that locality. The provisions of this subsection apply to medical or
dental care provided to a claimant under any contract of insurance.
2. Any contract for group, blanket or individual health insurance
and any contract issued by a nonprofit hospital, medical or dental
service corporation or organization for dental care, which provides a
plan for dental care to its insureds or members which limits their choice
of a dentist, under the plan to those in a preselected group, must offer
its insureds or members the option of selecting a plan of benefits which
does not restrict the choice of a dentist. The selection of that option
does not entitle the insured or member to any increase in contributions
by his employer or other organization toward the premium or cost of the
optional plan over that contributed under the restricted plan.
(Added to NRS by 1983, 2028; A 1985, 1148; 2001, 2181 )
1. Every insurer, agent, solicitor, broker, administrator or other
person who has knowledge of a violation of any provision of this Code
shall promptly report the facts and circumstances pertaining to the
violation to the Commissioner.
2. If a person who submits information pursuant to subsection 1 so
requests, the Commissioner shall keep the person’s name and the
information confidential.
(Added to NRS by 1985, 1063)
1. The Commissioner may create advisory councils and committees to
assist him in dealing with regulatory problems. He may appoint members
and may provide by rule for the creation, governance, duties and
termination of any council or committee he establishes.
2. The Commissioner may create at least one advisory council to
represent the consumer interest in insurance, to be made up of members
with no substantial interest in any aspect of the insurance industry,
except as insureds.
(Added to NRS by 1971, 1565)
The Commissioner may by rule or
regulation require any or all insurers to designate a special complaint
representative, who may be an officer, employee or agent, to investigate
and report on complaints received from insureds or other persons. In
order to achieve some degree of independence and authority in such
representatives, the Commissioner may require that they report directly
to the board of directors or other specified office, or that they have
additional authority or status.
(Added to NRS by 1971, 1565; A 1971, 1933)
1. The Commissioner may invoke the aid of the courts through
injunction or other proper process, mandatory or otherwise, to enjoin any
existing or threatened violation of any provision of this Code, or to
enforce any proper order made by him or action taken by him.
2. If the Commissioner has reason to believe that any person has
violated any provision of this Code, or other law applicable to insurance
operations, for which criminal prosecution in his opinion would be in
order, he shall give the information relative thereto to the appropriate
district attorney or to the Attorney General. The district attorney or
Attorney General shall promptly institute such action or proceedings
against such person as in his opinion the information may require or
justify.
3. Except as otherwise provided in this Code, the Attorney General
shall act as legal counsel to the Division and the Commissioner in all
matters pertaining to the administration and enforcement of this Code.
(Added to NRS by 1971, 1565; A 1975, 1286; 1983, 1385; 1991, 1616;
1993, 1899; 1995, 2697)
1. If any person willfully engages in the unauthorized transaction
of insurance, the Commissioner may impose an administrative fine of not
more than $10,000 for each act or violation.
2. An administrative fine imposed pursuant to this section is in
addition to any other administrative fine or penalty provided for in this
title, except a fine or penalty imposed pursuant to NRS 686A.183 , 686A.187 , 696B.500 or 696B.520 .
3. If the administrative fine is not paid when due, the fine must
be recovered in a civil action brought by the Attorney General on behalf
of the Commissioner.
4. Except as otherwise provided by specific statute, the
Commissioner shall commence a proceeding to impose an administrative fine
pursuant to subsection 1 not later than 5 years after the date on which
the act or violation occurred.
(Added to NRS by 1993, 2381; A 1997, 3017)
1. An officer, director, employee or agent of a domestic or
foreign insurer who has the duty or power of investing or handling the
money or assets of the insurer located in this state is a fiduciary of
that money or those assets. Such an officer, director, employee or agent
shall not appropriate, divert or convert to his own use such money or
assets.
2. A person who violates subsection 1 is guilty of embezzlement
and, in addition to any other penalty provided by law, shall be punished
in accordance with NRS 205.300 .
(Added to NRS by 1997, 3016)
1. The Commissioner shall carefully preserve in the Division and
in permanent form all papers and records relating to the business and
transactions of the Division and shall hand them over to his successor in
office.
2. Except as otherwise provided in subsections 3 and 5 to 9,
inclusive, other provisions of this Code and NRS 616B.015 , the papers and records must be open to
public inspection.
3. Any records or information in the possession of the Division
related to an investigation conducted by the Commissioner is confidential
unless:
(a) The Commissioner releases, in the manner that he deems
appropriate, all or any part of the records or information for public
inspection after determining that the release of the records or
information:
(1) Will not harm his investigation or the person who is
being investigated; or
(2) Serves the interests of a policyholder, the shareholders
of the insurer or the public; or
(b) A court orders the release of the records or information after
determining that the production of the records or information will not
damage any investigation being conducted by the Commissioner.
4. The Commissioner may destroy unneeded or obsolete records and
filings in the Division in accordance with provisions and procedures
applicable in general to administrative agencies of this State.
5. The Commissioner may classify as confidential:
(a) Specified records and information obtained from a governmental
agency; and
(b) Documents obtained or received from other sources upon the
express condition that they remain confidential.
6. All information and documents in the possession of the Division
or any of its employees which are related to cases or matters under
investigation by the Commissioner or his staff are confidential for the
period of the investigation and may not be made public unless the
Commissioner finds the existence of an imminent threat of harm to the
safety or welfare of the policyholder, shareholders or the public and
determines that the interests of the policyholder, shareholders or the
public will be served by publication thereof, in which event he may make
a record public or publish all or any part of the record in any manner he
deems appropriate.
7. The Commissioner may classify as confidential the records of a
consumer or information relating to a consumer to protect the health,
welfare or safety of the consumer.
8. In performing his duties, the Commissioner may:
(a) Share documents, materials or other information, including any
documents, materials or information classified as confidential, with
other state, federal and international regulatory or law enforcement
agencies or with the National Association of Insurance Commissioners and
its affiliates and subsidiaries if the recipient agrees to maintain the
confidentiality and privileged status of the documents, materials or
other information.
