USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 690A - CREDIT INSURANCE
Any consumer credit insurance issued in
connection with loans or other credit transactions for personal, family
or household use is subject to the provisions of this chapter except:
1. Insurance written in connection with a credit transaction that
is:
(a) Secured by a first mortgage or deed of trust; and
(b) Made to finance the purchase of real property or the
construction of a dwelling thereon, or to refinance a prior credit
transaction made for that purpose;
2. Insurance that is sold as an isolated transaction on the part
of the insurer and not related to an agreement or a plan for insuring
debtors of the creditor;
3. Insurance for which no identifiable charge is made to the
debtor; or
4. Insurance on accounts receivable.
(Added to NRS by 1971, 1771; A 1987, 2296; 2005, 2144 )
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 690A.012
to 690A.0247 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1987, 2287; A 2005, 2144 )
“Compensation” means any
valuable consideration, direct or indirect, paid by or on behalf of the
insurer, or by any subsidiary or parent, or subsidiary of the parent of
the insurer, or by any other person to or on behalf of any group
policyholder or producer or withheld from an insurer by any group
policyholder or producer, and includes:
1. Paid or credited commissions or contingent commissions.
2. Fees for services, consulting fees or any other fee paid or
credited within or outside this State in direct relation to the volume of
premiums produced or written in this State.
3. The use of electronic data processing equipment or services,
except for devices provided in lieu of books and charts of rates and
refunds usable only for that purpose.
4. The furnishing of supplies, except forms approved by the
Commissioner, the usual forms for claims and reports, envelopes for
transmitting claims and brochures, and books and charts of rates and
refunds.
5. Providing rental equipment of any type.
6. Advertising.
7. Providing telephone service without charge or at a charge less
than the usual cost.
8. Participation in a profit-sharing plan.
9. Dividends and refunds or credits based on experience ratings.
10. An allowance for expenses.
11. Participation in stock plans or bonuses.
12. Any form of credit, including the use of money.
13. Commissions for reinsurance, ceded or assumed.
14. Reinsurance with a nonauthorized insurer owned or controlled
by a creditor or producer or with a nonauthorized insurer in which a
creditor or producer is a stockholder.
15. Any commission or fee, inducement or intention to induce, or
any other consideration arising from the sale of insurance or other
product or service, except consumer credit insurance as part of the
transaction in which the indebtedness is arranged or the application for
the consumer credit insurance is made.
(Added to NRS by 1987, 2287; A 2005, 2144 )
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
“Credit accident and health insurance” means insurance on a debtor to
provide indemnity for payments or debt becoming due on a specific loan or
other credit transaction while the debtor is disabled as defined in the
policy.
(Added to NRS by 2005, 2137 )
Repealed.
(See chapter 456, Statutes of Nevada 2005, at page 2160 .)
“Credit insurance” or “consumer credit insurance” means any or
all of the following:
1. Credit life insurance;
2. Credit accident and health insurance;
3. Credit unemployment insurance; or
4. Any other insurance defined in this chapter.
(Added to NRS by 1987, 2288; A 2005, 2145 )
“Credit life
insurance” means insurance on the life of a debtor pursuant to or in
connection with a specific loan or other credit transaction to provide
for satisfaction of a debt, in whole or in part, upon the death of an
insured debtor.
(Added to NRS by 1987, 2288; A 2005, 2145 )
“Credit transaction”
means any transaction for which the terms of repayment of money loaned or
loan commitment made, or payment of goods, services or properties sold or
leased, is to be made at a future date or dates.
(Added to NRS by 2005, 2137 )
“Credit
unemployment insurance” means insurance on a debtor to provide indemnity
for payments or a debt becoming due on a specific loan or other credit
transaction while the debtor is involuntarily unemployed as defined in
the policy.
(Added to NRS by 2005, 2137 )
“Creditor” means the lender of
money or vendor or lessor of goods, services, property, rights or
privileges for which payment is arranged through a credit transaction,
and includes:
1. The successor to the right, title or interest of;
2. An affiliate, associate or subsidiary of;
3. Any director, officer or employee of; or
4. Any other person in any way associated with,
Ê any such lender, vendor or lessor.
(Added to NRS by 1987, 2288)
“Debtor” means a borrower of money
or a purchaser or lessee of goods, services, property, rights or
privileges for which payment is arranged through a credit transaction.
(Added to NRS by 1987, 2288)
Repealed. (See chapter
456, Statutes of Nevada 2005, at page 2160 .)
