NAC: CHAPTER 691C - CREDIT PERSONAL PROPERTY INSURANCE

[Rev. 5/12/2008 1:16:34 PM]

CHAPTER 691C - CREDIT PERSONAL PROPERTY INSURANCE

691C.010 “Guaranteed asset protection insurance” defined.

691C.020 Scope: “Guaranteed asset protection insurance” interpreted.

691C.030 Coverage: “Extended coverage” and “standard fire policy” interpreted.

691C.050 Guaranteed asset protection insurance: Coverage of insurance deductible.

691C.060 Actuarial justification of filed rates.

691C.070 Refund of unearned premium: Minimum amount.

691C.100 Rates considered to be reasonable in relation to benefits provided and not excessive.

691C.110 Credit personal property insurance with closed-end single premium: Recommended premium rate for dual-interest coverage with theft.

691C.120 Credit personal property insurance with closed-end single premium: Recommended premium rate for dual-interest coverage without theft.

691C.130 Credit personal property insurance with closed-end single premium: Recommended premium rate for single-interest coverage with theft.

691C.140 Credit personal property insurance with closed-end single premium: Recommended premium rate for single-interest coverage without theft.

691C.150 Open-end credit property insurance with monthly outstanding balance: Recommended premium rate for dual-interest coverage with theft.

691C.160 Open-end credit property insurance with monthly outstanding balance: Recommended premium rate for dual-interest coverage without theft.

691C.170 Guaranteed asset protection insurance: Recommended premium rates.

691C.180 Submission of rates for review and approval by Commissioner.

691C.190 Annual reports of experience data; review of recommended premium rates by Commissioner.

NAC 691C.010 “Guaranteed asset protection insurance” defined. (NRS 679B.130, 691C.430)

1. As used in this chapter, unless the context otherwise requires, “guaranteed asset protection insurance” means a policy or certificate of insurance written in connection with a credit transaction that covers the difference between the actual cash value of the vehicle and the outstanding loan balance or lease balance in the event of a total loss of the vehicle.

2. An endorsement to a motor vehicle policy is not considered guaranteed asset protection insurance.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005; A by R114-06, 3-23-2007, eff. 4-1-2007)

NAC 691C.020 Scope: “Guaranteed asset protection insurance” interpreted. (NRS 679B.130, 691C.240, 691C.430) As used in NRS 691C.240, “guaranteed asset protection insurance” has the meaning ascribed to it in NAC 691C.010.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005; A by R114-06, 3-23-2007, eff. 4-1-2007)

NAC 691C.030 Coverage: “Extended coverage” and “standard fire policy” interpreted. (NRS 679B.130, 691C.260, 691C.430)

1. As used in NRS 691C.260:

(a) “Extended coverage” includes, but is not limited to, coverage against all direct losses by:

(1) Fire;

(2) Lightning;

(3) Internal or other explosion;

(4) Riot;

(5) Vehicles;

(6) Civil commotion;

(7) Fireplace or other smoke;

(8) Hail;

(9) Aircraft;

(10) Windstorm;

(11) Volcanic eruption;

(12) Vandalism and malicious mischief;

(13) Burglary;

(14) Weight of ice, snow or sleet;

(15) Discharge of water or steam;

(16) Falling objects;

(17) Freezing;

(18) Sudden tearing, cracking or burning;

(19) Electrical current;

(20) Flood;

(21) Earthquake;

(22) Theft; and

(23) Mysterious disappearance.

(b) “Standard fire policy” means a policy or contract of insurance that provides coverage against all direct loss by fire or lightning, and for costs incurred in removing from the premises property endangered by the perils insured against, as described in the policy declarations.

2. This section does not apply to guaranteed asset protection insurance.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005; A by R114-06, 3-23-2007, eff. 4-1-2007)

NAC 691C.050 Guaranteed asset protection insurance: Coverage of insurance deductible. (NRS 679B.130, 691C.430) Guaranteed asset protection insurance must cover an insurance deductible, up to $1,000, as part of a claim settlement.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005; A by R114-06, 3-23-2007, eff. 4-1-2007)

NAC 691C.060 Actuarial justification of filed rates. (NRS 679B.130, 691C.320, 691C.430) Rates filed pursuant to NRS 691C.320 must be actuarially justified based on:

1. Actual and expected loss experience;

2. General and administrative expenses;

3. Loss settlement and adjustment expenses;

4. Reasonable producer compensation;

5. The manner in which premiums are charged;

6. Other acquisition costs;

7. Reserves;

8. Taxes;

9. Regulatory license fees and fund assessments;

10. Reasonable insurer profit; and

11. Other relevant data consistent with generally accepted actuarial standards.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005)

NAC 691C.070 Refund of unearned premium: Minimum amount. (NRS 679B.130, 691C.390, 691C.430) A person is not entitled to a refund if the amount of any unearned premium that remains outstanding at the time of cancellation of his policy of credit personal property insurance is less than $5.

(Added to NAC by Comm’r of Insurance by R132-05, eff. 10-31-2005)

NAC 691C.100 Rates considered to be reasonable in relation to benefits provided and not excessive. (NRS 679B.130, 691C.340, 691C.430) For the purposes of subsection 1 of NRS 691C.340, the Commissioner will consider rates for policies of credit personal property insurance, including, without limitation, guaranteed asset protection insurance, that are not in excess of the rates set forth in NAC 691C.110 to 691C.170, inclusive, to be reasonable in relation to the benefits provided and not excessive.