[Rev. 11/22/2013 10:30:29 AM--2013]

[NAC-690B Revised Date: 11-13]

CHAPTER 690B - CASUALTY INSURANCE

MOTOR VEHICLES

Evidence of Insurance

690B.010         Generally.

690B.020         Definitions.

690B.022         “Agent” defined.

690B.024         “Commissioner” defined.

690B.026         “Division” defined.

690B.028         “Insurer” defined.

690B.030         Permanent card: Issuance.

690B.040         Temporary card: Issuance.

690B.050         Form of card: Approval by Commissioner.

690B.055         Form of card: Required statement constituting evidence of insurance.

690B.060         Form of card: Contents.

Underwriting Standards

690B.210         Definitions.

690B.240         Increase in premiums based upon incidents or claims: Notification; request for explanation.

690B.245         Disclosure of coverage limitations.

690B.250         Private automobiles for passengers and commercial automobiles; applicability.

Automobile Policies

690B.310         Required warning for policies not including bodily injury and property damage liability coverages.

690B.320         Reporting requirements for policies used as proof of insurance for payment of tort liabilities; penalties.

Operator’s Policy of Liability Insurance

690B.350         Disclosure of limitations; statement.

690B.360         Disclosure of limitations; endorsement in lieu of statement.

Taking Possession of Motor Vehicle from Tow Car Operator

690B.380         Consent form; duties of insurer.

INSURANCE FOR HOME PROTECTION

690B.400         “Emergency” defined for NRS 690B.160.

HOMEOWNER’S INSURANCE

690B.405         Increase in premiums based upon claims: Notification; request for explanation.

MEDICAL MALPRACTICE

Professional Liability Insurance

690B.510         Annual submission of certain information required by Commissioner.

690B.515         Filing of notice of certain settlements and judgments that exceed limits of coverage.

690B.520         Determination by Commissioner of essential medical specialties.

690B.525         Form for extended reporting endorsement.

690B.530         Disclosures regarding adverse underwriting decisions.

690B.535         Disclosures regarding effects of changes in exposure.

690B.540         Filing of schedule-rating plan.

Loss Prevention and Control Programs

690B.550         Definitions.

690B.555         “Policy of medical malpractice insurance” defined.

690B.560         “Qualified risk management system” defined.

690B.565         “Risk management system” defined.

690B.570         Annual reports on programs of insurer: Submission; forms.

690B.575         Qualified risk management systems: Offer by insurer; reduction in premium; fee.

690B.580         Qualified risk management systems: Approval by Commissioner.

 

 

MOTOR VEHICLES

Evidence of Insurance

      NAC 690B.010  Generally. (NRS 679B.130, 690B.023)  NAC 690B.010 to 690B.060, inclusive, provides guidelines for the approval of cards constituting evidence of insurance which a motor vehicle insurer must issue to the insured.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(NAC A by R213-09, 8-13-2010)

      NAC 690B.020  Definitions. (NRS 679B.130, 690B.023)  As used in NAC 690B.010 to 690B.060, inclusive, unless the context otherwise requires, the words and terms defined in NAC 690B.022 to 690B.028, inclusive, have the meanings ascribed to them in those sections.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(NAC A by R213-09, 8-13-2010)

      NAC 690B.022  “Agent” defined. (NRS 679B.130, 690B.023)  “Agent” means any licensed resident or nonresident agent.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(Substituted in revision for part of NAC 690B.020)

      NAC 690B.024  “Commissioner” defined. (NRS 679B.130, 690B.023)  “Commissioner” means the Commissioner of Insurance.

     (Supplied in codification)

      NAC 690B.026  “Division” defined. (NRS 679B.130, 690B.023)  “Division” means the Division of Insurance of the Department of Business and Industry.