“Gross debt” means the sum of
the remaining payments owed to a creditor by a debtor.
(Added to NRS by 2005, 2137 )
“Identifiable
charge” means a charge for consumer credit insurance that is made to
debtors who have that insurance and not made to debtors who do not have
that insurance. The term includes a charge for insurance that is
disclosed in the credit agreement or other instrument furnished to the
debtor which sets forth the financial elements of the credit transaction
and any difference in the finance, interest, service or other similar
charge made to debtors who are in similar circumstances except for the
insured or noninsured status of the debtor or of the property used as
security for the credit transaction.
(Added to NRS by 2005, 2137 )
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter
456, Statutes of Nevada 2005, at page 2160 .)
“Net debt” means the amount
required to liquidate the remaining debt in a single lump-sum payment,
excluding all unearned interest and other unearned finance charges.
(Added to NRS by 2005, 2138 )
“Open-end credit” means
credit extended by a creditor under an agreement in which:
1. The creditor reasonably contemplates repeated transactions;
2. The creditor periodically imposes a finance charge on any
outstanding unpaid balance; and
3. The amount of credit that may be extended to the debtor during
the term of the agreement up to any limit set by the creditor is
generally made available to the extent that any outstanding balance is
repaid.
(Added to NRS by 2005, 2138 )
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter 456, Statutes of Nevada 2005, at page
2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
1. Except as otherwise provided in this section, the amount of
credit life insurance must not exceed the greater of the actual net debt
or the scheduled net debt.
2. If coverage is written on the actual net debt, the amount
payable at the time of loss must not be less than the actual net debt
less any payments that are more than 2 months past due.
3. If the coverage is written on any scheduled net debt, the
amount payable at the time of loss must not be less than:
(a) If the actual net debt is less than or equal to the scheduled
net debt, the scheduled net debt;
(b) If the actual net debt is greater than the scheduled net debt
but less than or equal to the scheduled net debt plus 2 months of
payments, the actual net debt; or
(c) If the actual net debt is greater than the scheduled net debt
plus 2 months of payments, the scheduled net debt plus 2 months of
payments.
4. If a premium is assessed to the debtor on a monthly basis and
is based on the actual net debt, the amount payable at the time of loss
must not be less than the actual net debt on the date of death. If the
premium is based on a balance that does not include accrued past due
interest, the amount payable at the time of loss must not be less than
the actual net debt less any accrued interest that is more than 2 months
past due.
5. Insurance on agricultural loan commitments that do not exceed 1
year in duration may be written for not more than the amount of the loan
on a nondecreasing or level term plan.
6. Insurance on educational loan commitments may be written for
the net unpaid debt plus any unused commitment.
7. Coverage may be written for less than the net debt through the
following methods:
(a) The amount of insurance may be the lesser of a stated level
amount and the amount determined in accordance with subsection 2;
(b) The amount of insurance may be the lesser of a stated level
amount and the amount determined in accordance with subsection 3;
(c) The amount of insurance may be a constant percentage of the
amount determined in accordance with subsection 2;
(d) The amount of insurance may be a constant percentage of the
amount determined in accordance with subsection 3; or
(e) In the absence of any exclusions for a preexisting condition,
the amount of insurance payable in the event of death by natural causes
may be limited to the balance as it existed 6 months before the date of
death if:
(1) There have been one or more increases in the outstanding
balance during the 6-month period other than increases resulting from the
accrual of interest or late charges; and
(2) Evidence of individual insurability has not been
required during the 6-month period.
8. Other kinds of insurance may be used if those kinds are not
inconsistent with the provisions of this section.
(Added to NRS by 2005, 2138 )
1. Except as otherwise provided in subsection 2, the total amount
of periodic indemnity payable pursuant to a policy of credit accident and
health insurance or credit unemployment insurance in the event of
disability or unemployment, as defined in the policy, must not exceed the
aggregate of the periodic scheduled unpaid installments of the gross
debt, and the amount of each periodic indemnity payment must not exceed
the original gross debt divided by the number of periodic installments.
2. For credit accident and health insurance or credit unemployment
insurance written in connection with an open-end credit agreement, the
amount of insurance must not exceed the gross debt which would accrue on
that amount using the periodic indemnity. Subject to any policy maximum,
the periodic indemnity must not be less than the minimum repayment
schedule of the creditor.
(Added to NRS by 1971, 1773; A 1987, 2297; 2005, 2145 )
The types of consumer credit
insurance defined in this chapter may be written separately or in
combination with other types of consumer credit insurance on an
individual policy or group policy basis. The Commissioner may by
regulation prohibit or limit any combination.
