USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 683A - PERSONS INVOLVED IN SALE OR ADMINISTRATION OF INSURANCE
 As used in this Code, unless the
context otherwise requires, the words and terms defined in NRS 683A.025
to 683A.078 , inclusive, have the meanings ascribed to
them in those sections.

      (Added to NRS by 1971, 1636; A 1977, 733; 2001, 2201 )


      1.  Except as limited by this section, “administrator” means a
person who:

      (a) Directly or indirectly underwrites or collects charges or
premiums from or adjusts or settles claims of residents of this State or
any other state from within this State in connection with workers’
compensation insurance, life or health insurance coverage or annuities,
including coverage or annuities provided by an employer for his employees;

      (b) Administers an internal service fund pursuant to NRS 287.010
;

      (c) Administers a trust established pursuant to NRS 287.015 , under a contract with the trust;

      (d) Administers a program of self-insurance for an employer;

      (e) Administers a program which is funded by an employer and which
provides pensions, annuities, health benefits, death benefits or other
similar benefits for his employees; or

      (f) Is an insurance company that is licensed to do business in this
State or is acting as an insurer with respect to a policy lawfully issued
and delivered in a state where the insurer is authorized to do business,
if the insurance company performs any act described in paragraphs (a) to
(e), inclusive, for or on behalf of another insurer.

      2.  “Administrator” does not include:

      (a) An employee authorized to act on behalf of an administrator who
holds a certificate of registration from the Commissioner.

      (b) An employer acting on behalf of his employees or the employees
of a subsidiary or affiliated concern.

      (c) A labor union acting on behalf of its members.

      (d) Except as otherwise provided in paragraph (f) of subsection 1,
an insurance company licensed to do business in this State or acting as
an insurer with respect to a policy lawfully issued and delivered in a
state in which the insurer was authorized to do business.

      (e) A producer of life or health insurance licensed in this State,
when his activities are limited to the sale of insurance.

      (f) A creditor acting on behalf of his debtors with respect to
insurance covering a debt between the creditor and debtor.

      (g) A trust and its trustees, agents and employees acting for it,
if the trust was established under the provisions of 29 U.S.C. § 186.

      (h) Except as otherwise provided in paragraph (c) of subsection 1,
a trust and its trustees, agents and employees acting for it, if the
trust was established pursuant to NRS 287.015 .

      (i) A trust which is exempt from taxation under section 501(a) of
the Internal Revenue Code, 26 U.S.C. § 501(a), its trustees and
employees, and a custodian, his agents and employees acting under a
custodial account which meets the requirements of section 401(f) of the
Internal Revenue Code, 26 U.S.C. § 401(f).

      (j) A bank, credit union or other financial institution which is
subject to supervision by federal or state banking authorities.

      (k) A company which issues credit cards, and which advances for and
collects premiums or charges from credit card holders who have authorized
it to do so, if the company does not adjust or settle claims.

      (l) An attorney at law who adjusts or settles claims in the normal
course of his practice or employment, but who does not collect charges or
premiums in connection with life or health insurance coverage or with
annuities.

      (Added to NRS by 1977, 729; A 1979, 974; 1981, 1324; 1985, 479;
1999, 2792 ; 2001, 2201 ; 2003, 2741 )
 “Business
organization” means a corporation, association, partnership,
limited-liability company, limited-liability partnership or other legal
form of organization.

      (Added to NRS by 2001, 2191 )
 “Home state” means the
District of Columbia or any state or territory of the United States or
Canada in which a producer of insurance maintains his principal place of
residence or principal place of business and is licensed to act as a
producer of insurance.

      (Added to NRS by 2001, 2191 )
 “License” means a document issued
by the Commissioner authorizing a person to act as a producer of
insurance for the lines of authority specified in the document.

      (Added to NRS by 2001, 2191 )


      1.  A “managing general agent” is a person who:

      (a) Negotiates and binds ceding reinsurance contracts on behalf of
an insurer or manages all or part of the insurance business of an
insurer, including the management of a separate division, department of
underwriting office; or

      (b) Acts as an agent for the insurer and with or without the
authority, either separately or together with affiliates:

             (1) Produces, directly or indirectly, and underwrites an
amount of gross direct written premiums equal to or more than 5 percent
of the policyholder surplus as reported in the last annual statement of
the insurer in any one quarter or year; and

             (2) Adjusts or pays claims in excess of an amount determined
by the Commissioner or negotiates reinsurance on behalf of the insurer.

      2.  A managing general agent includes a person with authority to
appoint and to terminate the appointment of an agent for an insurer.

      3.  For the purposes of this chapter, the following are not
managing general agents:

      (a) An employee of the insurer;

      (b) A manager of the United States branch of an alien insurer;

      (c) An attorney authorized by and acting for the subscribers of a
reciprocal insurer or interinsurance exchange; and

      (d) An underwriting manager who, pursuant to a contract, manages
all or part of the insurance operations of the insurer, is under common
control with the insurer, is subject to the provisions of chapter 692C
of NRS and whose compensation is not based
on the volume of premiums written or the profit of the business written.

      (Added to NRS by 1971, 1637; A 1991, 2030; 2001, 2202 )
 “Negotiate” means to confer
directly with, or offer advice directly to, a purchaser or prospective
purchaser of a particular contract of insurance concerning any of the
substantive benefits, terms or conditions of the contract, if the person
conferring or offering the advice sells insurance or obtains insurance
from insurers or purchasers.

      (Added to NRS by 2001, 2191 )
 “Sell” means to exchange a contract
of insurance, by any means, for money or its equivalent on behalf of an
insurer.

      (Added to NRS by 2001, 2191 )
 “Solicit” means to attempt to
sell insurance or to ask or urge a person to apply for a particular kind
of insurance from a particular insurer.

      (Added to NRS by 2001, 2191 )
 “Terminate” means to cancel the
relationship between a producer of insurance and the insurer or to
terminate a producer’s authority to transact insurance.

      (Added to NRS by 2001, 2191 )
 “Uniform application”
means the uniform application for licensing of producers of insurance
prepared by the National Association of Insurance Commissioners and
adopted by the Commissioner.

      (Added to NRS by 2001, 2191 )

ADMINISTRATORS
 As used in NRS 683A.0805 to 683A.0893 , inclusive, unless the context otherwise
requires, the words and terms defined in NRS 683A.081 to 683A.084 , inclusive, have the meanings ascribed to
them in those sections.

      (Added to NRS by 1999, 2789 )
 “Affiliate” has the meaning
ascribed to it in NRS 692C.030 .

      (Added to NRS by 1999, 2789 )
 “Control” has the meaning
ascribed to it in NRS 692C.050 .

      (Added to NRS by 1999, 2789 )
 “Insurer” includes, without
limitation:

      1.  An insurance company licensed pursuant to the provisions of
this Code;

      2.  A prepaid limited health service organization that has been
issued a certificate of authority pursuant to chapter 695F of NRS;

      3.  A health maintenance organization that has been issued a
certificate of authority pursuant to chapter 695C of NRS;

      4.  A multiple employer welfare arrangement as defined in 29 U.S.C.
§ 1002;

      5.  An employer for whom a program of self-insurance is
administered by an administrator; and

      6.  An organization for dental care that has been issued a
certificate of authority pursuant to chapter 695D of NRS.

      (Added to NRS by 1999, 2789 )
 “Underwrite” includes, without
limitation:

      1.  Accepting applications for insurance coverage in accordance
with the written rules of an insurer;

      2.  Planning and coordinating a program of insurance; and

      3.  Procuring bonds and excess insurance.

      (Added to NRS by 1999, 2790 )
 No person may
act as, offer to act as or hold himself out to the public as an
administrator, unless he has obtained a certificate of registration as an
administrator from the Commissioner pursuant to NRS 683A.08524 .

      (Added to NRS by 1977, 732; A 1981, 1324; 1999, 2793 )


      1.  A health maintenance organization licensed under chapter 695C
of NRS may enter into a contract to act as
an administrator of a program of health insurance.

      2.  Before entering into a contract pursuant to subsection 1, a
health maintenance organization must file a copy of the contract with the
Commissioner for his approval. The Commissioner shall disapprove the
contract if in his opinion it would have a substantial adverse effect on
the financial soundness of the health maintenance organization and
endanger its ability to meet its obligations. The Commissioner shall
approve or disapprove the contract within 60 days after the filing.

      3.  A health maintenance organization that enters into a contract
pursuant to this section is exempt from the provisions of this chapter
relating to licensing and bonding of administrators, but is subject to
all other provisions of this chapter.

      (Added to NRS by 1987, 534)


      1.  A nonprofit corporation for hospital or medical services
licensed pursuant to chapter 695B of NRS
may enter into a contract to act as an administrator of a program of
health insurance.

      2.  Before entering into a contract pursuant to subsection 1, the
nonprofit corporation must notify the Commissioner in writing and provide
him with a copy of the contract and a summary of the corporation’s
liabilities and costs under the contract.

      3.  A nonprofit corporation for hospital or medical services that
enters into a contract pursuant to this section is exempt from the
provisions of this chapter relating to licensing and bonding of
administrators, but is subject to all other provisions of this chapter.

      (Added to NRS by 1987, 534)
 Each application for a certificate of registration as an
administrator must include or be accompanied by:

      1.  A financial statement that is certified by an officer of the
applicant and must include:

      (a) The amount of money that the applicant expects to collect from
or disburse to residents of this state during the next calendar year;

      (b) Financial information for the 90 days immediately preceding the
date the application was filed with the Commissioner; and

      (c) An income statement and balance sheet for the 2 years
immediately preceding the application that are prepared in accordance
with generally accepted accounting principles. The submission by the
applicant of his consolidated income statement and balance sheet does not
constitute compliance with the provisions of this paragraph.