(b) May receive documents, materials or other information,
including any documents, materials or information otherwise confidential
and privileged, from other state, federal and international regulatory or
law enforcement agencies or from the National Association of Insurance
Commissioners and its affiliates and subsidiaries, and shall maintain as
confidential or privileged any document, material or information received
with notice or the understanding that it is confidential or privileged
under the law of the jurisdiction from which it was received.
(c) Enter into agreements, consistent with this subsection,
governing the sharing and use of information.
9. No waiver of confidentiality or privilege with respect to any
document, material or information occurs as a result of disclosure to the
Commissioner under this section or of sharing as authorized under this
chapter.
(Added to NRS by 1971, 1565; A 1983, 1386; 1991, 1617; 1993, 1900;
1995, 1611, 2165, 2698; 1997, 660, 661; 1999, 2783 ; 2001, 2181 )
1. All certificates issued by the Commissioner in accordance with
the provisions of this Code and all copies of documents filed in his
office in accordance with the provisions of this Code when certified by
him must be taken and received in all courts and public offices and by
official bodies of this state as prima facie evidence of the facts
therein stated.
2. A certificate by the Commissioner under the seal of the
Division as to facts relating to insurers which would not appear from a
certified copy of any of the documents or certificates specified in
subsection 1 must be taken and received in all courts and public offices
and by official bodies as prima facie evidence of the facts therein
stated.
(Added to NRS by 1971, 1566; A 1991, 1617; 1993, 1900)
1. The Commissioner shall communicate on request of the regulatory
officer for insurance in any state, province or country any information
which it is his duty by law to ascertain respecting authorized insurers.
2. The Commissioner may:
(a) Be a member of the National Association of Insurance
Commissioners or any successor organization;
(b) Exchange with the association or any successor organization any
information, not otherwise confidential, relating to applicants and
licensees under this title;
(c) Communicate with the association or any successor organization
concerning the business of insurance generally;
(d) Enter into compacts with the regulatory officers in other
states to further the uniform treatment of insurers throughout the United
States; and
(e) Participate in and support other cooperative activities of
public officers having supervision of the business of insurance.
(Added to NRS by 1971, 1566; A 1987, 594; 2001, 2182 )
The Commissioner,
at any time, may inspect any insurance policy covering any risk in this
state. Every policyholder, upon request, shall produce any insurance
policy in his possession or under his control for inspection by the
Commissioner.
(Added to NRS by 1977, 454)
The Commissioner has 7 years in which to begin
proceedings to collect the premium tax and associated penalties and fines
imposed pursuant to NRS 680B.027 ,
680B.039 , 680B.040 , 685A.180 , 685A.190 and 685B.035 , where the tax has been unreported or has
been concealed by error or omission, and where the amount of the tax is
known or through reasonable diligence should have been known.
(Added to NRS by 1995, 1611)
The Division shall charge a person a fee in the amount established by
the State Controller pursuant to NRS 353C.115 for each check or other method of payment
that is returned to the Division or otherwise dishonored because the
person had insufficient money or credit with the drawee or financial
institution to pay the check or other method of payment or because the
person stopped payment on the check or other method of payment.
(Added to NRS by 1997, 3016; A 2001, 1880 ; 2003, 20th Special Session, 228 ; 2005, 592 )
EXAMINATIONS
1. For the purpose of determining its financial condition,
fulfillment of its contractual obligations and compliance with law, the
Commissioner shall, as often as he deems advisable, examine the affairs,
transactions, accounts, records and assets of each authorized insurer,
and of any person as to any matter relevant to the financial affairs of
the insurer or to the examination. Except as otherwise expressly provided
in this title, he shall so examine each authorized insurer not less
frequently than every 5 years. Examination of an alien insurer must be
limited to its insurance transactions, assets, trust deposits and affairs
in the United States, except as otherwise required by the Commissioner.
2. The Commissioner shall in like manner examine each insurer
applying for an initial certificate of authority to transact insurance in
this state.
3. In lieu of an examination under this chapter, the Commissioner
may accept a report of the examination of a foreign or alien insurer
prepared by the Division for a foreign insurer’s state of domicile or an
alien insurer’s state of entry into the United States.
4. As far as practical the examination of a foreign or alien
insurer must be made in cooperation with the insurance supervisory
officers of other states in which the insurer transacts business.
(Added to NRS by 1971, 1567; A 1995, 1750)
To
ascertain compliance with law, or relationships and transactions between
any person and any insurer or proposed insurer, the Commissioner may, as
often as he deems advisable, examine the accounts, records, documents and
transactions relating to such compliance or relationships of:
1. Any insurance agent, solicitor, broker, surplus lines broker,
general agent, adjuster, insurer representative, bail agent, motor club
agent or any other licensee or any other person the Commissioner has
reason to believe may be acting as or holding himself out as any of the
foregoing.
2. Any person having a contract under which he enjoys in fact the
exclusive or dominant right to manage or control an insurer.
3. Any insurance holding company or other person holding the
shares of voting stock or the proxies of policyholders of a domestic
insurer, to control the management thereof, as voting trustee or
otherwise.
4. Any subsidiary of the insurer.
5. Any person engaged in this state in, or proposing to be engaged
in this state in, or holding himself out in this state as so engaging or
proposing, or in this state assisting in, the promotion, formation or
financing of an insurer or insurance holding corporation, or corporation
or other group to finance an insurer or the production of its business.
6. Any external review organization, as defined in NRS 695G.018
.
(Added to NRS by 1971, 1567; A 1983, 1102; 1997, 3374; 2003, 3277
)
1. When the Commissioner determines to examine the affairs of any
person, he shall designate one or more examiners and instruct them as to
the scope of the examination. The examiner shall, upon demand, exhibit
his official credentials to the person under examination.
2. The Commissioner shall conduct each examination in an
expeditious, fair and impartial manner.
3. Upon any such examination the Commissioner, or the examiner if
specifically so authorized in writing by the Commissioner, may administer
oaths, and examine under oath any person as to any matter relevant to the
affairs under examination or relevant to the examination.
4. Every person being examined, its officers, attorneys,
employees, agents and representatives shall make freely available to the
Commissioner or his examiners the accounts, records, documents, files,
information, assets and matters of the person examined in his possession
or control relating to the subject of the examination and shall
facilitate the examination.