     (Supplied in codification)

      NAC 690B.028  “Insurer” defined. (NRS 679B.130, 690B.023)  “Insurer” means any insurer who writes motor vehicle liability insurance in this State.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(Substituted in revision for part of NAC 690B.020)

      NAC 690B.030  Permanent card: Issuance. (NRS 679B.130, 690B.023)

     1.  A permanent card constituting evidence of insurance must be issued by an insurer who provides liability insurance coverage for a motor vehicle in the minimum amounts required by NRS 485.105 and 485.185, except that the insurer may permit its duly appointed agent in Nevada to issue a permanent card.

     2.  A permanent card:

     (a) May not be effective for longer than the policy term beginning on the effective date of the policy.

     (b) Must be issued:

          (1) Within 60 days after the effective date of an insurance policy or the effective date on which coverage has been bound; and

          (2) With each renewal of the policy.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(NAC A 5-27-92; R084-09, 10-27-2009; R213-09, 8-13-2010)

      NAC 690B.040  Temporary card: Issuance. (NRS 679B.130, 690B.023)

     1.  Except as otherwise provided in subsections 3 and 4, a temporary card constituting evidence of insurance may be issued only by an insurer or a duly appointed agent of the insurer upon the submission to the insurer identified on the temporary card of an application for motor vehicle liability insurance for which coverage has been bound.

     2.  Insurers must provide agents with an adequate supply of temporary cards.

     3.  Temporary cards may be issued by the Western Association of Automobile Insurance Plans.

     4.  Temporary cards may be printed by an insured on a personal computer if:

     (a) Such printing is allowed by the insurer of the insured; and

     (b) The insurer has taken reasonable measures, which have been submitted to and which have received the approval of the Commissioner, to prevent a temporary card from being electronically manipulated or altered.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(NAC A by R213-09, 8-13-2010)

      NAC 690B.050  Form of card: Approval by Commissioner. (NRS 679B.130, 690B.023)  No insurer may issue any evidence of insurance for new or renewal policies after January 1, 1981, unless the specific form has been submitted to and received the approval of the Commissioner.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]

      NAC 690B.055  Form of card: Required statement constituting evidence of insurance. (NRS 679B.130, 690B.023)  An insurer that issues an operator’s policy of liability insurance shall include on the card constituting evidence of insurance a statement written substantially as follows:

 

     This card constitutes evidence of an operator’s policy of liability insurance. The policy is a limited policy of liability insurance. The specific limitations are set forth in the policy or endorsement required by NRS 485.186.

 

     (Added to NAC by Comm’r of Insurance by R213-09, eff. 8-13-2010)

      NAC 690B.060  Form of card: Contents. (NRS 679B.130, 690B.023)  A card constituting evidence of insurance must conform to the following standards:

     1.  The card must be not larger than 8 1/2 x 5 1/2 inches and not smaller than 3 3/8 x 2 1/8 inches.

     2.  The card must contain:

     (a) In not less than 8-point bold type the:

          (1) Name of the policyholder;

          (2) Name of the insurer;

          (3) Applicable company code issued by the National Association of Insurance Commissioners or any successor organization;

          (4) Year, make and complete identification number of the insured vehicle;

          (5) Number of the policy; and

          (6) Term of the insurance, including, without limitation, the day, month and year on which the policy becomes effective and expires.

     (b) A company logotype printed on the card or a watermark or other embedded marking which makes the card difficult to counterfeit, reproduce, or alter.

     (c) A telephone number to verify coverage or report a claim.

     (d) The statement “This card has been approved by the Nevada Commissioner of Insurance.”

     (e) A statement indicating that the card is not valid for more than a specific number of days, not to exceed 60 days, if a temporary card.

     [Comm’r of Insurance, PC-24, eff. 5-7-80]—(NAC A 12-15-94; R115-00, 3-30-2001, eff. 7-1-2001; R213-09, 8-13-2010)

Underwriting Standards

      NAC 690B.210  Definitions. (NRS 679B.130)  As used in NAC 690B.210 to 690B.250, inclusive, unless the context otherwise requires:

     1.  “Commercial automobile” means a motor vehicle not rated under rules for private automobiles for passengers.