      2.  The documents used to create the business association of the
administrator, including articles of incorporation, articles of
association, a partnership agreement, a trust agreement and a
shareholders’ agreement.

      3.  The documents used to regulate the internal affairs of the
administrator, including the bylaws, rules or regulations of the
administrator.

      4.  A certificate of registration issued pursuant to NRS 600.350
for a trade name or trademark used by
the administrator.

      5.  An organizational chart that identifies each person who
directly or indirectly controls the administrator and each affiliate of
the administrator.

      6.  A notarized affidavit from each person who manages or controls
the administrator, including each member of the board of directors or
board of trustees, each officer, partner and member of the business
association of the administrator, and each shareholder of the
administrator who holds not less than 10 percent of the voting stock of
the administrator. The affidavit must include:

      (a) The personal history, business record and insurance experience
of the affiant;

      (b) Whether the affiant has been investigated by any regulatory
authority or has had any license or certificate denied, suspended or
revoked in any state; and

      (c) Any other information that the Commissioner may require.

      7.  The complete name and address of each office of the
administrator, including offices located outside this state.

      8.  A statement that sets forth whether the administrator has:

      (a) Held a license or certificate to transact any kind of insurance
in this state or any other state and whether that license or certificate
has been refused, suspended or revoked;

      (b) Been indebted to any person and, if so, the circumstances of
that debt; and

      (c) Had an administrative agreement cancelled and, if so, the
circumstances of that cancellation.

      9.  A statement that describes the business plan of the
administrator. The statement must include information:

      (a) Concerning the number of persons on the staff of the
administrator and the activities proposed in this state or in any other
state.

      (b) That demonstrates the capability of the administrator to
provide a sufficient number of experienced and qualified persons for the
processing of claims, the keeping of records and, if applicable,
underwriting.

      10.  If the applicant intends to solicit new or renewal business,
proof that the applicant employs or has contracted with a producer of
insurance licensed in this state to solicit and take applications. An
applicant who intends to solicit insurance contracts directly or to act
as a producer must provide proof that he is licensed as a producer in
this state.

      (Added to NRS by 1999, 2790 ; A 2001, 2202 )


      1.  Except as otherwise provided in subsection 2, the Commissioner
shall issue a certificate of registration as an administrator to an
applicant who:

      (a) Submits an application on a form prescribed by the Commissioner;

      (b) Has complied with the provisions of NRS 683A.08522 ; and

      (c) Pays the fee for the issuance of a certificate of registration
prescribed in NRS 680B.010 .

      2.  The Commissioner may refuse to issue a certificate of
registration as an administrator to an applicant if the Commissioner
determines that the applicant or any person who has completed an
affidavit pursuant to subsection 6 of NRS 683A.08522 :

      (a) Is not competent to act as an administrator;

      (b) Is not trustworthy or financially responsible;

      (c) Does not have a good personal or business reputation;

      (d) Has had a license or certificate to transact insurance denied
for cause, suspended or revoked in this state or any other state;

      (e) Has failed to comply with any provision of this chapter; or

      (f) Is financially unsound.

      (Added to NRS by 1999, 2792 ; A 2003, 3289 )


      1.  A certificate of registration as an administrator is valid for
3 years after the date the Commissioner issues the certificate to the
administrator.

      2.  An administrator may renew a certificate of registration if he
submits to the Commissioner:

      (a) An application on a form prescribed by the Commissioner; and

      (b) The fee for the renewal of the certificate of registration
prescribed in NRS 680B.010 .

      3.  A certificate of registration that is suspended or revoked must
be surrendered immediately to the Commissioner.

      (Added to NRS by 1999, 2792 )


      1.  Not later than July 1 of each year, each holder of a
certificate of registration as an administrator shall file with the
Commissioner an annual report for the most recently completed fiscal year
of the administrator. Each annual report must be verified by at least two
officers of the administrator.

      2.  Each annual report filed pursuant to this section must include
all the following:

      (a) Except as otherwise provided in this paragraph, a financial
statement of the administrator that has been audited and prepared by an
independent certified public accountant. In lieu of a financial statement
that has been audited and prepared by an independent certified public
accountant, the administrator may include with the annual report a
financial statement that has been reviewed by an independent certified
public accountant if:

             (1) The total business assets of the administrator were less
than $100,000 at the end of the most recently completed fiscal year of
the administrator; or

             (2) The administrator did not have any agreements to act as
an administrator during the most recently completed fiscal year of the
administrator.

      (b) The complete name and address of each person, if any, for whom
the administrator agreed to act as an administrator during the most
recently completed fiscal year of the administrator.

      (c) Any other information required by the Commissioner.

      3.  In addition to the information required pursuant to subsection
2, if an annual report is prepared on a consolidated basis, the annual
report must include a columnar or combining worksheet that:

      (a) Includes the amounts shown on the consolidated financial
statement accompanying the annual report;

      (b) Separately sets forth the amounts for each entity included in
the worksheet; and

      (c) Includes an explanation of each consolidating and eliminating
entry included in the worksheet.

      4.  Each administrator who files an annual report pursuant to this
section shall, at the time of filing the annual report, pay a filing fee
in an amount determined by the Commissioner.

      5.  On or before September 1 of each year, the Commissioner shall,
for each administrator, review the annual report that is most recently
filed by the administrator. As soon as practicable after reviewing the
report, the Commissioner shall:

      (a) Issue a certificate to the administrator:

             (1) Indicating that, based on the annual report and
accompanying financial statement, the administrator has a positive net
worth and is currently licensed and in good standing in this state; or

             (2) Setting forth any deficiency found by the Commissioner
in the annual report and accompanying financial statement; or

      (b) Submit a statement to any electronic database maintained by the
National Association of Insurance Commissioners or any affiliate or
subsidiary of the Association:

             (1) Indicating that, based on the annual report and
accompanying financial statement, the administrator has a positive net
worth and is in compliance with existing law; or

             (2) Setting forth any deficiency found by the Commissioner
in the annual report and accompanying financial statement.

      (Added to NRS by 1999, 2792 ; A 2003, 3290 )
 The Commissioner may waive any requirement which he has
promulgated for issue of an administrator’s certificate to any person or
class of persons. In so doing he shall consider, without limitation:

      1.  Whether the person acting as an administrator is primarily
involved in a business other than that of administrator.

      2.  Whether the financial strength and history of the organization
to which the applicant belongs, or which is the applicant, indicates
stability in its continuity of doing business.

      3.  Whether the regular duties being performed by an administrator
are such that the persons to be insured are not likely to be injured by a
waiver of requirements.

      (Added to NRS by 1977, 732)


      1.  Each administrator shall file with the Commissioner a bond with
an authorized surety in favor of the State of Nevada, continuous in form
and in an amount determined by the Commissioner of not less than $100,000.

      2.  The Commissioner shall establish schedules for the amount of
the bond required, based on the amount of money received and distributed
by an administrator.

      3.  The bond must inure to the benefit of any person damaged by any
fraudulent act or conduct of the administrator and must be conditioned
upon faithful accounting and application of all money coming into the
administrator’s possession in connection with his activities as an
administrator.

      4.  The bond remains in force until released by the Commissioner or
cancelled by the surety. Without prejudice to any liability previously
incurred, the surety may cancel the bond upon 90 days’ advance notice to
the administrator and the Commissioner. An administrator’s certificate is
automatically suspended if he does not file with the Commissioner a
replacement bond before the date of cancellation of the previous bond. A
replacement bond must meet all requirements of this section for the
initial bond.

      (Added to NRS by 1977, 732; A 1985, 480; 1999, 2794 )


      1.  No person may act as an administrator unless he has entered
into a written agreement with an insurer, and the written agreement
contains provisions to effectuate the requirements contained in NRS
683A.08522 to 683A.08528 , inclusive, 683A.087 to 683A.0883 , inclusive, and 683A.0892 which apply to the duties of the
administrator.

      2.  The written agreement must set forth:

      (a) The duties the administrator will be required to perform on
behalf of the insurer; and

      (b) The lines, classes or types of insurance that the administrator
is authorized to administer on behalf of the insurer.

      3.  A copy of an agreement entered into under the provisions of
this section must be retained in the records of the administrator and of
the insurer for a period of 5 years after the termination of the
agreement.

      4.  When a policy is issued to a trustee or trustees, a copy of the
trust agreement and amendments must be obtained by the administrator and
a copy forwarded to the insurer. Each agreement must be retained by the
administrator and the insurer for a period of 5 years after the
termination of the policy.

      5.  The Commissioner may adopt regulations which specify the
functions an administrator may perform on behalf of an insurer.

      6.  The insurer or administrator may, upon written notice to the
other party to the agreement and to the Commissioner, terminate the
written agreement for any cause specified in the agreement. The insurer
may suspend the authority of the administrator while any dispute
regarding the cause for termination is pending. The insurer shall perform
any obligations with respect to the policies affected by the agreement
regardless of any dispute with the administrator.

      (Added to NRS by 1977, 730; A 1985, 480; 1999, 1646 , 2794 )


      1.  Payment by or on behalf of an insured to an administrator shall
be deemed to have been received by the insurer.

      2.  Payment to the administrator by the insurer of return premiums
or claim settlements shall not be deemed to be payment to the insured or
claimant until the money is received by the insured or claimant.

      3.  This section does not limit any right of the insurer against
the administrator resulting from a failure to make payments to an
insurer, insured or claimant.

      (Added to NRS by 1977, 730)
 An administrator may advertise the
insurance which he administers only after he receives the approval of the
insurer who underwrites the business involved.