5. If the Commissioner or examiner finds any accounts or records
to be inadequate, or inadequately kept or posted, he may employ experts
to reconstruct, rewrite, post or balance them at the expense of the
person being examined if that person has failed to maintain, complete or
correct the records or accounting after the Commissioner or examiner has
given him written notice and a reasonable opportunity to do so.
6. Neither the Commissioner nor any examiner may remove any
record, account, document, file or other property of the person being
examined from the offices or place of the person examined except with his
written consent before removal or pursuant to an order of court duly
obtained. This provision does not affect the making and removal of copies
or abstracts of any such record, account, document or file.
7. Any person who refuses without just cause to be examined under
oath or who willfully obstructs or interferes with the examiners in the
exercise of their authority pursuant to this section is guilty of a
misdemeanor.
8. This chapter does not limit the Commissioner’s authority:
(a) To terminate or suspend an examination in order to pursue other
legal or regulatory action.
(b) During any hearing or any legal action, to use and, if so
ordered by a court, to make public a final or preliminary report of an
examination, working papers or other documents of an examiner or insurer,
or any other information discovered or developed during the course of an
examination. Such documents must be given their appropriate evidentiary
weight and must not be accepted as prima facie evidence of the facts
contained therein.
(Added to NRS by 1971, 1567; A 1995, 1750)
1. If the Commissioner deems it necessary to value any asset
involved in such an examination, he may make written request of the
person being examined to appoint one or more appraisers who by reason of
education, experience or special training, and disinterest, are competent
to appraise the asset. Selection of any such appraiser shall be subject
to the written approval of the Commissioner. If no such appointment is
made within 10 days after the request therefor was delivered to such
person, the Commissioner may appoint the appraiser or appraisers.
2. Any such appraisal shall be expeditiously made, and a copy
thereof furnished to the Commissioner and to the person being examined.
3. The reasonable expense of the appraisal shall be borne by the
person being examined.
(Added to NRS by 1971, 1568)
1. No later than 60 days after the completion of an examination,
the examiner designated by the Commissioner shall make a true report
thereof which must comprise only facts appearing upon the books, records
or other documents of the person examined, or as ascertained from the
sworn testimony of the officers or agents or other persons examined
concerning its affairs, and such conclusions and recommendations as may
reasonably be warranted from the facts. The report of examination must be
verified by the oath of the examiner making the report.
2. Such a report of examination of an insurer so verified is prima
facie evidence in any action or proceeding for the receivership,
conservation or liquidation of the insurer brought in the name of the
state against the insurer, its officers or agents upon the facts stated
therein.
(Added to NRS by 1971, 1569; A 1977, 693; 1995, 1751)
1. Upon receipt of the verified report of the examination, the
Commissioner shall deliver a copy of the report to the person examined,
together with a notice affording him 10 days or such additional
reasonable period as the Commissioner for good cause may allow within
which to review the report and make a written submission or rebuttal with
respect to recommended changes or any matters contained in the report.
2. Within 30 days after the end of the period allowed for the
receipt of written submissions or rebuttals, the Commissioner shall fully
consider and review the report, together with any written submissions or
rebuttals and any relevant portions of the examiner’s working papers and
enter an order:
(a) Adopting the report as filed or with modification or
corrections;
(b) Rejecting the report with directions to the examiner to reopen
the examination for purposes of obtaining additional data, documentation
or information, and requiring the refiling of the report pursuant to
subsection 1 of NRS 679B.270 ; or
(c) For an investigatory hearing for purposes of obtaining
additional documentation, data, information and testimony.
3. If the report reveals that the insurer is operating in
violation of any law, regulation or previous order of the Commissioner,
the Commissioner may order the insurer to take any action the
Commissioner considers necessary or appropriate to cure the violation.
(Added to NRS by 1971, 1569; A 1991, 1618; 1993, 2901; 1995, 1751)
1. If requested by the person examined, within the period allowed
under subsection 1 of NRS 679B.280 ,
or if ordered pursuant to subsection 2 of that section, the Commissioner
shall hold a hearing relative to the report and shall not file the report
in the Division for public inspection until after the hearing and his
order thereon.
2. If no hearing has been requested or ordered, the examination
report, with such modifications, if any, thereof as the Commissioner
deems proper, must be filed in the Division for public inspection within
30 days after the expiration of the period allowed for review by the
person examined. Otherwise the report must be so filed within 30 days
after final hearing thereon, except that the Commissioner may withhold
from public inspection any report for so long as he deems such
withholding to be necessary for the protection of the person examined
against unwarranted injury or to be in the public interest.
3. The Commissioner shall forward to the person examined a copy of
the examination report as filed, together with any recommendations or
statements relating thereto which he deems proper.
4. If the report concerns the examination of a domestic insurer, a
copy of the report, or a summary thereof approved by the Commissioner
must be presented by the insurer’s chief executive officer to the
insurer’s board of directors or similar governing body at its next
regular board meeting. A copy of the report must also be furnished by the
secretary of the insurer, if incorporated, or by the attorney-in-fact if
a reciprocal insurer, within 30 days after receipt of the report in final
form by the insurer, to each member of the insurer’s board of directors
or board of governors, if a reciprocal insurer, and the certificate of
the secretary or attorney-in-fact that a copy of the examination report
has been so furnished shall be deemed to constitute knowledge of the
contents of the report by each such member.
(Added to NRS by 1995, 1749)
1. The Commissioner may disclose the content of a report,
preliminary report, or the results of an examination, or any matter
relating thereto, to the Division or any agency of any other state or
country that regulates insurance, or to law enforcement officers of this
or any other state, or to an agency of the Federal Government at any
time, if the agency or office receiving the report or matter relating
thereto agrees in writing to hold it confidential in a manner consistent
with this chapter. Access may also be granted to the National Association
of Insurance Commissioners.