(Added to NRS by 2005, 2138 )
Repealed. (See chapter 456, Statutes of Nevada
2005, at page 2160 .)
1. Except as otherwise provided in this section, for consumer
credit insurance that is made available to and elected by a debtor before
or with the credit transaction to which it relates, the term of the
insurance must, subject to acceptance by the insurer, commence on the
date on which the debtor becomes obligated to the creditor. If the
insurer requires evidence of individual insurability and the evidence is
provided to the insurer more than 30 days after the date on which the
debtor becomes obligated to the creditor, the insurance may commence on
the date on which the insurer determines the evidence to be satisfactory.
2. Except as otherwise provided in this section, for consumer
credit insurance that is made available to and elected by a debtor after
the credit transaction to which it relates, the term of the insurance
must, subject to acceptance by the insurer, commence on a date not
earlier than the date the election is made by the debtor and not later
than 30 days after the date on which the insurance company accepts the
risk for coverage. If the coverage does not commence on the date on which
the insurance company accepts the risk for coverage, the date that
coverage commences must be related to an objective method for determining
the date, including, without limitation, the billing cycle, the payment
cycle or a calendar month.
3. If a group policy provides coverage with respect to debts
existing on the effective date of the policy, the insurance related to a
debt must not commence before the effective date of the group policy.
4. A creditor or insurer shall not charge or retain payment from a
debtor before commencement of the insurance to which the charge is
related.
(Added to NRS by 2005, 2139 )
1. The term of any consumer credit insurance must not extend
beyond the date of termination specified in the policy. The date of
termination of the insurance must not occur more than 15 days after the
scheduled maturity date of the debt to which it relates unless:
(a) The date is extended at no additional cost to the debtor; or
(b) The date is extended pursuant to a written agreement signed by
the debtor and relates to a variable rate credit transaction or a
deferral, renewal, refinancing or consolidation of debt.
2. If a debt is discharged because of any renewal, refinancing or
consolidation before the scheduled date of termination of the consumer
credit insurance, the insurance must be cancelled before any new consumer
credit insurance is written in relation to the renewed, refinanced or
consolidated debt.
3. If consumer credit insurance is terminated before the scheduled
termination date, unless the insurance is terminated because of the
performance by the insurer of all obligations with respect to the
insurance, the insurer shall make an appropriate refund or credit to the
debtor of any unearned charge that was paid by the debtor.
4. A debtor may cancel consumer credit insurance at any time by
providing a request to the insurer. The insurer may require the request
to be submitted in writing and may require the debtor to surrender any
individual policy or group certificate. The right of the debtor to cancel
the insurance may be subject to the terms of the credit transaction.
(Added to NRS by 2005, 2139 )
Repealed. (See chapter 456, Statutes of Nevada 2005, at page
2160 .)
1. Before a debtor elects to purchase consumer credit insurance in
connection with a credit transaction, the following information must be
disclosed to the debtor in writing:
(a) That the purchase of consumer credit insurance from the
creditor is not mandatory and is not a condition for obtaining credit
approval;
(b) If more than one type of consumer credit insurance is made
available to the debtor, whether the debtor may purchase each separately
or only as a package;
(c) The conditions of eligibility;
(d) That if the debtor has other insurance that covers the risk,
the debtor may not want or need consumer credit insurance;
(e) That the debtor may cancel the insurance at any time, or if
evidence of insurance is required for the extension of credit, upon proof
of insurance that is acceptable to the creditor, and obtain a refund of
or credit for:
(1) If the cancellation is not more than 30 days after the
debtor receives the individual policy or certificate of insurance, any
premium paid by the debtor; or
(2) If the cancellation is more than 30 days after the
debtor receives the individual policy or certificate of insurance, any
unearned premium paid by the debtor;
(f) A brief description of the coverage, including a description of
the amount, term, exceptions, limitations and exclusions, the insured
event, any waiting or elimination period, any deductible, any applicable
waiver of premium, the person who would receive any benefits, and the
premium or premium rate for the consumer credit insurance; and
(g) If the premium or insurance charge is financed, that it will be
subject to finance charges at the rate applicable to the credit
transaction.