     2.  “Company rules” means the standards established and used by an insurer for underwriting, rating, cancellation or nonrenewal of insurance for automobiles.

     3.  “Date of incident” means the actual day on which a person engages in the activity which results in a citation for a violation of a traffic law or the day on which the person is involved in an accident involving a motor vehicle.

     4.  “Division” means the Division of Insurance of the Department of Business and Industry.

     5.  “Incident” means an activity resulting in a conviction for a violation of a traffic law, a chargeable accident as defined pursuant to NAC 687B.850, or both.

     6.  “Private automobile for passengers” means a:

     (a) Motor vehicle rated under the rules for private vehicles for passengers; or

     (b) Rented motor vehicle of the type used for a private automobile for passengers, even if it is rated under the rules for commercial motor vehicles.

     [Comm’r of Insurance, PC-21, § III, eff. 4-4-78]—(NAC A 10-30-85; 5-27-92; R024-04, 7-26-2004; R100-06, 12-7-2006)

      NAC 690B.240  Increase in premiums based upon incidents or claims: Notification; request for explanation. (NRS 679B.130)

     1.  No insurer may issue any private passenger automobile insurance policy without delivering to the named insured a notice explaining the manner in which the insurer’s rating plan provides for an increase in premium based upon incidents or claims.

     2.  Each insurer shall, at least 30 days before the expiration of a private passenger automobile insurance policy, advise the named insured of the right to request the reasons for any increase in premium for the ensuing policy period.

     [Comm’r of Insurance, PC-21, § VI, eff. 4-4-78]—(NAC A by R024-04, 7-26-2004)

      NAC 690B.245  Disclosure of coverage limitations. (NRS 679B.130)

     1.  Except as otherwise provided in subsections 5 and 6, an insurer that issues a private passenger automobile insurance policy which limits coverage for permissive users, as defined in the policy, shall disclose those limitations in the manner set forth in subsections 2, 3 and 4.

     2.  The insurer shall include a statement on the declaration page of the private passenger automobile insurance policy.

     3.  The statement may be imprinted, stamped or imprinted on a sticker. The statement shall be deemed approved by the Commissioner if it is written as follows:

 

IMPORTANT NOTICE: This policy reduces liability coverage limits when an insured vehicle is operated by a person other than the insured. The limits for bodily injury and property damage liability coverage are reduced to the financial liability limits set forth in NRS 485.185, regardless of the liability limits shown on the declaration page.

 

     4.  The “IMPORTANT NOTICE” portion of the statement must be written in at least 12-point font and in bold, capital letters. The remaining portion of the statement must be written in at least 10-point font.

     5.  An insurer may use a statement that is written substantially similar to the statement set forth in subsection 3 if:

     (a) The insurer has filed the statement with the Commissioner; and

     (b) The Commissioner has approved the statement.

     6.  If a private passenger automobile insurance policy is currently in effect and the insurer did not include the statement required pursuant to subsection 3, the insurer shall include the statement set forth in subsection 3 if the policy is renewed. At the time of renewal, the insurer shall send to the last known address of the insured by first-class or certified mail:

     (a) A declaration page that includes the statement set forth in subsection 3; or

     (b) A renewal notice that includes, without limitation:

          (1) The name of the insured;

          (2) The number of the policy;

          (3) The year, make and complete identification number of the insured vehicle or vehicles;

          (4) The term of the insurance, including the day, month and year on which the policy becomes effective and expires;

          (5) A description of the coverage and limitations of the policy; and

          (6) The statement set forth in subsection 3.

     (Added to NAC by Comm’r of Insurance by R024-04, eff. 7-26-2004)

      NAC 690B.250  Private automobiles for passengers and commercial automobiles; applicability. (NRS 679B.130)

     1.  For underwriting, cancellation, nonrenewal, or rating of insurance for private automobiles for passengers, an insurer may consider only the incidents which occur while the person affected is operating a private automobile for passengers.