2. All working papers, recorded information, documents and copies
thereof produced by, obtained by or disclosed to the Commissioner or any
other person in the course of an examination made under this chapter are
confidential, are not subject to subpoena, and may not be made public by
the Commissioner or any other person, except as necessary for a hearing
or as provided in this section and subsection 4 of NRS 679B.282 . A person to whom information is given must
agree in writing before receiving the information to provide to it the
same confidential treatment as required by this section, unless the prior
written consent of the insurer to which it pertains has been obtained.
(Added to NRS by 1995, 1749)
1. No cause of action arises, nor may any liability be imposed
against any person for the act of communicating or delivering information
or data to the Commissioner or his authorized representative or examiner
pursuant to an examination made under this chapter, if the act of
communication or delivery was performed in good faith and without
fraudulent intent, the intent to deceive or gross negligence.
2. The Commissioner, his authorized representative or any examiner
appointed by him is entitled to an award of attorney’s fees and costs if
he is the prevailing party in a civil cause of action for libel, slander
or any other relevant tort arising out of activities in carrying out the
provisions of NRS 679B.230 to
679B.300 , inclusive, and the party
bringing the action was not substantially justified in doing so. For the
purposes of this subsection, an action is “substantially justified” if it
had a reasonable basis in law or fact at the time that it was brought.
(Added to NRS by 1995, 1748)
1. Except as otherwise provided in subsection 2:
(a) The expense of examination of an insurer, or of any person
referred to in subsection 1, 2, 5 or 6 of NRS 679B.240 , must be borne by the person examined. Such
expense includes only the reasonable and proper hotel and travel expenses
of the Commissioner and his examiners and assistants, including expert
assistance, reasonable compensation as to such examiners and assistants
and incidental expenses as necessarily incurred in the examination. As to
expense and compensation involved in any such examination, the
Commissioner shall give due consideration to scales and limitations
recommended by the National Association of Insurance Commissioners and
outlined in the examination manual sponsored by that association.
(b) The person examined shall promptly pay to the Commissioner the
expenses of the examination upon presentation by the Commissioner of a
reasonably detailed written statement thereof.
2. The Commissioner may bill an insurer for the examination of any
person referred to in subsection 1 of NRS 679B.240 and shall adopt regulations governing such
billings.
(Added to NRS by 1971, 1570; A 1995, 1612; 2003, 3277 )
1. The Insurance Examination Fund is hereby created as a special
revenue fund. All money received by the Commissioner pursuant to NRS
679B.290 must be deposited in the
State Treasury for credit to the Fund.
2. Money for travel, per diem, compensation and other necessary
and authorized expenses incurred by an examiner or other representative
of the Division in the examination of any person required to pay, and
making payment of, the expense of examination pursuant to NRS 679B.290
must be paid out of the Insurance
Examination Fund as other claims against the State are paid.
(Added to NRS by 1971, 1570; A 1979, 121; 1991, 1618; 1993, 1901;
1995, 1415)
INSURANCE RECOVERY ACCOUNT
1. There is hereby created the Insurance Recovery Account in the
State General Fund. The Commissioner shall promptly deposit with the
State Treasurer for credit to the Account all recovery fees received from
licensees pursuant to the provisions of this title.
2. A balance of not more than $40,000 must be maintained in the
Account to be used for satisfying claims against persons licensed
pursuant to chapters 683A , 684A , 685A and 692A
of NRS. Any balance over $40,000 in the
Account at the end of any fiscal year must be set aside and used by the
Commissioner for insurance education and research.
3. The Commissioner shall adopt reasonable regulations for the
administration of the Account, including the manner, time, procedure and
grounds for recovery against the Account.
4. The limit of liability of the insurance recovery account is
$5,000 per fiscal year for any one licensee.
(Added to NRS by 1977, 1326; A 1981, 1796; 1987, 149; 1991, 1818)
HEARINGS
1. The Commissioner may hold a hearing, without request by others,
to determine whether an insurer or an employee of an insurer has engaged
in unsuitable conduct and for any other purpose within the scope of this
Code.
2. The Commissioner shall hold a hearing:
(a) If required by any other provision of this Code; or
(b) Upon written application for a hearing by a person aggrieved by
any act, threatened act, or failure of the Commissioner to act, or by any
report, rule, regulation or order of the Commissioner, other than an
order for the holding of a hearing, or an order issued on a hearing of
which the person had notice. The application must be filed in the
Division within 60 days after the person knew or reasonably should have
known of the act, threatened act, failure, report, rule, regulation or
order, unless a different period is provided for by any other law
applicable to the particular matter, in which case the other law governs.
3. Any such application for a hearing must briefly state the
respects in which the applicant is so aggrieved, together with the
grounds to be relied upon as a basis for the relief to be sought at the
hearing.
4. If the Commissioner finds that the application is made in good
faith, that the applicant would be so aggrieved if his grounds are
established and that the grounds otherwise justify the hearing, he shall
hold the hearing within 30 days after the filing of the application,
unless postponed by mutual consent. Failure to hold the hearing upon
application therefor of a person entitled thereto as provided in this
section constitutes a denial of the relief sought, and is the equivalent
of a final order of the Commissioner on hearing for the purpose of an
appeal pursuant to NRS 679B.370 .
5. Pending the hearing and decision thereon, the Commissioner may
suspend or postpone the effective date of his previous action.
(Added to NRS by 1971, 1570; A 1991, 807, 1619, 1636; 1993, 1902)
1. Except where a different period is expressly provided, the
Commissioner shall give written notice of the hearing not less than 20
days in advance. The notice shall state the date, time and place of the
hearing and specify the matters to be considered thereat. If the persons
to be given notice are not specified in the provision pursuant to which
the hearing is held, the Commissioner shall give such notice to all
persons whose pecuniary interest, to the Commissioner’s knowledge or
belief, are to be directly and immediately affected by the hearing.
2. If any person is entitled to a hearing by any provision of this
Code before any proposed action is taken, the notice of the hearing may
be in the form of a notice to show cause, stating that the proposed
action may be taken unless such person shows cause at a hearing to be
held as specified in the notice why the proposed action should not be
taken, and stating the basis of the proposed action.