2. The disclosures required pursuant to subsection 1:
(a) If made in connection with consumer credit insurance offered at
the same time as the extension of credit or offered through direct mail
advertisements, must be made in writing and presented to the customer in
a clear and conspicuous manner; or
(b) If made in connection with consumer credit insurance offered
after the extension of credit other than through direct mail
advertisements, may be provided orally or electronically if written
disclosures are provided not later than the earlier of:
(1) Ten days after the debtor elects to accept the coverage;
or
(2) The date any other written material is provided to the
debtor.
(Added to NRS by 2005, 2140 )
1. If a named insurer does not accept the insurance and another
insurer accepts the insurance, the insurer shall provide an individual
policy or group certificate that includes the name and address of the
home office of the insurer who accepted the insurance and the amount of
the premium to be charged. If the premium is less than the premium paid
by the debtor, the insurer shall provide a refund of the excess premium
not more than 30 days after the date it was paid by the debtor.
2. If a named insurer does not accept the insurance and no other
insurer accepts the insurance, a person who received any premium payment
related to the insurance shall refund the payment not more than 30 days
after the date it was paid by the debtor.
(Added to NRS by 2005, 2141 )
1. All consumer credit insurance must be evidenced by an
individual policy or a group certificate that is delivered to the debtor.
2. The individual policy or group certificate must, in addition to
other requirements of law, include:
(a) The name and address of the home office of the insurer;
(b) The name of each debtor or, on a certificate of insurance, the
identity by name or otherwise of each debtor;
(c) The amount of the premium or payment of the debtor stated
separately for each type of coverage or as a package or, for open-end
credit, the premium rate, basis of the calculation of premiums and
balance to which the premium rate applies;
(d) A complete description of the coverage or coverages, including
the amount, term and any exceptions, limitations and exclusions of
coverage;
(e) A statement that all benefits must be paid to the creditor to
reduce or extinguish the unpaid debt and that if the benefits exceed the
unpaid debt, any excess benefit must be paid to the debtor, to a
beneficiary, other than the creditor, named by the debtor or to the
estate of the debtor; and
(f) If the scheduled term of the insurance is less than the
scheduled term of the credit transaction, a statement indicating that
fact set forth on the face of the individual policy or certificate of
insurance in not less than 10-point bold type.
3. The insurer shall deliver the individual policy or group
certificate to the debtor upon acceptance of insurance by the insurer and
not more than 30 days after the debtor elects to purchase the insurance.
An individual policy or group certificate related to open-end credit or
consumer credit insurance that is requested by the debtor after the date
of the credit transaction to which it is related shall be deemed to have
been delivered at the time the debtor elected to purchase insurance if
the actual delivery is made not more than 30 days after the date on which
the insurer accepts the insurance.
(Added to NRS by 2005, 2140 )
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
1. If the individual policy or group certificate is not delivered
to the debtor at the time the debt is incurred or at such other time as
the debtor purchases consumer credit insurance, a copy of the application
or a notice of proposed insurance, signed by the debtor, must be
delivered to the debtor. The application or notice of proposed insurance
must include:
(a) The name and address of the home office of the insurer;
(b) The name of each debtor;
(c) The premium or amount of payment by the debtor for the
insurance;
(d) The amount, term and a brief description of the coverage; and
(e) A statement that upon acceptance by the insurer, the insurance
will become effective as described in NRS 690A.063 .
2. The application or notice of insurance provided pursuant to
subsection 1 must:
(a) Refer exclusively to consumer credit insurance; and
(b) Be separate from the loan, sale or other credit statement,
instrument or agreement unless the information required pursuant to
subsection 1 is prominently set forth in the statement, instrument or
agreement.
3. The application or notice of insurance provided pursuant to
subsection 1 may be used to meet the requirements of NRS 690A.073 and 690A.077 if it includes the information required by
those sections.
(Added to NRS by 2005, 2141 )
1. Except as otherwise provided in NRS 690A.087 and 690A.093 , all policies, certificates of insurance,
applications for insurance, enrollment forms, endorsements and riders
delivered or issued for delivery in this State and the schedules of
premium rates related thereto must be filed with the Commissioner.
2. An item filed with the Commissioner pursuant to subsection 1
may not be issued or used until 60 days after it is filed with the
Commissioner or until the written prior approval of the Commissioner is
obtained.
3. The Commissioner shall, not more than 60 days after an item is
submitted to him pursuant to subsection 1, disapprove the item if the
benefits are not reasonable in relation to the premium charged or if the
item contains provisions that are unjust, unfair, inequitable, misleading
or deceptive or encourage misrepresentation of the coverage or are
contrary to any provision of the Code or any regulation adopted pursuant
to the Code. If the Commissioner does not disapprove an item filed
pursuant to subsection 1 in accordance with this subsection, the item
shall be deemed to be approved.