      (Added to NRS by 1977, 731; A 1999, 2795 )


      1.  Each administrator shall maintain at his principal office
adequate books and records of all transactions between himself, the
insurer and the insured. The books and records must be maintained in
accordance with prudent standards of recordkeeping for insurance and with
regulations of the Commissioner for a period of 5 years after the
transaction to which they respectively relate. After the 5-year period,
the administrator may remove the books and records from the State, store
their contents on microfilm or return them to the appropriate insurer.

      2.  The Commissioner may examine, audit and inspect books and
records maintained by an administrator under the provisions of this
section to carry out the provisions of NRS 679B.230 to 679B.300 , inclusive.

      3.  The names and addresses of insured persons and any other
material which is in the books and records of an administrator are
confidential except when used in proceedings against the administrator.

      4.  The insurer may inspect and examine all books and records to
the extent necessary to fulfill all contractual obligations to insured
persons, subject to restrictions in the written agreement between the
insurer and administrator.

      (Added to NRS by 1977, 730; A 1983, 462; 1999, 2795 )


      1.  All insurance charges and premiums collected by an
administrator on behalf of an insurer and return premiums received from
an insurer are held by the administrator in a fiduciary capacity.

      2.  Money must be remitted within 15 days to the person or persons
entitled to it, or be deposited within 15 days in one or more fiduciary
accounts established and maintained by the administrator in a bank,
credit union or other financial institution in this state. The fiduciary
accounts must be separate from the personal or business accounts of the
administrator.

      3.  If charges or premiums deposited in an account have been
collected for or on behalf of more than one insurer, the administrator
shall cause the bank, credit union or other financial institution where
the fiduciary account is maintained to record clearly the deposits and
withdrawals from the account on behalf of each insurer.

      4.  The administrator shall promptly obtain and keep copies of the
records of each fiduciary account and shall furnish any insurer with
copies of the records which pertain to him upon demand of the insurer.

      5.  The administrator shall not pay any claim by withdrawing money
from his fiduciary account in which premiums or charges are deposited.

      6.  Withdrawals must be made as provided in the agreement between
the insurer and the administrator for:

      (a) Remittance to the insurer.

      (b) Deposit in an account maintained in the name of the insurer.

      (c) Transfer to and deposit in an account for the payment of claims.

      (d) Payment to a group policyholder for remittance to the insurer
entitled to the money.

      (e) Payment to the administrator of his commission, fees or charges.

      (f) Remittance of return premiums to persons entitled to them.

      7.  The administrator shall maintain copies of all records relating
to deposits or withdrawals and, upon the request of an insurer, provide
the insurer with copies of those records.

      (Added to NRS by 1977, 731; A 1999, 1549 , 2795 )


      1.  Except as otherwise provided in subsection 2, an administrator
shall approve or deny a claim relating to health insurance coverage
within 30 days after the administrator receives the claim. If the claim
is approved, the administrator shall pay the claim within 30 days after
it is approved. Except as otherwise provided in this section, if the
approved claim is not paid within that period, the administrator shall
pay interest on the claim at a rate of interest equal to the prime rate
at the largest bank in Nevada, as ascertained by the Commissioner of
Financial Institutions, on January 1 or July 1, as the case may be,
immediately preceding the date on which the payment was due, plus 6
percent. The interest must be calculated from 30 days after the date on
which the claim is approved until the date on which the claim is paid.

      2.  If the administrator requires additional information to
determine whether to approve or deny the claim, he shall notify the
claimant of his request for the additional information within 20 days
after he receives the claim. The administrator shall notify the provider
of health care of all the specific reasons for the delay in approving or
denying the claim. The administrator shall approve or deny the claim
within 30 days after receiving the additional information. If the claim
is approved, the administrator shall pay the claim within 30 days after
he receives the additional information. If the approved claim is not paid
within that period, the administrator shall pay interest on the claim in
the manner prescribed in subsection 1.

      3.  An administrator shall not request a claimant to resubmit
information that the claimant has already provided to the administrator,
unless the administrator provides a legitimate reason for the request and
the purpose of the request is not to delay the payment of the claim,
harass the claimant or discourage the filing of claims.

      4.  An administrator shall not pay only part of a claim that has
been approved and is fully payable.

      5.  A court shall award costs and reasonable attorney’s fees to the
prevailing party in an action brought pursuant to this section.

      6.  The payment of interest provided for in this section for the
late payment of an approved claim may be waived only if the payment was
delayed because of an act of God or another cause beyond the control of
the administrator.

      7.  The Commissioner may require an administrator to provide
evidence which demonstrates that the administrator has substantially
complied with the requirements set forth in this section, including,
without limitation, payment within 30 days of at least 95 percent of
approved claims or at least 90 percent of the total dollar amount for
approved claims.

      8.  If the Commissioner determines that an administrator is not in
substantial compliance with the requirements set forth in this section,
the Commissioner may require the administrator to pay an administrative
fine in an amount to be determined by the Commissioner. Upon a second or
subsequent determination that an administrator is not in substantial
compliance with the requirements set forth in this section, the
Commissioner may suspend or revoke the certificate of registration of the
administrator.

      (Added to NRS by 1999, 1646 ; A 2001, 2728 ; 2003, 3350 )
 Each claim paid
by the administrator from money collected for or on behalf of an insurer
must be paid by a check or draft upon and as authorized by the insurer.

      (Added to NRS by 1977, 731; A 1999, 2796 )


      1.  The compensation paid to an administrator for his services may
be based upon premiums or charges collected, on number of claims paid or
processed or on any other basis agreed upon by the administrator and the
insurer, except as provided in subsection 2.

      2.  Compensation paid to an administrator may not be based upon or
contingent upon:

      (a) The claim experience of the policies that he handles; or

      (b) The savings realized by the administrator by adjusting,
settling or paying the losses covered by an insurer.

      (Added to NRS by 1977, 731; A 1999, 2796 )


      1.  Each administrator shall advise each insured, by means of a
written notice approved by the insurer, of the identity of and
relationship among the insurer, administrator and insured.

      2.  An administrator who seeks to collect premiums or charges shall
clearly set forth in writing to the insured the amount of premium or
charge set by the insurer for the insurance coverage and the reason for
the collection of the premium or charge. Each charge must be set forth
separately from the premium.

      3.  The administrator shall disclose to an insurer, in writing, all
charges, fees and commissions the administrator receives in connection
with the provision of administrative services for the insurer, including,
without limitation, the fees and commissions paid by insurers providing
reinsurance or excess of loss insurance.

      (Added to NRS by 1977, 732; A 1999, 2796 )

 The administrator shall deliver or cause to be delivered to insured
persons any written communications of an insurer which are given to the
administrator for delivery.

      (Added to NRS by 1977, 733)


      1.  The Commissioner:

      (a) Shall suspend or revoke the certificate of registration of an
administrator if the Commissioner has determined, after notice and a
hearing, that the administrator:

             (1) Is in an unsound financial condition;

             (2) Uses methods or practices in the conduct of his business
that are hazardous or injurious to insured persons or members of the
general public; or

             (3) Has failed to pay any judgment against him in this state
within 60 days after the judgment became final.

      (b) May suspend or revoke the certificate of registration of an
administrator if the Commissioner determines, after notice and a hearing,
that the administrator:

             (1) Has willfully violated or failed to comply with any
provision of this Code, any regulation adopted pursuant to this Code or
any order of the Commissioner;

             (2) Has refused to be examined by the Commissioner or has
refused to produce accounts, records or files for examination upon the
request of the Commissioner;

             (3) Has, without just cause, refused to pay claims or
perform services pursuant to his contracts or has, without just cause,
caused persons to accept less than the amount of money owed to them
pursuant to the contracts, or has caused persons to employ an attorney or
bring a civil action against him to receive full payment or settlement of
claims;

             (4) Is affiliated with, managed by or owned by another
administrator or an insurer who transacts insurance in this state without
a certificate of authority or certificate of registration;

             (5) Fails to comply with any of the requirements for a
certificate of registration;

             (6) Has been convicted of or has entered a plea of guilty or
nolo contendere to a felony, whether or not adjudication was withheld;

             (7) Has had his authority to act as an administrator in
another state limited, suspended or revoked; or

             (8) Has failed to file an annual report in accordance with
NRS 683A.08528 .

      (c) May suspend or revoke the certificate of registration of an
administrator if the Commissioner determines, after notice and a hearing,
that a responsible person:

             (1) Has refused to provide any information relating to the
administrator’s affairs or refused to perform any other legal obligation
relating to an examination upon request by the Commissioner; or

             (2) Has been convicted of or has entered a plea of guilty or
nolo contendere to a felony committed on or after October 1, 2003,
whether or not adjudication was withheld.

      (d) May, upon notice to the administrator, suspend the certificate
of registration of the administrator pending a hearing if:

             (1) The administrator is impaired or insolvent;

             (2) A proceeding for receivership, conservatorship or
rehabilitation has been commenced against the administrator in any state;
or

             (3) The financial condition or the business practices of the
administrator represent an imminent threat to the public health, safety
or welfare of the residents of this state.

      (e) May, in addition to or in lieu of the suspension or revocation
of the certificate of registration of the administrator, impose a fine of
$2,000 for each act or violation.

      2.  As used in this section, “responsible person” means any person
who is responsible for or controls or is authorized to control or advise
the affairs of an administrator, including, without limitation:

      (a) A member of the board of directors, board of trustees,
executive committee or other governing board or committee of the
administrator;

      (b) The president, vice president, chief executive officer, chief
operating officer or any other principal officer of an administrator, if
the administrator is a corporation;

      (c) A partner or member of the administrator, if the administrator
is a partnership, association or limited-liability company; and

      (d) Any shareholder or member of the administrator who directly or
indirectly holds 10 percent or more of the voting stock, voting
securities or voting interest of the administrator.

      (Added to NRS by 1999, 2790 ; A 2003, 3291 )
 Any person who acts as an administrator without having
applied for and received from the Commissioner a certificate of
registration as an administrator shall be fined not less than $300 nor
more than $2,000.