3. If any such hearing is to be held for consideration of rules
and regulations of the Commissioner, or of other matters which, under
subsection 1, would otherwise require separate notices to more than 30
persons, in lieu of other notice the Commissioner may give notice of the
hearing by publication thereof in a newspaper of general circulation in
this state, at least once each week during the fourth and second weeks
next preceding the week in which the hearing is to be held; but the
Commissioner shall mail such notice to all persons who had requested the
same in writing in advance and had paid to the Commissioner the
reasonable amount fixed by him to cover the cost thereof.
4. All such notices, other than published notices, shall be given
as provided in NRS 679B.140 .
(Added to NRS by 1971, 1571)
1. The Commissioner may hold a hearing in Carson City, Nevada, or
any other place of convenience to parties and witnesses, as the
Commissioner determines. The Commissioner, his deputy or assistant, or a
person appointed by the Commissioner, shall preside at the hearing, and
shall expedite the hearing and all procedures involved therein.
2. The Commissioner may appoint a person who is not associated
with the Division to conduct a hearing if the hearing requires a
disinterested or impartial hearing officer. A person so appointed shall
comply with the provisions which govern hearings conducted by the
Commissioner. An order issued by such a person has the same effect as an
order issued by the Commissioner.
3. Testimony may be taken orally or by deposition, and any party
has the same right to introduce evidence by interrogatories or deposition
as he would have in a district court.
4. Upon good cause shown the Commissioner shall permit to become a
party to the hearing by intervention, if timely, only such persons, not
original parties thereto, whose pecuniary interests are to be directly
and immediately affected by the Commissioner’s order made upon the
hearing.
5. The Commissioner shall cause a record of the proceedings to be
made. If transcribed, a copy of the record must be part of the
Commissioner’s record of the hearing and a copy must be furnished to any
other party to the hearing, at the request and expense of the other
party. If no such record is transcribed, the Commissioner shall prepare a
summary record of the proceedings and evidence.
(Added to NRS by 1971, 1572; A 1977, 97; 1985, 1063; 1991, 1619;
1993, 1902)
1. The Commissioner or any individual conducting a hearing,
examination or investigation by his authority shall have power to
subpoena witnesses, compel their attendance, administer oaths, examine
any person under oath relative to the subject of the hearing, examination
or investigation, and to compel any person to subscribe to his testimony
after it has been correctly reduced to writing, and, in connection
therewith, to require the production of any books, papers, records,
correspondence or other documents which he deems relevant to the inquiry.
Any delegation by the Commissioner of the power to administer oaths or of
subpoena shall be in writing.
2. A subpoena issued pursuant to this section shall have the same
force and effect and shall be served in the same manner as if issued from
a court of record.
3. If any individual fails to obey a subpoena, or refuses to
testify as to any matter concerning which he may lawfully be
interrogated, the Commissioner may file his written report thereof and
proof of service of his subpoena in any court of competent jurisdiction
in the county where the examination or hearing is being conducted, for
such action as the court may determine.
4. Witness fees and mileage, if claimed, shall be allowed the same
as for testimony in a court of record, but no officer, director, agent or
employee of an insurer or person being examined or investigated shall be
entitled to witness or mileage fees.
5. Every person subpoenaed under this section who willfully fails
to appear at the time and place named in the subpoena or to produce
documents required by the subpoena, or who refuses to be sworn or answer
as a witness, is guilty of a misdemeanor.
(Added to NRS by 1971, 1572)
1. If any individual asks to be excused from attending or
testifying or from producing any books, papers, records, contracts,
correspondence or other documents in connection with any examination,
hearing or investigation being conducted by the Commissioner or his
examiner, on the ground that the testimony or evidence required of him
may tend to incriminate him or subject him to a penalty or forfeiture,
and nonetheless is directed by the Attorney General to give such
testimony or produce such evidence, he must comply with such direction;
but he shall not thereafter be prosecuted or subjected to any penalty or
forfeiture for or on account of any transaction, matter or thing
concerning which he may have so testified or produced evidence, and no
testimony so given or evidence produced shall be received against him
upon any criminal action, investigation or proceeding. No such individual
so testifying shall be exempt from:
(a) Prosecution or punishment for any perjury committed by him in
such testimony, and the testimony or evidence so given or produced shall
be admissible against him upon any criminal action, investigation or
proceeding concerning such perjury.
(b) The refusal, suspension or revocation of any license,
permission or authority conferred, pursuant to this Code.
2. Any such individual may execute, acknowledge and file in the
office of the Commissioner and of the Attorney General a statement
expressly waiving such immunity or privilege in respect to any
transaction, matter or thing specified in such statement, and thereupon
the testimony of such individual or such evidence in relation to such
transaction, matter or thing may be received or produced before any judge
or justice, court, tribunal, grand jury or otherwise, and if such
testimony or evidence is so received or produced such individual shall
not be entitled to any immunity or privileges on account of any testimony
or evidence he may so give or produce.
(Added to NRS by 1971, 1573)
1. In the conduct of hearings under this Code and making his order
thereon, the Commissioner shall act in a quasi-judicial capacity.
2. Except as otherwise provided in this subsection, within 30 days
after termination of a hearing, or of any rehearing thereof or reargument
thereon, or within such other period as may be specified in this Code as
to particular proceedings, the Commissioner shall make his order on
hearing covering matters involved in such hearing, and give a copy of the
order to each party to the hearing in the same manner as notice of the
hearing was given to such party. With respect to hearings held concerning
merger, consolidation, bulk reinsurance, conversion, affiliation or
change of control of a domestic insurer as provided in chapter 693A
of NRS (corporate powers, procedures of
domestic stock and mutual insurers), where notice of the hearing was
given to all stockholders and policyholders or to all stockholders or
policyholders of an insurer involved, the Commissioner is required to
give a copy of the order on hearing to the corporation and insurer
parties, to intervening parties, to a reasonable number of such
stockholders or policyholders as representative of the class, and to
other parties only upon written request of such parties.
3. The order shall contain:
(a) A concise statement of facts found by the Commissioner upon
evidence adduced at the hearing;
(b) A concise statement of the Commissioner’s conclusions from the
facts so found;
(c) His order, and the effective date thereof; and
(d) Citation of the provisions of this Code upon which the order is
based; but failure so to designate a particular provision shall not
deprive the Commissioner of the right thereafter to rely thereon.