     2.  For underwriting, rating, cancellation, or nonrenewal of insurance for commercial automobiles an insurer may consider only the incidents which occur while the person or applicant affected is operating a commercial vehicle.

     3.  If it is not apparent whether an incident is related to the operation of a private automobile for passengers or a commercial automobile, the insurer or its agent may request that the insured submit a supplemental application stating and submit proof concerning the true nature of the incident.

     4.  The provisions of subsections 1, 2 and 3 do not apply to any person who has been convicted of reckless driving, driving while intoxicated, or manslaughter resulting from the operation of a motor vehicle.

     [Comm’r of Insurance, PC-21, §§ VII, VIII, eff. 4-4-78]—(NAC A 10-30-85)

Automobile Policies

      NAC 690B.310  Required warning for policies not including bodily injury and property damage liability coverages. (NRS 679B.130)  Each insurance company which issues an automobile policy on a risk located or garaged in Nevada which does not include public liability and property damage insurance will imprint, stamp, or place a sticker on the face thereof in red in 14-point type or larger wording substantially as follows:

 

     “This is a limited policy which does not provide automobile bodily injury liability or property damage liability insurance which are required to satisfy the financial responsibility laws of Nevada or any state.”

 

     [Comm’r of Insurance, PC-12, eff. 9-23-72]

      NAC 690B.320  Reporting requirements for policies used as proof of insurance for payment of tort liabilities; penalties. (NRS 679B.130, 680A.200)

     1.  An insurer, which executes a contract of insurance for a motor vehicle liability policy that may be used to meet the requirements for NRS 485.185, shall comply with the reporting requirements set forth in NRS 485.313 to 485.318, inclusive.

     2.  An insurer who violates subsection 1 is subject to the penalties set forth in NRS 680A.200. Each failure to provide records as required by NRS 485.314 shall be deemed a violation of this section. The Commissioner of Insurance may, pursuant to NRS 680A.200:

     (a) For a first violation, assess an administrative fine of not more than $500.

     (b) For a second violation within 3 years, assess an administrative fine of not more than $1,000.

     (c) For a third or subsequent violation within 3 years, assess an administrative fine of not more than $2,000.

     3.  The Division of Insurance of the Department of Business and Industry will maintain a record for 3 years of each violation of this section by an insurer.

     (Added to NAC by Comm’r of Insurance, eff. 12-15-94; A 3-28-96)

Operator’s Policy of Liability Insurance

      NAC 690B.350  Disclosure of limitations; statement. (NRS 679B.130)

     1.  Except as otherwise provided in NAC 690B.360, an insurer that issues an operator’s policy of liability insurance which limits coverage for damages as set forth in NRS 485.186 shall disclose those limitations in the manner set forth in subsections 2 and 3.

     2.  The insurer shall include a statement on the face of the operator’s policy of liability insurance that is written in English or in Spanish, as appropriate.

     3.  The statement may be imprinted, stamped or imprinted on a sticker. The statement is deemed approved by the Commissioner if it is written as follows:

 

     This operator’s policy of liability insurance is a limited policy of liability insurance that provides coverage for the named insured when operating any motor vehicle or while the motor vehicle the named insured owns is not being operated by any person.

     This operator’s policy of liability insurance DOES NOT provide any coverage for damages incurred while the motor vehicle owned by the named insured is operated by another person, including, without limitation, bodily injury, damage to the motor vehicle owned by the named insured or any other property damage.

     Because subsection 4 of NRS 485.186 prohibits the named insured from allowing another person to operate the motor vehicle the named insured owns if he or she knows or should have known that the person does not have liability insurance to cover the operation of that motor vehicle, the named insured SHOULD NOT allow any person to operate the motor vehicle the named insured owns unless he or she knows that the person has liability insurance that will provide coverage when the person is operating that motor vehicle.