      (Added to NRS by 1977, 733)

MANAGING GENERAL AGENTS


      1.  A managing general agent, whether or not located in this state,
shall not be or act as such with respect to the business of an insurer in
this state unless licensed as such under this Code.

      2.  A person who acts as a managing general agent in this state
without a license may be assessed an administrative fine of not more than
$1,000 for each violation.

      (Added to NRS by 1971, 1637; A 1997, 3024; 2001, 2203 )


      1.  A firm or corporation may be licensed as a managing general
agent.

      2.  A resident firm or corporation which has more than one office
in this state is a single licensee for the purposes of being appointed by
insurers and the authority of natural persons to act for the firm or
corporation. Such a firm or corporation must obtain a copy of its license
for each location, but only must obtain one original license as a
managing general agent.

      3.  For licensing as a managing general agent, each general partner
and each natural person to act for the firm, or each natural person to
act for the corporation, must be named in the license and must qualify as
an individual licensee. A natural person who is authorized to act for a
firm or corporation and who also wishes to be licensed in an individual
capacity must obtain a separate license in his own name. The Commissioner
shall charge appropriate fees for each person who is licensed to act for
a firm or corporation and who is named on the license.

      4.  The licensee shall promptly notify the Commissioner of all
changes among its members, directors and officers, and among other
persons named in the license. The licensee shall provide to the
Commissioner upon request information concerning officers or owners of
the firm or corporation who are not named in the license.

      (Added to NRS by 1971, 1639; A 1981, 488; 1983, 915; 1985, 481;
2001, 2204 )
 Each applicant for a
license as a managing general agent must submit with his application:

      1.  A complete set of his fingerprints which the Commissioner may
forward to the Central Repository for Nevada Records of Criminal History
for submission to the Federal Bureau of Investigation for its report;

      2.  The appointment of the applicant as a managing general agent by
each insurer or underwriter department to be so represented; and

      3.  The application and license fee specified in NRS 680B.010
.

      (Added to NRS by 1971, 1641; A 2003, 2867 )

PRODUCERS OF INSURANCE


      1.  A person shall not sell, solicit or negotiate insurance in this
state for any class of insurance unless he is licensed for that class of
insurance.

      2.  An insurer is exempt from the requirement for licensure as a
producer of insurance, but this exemption does not extend to an insurer’s
officers, directors, employees, subsidiaries or affiliates who sell,
solicit or negotiate insurance.

      3.  A person required to be licensed in this state who transacts
insurance without a license is subject to an administrative fine of not
more that $1,000 for each violation.

      (Added to NRS by 2001, 2191 ; A 2003, 3292 )
 The following persons
need not be licensed as producers of insurance:

      1.  An officer, director or employee of an insurer or of a producer
of insurance if the officer, director or employee does not receive any
commission on policies written or sold to insure risks residing, located
or to be performed in this state and:

      (a) The officer, director or employee’s activities are executive,
administrative, managerial or clerical, or a combination thereof, and are
only indirectly related to the sale, solicitation or negotiation of
insurance;

      (b) The officer, director or employee’s function relates to
underwriting, control of losses, inspection or the processing, adjusting,
investigating or settling of claims on contracts of insurance; or

      (c) The officer, director or employee is acting in the capacity of
a special agent or supervisor of an agency assisting producers of
insurance where his activities are limited to providing technical advice
and assistance to licensed producers and do not include sale,
solicitation or negotiation of insurance.

      2.  A person who secures and furnishes information for the purpose
of group life insurance, group property and casualty insurance, group
annuities, or group or blanket accident and health insurance, or for the
purpose of enrolling natural persons under plans, issuing certificates
under plans or otherwise assisting in administering plans, or who
performs administrative services related to mass marketed property and
casualty insurance, if no commission is paid to him for the service and
he does not sell, solicit or negotiate insurance. As used in this
subsection, “blanket accident and health insurance” has the meaning
ascribed to it in NRS 689B.070 .

      3.  An employer or association or its officers, directors or
employees, or the trustees of an employees’ trust plan, to the extent
that the employer, association, officers, directors, employees or
trustees are engaged in the administration or operation of a program of
employees’ benefits for the employer’s or association’s own employees or
the employees of its subsidiaries or affiliates, if the program involves
the use of insurance issued by an insurer and the employer, association,
officers, directors, employees or trustees are not compensated by the
insurer issuing the contracts.

      4.  Employees of insurers or organizations employed by insurers who
are engaged in the inspection, rating or classification of risks or in
the supervision of the training of producers of insurance and are not
individually engaged in the sale, solicitation or negotiation of
insurance.

      5.  A person whose activities in this state are limited to
advertising, without the intent to solicit insurance in this state,
through communications in printed publications or electronic mass media
whose distribution is not limited to residents of this state, if he does
not sell, solicit or negotiate insurance of risks residing, located or to
be performed in this state.

      6.  A salaried full-time employee who counsels or advises his
employer concerning the interests of the employer, or of the subsidiaries
or affiliates of the employer, in insurance, if the employee does not
sell or solicit insurance or receive a commission.

      7.  An employee of a producer of insurance or an insurer who
responds to requests from holders of policies previously issued, if the
employee is not directly compensated according to the volume of premiums
that may result from those services and does not solicit insurance or
offer advice concerning terms or conditions of policies.

      (Added to NRS by 2001, 2191 ; A 2003, 3292 )
 If a short-term
lessor of passenger vehicles licensed pursuant to NRS 482.363 holds a limited license as a producer of
insurance issued pursuant to NRS 683A.271 , an employee of the short-term lessor may
engage in the solicitation and sale of insurance requested by a lessee
pursuant to NRS 482.3158 without a
license issued pursuant to this chapter if the solicitation and sale of
such insurance is done on behalf of, and under the supervision of, the
short-term lessor.

      (Added to NRS by 1999, 820 ; A 2001, 2204 )—(Substituted in revision for NRS
683A.105)


      1.  For the purposes of this section:

      (a) “Affiliate” means a person that directly, or indirectly through
one or more intermediaries, is controlled by, or is under common control
with, a bank.

      (b) “Bank” means any institution that accepts deposits that the
depositor has a legal right to withdraw on demand.

      (c) “Financial holding company” means a bank holding company as
defined in section 4(l)(2) of the Bank Holding Company Act of 1956, 12
U.S.C. § 1841(l)(1).

      (d) “Parent” means a person that owns or controls a bank, directly
or indirectly, in whole or in part.

      (e) “Subsidiary” means a person owned or controlled by a bank,
directly or indirectly, in whole or in part.

      2.  A bank may be licensed as a producer of insurance in this state:

      (a) To the extent permitted by Title V of Public Law 106-102, 15
U.S.C. §§ 6801 et seq.; and

      (b) For credit insurance, as defined in NRS 690A.015 , and credit property insurance.

      3.  A bank must not be licensed or admitted as an insurer.

      4.  The provisions of subsection 3 do not prohibit the licensing by
the Commissioner of an affiliate, financial holding company, parent or
subsidiary of a bank to sell insurance or be admitted as an insurer.

      (Added to NRS by 1971, 1638; A 1987, 2285; 1993, 2281; 1995, 1614;
1997, 782; 2001, 2204 )—(Substituted in revision for NRS
683A.110)


      1.  A resident natural person applying for a license as a producer
of insurance must pass a written examination unless exempt under NRS
683A.291 . The examination must test
his knowledge concerning the lines of authority for which application is
made, the duties and responsibilities of a producer and the laws and
regulations of this state relating to insurance. The Commissioner shall
adopt regulations for developing and conducting examinations required by
this section.

      2.  The Commissioner may contract with a person outside the
Division for administering examinations, processing applications,
collecting fees and performing any other functions he considers
appropriate.

      3.  Each natural person applying for an examination shall pay a
nonrefundable fee in an amount prescribed by the Commissioner to defray
the cost of processing the application and administering the examination.

      4.  An applicant who fails to appear for the examination as
scheduled or fails to pass the examination must reapply for examination
and pay the required fee in order to be scheduled for another examination.

      (Added to NRS by 2001, 2192 )


      1.  The Commissioner shall prescribe the form of application by a
natural person for a license as a resident producer of insurance. The
applicant must declare, under penalty of refusal to issue, or suspension
or revocation of, the license, that the statements made in the
application are true, correct and complete to the best of his knowledge
and belief. Before approving the application, the Commissioner must find
that the applicant has:

      (a) Attained the age of 18 years;

      (b) Not committed any act that is a ground for refusal to issue, or
suspension or revocation of, a license;

      (c) Completed a course of study for the lines of authority for
which the application is made, unless the applicant is exempt from this
requirement;

      (d) Paid the fee prescribed for the license and a fee established
by the Commissioner of not more than $15 for deposit in the Insurance
Recovery Account, neither of which may be refunded; and

      (e) Successfully passed the examinations for the lines of authority
for which application is made, unless the applicant is exempt from this
requirement.

      2.  A business organization must be licensed as a producer of
insurance in order to act as such. Application must be made on a form
prescribed by the Commissioner. Before approving the application, the
Commissioner must find that the applicant has:

      (a) Paid the fee prescribed for the license and a fee established
by the Commissioner of not more than $15 for deposit in the Insurance
Recovery Account, neither of which may be refunded; and

      (b) Designated a natural person who is licensed as a producer of
insurance and who is affiliated with the business organization to be
responsible for the organization’s compliance with the laws and
regulations of this State relating to insurance.

      3.  A natural person who is a resident of this State applying for a
license must furnish a complete set of his fingerprints which the
Commissioner may forward to the Central Repository for Nevada Records of
Criminal History for submission to the Federal Bureau of Investigation
for its report. The Commissioner shall adopt regulations concerning the
procedures for obtaining this information.