4. The order may affirm, modify or rescind action theretofore
taken or may constitute taking of new action within the scope of the
notice of the hearing.
(Added to NRS by 1971, 1573)
1. Except as to matters arising under chapter 686B of NRS other than those grievances of employers
that must be appealed to the appeals panel for industrial insurance, an
appeal from the Commissioner must be taken only from an order on hearing,
or as to a matter on which the Commissioner has refused or failed to hold
a hearing after application therefor under NRS 679B.310 , or as to a matter concerning which the
Commissioner has refused or failed to make his order on hearing as
required by NRS 679B.360 .
2. Any person who was a party to a hearing or whose pecuniary
interests are directly and immediately affected by any such refusal or
failure, and who is aggrieved by the order, refusal or failure, may
petition for judicial review in the manner provided by chapter 233B
of NRS.
(Added to NRS by 1971, 1574; A 1977, 98; 1989, 1660; 1999, 3381
; 2001, 2256 )
ADMINISTRATIVE FINANCES
1. Except as otherwise expressly provided in this Code, funds with
which to carry out the administration and enforcement by the Commissioner
of this Code shall be provided by legislative appropriation from the
General Fund and shall be paid out on claims as other claims against the
State are paid.
2. No such claim shall be paid unless approved by the commissioner.
(Added to NRS by 1971, 1575)
STABILIZATION OF INSURANCE COSTS
1. The Legislature finds and declares that:
(a) Stabilizing the cost of insurance is of vital concern to the
residents of this state; and
(b) It is necessary to establish a comprehensive system to collect,
analyze and distribute information concerning the cost of insurance in
order to stabilize that cost effectively.
2. The purposes of NRS 679B.400 to 679B.460 , inclusive, are to:
(a) Promote the public welfare by studying the relationship of
premiums and related income of insurers to costs and expenses of insurers;
(b) Develop measures to stabilize prices for insurance while
continuing to provide insurance of high quality to the residents of this
state;
(c) Permit and encourage competition between insurers on a sound
financial basis to the fullest extent possible;
(d) Establish a mechanism to ensure the provision of adequate
insurance at reasonable rates to the residents of this state; and
(e) Protect the rights of customers of insurance in this state.
(Added to NRS by 1989, 1226; A 1991, 1620; 1995, 1415)
The Commissioner shall:
1. Determine the relationship of premiums and related income of
insurers to costs and expenses of insurers, provide this information to
the Legislature and make this information available to the general public.
2. Respond to requests by governmental agencies of this state and
by the Legislature for special studies and analysis of information
collected pursuant to NRS 679B.400 to
679B.460 , inclusive.
3. Report to each regular session of the Legislature concerning
his duties and findings pursuant to this section no later than February 1.
(Added to NRS by 1989, 1227; A 1991, 1620; 1995, 1415)
The Commissioner may employ and fix the compensation of, and enter into
agreements with, such technical and professional consultants as he deems
necessary to accomplish the purposes of NRS 679B.400 to 679B.460 , inclusive.
(Added to NRS by 1989, 1227)
1. The Commissioner may issue such orders as are necessary to
require compliance with the provisions of NRS 679B.400 to 679B.460 , inclusive.
2. The Commissioner shall adopt regulations requiring each insurer
authorized to transact casualty or property insurance in this state to
record and report its losses, expenses and other information necessary to
assess the relationship of premiums and related income to costs and
expenses of insurers. The Commissioner may designate one or more rate
service organizations or other advisory organizations to gather and
compile this information. The Commissioner shall require each insurer
authorized to transact casualty or property insurance in this state to
submit reports, on forms furnished by the Commissioner, of its
transactions in insurance in this state and elsewhere.
3. If a rate service organization or other advisory organization
designated pursuant to subsection 2 imposes a fee for the filing,
processing or review of information required to be filed by this section,
the insurer shall pay that fee and file the information.
(Added to NRS by 1989, 1227)
1. The Commissioner may require that reports submitted pursuant to
NRS 679B.430 include, without
limitation, information regarding:
(a) Liability insurance provided to:
(1) Governmental agencies and political subdivisions of this
state, reported separately for:
(I) Cities and towns;
(II) School districts; and
(III) Other political subdivisions;
(2) Public officers;
(3) Establishments where alcoholic beverages are sold;
(4) Facilities for the care of children;
(5) Labor, fraternal or religious organizations; and
(6) Officers or directors of organizations formed pursuant
to title 7 of NRS, reported separately for nonprofit entities and
entities organized for profit;
(b) Liability insurance for:
(1) Defective products;
(2) Medical or dental malpractice of:
(I) A practitioner licensed pursuant to chapter 630
, 630A , 631
, 632 , 633 , 634 , 634A , 635 , 636 , 637 , 637A , 637B , 639 or 640 of NRS;
(II) A hospital or other health care facility; or
(III) Any related corporate entity.
(3) Malpractice of attorneys;
(4) Malpractice of architects and engineers; and
(5) Errors and omissions by other professionally qualified
persons;
(c) Vehicle insurance, reported separately for:
(1) Private vehicles;
(2) Commercial vehicles;
(3) Liability insurance; and
(4) Insurance for property damage;
(d) Workers’ compensation insurance; and
(e) In addition to any information provided pursuant to
subparagraph (2) of paragraph (b) or NRS 690B.260 , a policy of insurance for medical
malpractice. As used in this paragraph, “policy of insurance for medical
malpractice” has the meaning ascribed to it in NRS 679B.144 .
2. The Commissioner may require that the report include, without
limitation, information specifically pertaining to this state or to an
insurer in its entirety, in the aggregate or by type of insurance, and
for a previous or current year, regarding:
(a) Premiums directly written;
(b) Premiums directly earned;
(c) Number of policies issued;
(d) Net investment income, using appropriate estimates when
necessary;
(e) Losses paid;
(f) Losses incurred;
(g) Loss reserves, including:
(1) Losses unpaid on reported claims; and
(2) Losses unpaid on incurred but not reported claims;
(h) Number of claims, including:
(1) Claims paid; and
(2) Claims that have arisen but are unpaid;
(i) Expenses for adjustment of losses, including allocated and
unallocated losses;
(j) Net underwriting gain or loss;
(k) Net operation gain or loss, including net investment income; and
(l) Any other information requested by the Commissioner.