     This operator’s policy of liability insurance may not meet the requirements of the financial responsibility laws of other states, unless it is expressly indicated in the policy.

 

     4.  An insurer may use a statement that is written substantially similar to the statement set forth in subsection 3 if:

     (a) The insurer has filed the statement with the Commissioner; and

     (b) The Commissioner has approved the statement.

     (Added to NAC by Comm’r of Insurance, by R115-00, 3-30-2001, eff. 7-1-2001)

      NAC 690B.360  Disclosure of limitations; endorsement in lieu of statement. (NRS 679B.130)

     1.  In lieu of complying with NAC 690B.350, an insurer may inform an insured of the limitations of an operator’s policy of liability insurance by providing the information set forth in NAC 690B.350 in the endorsement required by NRS 485.186 if that endorsement has been approved by the Commissioner.

     2.  If an insurer complies with this section in lieu of complying with NAC 690B.350:

     (a) The endorsement must:

          (1) Be written in English or Spanish, as appropriate; and

          (2) Include an acknowledgment that:

               (I) States that the insured understands and accepts the limitations of the operator’s policy of liability insurance as set forth in the endorsement; and

               (II) Is signed and dated by the insured; and

     (b) The insurer shall include a statement on the face of the operator’s policy of liability insurance that is written in English or Spanish, as appropriate.

     3.  The statement may be imprinted, stamped or imprinted on a sticker and must be written substantially as follows:

 

     This operator’s policy of liability insurance is a limited policy of liability insurance. The specific limitations are set forth in the endorsement.

 

     (Added to NAC by Comm’r of Insurance by R115-00, 3-30-2001, eff. 7-1-2001)

Taking Possession of Motor Vehicle from Tow Car Operator

      NAC 690B.380  Consent form; duties of insurer. (NRS 679B.130, 706.4481)

     1.  If a motor vehicle is towed at the request of someone other than the owner or an authorized agent of the owner, an insurer may, in accordance with NRS 706.4481, obtain possession of the motor vehicle from the operator of the tow car upon obtaining the consent of the owner or authorized agent of the owner pursuant to NRS 690B.037 and providing a consent form to the operator of the tow car. Except as otherwise provided in subsection 2, the consent form required by NRS 706.4481 must be in substantially the following form:

 

CERTIFICATION OF CONSENT TO THE TOWING

AND RELEASE TO AN INSURER OF A MOTOR VEHICLE

 

TO:  ______________________________________________________________  (“Releasor”)

(Name of Tow Company or Person Currently in Possession of Vehicle Described Below)

 

An insurer must obtain consent from the owner of a motor vehicle, or the owner’s authorized agent, to take possession of the motor vehicle from an operator of a tow car. The owner’s authorized agent must not be a representative, employee or other agent of the insurer.

 

Vehicle Information

 

Make: _______________ Model: _______________ Year: ______ VIN: __________________

 

Vehicle Owner: ________________________________________________________________

 

Owner’s Authorized Agent (if applicable): _____________________________

 

Insurer: ______________________________________________________________________

 

Insurer’s Employee or Authorized Representative: ____________________________

 

Policy Number: _______________________  Claim Number: ___________________________

 

STATEMENT OF CONSENT: “On behalf of the Insurer, I hereby warrant that the Insurer has obtained the explicit consent of the Vehicle Owner or the Owner’s Authorized Agent to have the vehicle towed and released to the Insurer. I warrant that the Insurer has documented such consent and will be able to produce evidence of such documentation at the request of the Owner or the Owner’s Authorized Agent. This form does not, in any manner, transfer ownership of the vehicle and does not waive any rights or prerogatives pertaining to such ownership. The Vehicle Owner retains all other rights, as provided under applicable Nevada law, to consent to the subsequent treatment of the vehicle within the Insurer’s claim-handling process.”