      4.  The Commissioner may require any document reasonably necessary
to verify information contained in an application.

      (Added to NRS by 2001, 2193 ; A 2003, 3293 ; 2005, 2122 )


      1.  Unless the Commissioner refuses to issue the license under NRS
683A.451 , he shall issue a license as
a producer of insurance to a person who has satisfied the requirements of
NRS 683A.241 and 683A.251 . A producer of insurance may qualify for a
license in one or more of the lines of authority permitted by statute or
regulation, including:

      (a) Life insurance on human lives, which includes benefits from
endowments and annuities and may include additional benefits from death
by accident and benefits for dismemberment by accident and for disability.

      (b) Health insurance for sickness, bodily injury or accidental
death, which may include benefits for disability.

      (c) Property insurance for direct or consequential loss or damage
to property of every kind.

      (d) Casualty insurance against legal liability, including liability
for death, injury or disability and damage to real or personal property.

      (e) Surety indemnifying financial institutions or providing bonds
for fidelity, performance of contracts or financial guaranty.

      (f) Variable annuities and variable life insurance, including
coverage reflecting the results of a separate investment account.

      (g) Credit insurance, including life, disability, property,
unemployment, involuntary unemployment, mortgage life, mortgage guaranty,
mortgage disability, guaranteed protection of assets, and any other form
of insurance offered in connection with an extension of credit that is
limited to wholly or partially extinguishing the obligation which the
Commissioner determines should be considered as limited-line credit
insurance.

      (h) Personal lines, consisting of automobile and motorcycle
insurance and residential property insurance, including coverage for
flood, of personal watercraft and of excess liability, written over one
or more underlying policies of automobile or residential property
insurance.

      (i) Fixed annuities as a limited line.

      (j) Travel and baggage as a limited line.

      (k) Rental car agency as a limited line.

      2.  A license as a producer of insurance remains in effect unless
revoked, suspended or otherwise terminated if a request for a renewal is
submitted on or before the date for the renewal specified on the license,
the fee for renewal and a fee established by the Commissioner of not more
than $15 for deposit in the Insurance Recovery Account are paid for each
license and each affiliation with a business organization licensed
pursuant to subsection 2 of NRS 683A.251 , and any requirement for education or any
other requirement to renew the license is satisfied by the date specified
on the license for the renewal. A producer of insurance may submit a
request for a renewal of his license within 30 days after the date
specified on the license for the renewal if the producer of insurance
otherwise complies with the provisions of this subsection and pays, in
addition to any fee paid pursuant to this subsection, a penalty of 50
percent of the renewal fee. A license as a producer of insurance expires
if the Commissioner receives a request for a renewal of the license more
than 30 days after the date specified on the license for the renewal. A
fee paid pursuant to this subsection is nonrefundable.

      3.  A natural person who allows his license as a producer of
insurance to expire may reapply for the same license within 12 months
after the date specified on the license for a renewal without passing a
written examination or completing a course of study required by paragraph
(c) of subsection 1 of NRS 683A.251 ,
but a penalty of twice the renewal fee is required for any request for a
renewal of the license that is received after the date specified on the
license for the renewal.

      4.  A licensed producer of insurance who is unable to renew his
license because of military service, extended medical disability or other
extenuating circumstance may request a waiver of the time limit and of
any fine or sanction otherwise required or imposed because of the failure
to renew.

      5.  A license must state the licensee’s name, address, personal
identification number, the date of issuance, the lines of authority and
the date of expiration and must contain any other information the
Commissioner considers necessary. A resident producer of insurance shall
maintain a place of business in this State which is accessible to the
public and where he principally conducts transactions under his license.
The place of business may be in his residence. The license must be
conspicuously displayed in an area of the place of business which is open
to the public.

      6.  A licensee shall inform the Commissioner of each change of
location from which he conducts business as a producer of insurance and
each change of business or residence address, in writing or by other
means acceptable to the Commissioner, within 30 days after the change. If
a licensee changes the location from which he conducts business as a
producer of insurance or his business or residence address without giving
written notice and the Commissioner is unable to locate the licensee
after diligent effort, he may revoke the license without a hearing. The
mailing of a letter by certified mail, return receipt requested,
addressed to the licensee at his last mailing address appearing on the
records of the Division, and the return of the letter undelivered,
constitutes a diligent effort by the Commissioner.

      (Added to NRS by 2001, 2193 ; A 2003, 3294 ; 2005, 2122 )


      1.  Unless the Commissioner refuses to issue the license under NRS
683A.451 , the Commissioner shall
issue a license as a producer of insurance to a nonresident person if:

      (a) He is currently licensed as a resident and in good standing in
his home state;

      (b) He has made the proper request for licensure and paid the fee
prescribed for the license and a fee established by the Commissioner of
not more than $15 for deposit in the Insurance Recovery Account;

      (c) He has sent to the Commissioner the application for licensure
that he made in his home state, or a completed uniform application; and

      (d) His home state issues nonresident licenses as producers of
insurance to residents of this State pursuant to substantially the same
procedure.

      2.  The Commissioner may participate with the National Association
of Insurance Commissioners or a subsidiary in a centralized registry in
which licensing and appointment of producers of insurance may be effected
for all states that require licensing and participate in the registry. If
he finds that participation is in the public interest, he may adopt by
regulation any uniform standards and procedures necessary for
participation, including central collection of fees for licensing and
appointment that are handled through the registry.

      3.  A nonresident producer who moves from one state to another
state shall file a change of address and certification from his new state
of residence within 30 days after his change of legal residence. No fee
or application for license is required.

      4.  A nonresident licensed as a producer for surplus lines in his
home state must be issued a nonresident license of that kind in this
State pursuant to subsection 1, subject in all other respects to chapter
685A of NRS. A nonresident licensed as a
producer for limited lines in his home state is entitled to a nonresident
license of that kind in this State pursuant to subsection 1, granting the
same scope of authority as the license issued in the home state. As used
in this subsection, insurance for limited lines is authority granted by
the home state which is restricted to less than the total authority
prescribed for the associated major lines pursuant to NRS 683A.261 .

      (Added to NRS by 2001, 2195 ; A 2005, 2124 )


      1.  Every nonresident licensed by this state as a producer of
insurance shall appoint the Commissioner in writing as his attorney upon
whom may be served all legal process issued in connection with any action
or proceeding brought or pending in this state against or involving the
licensee and relating to transactions under his Nevada license. The
appointment is irrevocable and continues in force for so long as any such
action or proceeding may arise or exist. Duplicate copies of process must
be served upon the Commissioner or other person in apparent charge of the
Division during the Commissioner’s absence, accompanied by payment of the
fee for service of process. Upon such service the Commissioner shall
promptly forward a copy of the process by certified mail with return
receipt requested to the nonresident licensee at his business address
last of record with the Division. Process served and the copy thereof
forwarded as provided in this subsection constitutes for all purposes
personal service thereof upon the licensee.

      2.  Every such licensee shall likewise file with the Commissioner
his written agreement to appear before the Commissioner pursuant to
notice of hearing, show cause order or subpoena issued by the
Commissioner and deposited, postage paid, by certified mail with the
United States Postal Service, addressed to the licensee at his address
last of record in the Division, and that upon failure of the licensee so
to appear the licensee thereby consents to any subsequent suspension,
revocation or refusal of the Commissioner to continue the licensee’s
license.

      (Added to NRS by 1971, 1651; A 1987, 735; 1991, 1625; 1993, 1914;
2001, 2206 )—(Substituted in revision for NRS
683A.350)


      1.  An applicant for licensing in this state as a producer of
insurance who was previously licensed for the same lines of authority in
another state need not complete any education or examination if he is
currently licensed in that state or, if the application is received
within 90 days after the cancellation of his license, the other state
certifies that he was in good standing at the time of cancellation.
Alternatively, the exemption is available if the records of the National
Association of Insurance Commissioners show that the applicant is or was
licensed and in good standing for the lines of authority requested.

      2.  An examination is not required for a producer of insurance who
confines his activity to insurance categorized as limited line, credit,
travel, baggage or fixed annuity, or covering vehicles leased for a short
term.

      3.  A person licensed in another state who moves to this state and
desires to become licensed as a resident producer of insurance with the
benefit of the exemption provided in subsection 1 must apply for
licensing within 90 days after establishing legal residence.

      (Added to NRS by 2001, 2195 )


      1.  An applicant for a license as a producer of insurance or a
licensee who desires to use a name other than his true name as shown on
the license shall submit a request for approval of the name and file with
the Commissioner a certified copy of the certificate or any renewal
certificate filed pursuant to chapter 602 of
NRS. An incorporated applicant or licensee shall file with the
Commissioner a document showing the corporation’s true name and all
fictitious names under which it conducts or intends to conduct business.
A licensee shall file promptly with the Commissioner a written notice of
any change in or discontinuance of the use of a fictitious name.

      2.  The Commissioner may disapprove in writing the use of a true
name, other than the true name of a natural person who is the applicant
or licensee, or a fictitious name of any applicant or licensee, on any of
the following grounds:

      (a) The name interferes with or is deceptively similar to a name
already filed and in use by another licensee.

      (b) Use of the name may mislead the public in any respect.

      (c) The name states or implies that the applicant or licensee is an
insurer, motor club or hospital service plan or is entitled to engage in
activities related to insurance not permitted under the license applied
for or held.

      (d) The name states or implies that the licensee is an underwriter,
but:

             (1) A natural person licensed as an agent or broker for life
insurance may describe himself as an underwriter or “chartered life
underwriter” if entitled to do so;

             (2) A natural person licensed for property and casualty
insurance may use the designation “chartered property and casualty
underwriter” if entitled thereto; and

             (3) An insurance agent or brokers’ trade association may use
a name containing the word “underwriter.”