4. If the Commissioner notifies an insurer that an item is
disapproved pursuant to subsection 3, the insurer shall not use the item.
The notice must include the reason for the disapproval and state that a
hearing will be granted not more than 30 days after the insurer submits a
written request for a hearing to the Commissioner, unless postponed by
mutual consent or by order of the Commissioner.
5. The Commissioner may hold a hearing to withdraw approval of an
item submitted pursuant to subsection 1 not less than 20 days after
providing a written notice of the hearing to the insurer. The written
notice must include one of the reasons described in subsection 3 for the
proposed withdrawal of approval of the item. An insurer shall not use an
item if approval of the item is withdrawn pursuant to this subsection.
(Added to NRS by 2005, 2142 )
1. The Commissioner may adopt by regulation forms for use in the
issuance of consumer credit insurance, including applications, policies,
forms for claims and any other forms required for the sale, issuance and
administration of consumer credit insurance. An insurer may elect to use
those forms in lieu of any other forms.
2. If an officer of the insurer submits, in the manner prescribed
by the Commissioner, a written certification to the Commissioner that the
forms used by the insurer are identical to those adopted by the
Commissioner, the insurer is not required to file those forms with the
Commissioner for approval pursuant to NRS 690A.085 .
(Added to NRS by 2005, 2142 )
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
1. The Commissioner shall, by regulation, establish reasonable
rates as described in this chapter and in accordance with the standards
established in NRS 686B.050 and
686B.060 . The rates must be
reasonable in relation to the benefits provided and must not be
excessive, inadequate or unfairly discriminatory.
2. The Commissioner may, by regulation, establish rates that an
insurer may use without filing pursuant to NRS 690A.085 . In establishing such rates, the
Commissioner shall consider and apply the following factors:
(a) Actual and expected loss experience;
(b) General and administrative expenses;
(c) Loss settlement and adjustment expenses;
(d) Reasonable creditor compensation;
(e) The manner in which premiums are charged;
(f) Other acquisition costs;
(g) Reserves;
(h) Taxes;
(i) Regulatory license fees and fund assessments;
(j) Reasonable insurer profit; and
(k) Other relevant data consistent with generally accepted
actuarial standards.
(Added to NRS by 2005, 2142 )
Except
as otherwise provided in NRS 690A.093 , if an insurer revises its schedule of
premium rates, the insurer shall file the revised schedule with the
Commissioner pursuant to NRS 690A.085 . An insurer shall not issue consumer credit
insurance for which the premium rates differ from the rates determined by
the schedule approved by the Commissioner.
(Added to NRS by 2005, 2143 )
1. Each individual policy or group certificate must provide for a
refund of unearned premiums if the consumer credit insurance is cancelled
before the scheduled date of termination of the insurance.
2. Except as otherwise provided in this section, any refund must
be provided to the person to whom it is entitled as soon as practicable
after the date of cancellation of the insurance.
3. The Commissioner shall, by regulation, establish the minimum
amount of unearned premiums that must remain outstanding at the time of
cancellation in order for a person to be entitled to a refund. If the
amount of unearned premiums that remains outstanding at the time of
cancellation is less than the minimum amount established by regulation,
the person is not entitled to a refund.
4. The formula that an insurer uses to determine the amount of a
refund must be submitted to and approved by the Commissioner before it is
used.
(Added to NRS by 2005, 2143 )
Repealed.
(See chapter 456, Statutes of Nevada 2005, at page 2160 .)
If a creditor
requires a debtor to make a payment for consumer credit insurance and an
individual policy or group certificate is not issued, the creditor shall
immediately notify the debtor in writing and make an appropriate credit
to the account of the debtor or issue a refund.
(Added to NRS by 2005, 2143 )
The
amount charged to a debtor for any consumer credit insurance must not
exceed the amount of the premiums charged by the insurer as determined at
the time that the contract was accepted by the debtor.
(Added to NRS by 2005, 2143 )
Repealed.
(See chapter 456, Statutes of Nevada 2005, at page 2160 .)
All policies and certificates of consumer credit
insurance may be delivered or issued for delivery in this State only by
an insurer authorized to do an insurance business in this State, and may
be issued only through holders of licenses or certificates of authority
issued by the Commissioner.
(Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145 )
1. All claims must be promptly reported to the insurer or its
designated representative, and the insurer shall maintain adequate files
on all reported claims. All claims must be settled as soon as practicable
and in accordance with the terms of the insurance contract.
