[Rev. 11/21/2013 1:14:57
PM--2013]
CHAPTER 690A - CREDIT INSURANCE
NRS 690A.010 Scope.
NRS 690A.011 Definitions.
NRS 690A.012 “Compensation”
defined.
NRS 690A.0135 “Credit
accident and health insurance” defined.
NRS 690A.015 “Credit
insurance” and “consumer credit insurance” defined.
NRS 690A.016 “Credit
life insurance” defined.
NRS 690A.0163 “Credit
transaction” defined.
NRS 690A.0167 “Credit
unemployment insurance” defined.
NRS 690A.017 “Creditor”
defined.
NRS 690A.018 “Debtor”
defined.
NRS 690A.0195 “Gross
debt” defined.
NRS 690A.0205 “Identifiable
charge” defined.
NRS 690A.0243 “Net
debt” defined.
NRS 690A.0247 “Open-end
credit” defined.
NRS 690A.045 Amounts
of credit life insurance.
NRS 690A.050 Amounts
of credit accident and health insurance or credit unemployment insurance.
NRS 690A.055 Combinations
of consumer credit insurance; prohibition or limitation by regulation.
NRS 690A.063 Commencement
of consumer credit insurance; prohibited charging or retention of payment.
NRS 690A.067 Term
and cancellation of consumer credit insurance.
NRS 690A.073 Required
disclosures.
NRS 690A.075 Acceptance
of insurance by insurer other than named insurer; nonacceptance.
NRS 690A.077 Policies
and certificates of insurance: Contents; delivery.
NRS 690A.083 Delivery
of application or notice of proposed insurance; contents; use of application or
notice to meet certain requirements.
NRS 690A.085 Policies,
forms and schedules: Filing; approval; withdrawal of approval.
NRS 690A.087 Adoption
of forms by regulation; use of forms by insurer.
NRS 690A.093 Establishment
of reasonable rates by regulation; use of certain rates without filing with
Commissioner.
NRS 690A.095 Filing
of revised schedule of premium rates.
NRS 690A.097 Refund
of unearned premiums; regulations; approval of refund formula.
NRS 690A.103 Payment
for consumer credit insurance without issuance of individual policy or group
certificate.
NRS 690A.107 Amount
charged for consumer credit insurance.
NRS 690A.120 Issuance
of policies and certificates of consumer credit insurance.
NRS 690A.130 Claims.
NRS 690A.140 Existing
insurance; choice of insurer.
NRS 690A.260 Transfers
to unauthorized insurer.
NRS 690A.273 Creditor
as agent of insurer.
NRS 690A.277 Regulations.
NRS 690A.280 Administrative
penalties; revocation or suspension of license or certificate of authority.
_________
NRS 690A.010 Scope. 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)
NRS 690A.011 Definitions. 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)
NRS 690A.012 “Compensation” defined. “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)
NRS 690A.0135 “Credit accident and health insurance” defined. “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)
NRS 690A.015 “Credit insurance” and “consumer credit insurance” defined. “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)
NRS 690A.016 “Credit life insurance” defined. “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)
NRS 690A.0163 “Credit transaction” defined. “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)
NRS 690A.0167 “Credit unemployment insurance” defined. “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)
NRS 690A.017 “Creditor” defined. “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)
NRS 690A.018 “Debtor” defined. “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)
NRS 690A.0195 “Gross debt” defined. “Gross
debt” means the sum of the remaining payments owed to a creditor by a debtor.
(Added to NRS by 2005, 2137)
NRS 690A.0205 “Identifiable charge” defined. “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)
NRS 690A.0243 “Net debt” defined. “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)
NRS 690A.0247 “Open-end credit” defined. “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)
NRS 690A.045 Amounts of credit life insurance.
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)
NRS 690A.050 Amounts of credit accident and health insurance or credit
unemployment insurance.
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)
NRS 690A.055 Combinations of consumer credit insurance; prohibition or
limitation by regulation. 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)
NRS 690A.063 Commencement of consumer credit insurance; prohibited charging
or retention of payment.
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)
NRS 690A.067 Term and cancellation of consumer credit insurance.
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)
NRS 690A.073 Required disclosures.
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)
NRS 690A.075 Acceptance of insurance by insurer other than named insurer;
nonacceptance.
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)
NRS 690A.077 Policies and certificates of insurance: Contents; delivery.
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)
NRS 690A.083 Delivery of application or notice of proposed insurance;
contents; use of application or notice to meet certain requirements.
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)
NRS 690A.085 Policies, forms and schedules: Filing; approval; withdrawal of
approval.
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 the Commissioner 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)
NRS 690A.087 Adoption of forms by regulation; use of forms by insurer.
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)
NRS 690A.093 Establishment of reasonable rates by regulation; use of certain
rates without filing with Commissioner.
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)
NRS 690A.095 Filing of revised schedule of premium rates. 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)
NRS 690A.097 Refund of unearned premiums; regulations; approval of refund
formula.
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)
NRS 690A.103 Payment for consumer credit insurance without issuance of
individual policy or group certificate. 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)
NRS 690A.107 Amount charged for consumer credit insurance. 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)
NRS 690A.120 Issuance of policies and certificates of consumer credit
insurance. 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)
NRS 690A.130 Claims.
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)
NRS 690A.140 Existing insurance; choice of insurer. 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 the debtor 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)
NRS 690A.260 Transfers to unauthorized insurer.
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)
NRS 690A.273 Creditor as agent of insurer. 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)
NRS 690A.277 Regulations. The
Commissioner may adopt regulations to carry out the provisions of this chapter.
(Added to NRS by 2005, 2143)
NRS 690A.280 Administrative penalties; revocation or suspension of license or
certificate of authority. 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)