 

STATEMENT OF INDEMNIFICATION: “On behalf of the Insurer, I hereby warrant that the Insurer will indemnify the Releasor for any liability relating to the release of the motor vehicle to the Insurer.”

 

AFFIRMATION OF TRUTH: “On behalf of the Insurer, I declare under penalty of perjury, and all other applicable penalties under Nevada law, that the foregoing is true and correct.”

 

_____________________________________________________________________________________      _____________________________

Employee of Insurer or Insurer’s Authorized Representative                                                                                Date                                           

 

 

__________________________________________________________        _____________________________________________________

(Name of tow company taking possession of vehicle on Insurer’s behalf)       (Telephone number of tow company taking possession of vehicle)

 

_____________________________________________________________________________________________________________________

(Address of tow company taking possession of vehicle)

 

No towing on behalf of the Insurer may commence until the consent of the Owner or the Owner’s Authorized Agent has been obtained and this form has been completed by an employee of the Insurer or the Insurer’s Authorized Representative.

 

     2.  An insurer that wishes to use a form which differs substantially from the form prescribed in subsection 1 must submit the form to the Commissioner and receive his or her approval before the insurer uses the form to obtain possession of a motor vehicle.

     3.  An insurer shall:

     (a) Document the consent of an owner or an authorized agent of the owner which grants permission to the insurer to obtain possession of the motor vehicle; and

     (b) Produce the documentation concerning consent at the request of the owner of the motor vehicle, an authorized agent of the owner or the Commissioner.

     (Added to NAC by Comm’r of Insurance by R036-12, eff. 9-14-2012)

INSURANCE FOR HOME PROTECTION

      NAC 690B.400  “Emergency” defined for NRS 690B.160. (NRS 679B.130, 690B.160)  For the purposes of NRS 690B.160, “emergency” means:

     1.  The loss of plumbing, including the loss of water service and the stoppage or backup of a sewer system;

     2.  A substantial loss of electrical service;

     3.  The loss of heating or cooling; or

     4.  Any other condition within the home that renders the home uninhabitable,

Ê if the structures, components, systems or appliances related thereto are covered by the contract of insurance for home protection.

     (Added to NAC by Comm’r of Insurance by R151-99, eff. 1-28-2000)—(Substituted in revision for NAC 690B.029)

HOMEOWNER’S INSURANCE

      NAC 690B.405  Increase in premiums based upon claims: Notification; request for explanation. (NRS 679B.130)

      1.  No insurer may issue any homeowner’s insurance policy without delivering to the named insured a notice explaining the manner in which the insurer’s rating plan provides for an increase in premium based upon claims.

     2.  Each insurer shall, at least 30 days before the expiration of a homeowner’s insurance policy, advise the named insured of the right to request the reasons for any increase in premium for the ensuing policy period.

     (Added to NAC by Comm’r of Insurance by R024-04, eff. 7-26-2004)

MEDICAL MALPRACTICE

Professional Liability Insurance

      NAC 690B.510  Annual submission of certain information required by Commissioner. (NRS 679B.130, 690B.360)  On or before September 1 of each year, an insurer offering professional liability insurance to a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS shall submit, on a form prescribed by the Commissioner, to the Commissioner the information required by the Commissioner pursuant to NRS 690B.360.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.515  Filing of notice of certain settlements and judgments that exceed limits of coverage. (NRS 679B.130, 690B.340)

     1.  In accordance with NRS 690B.340, an insurer offering professional liability insurance to a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS shall file a notice with the Commissioner if:

     (a) A settlement is reached concerning the liability of the practitioner for a breach of professional duty that exceeds the limits of the coverage provided by the policy of insurance.

     (b) A judgment is entered against the practitioner for a breach of professional duty that exceeds the limits of the coverage provided by the policy of insurance.