2. All claims must be paid by draft drawn upon the insurer, by
electronic funds transfer or by check of the insurer to the order of:
(a) The claimant to whom payment of the claim is due pursuant to
the provisions of the policy; or
(b) Any other person designated by the claimant to whom payment is
due.
3. A plan or arrangement may not be used whereby a person other
than the insurer or its designated claim representative is authorized to
settle or adjust claims. The creditor may not be designated as the
representative for the insurer in adjusting a claim, except that a group
policyholder may, by arrangement with the group insurer, draw drafts,
electronic transfers or checks in payment of claims due the group
policyholder subject to the periodic audit by the insurer.
(Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145 )
When any form
of consumer credit insurance is required as additional security for any
debt, the debtor may furnish the required amount of insurance through
existing policies of insurance owned or controlled by him or procure or
furnish the required coverage through any insurer authorized to transact
the business of insurance in this State.
(Added to NRS by 1971, 1777; A 1987, 2303; 2005, 2146 )
Repealed. (See chapter 456, Statutes of
Nevada 2005, at page 2160 .)
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter 456, Statutes of Nevada 2005, at page
2160 .)
Repealed. (See chapter 456, Statutes of Nevada 2005, at page
2160 .)
Repealed. (See chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter
456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed.
(See chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter
456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See
chapter 456, Statutes of Nevada 2005, at page 2160 .)
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
1. Except as otherwise provided in subsection 2, an authorized
insurer issuing consumer credit insurance may not enter into any
agreement whereby the authorized insurer transfers, by reinsurance or
otherwise, to an unauthorized insurer, as they relate to consumer credit
insurance written or issued in this State:
(a) A substantial portion of the risk of loss under the consumer
credit insurance written by the authorized insurer in this State;
(b) All of one or more kinds, lines, types or classes of consumer
credit insurance;
(c) All of the consumer credit insurance produced through one or
more agents, agencies or creditors;
(d) All of the consumer credit insurance written or issued in a
designated geographical area; or
(e) All of the consumer credit insurance under a policy of group
insurance.
2. An authorized insurer may make the transfers listed in
subsection 1 to an unauthorized insurer if the unauthorized insurer:
(a) Maintains security on deposit with the Commissioner in an
amount which when added to the actual capital and surplus of the insurer
is equal to the capital and surplus required of an authorized stock
insurer pursuant to NRS 680A.120 . The
security may consist only of the following:
(1) Cash.
(2) General obligations of, or obligations guaranteed by,
the Federal Government, this State or any of its political subdivisions.
These obligations must be valued at the lower of market value or par
value.
(3) Any other type of security that would be acceptable if
posted by a domestic or foreign insurer.
(b) Files an annual statement with the Commissioner pursuant to NRS
680A.270 .
(c) Maintains reserves on its consumer credit insurance business
pursuant to NRS 681B.050 .
(d) Values its assets and liabilities pursuant to NRS 681B.010
to 681B.040 , inclusive.
(e) Agrees to examinations conducted by the Commissioner pursuant
to NRS 679B.230 .
(f) Complies with the standards adopted by the Commissioner
pursuant to NRS 679A.150 .
(g) Does not hold, issue or have an arrangement for holding or
issuing any of its stock for which dividends are paid based on:
(1) The experience of a specific risk of all of one or more
kinds, lines, types or classes of insurance;
(2) All of the business produced through one or more agents,
agencies or creditors;
(3) All of the business written in a designated geographical
area; or
(4) All of the business written for one or more forms of
insurance.
(Added to NRS by 1987, 2294; A 2005, 2146 )
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
Except as otherwise
prohibited by law, any duty imposed on an insurer pursuant to this
chapter may be carried out by a creditor who is acting as an agent of the
insurer.
(Added to NRS by 2005, 2143 )
The Commissioner may adopt regulations
to carry out the provisions of this chapter.
(Added to NRS by 2005, 2143 )
In addition to any other penalty
provided by law, any person who violates any provision of this chapter or
a regulation adopted or a final order of the Commissioner issued pursuant
to this chapter shall, after notice and hearing, pay an administrative
penalty:
1. In an amount not to exceed $5,000; or
2. If the violation is willful, in an amount not to exceed $10,000,
Ê and the Commissioner may, after notice and a hearing, revoke or suspend
the license or certificate of authority of that person.
(Added to NRS by 1987, 2296; A 2005, 2147 )
