[Rev. 11/22/2013 10:30:48 AM--2013]

[NAC-691C Revised Date: 5-08]

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.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.110  Credit personal property insurance with closed-end single premium: Recommended premium rate for dual-interest coverage with theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of credit personal property insurance with a closed-end single premium, the recommended premium rate for dual-interest coverage with theft is $1.03 per $100 of initial net indebtedness per year.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.120  Credit personal property insurance with closed-end single premium: Recommended premium rate for dual-interest coverage without theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of credit personal property insurance with a closed-end single premium, the recommended premium rate for dual-interest coverage without theft is 77 cents per $100 of initial net indebtedness per year.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

 

 

 

 

 

      NAC 691C.130  Credit personal property insurance with closed-end single premium: Recommended premium rate for single-interest coverage with theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of credit personal property insurance with a closed-end single premium, the recommended premium rate for single-interest coverage with theft is 51 cents per $100 of initial net indebtedness per year.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.140  Credit personal property insurance with closed-end single premium: Recommended premium rate for single-interest coverage without theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of credit personal property insurance with a closed-end single premium, the recommended premium rate for single-interest coverage without theft is 38 cents per $100 of initial net indebtedness per year.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.150  Open-end credit property insurance with monthly outstanding balance: Recommended premium rate for dual-interest coverage with theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of open-end credit property insurance with a monthly outstanding balance, the recommended premium rate for dual-interest coverage with theft is 13 cents per $100 of the outstanding balance of initial net indebtedness per month.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.160  Open-end credit property insurance with monthly outstanding balance: Recommended premium rate for dual-interest coverage without theft. (NRS 679B.130, 691C.340, 691C.430)  For a policy of open-end credit property insurance with a monthly outstanding balance, the recommended premium rate for dual-interest coverage without theft is 9 cents per $100 of the outstanding balance per month.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.170  Guaranteed asset protection insurance: Recommended premium rates. (NRS 679B.130, 691C.340, 691C.430)  For a policy of guaranteed asset protection insurance, the recommended premium rates are as follows:

 

Term

Recommended Premium Rate

Suggested Commission

Percent of Commission

Company Retained Amount

1-48 months

$285

$85

30%

$200

49-60 months

$342

$102

30%

$240

61-72 months

$412

$124

30%

$288

73-84 months

$495

$149

30%

$346

85-96 months

$594

$178

30%

$416

97-108 months

$713

$214

30%

$499

109-120 months

$855

$256

30%

$599

 

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.180  Submission of rates for review and approval by Commissioner. (NRS 679B.130, 691C.320, 691C.430)  All rates for policies of credit personal property insurance, including rates for guaranteed asset protection insurance, must be submitted for review and approval by the Commissioner pursuant to NRS 691C.320. Any rates for credit personal property insurance, including, without limitation, rates for guaranteed asset protection insurance, filed before April 1, 2007, are null and void effective July 1, 2007.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)

      NAC 691C.190  Annual reports of experience data; review of recommended premium rates by Commissioner. (NRS 679B.130, 691C.340, 691C.430)  An insurer that provides credit personal property insurance, including, without limitation, guaranteed asset protection insurance, shall report its experience data annually to the Commissioner, on a form prescribed by the Commissioner. The initial such report must be submitted by the insurer on or before July 1, 2008. The Commissioner will use this data to determine annually whether the rates set forth in NAC 691C.110 to 691C.170, inclusive, are reasonable in relation to the benefits provided. If the Commissioner determines that those rates are not reasonable in any given year, the Commissioner will adopt new rates.

     (Added to NAC by Comm’r of Insurance by R114-06, 3-23-2007, eff. 4-1-2007)