3. The Commissioner may also obtain, based upon an insurer in its
entirety, information regarding:
(a) Recoverable federal income tax;
(b) Net unrealized capital gain or loss; and
(c) All other expenses not included in subsection 2.
(Added to NRS by 1989, 1227; A 1999, 2784 ; 2003, 3278 )
1. Insurers required to file reports pursuant to NRS 679B.430
shall pay to the Division a
reasonable fee established by the Commissioner of not more than $500 to
cover the costs to the Division of the administration and enforcement of
NRS 679B.400 to 679B.460 , inclusive, including any expenses incident
or associated with the requirements of those sections.
2. The cost of furnishing a report, unless furnished to a
Legislator, must be paid by the party requesting the report.
3. The Commissioner may establish a schedule of fees for the
purposes of this section.
(Added to NRS by 1989, 1228; A 1991, 1620; 1993, 1903)
1. An insurer who willfully or repeatedly violates or fails to
comply with a provision of NRS 679B.400 to 679B.450 , inclusive, or 690B.260 or a regulation adopted pursuant to NRS
679B.430 is subject, after notice and
a hearing held pursuant to NRS 679B.310 to 679B.370 , inclusive, to payment of an administrative
fine of not more than $1,000 for each day of the violation or failure to
comply, up to a maximum fine of $50,000.
2. An insurer who fails or refuses to comply with an order issued
by the Commissioner pursuant to NRS 679B.430 is subject, after notice and a hearing held
pursuant to NRS 679B.310 to 679B.370
, inclusive, to suspension or
revocation of his certificate of authority to transact insurance in this
state.
3. The imposition of an administrative fine pursuant to this
section must not be considered by the Commissioner in any other
administrative proceeding unless the fine has been paid or a court order
for payment of the fine has become final.
(Added to NRS by 1989, 1229; A 2003, 3279 )
PROTECTIONS FOR CONSUMERS OF HEALTH CARE
As used in NRS 679B.510 to 679B.560 , inclusive, unless the context otherwise
requires, the words and terms defined in NRS 679B.520 , 679B.530 and 679B.540 have the meanings ascribed to them in those
sections.
(Added to NRS by 1997, 1731; A 2001, 2183 ; 2003, 156 )
“Health care plan” means
a policy, contract, certificate or agreement offered or issued by an
insurer to provide, deliver, arrange for, pay for or reimburse any of the
costs of health care services.
(Added to NRS by 1971, 1731)
“Insured” means a person covered
by a policy of health insurance issued in this state by an insurer.
(Added to NRS by 1997, 1731)
“Insurer” means any insurer or
organization authorized pursuant to this title to conduct business in
this state that provides or arranges for the provision of health care
services, including, without limitation, an insurer that issues a policy
of health insurance, an insurer that issues a policy of group health
insurance, a carrier serving small employers, a fraternal benefit
society, a hospital or medical service corporation, a health maintenance
organization, a plan for dental care and a prepaid limited health service
organization.
(Added to NRS by 1997, 1731)
The Division shall:
1. Establish a toll-free telephone service for receiving inquiries
and complaints from consumers of health care in this state concerning
health care plans;
2. Provide answers to inquiries of consumers of health care
concerning health care plans, or refer the consumers to the appropriate
agency, department or other entity that is responsible for addressing the
specific type of inquiry;
3. Refer consumers of health care to the appropriate agency,
department or other entity that is responsible for addressing the
specific type of complaint of the consumer;
4. Provide counseling and assistance to consumers of health care
concerning health care plans;
5. Educate consumers of health care concerning health care plans
in this state; and
6. Take such actions as are necessary to ensure public awareness
of the existence and purpose of the services provided by the Division
pursuant to this section.
(Added to NRS by 1997, 1731)
Each insurer shall provide to each insured in a written format that
clearly stands out from any surrounding text:
1. The telephone number of the toll-free telephone service which
is established pursuant to NRS 679B.550 ; and
2. The name of the Division and its hours of operation, including,
but not limited to, the hours of operation of the toll-free telephone
service.
(Added to NRS by 1997, 1732)
INVESTIGATIONS
As used in NRS 679B.600 to 679B.700 , inclusive, unless the context otherwise
requires, the words and terms defined in NRS 679B.610 and 679B.620 have the meanings ascribed to them in those
sections.
(Added to NRS by 2001, 1093 )
“Fraud Control Unit”
means the Fraud Control Unit for Insurance established by the Attorney
General pursuant to NRS 228.412 .
(Added to NRS by 2001, 1093 )
“Insurance fraud” has the
meaning ascribed to it in NRS 686A.2815 .
(Added to NRS by 2001, 1093 )
The Commissioner shall establish a program within the Division to
investigate any act or practice which:
1. Violates the provisions of NRS 686A.010 to 686A.310 , inclusive; or
2. Defrauds or is an attempt to defraud an insurer.
(Added to NRS by 1983, 1384; A 1991, 1616; 1993, 1899)—(Substituted
in revision for NRS 679B.153)
The Commissioner, through his investigators, shall
investigate fraudulent claims for benefits under an insurance policy.
(Added to NRS by 1983, 1385; A 1993, 2541)—(Substituted in revision
for NRS 679B.154)
To
investigate violations of the provisions of this title, or to assist the
Attorney General or other local, state or federal investigative and law
enforcement agencies in investigating an act of insurance fraud, the
Commissioner may:
1. Designate employees of the Division as investigators to carry
out the provisions of NRS 679B.600 to
679B.700 , inclusive.
2. Conduct investigations into such activities occurring outside
this state, if necessary. To conduct these investigations, the
Commissioner or his investigators may:
(a) Travel outside this state;
(b) Cooperate with appropriate agencies or persons outside this
state; or
(c) Designate those agencies to conduct investigations for the
Commissioner.
3. Assist officials of investigative or law enforcement agencies
of any other state or the Federal Government who are investigating
fraudulent claims and who request assistance from the Commissioner.