     2.  The notice must be filed, on a form prescribed by the Commissioner, with the Commissioner within 45 days after:

     (a) The date upon which a settlement is reached that requires a notice to be filed with the Commissioner pursuant to subsection 1.

     (b) The date upon which a judgment is entered that requires a notice to be filed with the Commissioner pursuant to subsection 1.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.520  Determination by Commissioner of essential medical specialties. (NRS 679B.130, 690B.350)

     1.  Pursuant to NRS 690B.350, the Commissioner will determine whether any medical specialties in this State are essential as a matter of public policy.

     2.  A medical specialty will be deemed by the Commissioner to be essential as a matter of public policy if he or she determines that an unsafe condition exists because public access to a practitioner of the medical specialty is impaired as a result of insufficient availability of professional liability insurance to a practitioner of the medical specialty.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.525  Form for extended reporting endorsement. (NRS 679B.130, 690B.290, 690B.320)  An extended reporting endorsement offered pursuant to NRS 690B.290 or 690B.320 must be made on a form approved by the Commissioner pursuant to NRS 687B.120.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.530  Disclosures regarding adverse underwriting decisions. (NRS 679B.130)

     1.  In addition to the applicable disclosures required pursuant to NRS 690B.270, 690B.280, 690B.300 and 690B.350, an insurer offering professional liability insurance to a practitioner licensed pursuant to chapters 630 to 640 of NRS, inclusive, shall provide the disclosures regarding adverse underwriting decisions required pursuant to NAC 679B.715.

     2.  If an insurer offering professional liability insurance to a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS makes a decision to charge the practitioner a rate or premium charge that is higher than the applicable base rates filed with the Commissioner, the insurer shall provide to the practitioner the disclosures regarding adverse underwriting decisions required pursuant to NAC 679B.715.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.535  Disclosures regarding effects of changes in exposure. (NRS 679B.130)

     1.  If a practitioner licensed pursuant to chapters 630 to 640 of NRS, inclusive, experiences a change in exposure, each insurer issuing a policy of professional liability insurance to the practitioner shall disclose to the practitioner the effect of the change in exposure on the premium rate for the professional liability insurance and any extended reporting endorsement.

     2.  As used in this section, “change in exposure” means any change to the practice of a practitioner licensed pursuant to chapters 630 to 640 of NRS, inclusive, that would either increase or decrease the risk of the practitioner breaching professional duty.

     (Added to NAC by Comm’r of Insurance by R131-03, eff. 10-30-2003)

      NAC 690B.540  Filing of schedule-rating plan. (NRS 679B.130, 686B.100)

     1.  For the purposes of this section, “schedule rating” means the application of judgment credits and debits to the risk rate or premium charge which has been developed through the use of base rate or class rate modified by any other approved rating plan which does not duplicate credits or debits.

     2.  The Commissioner will accept a schedule-rating plan submitted by an insurer who provides policies of professional liability insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS for a breach of professional duty toward a patient if:

     (a) The schedule-rating factors apply only to individual risk characteristics which reflect potential hazards.

     (b) The schedule rating applies only to policies which develop at least a $2,500 annual premium or a $7,500 3-year prepaid premium. When schedule credits or debits are being applied, the resulting premium must be $2,500 or more for 1 year, or $7,500 or more for 3 years.

     (c) The schedule-rating plan provides for credits and debits.

     (d) The schedule-rating plan is subject to a maximum total credit or debit of 25 percent for the policy of professional liability insurance and 40 percent for any individual practitioner who is covered under the policy.

     3.  An insurer who files a schedule-rating plan pursuant to this section shall retain adequate supporting data for the credits and debits applicable to each risk included in the schedule-rating plan and shall make such records available for inspection by the Division upon request.

     4.  Each filing of a schedule-rating plan with the Division must be accompanied by a statement by the filing official affirming that the filing conforms to the provisions of this section.