      (e) The licensee submits a request to use more than one fictitious
name at a single business location.

      3.  A licensee shall not use a name after written notice from the
Commissioner indicates that its use violates the provisions of this
section. If the Commissioner determines that the use is justified by
mitigating circumstances, he may permit, in writing, the use of the name
to continue for a specified reasonable period upon conditions imposed by
him for the protection of the public consistent with this section.

      4.  Paragraphs (a), (c) and (d) of subsection 2 do not apply to the
true name of an organization which on July 1, 1965, held under that name
a type of license similar to those governed by this chapter, or to a
fictitious name used on July 1, 1965, by a natural person or organization
holding such a license, if the fictitious name was filed with the
Commissioner on or before July 1, 1965.

      (Added to NRS by 2001, 2196 ; A 2003, 156 , 3296 )


      1.  The Commissioner may issue a temporary license as a producer of
insurance to any of the following for 180 days or less without requiring
an examination if he believes that the temporary license is necessary to
carry on the business of insurance:

      (a) The surviving spouse, personal representative or guardian of a
licensed producer who dies or becomes incompetent, to allow adequate time
for the sale of the business, the recovery or return of the producer, or
the training and licensing of new personnel to operate the business;

      (b) A member or employee of a business organization licensed as a
producer, upon the death or disability of the natural person designated
in its application or license;

      (c) The designee of a licensed producer entering active service in
the Armed Forces of the United States; or

      (d) A person in any other circumstance where the Commissioner
believes that the public interest will be best served by issuing the
license.

      2.  The Commissioner may limit by order the authority of a
temporary licensee as he believes necessary to protect persons insured
and the public. He may require the temporary licensee to have a suitable
sponsor who is licensed as a producer of insurance or authorized as an
insurer and who assumes responsibility for all acts of the temporary
licensee, and may impose similar requirements to protect persons insured
and the public. The Commissioner may revoke a temporary license by order
if the interests of persons insured or the public are endangered. A
temporary license expires when the owner or his personal representative
or guardian disposes of the business.

      (Added to NRS by 2001, 2196 )


      1.  A producer of insurance shall not act as an agent unless he is
appointed as an agent by the insurer. A producer who is not acting as an
agent is a broker who does not need to be appointed.

      2.  To appoint a producer of insurance as its agent, an insurer
must file, in a form approved by the Commissioner, a notice of
appointment within 15 days after the contract is executed or the first
application for insurance is submitted. An insurer may appoint a producer
to act as agent for all or some insurers within its holding company or
group by filing a single notice of appointment. A notice of appointment
may include several agents.

      3.  Upon receipt of a notice of appointment, the Commissioner shall
determine within 30 days whether the producer of insurance is eligible
for appointment. If he is not, the Commissioner shall so notify the
insurer within 5 days after the determination is made.

      4.  An insurer shall pay an appointment fee and remit an annual
renewal fee for each producer of insurance appointed as its agent. A
payment or remittance may include fees for several agents.

      5.  A broker shall not place insurance, other than life insurance,
health insurance, annuity contracts or coverage written pursuant to the
Surplus Lines Law set forth in chapter 685A
of NRS, that covers property or risks within this state unless the broker
does so with a licensed agent of an authorized insurer.

      6.  A producer who is acting as an agent may also act as and be a
broker with regard to insurers for which he is not acting as an agent.
The sole relationship between an insurer and a broker who is appointed as
an agent by the insurer as to any transactions arising during the period
in which he is appointed as an agent is that of insurer and agent, and
not insurer and broker.

      7.  As used in this section:

      (a) “Agent” means a producer of insurance who is compensated by the
insurer and sells, solicits or negotiates insurance for the insurer.

      (b) “Broker” means a producer of insurance who:

             (1) Is not an agent of an insurer;

             (2) Solicits, negotiates or procures insurance on behalf of
an insured or prospective insured; and

             (3) Does not have the power, by his own actions as a broker,
to obligate an insurer upon any risk or with reference to any transaction
of insurance.

      (Added to NRS by 2001, 2199 )


      1.  A producer of insurance who is appointed as an agent may pay a
commission or compensation for or on account of the selling, soliciting,
procuring or negotiating of insurance in this State only to a licensed
and appointed producer of insurance of the insurer with whom insurance
was placed or to a licensed producer acting as a broker.

      2.  A licensee shall not accept any commission or compensation to
which he is not entitled pursuant to the provisions of this title.

      (Added to NRS by 2005, 2121 )


      1.  An insurer or its authorized representative who terminates the
appointment, employment or other relationship of a producer of insurance
to the insurer for any reason shall notify the Commissioner within 30
days after the effective date of the termination, in a form prescribed by
the Commissioner. The insurer shall provide additional information or
documents if so requested in writing by the Commissioner.

      2.  If the reason for termination is an activity described in NRS
683A.451 as a cause for disciplinary
action or the insurer knows that the producer has been found to have
engaged in such an activity by a court, governmental agency or
self-regulatory organization authorized by law, the insurer or its
authorized representative shall notify the Commissioner, in a form
acceptable to the Commissioner, if upon further review or investigation
the insurer discovers additional information that would have been
reportable originally to the Commissioner if the insurer had then known
it.

      3.  Within 15 days after notifying the Commissioner under
subsection 1 or 2, the insurer shall mail a copy of the notification to
the producer of insurance at his last known address. If the termination
was for an activity described in subsection 2, the copy must be sent by
certified mail, return receipt requested, or by overnight delivery using
a nationally recognized carrier.

      4.  Within 30 days after the producer has received the original or
additional notification, he may file written comments concerning the
substance of the notification with the Commissioner. The producer shall
send a copy of the comments, by the same means and at the same time, to
the reporting insurer. The comments become a part of the Commissioner’s
file and must accompany every copy of the underlying report that is
distributed or disclosed by the Commissioner.

      5.  In the absence of actual malice, an insurer, its authorized
representative, a producer of insurance, the Commissioner, and any
organization of which the Commissioner is a member which compiles
information and makes it available to other commissioners of insurance or
to regulatory or law enforcement agencies are not subject to civil
liability, and no cause of action arises against any of them or their
respective agents or employees, as a result of any statement or
information required by or provided pursuant to this section or any
statement by a terminating insurer or a producer to another insurer or
producer limited to whether a termination for a cause described in
subsection 2 was reported to the Commissioner, if in the latter case the
propriety of termination for that cause is certified in writing by an
officer or authorized representative of the insurer or by the producer.

      6.  In an action brought against a person who may have immunity
under subsection 5 for making a statement or providing information
required by this section or requested by the Commissioner under this
section, the plaintiff must plead specifically that subsection 5 does not
apply because the person making the statement or providing the
information did so with actual malice.

      7.  Subsections 5 and 6 do not abrogate or modify any other
privilege or immunity under statute or the common law.

      (Added to NRS by 2001, 2199 )
 A producer of insurance shall
report to the Commissioner:

      1.  Any administrative action taken against him in another
jurisdiction or by another governmental agency in this state, within 30
days after the final disposition of the matter. The report must include a
copy of the complaint filed, the order issued and any other relevant
legal documents.

      2.  Any criminal prosecution against him in any jurisdiction,
within 30 days after the initial pretrial hearing. The report must
include a copy of the complaint filed, the order as a result of the
pretrial hearing and other relevant legal documents.

      (Added to NRS by 2001, 2200 )


      1.  Every producer of insurance shall keep complete records of
transactions under his license. The records must show, for each insurance
policy placed or countersigned by or through the licensee, not less than
the names of the insurer and insured, the number and expiration date of,
and premium payable as to, the policy or contract, the names of all other
persons from whom business is accepted or to whom commissions are
promised or paid, all premiums collected, and such additional information
as the Commissioner may reasonably require.

      2.  The records must be open to examination of the Commissioner at
all times, and the Commissioner may at any time require the licensee to
furnish to him, in such a manner or form as he requires, any information
kept or required to be kept in those records. The records may be kept in
an electronic format if, using the electronic format, the records are
retained in accordance with this section.

      3.  Records of a particular policy or contract may be destroyed 3
years after expiration of the policy or contract.

      (Added to NRS by 1971, 1653; A 1977, 218; 1985, 484; 1993, 2388;
2001, 2208 ; 2003, 3297 )


      1.  An insurer or a producer of insurance shall not pay a
commission, brokerage, fee for service or other valuable consideration to
a person for selling, soliciting or negotiating insurance in this State
if his activities require him to be licensed under this title and he is
not so licensed.

      2.  A person shall not accept a commission, brokerage, fee for
service or other valuable consideration for selling, soliciting or
negotiating insurance in this State if his activities require him to be
licensed under this title and he is not so licensed.

      3.  Commissions for renewal and other deferred commissions may be
paid to a person whose activities required him to be licensed under this
title at the time of the sale, solicitation or negotiation and he was so
licensed at that time.

      4.  An insurer or producer of insurance may pay or assign
commissions, brokerage, fees for service or other valuable considerations
to a person who does not sell, solicit or negotiate insurance in this
State unless the payment would violate the provisions of NRS 686A.110
or 686A.120 .

      5.  An insurer shall not pay a commission, directly or indirectly,
to a producer of insurance for selling, soliciting or negotiating
insurance in this State unless the producer of insurance is appointed as
an agent of the insurer as provided in NRS 683A.321 . This subsection does not apply to a broker
for reinsurance or to business placed pursuant to subsection 3, NRS
683A.325 or 685A.155 , or contracts entered into pursuant to NRS
693A.110 which are approved by the
Commissioner.