(Added to NRS by 1983, 1384; A 1991,1616; 1993, 1899; 2001, 1094
)—(Substituted in revision for NRS
679B.155)
1. Every person in charge of an investigative or law enforcement
agency within this state shall:
(a) Cooperate with the Commissioner and his investigators, and the
Attorney General and the members of the Fraud Control Unit; and
(b) Upon request, furnish the Commissioner or Attorney General, as
appropriate, with any information necessary for the investigation of
insurance fraud.
2. The Commissioner and the Attorney General shall:
(a) Assist any official of an investigative or a law enforcement
agency of this state, any other state or the Federal Government who
requests assistance in investigating any act of insurance fraud; and
(b) Furnish to those officials any information, not otherwise
confidential, concerning his investigation or his report on insurance
fraud.
(Added to NRS by 1983, 1385; A 2001, 1094 )—(Substituted in revision for NRS
679B.156)
Any person, governmental entity, insurer,
employee or representative of an insurer, official of an investigative or
law enforcement agency, employee of the Division, the Commissioner, the
Attorney General or a member of the Fraud Control Unit is not subject to
a criminal penalty or subject to civil liability for libel, slander or
any similar cause of action in tort if he, without malice, discloses
information on a fraudulent claim or suspicious fire.
(Added to NRS by 1983, 1385; S 1991, 1616; 1993, 1899; 2001, 1095
)—(Substituted in revision for NRS
679B.157)
Nothing
in NRS 228.412 limits or diminishes the
exclusive jurisdiction of the Commissioner otherwise granted by statute
to investigate or take administrative or civil action:
1. For any violation of this title by any person or entity who is
or has been licensed by the Commissioner pursuant to this title;
2. Against any person or entity who is or has been engaged in the
business of insurance without a license as required by this title,
including, without limitation, the unauthorized transaction of insurance
in violation of chapter 685B of NRS; or
3. Against any person or entity as the Commissioner deems
appropriate.
(Added to NRS by 2001, 1093 )
1. All records and other information related to an investigation
conducted by the Attorney General and the Fraud Control Unit for the
prosecution of insurance fraud are confidential unless:
(a) The Attorney General releases, in such manner as he deems
appropriate, all or any part of the records or information for public
inspection after determining that the release of the records or
information:
(1) Will not harm the investigation or the person who is
being investigated; or
(2) Serves the interests of a policyholder, the shareholders
of the insurer or the public; or
(b) A court orders the release of the records or information after
determining that the production of the records or information will not
damage any investigation being conducted by the Fraud Control Unit.
2. The Attorney General may classify as confidential specific
records and other information if the records or other information was
obtained from a governmental agency or other source upon the express
condition that the contents would remain confidential.
3. All information and documents in the possession of the Attorney
General and the Fraud Control Unit that are related to cases or matters
under investigation are confidential for the duration of the
investigation and may not be made public unless the Attorney General
finds the existence of an imminent threat of harm to the safety or
welfare of the policyholder, shareholders or the public and determines
that the interests of the policyholder, shareholders or the public will
be served by publication thereof, in which event he may make a record
public or publish all or any part of the record in any manner he deems
appropriate.
(Added to NRS by 2001, 1093 )
1. The Special Investigative Account is hereby established in the
State General Fund for use by the Commissioner. The Commissioner shall
deposit all money received pursuant to this section with the State
Treasurer for credit to the Account. Money remaining in the Account at
the end of a fiscal year does not lapse to the State General Fund and may
be used by the Commissioner in any subsequent fiscal year for the
purposes of this section.
2. The Commissioner shall:
(a) In cooperation with the Attorney General, biennially prepare
and submit to the Governor, for inclusion in the executive budget, a
proposed budget for the program established pursuant to NRS 679B.630
; and
(b) Authorize expenditures from the Special Investigative Account
to pay the expenses of the program established pursuant to NRS 679B.630
and of any unit established in the
Office of the Attorney General that investigates and prosecutes insurance
fraud.
3. The money authorized for expenditure pursuant to paragraph (b)
of subsection 2 must be distributed in the following manner:
(a) Fifteen percent of the money authorized for expenditure must be
paid to the Commissioner to oversee and enforce the program established
pursuant to NRS 679B.630 ; and
(b) Eighty-five percent of the money authorized for expenditure
must be paid to the Attorney General to pay the expenses of the unit
established in the Office of the Attorney General that investigates and
prosecutes insurance fraud.
4. Except as otherwise provided in subsections 5 and 6, costs of
the program established pursuant to NRS 679B.630 must be paid by the insurers authorized to
transact insurance in this State. The Commissioner shall annually
determine the total cost of the program and divide that amount among the
insurers pro rata based upon the total amount of premiums charged to the
insureds in this State by the insurer.
5. The annual amount so assessed on each reinsurer that has the
authority to assume only reinsurance must not exceed $500. For all other
insurers subject to the annual assessment, the annual amount so assessed
to each insurer:
(a) Must not exceed $500, if the total amount of the premiums
charged to insureds in this State by the insurer is less than $100,000;
(b) Must not exceed $750, if the total amount of the premiums
charged to insureds in this State by the insurer is $100,000 or more, but
less than $1,000,000;
(c) Must not exceed $1,000, if the total amount of the premiums
charged to insureds in this State by the insurer is $1,000,000 or more,
but less than $10,000,000;
(d) Must not exceed $1,500, if the total amount of the premiums
charged to insureds in this State by the insurer is $10,000,000 or more,
but less than $50,000,000; and
(e) Must not exceed $2,000, if the total amount of the premiums
charged to insureds in this State by the insurer is $50,000,000 or more.
6. The provisions of this section do not apply to an insurer who
provides only workers’ compensation insurance and pays the assessment
provided in NRS 232.680 .
7. The Commissioner shall adopt regulations to carry out the
provisions of this section, including, without limitation, the
calculation and collection of the assessment.
8. As used in this section, “reinsurer” has the meaning ascribed
to it in NRS 681A.370 .
(Added to NRS by 1983, 1385; A 1995, 2697; 2001, 479 )—(Substituted in revision for NRS 679B.158)