     (Added to NAC by Comm’r of Insurance by R082-07, eff. 1-30-2008)

Loss Prevention and Control Programs

      NAC 690B.550  Definitions. (NRS 679B.130)  As used in NAC 690B.550 to 690B.580, inclusive, unless the context otherwise requires, the words and terms defined in NAC 690B.555, 690B.560 and 690B.565 have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)

      NAC 690B.555  “Policy of medical malpractice insurance” defined. (NRS 679B.130)  “Policy of medical malpractice insurance” means a policy of professional liability insurance covering the liability of a practitioner licensed pursuant to chapter 630 or 633 of NRS.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)

      NAC 690B.560  “Qualified risk management system” defined. (NRS 679B.130)  “Qualified risk management system” means a risk management system approved by the Commissioner pursuant to the provisions of NAC 690B.580.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)

      NAC 690B.565  “Risk management system” defined. (NRS 679B.130)  “Risk management system” means a system of procedures designed to reduce:

     1.  The risk of a claim of malpractice covered by a policy of medical malpractice insurance;

     2.  The costs related to a claim of malpractice covered by a policy of medical malpractice insurance; or

     3.  Both the risk of a claim of malpractice and the costs related to a claim of malpractice covered by a policy of medical malpractice insurance.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)

      NAC 690B.570  Annual reports on programs of insurer: Submission; forms. (NRS 679B.130, 690B.370)

     1.  Each insurer that issues a policy of medical malpractice insurance must submit a report to the Commissioner on the loss prevention and control programs of the insurer, including, without limitation, the qualified risk management systems offered by the insurer.

     2.  On or before July 15 of each year, the Commissioner will provide to each insurer the form for making the report.

     3.  On or before September 15 of each year, the report must be returned to the Commissioner.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003; A by R111-04, 5-24-2005)

      NAC 690B.575  Qualified risk management systems: Offer by insurer; reduction in premium; fee. (NRS 679B.130, 690B.330)

     1.  An insurer that issues a policy of medical malpractice insurance must offer a qualified risk management system to an insured.

     2.  If the insured implements a qualified risk management system offered by the insurer, the rating plan of the insurer must provide for a reduction in the premium for the policy of professional liability insurance.

     3.  At the discretion of the insurer, the rating plan of the insurer may provide that the reduction in premium may be given:

     (a) As a discount at the beginning of the period covered by the policy; or

     (b) As a refund at the end of the period covered by the policy.

     4.  In addition to any other fees that may be a part of the rating plan of the insurer, the insurer may charge a reasonable fee as part of the rating plan for providing a qualified risk management system to an insured.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)

      NAC 690B.580  Qualified risk management systems: Approval by Commissioner. (NRS 679B.130, 690B.330)

     1.  A risk management system offered by an insurer issuing a policy of medical malpractice insurance to an insured pursuant to NAC 690B.575 must be approved by the Commissioner as a qualified risk management system before it is offered.

     2.  The insurer shall submit to the Commissioner an application on a form prescribed by the Commissioner for the approval of the risk management system as a qualified risk management system.

     3.  The Commissioner may approve a risk management system as a qualified risk management system if the Commissioner determines that the risk management system:

     (a) Is designed to reduce:

          (1) The risk of a claim of malpractice covered by a policy of medical malpractice insurance;

          (2) The costs related to a claim of malpractice covered by a policy of medical malpractice insurance; or

          (3) Both the risk of a claim of malpractice and the costs related to a claim of malpractice covered by a policy of medical malpractice insurance; and

     (b) Consists of:

          (1) A system for risk management developed by the insurer or a third party that is applicable to the medical specialty of the insured covered by the policy;

          (2) Seminars or other training that provide instruction on risk management and qualify for continuing medical education credit; or

          (3) A program of instruction on communication skills, documentation techniques, litigation management techniques or other similar risk management techniques and a mechanism to verify compliance with the system by the insured.

     (Added to NAC by Comm’r of Insurance by R091-03, eff. 9-24-2003)