      6.  A producer of insurance shall not accept a commission from an
insurer for selling, soliciting or negotiating insurance in this State
unless he is appointed as an agent of the insurer as provided in NRS
683A.321 . This subsection does not
apply to a broker for reinsurance or to business placed pursuant to
subsection 3, NRS 683A.325 or
685A.155 , or contracts entered into
pursuant to NRS 693A.110 which are
approved by the Commissioner.

      7.  As used in this section, “broker for reinsurance” has the
meaning ascribed to it in NRS 681A.280 .

      (Added to NRS by 2001, 2198 ; A 2005, 2125 )


      1.  A licensed producer of insurance or insurer may solicit for and
issue personal travel accident insurance policies by means of mechanical
vending machines supervised by the producer and placed at airports and
similar places of convenience to the traveling public, if the
Commissioner finds that:

      (a) The policy provides reasonable coverage and benefits, is
suitable for sale and issuance by vending machine, and that use of such a
machine in a proposed location would be of material convenience to the
public;

      (b) The type of machine proposed to be used is reasonably suitable
for the purpose;

      (c) Reasonable means are provided for informing prospective
purchasers of policy coverages and restrictions;

      (d) Reasonable means are provided for the refund of money inserted
in defective machines and for which insurance so paid for is not
received; and

      (e) The cost of maintaining such a machine at a particular location
is reasonable in amount.

      2.  For each machine to be used, the Commissioner shall issue to
the producer upon his application a special vending machine license. The
license is subject to annual continuation, to expiration, suspension or
revocation coincidentally with that of the producer. The Commissioner
shall also revoke the license of any machine as to which he finds that
the license qualifications no longer exist. Proof of the existence of a
subsisting license must be displayed on or about each machine in use in
such manner as the Commissioner reasonably requires.

      (Added to NRS by 1971, 1652; A 2001, 2206 )

EXTERNAL REVIEW ORGANIZATIONS


      1.  An external review organization shall not conduct an external
review of a final adverse determination pursuant to NRS 695G.241 to 695G.310 , inclusive, unless the external review
organization is certified in accordance with regulations adopted by the
Commissioner. The regulations must include, without limitation,
provisions setting forth:

      (a) The manner in which an external review organization may apply
for a certificate and the requirements for the issuance and renewal of
the certificate pursuant to this section;

      (b) The grounds for which the Commissioner may refuse to issue,
suspend, revoke or refuse to renew a certificate issued pursuant to this
section; and

      (c) The manner and circumstances under which an external review
organization is required to conduct its business.

      2.  A certificate issued pursuant to this section expires 1 year
after it is issued and may be renewed in accordance with regulations
adopted by the Commissioner.

      3.  Except as otherwise provided in subsection 6, before the
Commissioner may certify an external review organization, the external
review organization must:

      (a) Demonstrate to the satisfaction of the Commissioner that it is
able to carry out, in a timely manner, the duties of an external review
organization set forth in this section and NRS 695G.241 to 695G.310 , inclusive. The demonstration must include,
without limitation, proof that the external review organization employs,
contracts with or otherwise retains only persons who are qualified
because of their education, training, professional licensing and
experience to perform the duties assigned to those persons; and

      (b) Provide assurances satisfactory to the Commissioner that the
external review organization will:

             (1) Conduct its external review activities in accordance
with the provisions of this section and NRS 695G.241 to 695G.310 , inclusive;

             (2) Provide its determinations in a clear, consistent,
thorough and timely manner; and

             (3) Avoid conflicts of interest.

      4.  For the purposes of this section, an external review
organization has a conflict of interest if the external review
organization or any employee, agent or contractor of the external review
organization who conducts an external review has a material professional,
familial or financial interest in any person who has a substantial
interest in the outcome of the external review, including, without
limitation:

      (a) The insured;

      (b) The insurer or any officer, director or management employee of
the insurer;

      (c) The provider of health care services that are provided or
proposed to be provided, his partner or any other member of his medical
group or practice;

      (d) The hospital or other licensed health care facility where the
health care service or treatment that is subject to external review has
been or will be provided; or

      (e) A developer, manufacturer or other person who has a substantial
interest in the principal procedure, equipment, drug, device or other
instrumentality that is the subject of the external review.

      5.  The Commissioner shall not certify an external review
organization that is affiliated with:

      (a) A health care plan; or

      (b) A national, state or local trade association.

      6.  An external review organization that is certified or accredited
by an accrediting body that is nationally recognized shall be deemed to
have satisfied all the conditions and qualifications required for
certification pursuant to this section.

      7.  The Commissioner may charge and collect a fee for issuing or
renewing a certificate of an external review organization pursuant to
this section. The fee must not exceed the cost of issuing or renewing the
certificate.

      8.  The Commissioner shall annually prepare and make available to
the general public a list that includes the name of each external review
organization which is issued a certificate or whose certificate is
renewed pursuant to this section during the year immediately preceding
the year in which the Commissioner prepares the list.

      9.  As used in this section:

      (a) “Adverse determination” has the meaning ascribed to it in NRS
695G.012 .

      (b) “External review organization” has the meaning ascribed to it
in NRS 695G.018 .

      (c) “Provider of health care” means any physician or other person
who is licensed in this State or is licensed, certified or otherwise
authorized by any other state to provide any health care service.

      (Added to NRS by 2003, 772 )
 As soon as practicable after preparing an annual list
of external review organizations pursuant to subsection 8 of NRS 683A.371
, the Commissioner shall submit a copy
of the list to the Office for Consumer Health Assistance. If a change
occurs in the list, the Commissioner shall notify the Office for Consumer
Health Assistance of the change.

      (Added to NRS by 2003, 774 )

AGENTS WHO PERFORM UTILIZATION REVIEW
 The purposes of NRS 683A.375 to 683A.379 , inclusive, are to:

      1.  Promote the delivery of health care of high quality in a manner
that limits the cost of such care; and

      2.  Foster greater cooperation between providers of health care and
agents who perform utilization review.

      (Added to NRS by 1991, 802)
 As used in NRS 683A.375 to 683A.379 , inclusive:

      1.  “Agent who performs utilization review” includes any person who
performs such review except a person acting on behalf of the Federal
Government, but only to the extent that the person provides the service
for the Federal Government or an agency thereof.

      2.  “Insured” means a natural person who has contracted for or
participates in coverage under a policy of insurance, a contract with a
health maintenance organization, a plan for hospital, medical or dental
services or any other program providing payment, reimbursement or
indemnification for the costs of health care for himself, his dependents,
or both.

      3.  “Utilization review” means a system that provides, at a
minimum, for review of the necessity and appropriateness of the
allocation of health care resources and services provided or proposed to
be provided to an insured or to any person claiming benefits against a
policy of the insured. The term does not include responding to requests
made by an insured for clarification of his coverage.

      (Added to NRS by 1991, 802; A 2001, 2207 )
 The provisions of NRS 683A.375 to 683A.379 , inclusive, do not apply to:

      1.  An authorized insurer;

      2.  A fraternal benefit society that is certified pursuant to
chapter 695A of NRS;

      3.  A nonprofit corporation for hospital, medical or dental
services that is certified pursuant to chapter 695B of NRS;

      4.  A health maintenance organization that is certified pursuant to
chapter 695C of NRS; or

      5.  An organization for dental care that is certified pursuant to
chapter 695D of NRS,

Ê which performs its own utilization review. This section does not limit
the applicability of NRS 683A.375 to
683A.379 , inclusive, to affiliates
and subsidiaries of such entities or to contracts between such entities
and independent agents who perform utilization review.

      (Added to NRS by 1991, 802)


      1.  A person shall not conduct utilization review unless he is:

      (a) Registered with the Commissioner as an agent who performs
utilization review and has a medical director who is a physician or, in
the case of an agent who reviews dental services, a dentist, licensed in
any state; or

      (b) Employed by a registered agent who performs utilization review.

      2.  A person may apply for registration by filing with the
Commissioner a $250 fee and the following information on a form provided
by the Commissioner:

      (a) The applicant’s name, address, telephone number and normal
business hours;

      (b) The name and telephone number of a person the Commissioner may
contact for information concerning the applicant;

      (c) The name of the medical director of the applicant and the state
in which he is licensed to practice medicine or dentistry; and

      (d) A summary of the plan for utilization review, including
procedures for appealing determinations made through utilization review.

      3.  An agent who performs utilization review shall file with the
Commissioner any material changes in the information provided pursuant to
subsection 1 within 30 days after the change occurs.

      4.  The Commissioner shall not evaluate the plan submitted pursuant
to paragraph (d) of subsection 2. The Commissioner shall make the plan
available upon request and shall charge a reasonable fee for providing a
copy of the plan.

      5.  Registration pursuant to this section must be renewed on or
before March 1 of each year by providing the information specified in
subsection 2 and paying a renewal fee of $250.

      (Added to NRS by 1991, 802)
 A person who violates any provision of NRS
683A.375 to 683A.378 , inclusive, shall be punished by a fine of
not more than $1,000.

      (Added to NRS by 1991, 803)

MISCELLANEOUS PROVISIONS
[Expires by limitation
on the date of the repeal of the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]

      1.  A natural person who applies for the issuance or renewal of a
certificate of registration as an administrator or a license as a
producer of insurance or managing general agent shall submit to the
Commissioner the statement prescribed by the Division of Welfare and
Supportive Services of the Department of Health and Human Services
pursuant to NRS 425.520 . The statement
must be completed and signed by the applicant.

      2.  The Commissioner shall include the statement required pursuant
to subsection 1 in:

      (a) The application or any other forms that must be submitted for
the issuance or renewal of the certificate of registration or license; or

      (b) A separate form prescribed by the Commissioner.

      3.  A certificate of registration as an administrator or a license
as a producer of insurance or managing general agent may not be issued or
renewed by the Commissioner if the applicant is a natural person who:

      (a) Fails to submit the statement required pursuant to subsection
1; or

      (b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.

      (Added to NRS by 1997, 2186; A 2001, 2207 )

[Expires by limitation on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]

      1.  If the Commissioner receives a copy of a court order issued
pursuant to NRS 425.540 that provides
for the suspension of all professional, occupational and recreational
licenses, certificates and permits issued to a person who is the holder
of a certificate of registration as an administrator or a license as a
producer of insurance or managing general agent, the Commissioner shall
suspend the certificate of registration or license issued to that person
at the end of the 30th day after the date on which the court order was
issued unless the Commissioner receives a letter issued to the holder of
the certificate of registration or license by the district attorney or
other public agency pursuant to NRS 425.550 stating that the holder of the certificate of
registration or license has complied with the subpoena or warrant or has
satisfied the arrearage pursuant to NRS 425.560 .

      2.  The Commissioner shall reinstate a certificate of registration
as an administrator or a license as a producer of insurance or managing
general agent that has been suspended by a district court pursuant to NRS
425.540 if the Commissioner receives a
letter issued by the district attorney or other public agency pursuant to
NRS 425.550 to the person whose
certificate of registration or license was suspended stating that the
person whose certificate of registration or license was suspended has
complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .

      (Added to NRS by 1997, 2187; A 2001, 2208 )
[Expires by
limitation on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]  The application of a natural
person who applies for the issuance of a certificate of registration as
an administrator or a license as a producer of insurance or managing
general agent must include the social security number of the applicant.

      (Added to NRS by 1997, 2188; A 2001, 2208 )


      1.  All money of others received by any person in any way licensed
or acting as a producer of insurance, surplus lines broker, motor club
agent or bail agent under any insurance policy or undertaking of bail is
received and held by him in a fiduciary capacity. Any such person who
diverts or appropriates such fiduciary money to his own use is guilty of
embezzlement.

      2.  Each such person who does not make immediate remittance of the
money to the insurer or other person entitled thereto, shall elect and
follow with respect to money received for the account of a particular
insurer or person either of the following methods:

      (a) Remit received premiums, less applicable commissions, if any,
and return premiums to the insurer or other person entitled thereto
within 15 days after receipt; or

      (b) Establish and maintain in a commercial bank, credit union or
other established financial institution depositary in this state one or
more accounts, separate from accounts holding his general personal, firm
or corporate money, and forthwith deposit and retain in the accounts
pending transmittal to the insurer or other person entitled thereto, all
such premiums, net of applicable commissions, if any, and return
premiums. Money belonging to more than one principal may be so deposited
and held in the same such account if the amount so held for each
principal is readily ascertainable from the records of the depositor. The
depositor may commingle with such fiduciary money in a particular account
such additional money as he may deem prudent to advance premiums,
establish reserves for the payment of return commissions, or for other
contingencies arising in his business of receiving and transmitting
premiums or return premiums.

      3.  Such a person may commingle with his own money to an unlimited
amount money of a particular principal if the principal in writing in
advance has specifically waived the segregation requirements of
subsection 2.

      4.  Any commingling of money with money of any such person
permitted under this section does not alter the fiduciary capacity of
that person with respect to the money of others.

      (Added to NRS by 1971, 1653; A 1997, 3378; 1999, 1550 ; 2001, 2209 )
 If an
administrator, managing general agent or producer of insurance, or a
health maintenance organization when acting as an administrator pursuant
to NRS 683A.0851 or a nonprofit
corporation for hospital or medical services when acting as an
administrator pursuant to NRS 683A.0852 , contracts with a provider of health care
to provide health care to an insured pursuant to this chapter, the
administrator, managing general agent, producer of insurance, health
maintenance organization or nonprofit corporation for hospital or medical
services shall:

      1.  If requested by the provider of health care at the time the
contract is made, submit to the provider of health care a copy of the
schedule of payments applicable to the provider of health care; or

      2.  If requested by the provider of health care at any other time,
submit to the provider of health care the schedule of payments specified
in subsection 1 within 7 days after receiving the request.

      (Added to NRS by 2003, 3350 )

DISCIPLINARY ACTION
 The
Commissioner may refuse to issue a license or certificate pursuant to
this chapter or may place any person to whom a license or certificate is
issued pursuant to this chapter on probation, suspend him for not more
than 12 months, or revoke or refuse to renew his license or certificate,
or may impose an administrative fine or take any combination of the
foregoing actions, for one or more of the following causes:

      1.  Providing incorrect, misleading, incomplete or partially untrue
information in his application for a license.

      2.  Violating a law regulating insurance, or violating a
regulation, order or subpoena of the Commissioner or an equivalent
officer of another state.

      3.  Obtaining or attempting to obtain a license through
misrepresentation or fraud.

      4.  Misappropriating, converting or improperly withholding money or
property received in the course of the business of insurance.

      5.  Intentionally misrepresenting the terms of an actual or
proposed contract of or application for insurance.

      6.  Conviction of a felony.

      7.  Admitting or being found to have committed an unfair trade
practice or fraud.

      8.  Using fraudulent, coercive or dishonest practices, or
demonstrated incompetence, untrustworthiness or financial
irresponsibility in the conduct of business in this State or elsewhere.

      9.  Denial, suspension or revocation of a license as a producer of
insurance, or its equivalent, in any other state, territory or province.

      10.  Forging another’s name to an application for insurance or any
other document relating to the transaction of insurance.

      11.  Improperly using notes or other reference material to complete
an examination for a license related to insurance.

      12.  Knowingly accepting business related to insurance from an
unlicensed person.

      13.  Failing to comply with an administrative or judicial order
imposing an obligation of child support.

      14.  Failing to pay a tax as required pursuant to the provisions of
chapter 363A of NRS.

      (Added to NRS by 2001, 2197 ; A 2005, 1784 )


      1.  If the Commissioner denies an application for, or refuses to
renew, a license, he shall notify the applicant or licensee and state in
writing the reason for the denial or refusal. The applicant or licensee
may apply in writing, pursuant to NRS 679B.310 , for a hearing before the Commissioner to
determine the reasonableness of the denial or refusal. The hearing must
be held within 30 days and conducted pursuant to NRS 679B.330 . The applicant or licensee may waive the
requirement to hold the hearing within 30 days, in writing, before a
hearing is held.

      2.  The Commissioner may suspend, revoke or refuse to renew the
license of a business organization if he finds, after hearing, that a
violation by a natural person was known or should have been known by one
or more of the partners, officers or managers acting on behalf of the
organization, the violation was not reported to the Commissioner and no
corrective action was taken.

      3.  In addition to or in lieu of a denial, suspension or revocation
of, or refusal to renew, a license, an administrative fine of not less
than $25 nor more than $500 may be imposed for each violation or act. An
order imposing a fine must specify the date, not less than 15 days nor
more than 30 days after the date of the order, before which the fine must
be paid. If the fine is not paid when due, the Commissioner shall
immediately revoke the license of a licensee and the fine must be
recovered in a civil action brought on behalf of the Commissioner by the
Attorney General. The Commissioner shall immediately deposit all such
fines collected with the State Treasurer for credit to the State General
Fund.

      4.  The Commissioner retains the authority to enforce the
provisions of, and impose any penalty or pursue any remedy authorized by,
this title against any person who is under investigation for or charged
with a violation of a provision of this title even if his license or
registration has been surrendered or has lapsed by operation of law.

      5.  A licensee must pay all applicable fees, including renewal
fees, and maintain any required education during a period of suspension
of his license.

      (Added to NRS by 2001, 2198 )


      1.  All licenses issued under this Code, although issued and
delivered to the licensee or his employer, shall at all times be the
property of the State of Nevada. Upon any expiration, termination,
suspension or revocation of the license, the licensee or other person
having possession or custody of the license shall forthwith deliver it to
the Commissioner.

      2.  As to any license lost, stolen or destroyed while in the
possession of any such licensee or person, the Commissioner may accept in
lieu of the return of the license, the affidavit of the licensee or other
person responsible for or involved in the safekeeping of the license,
concerning the facts of such loss, theft or destruction.

      (Added to NRS by 1971, 1657)


      1.  The Commissioner may inform the appropriate district attorney
of any violation of any provision of this chapter.

      2.  In addition to any other penalty provided in this chapter any
person violating any provision of this chapter is guilty of a misdemeanor.

      (Added to NRS by 1971, 1658)
 A person
licensed to transact insurance in this state shall not knowingly permit
any other person whose license to transact insurance in this state has
been revoked or suspended to transact insurance or in any manner
participate in the transaction of insurance in this state.

      (Added to NRS by 1997, 3024)
 An insurer or its authorized
representative who fails to report as required by NRS 683A.331 or is found by a court of competent
jurisdiction to have reported with actual malice is subject to the
suspension or revocation of its license, after notice and hearing, and
may be further punished by a fine under NRS 679A.180 .

      (Added to NRS by 2001, 2200 )


      1.  If within 30 days after the contractual due date of any premium
received by him, a producer of insurance or surplus lines broker fails to
remit the premium to the insurer or agency to whom it is owing, the
insurer or agency, as the case may be, shall promptly report the failure
to the Commissioner in writing.

      2.  The Commissioner may suspend the licenses of the producer or
surplus lines broker so failing to remit, until the remittance has been
made or the insurer or agency has filed with the Commissioner a release
of the indebtedness satisfactory to the Commissioner.

      3.  The applicable procedures provided for in NRS 683A.461 apply to suspensions of license under this
section.

      4.  If the Commissioner, by the admission of the producer or
surplus lines broker, or by examination of the records of the producer or
surplus lines broker, determines that the charged failure to remit is
true, he may suspend the license without hearing.

      (Added to NRS by 1971, 1654; A 2001, 2209 )—(Substituted in revision for NRS
683A.410)