[Rev. 11/21/2013 1:11:16 PM--2013]

CHAPTER 687B - CONTRACTS OF INSURANCE

NRS 687B.010        Scope.

NRS 687B.015        “Binder” defined.

NRS 687B.021        Signatures.

NRS 687B.030        Waiver of payment of premium.

NRS 687B.040        Insurable interest: Personal insurance.

NRS 687B.050        Insurable interest: Exception when certain institutions designated beneficiary.

NRS 687B.060        Insurable interest: Property.

NRS 687B.070        Power to contract: Purchase of insurance and annuities by minors.

NRS 687B.080        Consent of insured to life or health insurance required; exceptions; notice of application for or request to increase coverage of insurance upon life of another required.

NRS 687B.090        Alteration of application: Life and health insurance.

NRS 687B.100        Application as evidence.

NRS 687B.110        Representations in applications.

NRS 687B.113        Control of cost of health care: Provisions encouraging use of certain services and facilities.

NRS 687B.117        Control of cost of health care: Insurer required to use three or more practices that control cost in administering benefits.

NRS 687B.120        Filing and approval of forms.

NRS 687B.122        Readability of policies: Applicability of requirements.

NRS 687B.124        Readability of policies: Flesch test; style, arrangement and overall appearance; index or table of contents.

NRS 687B.126        Readability of policies: Filing policy for Commissioner’s approval; exceptions to score requirements on Flesch test.

NRS 687B.128        Readability of policies: Approval by Commissioner.

NRS 687B.130        Grounds for disapproval.

NRS 687B.140        Standard provisions.

NRS 687B.145        Provisions in policies of casualty insurance: Proration of recovery or benefits; uninsured and underinsured motorist coverage; coverage for medical expenses; insurer not entitled to subrogation upon payment made because of underinsured vehicle coverage.

NRS 687B.147        Exclusion, reduction or limitation of certain coverage in motor vehicle insurance policies allowed; conditions; form and contents of disclosure.

NRS 687B.150        Inclusion of portion of charter or bylaws.

NRS 687B.160        Execution of policies.

NRS 687B.170        Underwriters’ and combination policies.

NRS 687B.180        Validity and construction of noncomplying forms.

NRS 687B.182        Binders: Issuance; effective dates.

NRS 687B.183        Binders: Forms; required statement; delivery.

NRS 687B.184        Binders: Form and premium for policy issued as replacement.

NRS 687B.185        Binders: Prohibition of use to lower premiums.

NRS 687B.186        Binders: Proof of insurance coverage.

NRS 687B.187        Binders: Disapproval of insurer.

NRS 687B.190        Delivery of policy.

NRS 687B.200        Assignability.

NRS 687B.210        Payment discharges insurer.

NRS 687B.220        Forms for proof of loss to be furnished.

NRS 687B.225        Requirements for contracts for payment of cost of medical or dental care which require prior authorization of care.

NRS 687B.240        Administration of claims not waiver.

NRS 687B.250        Payment not to constitute admission of liability or waiver of defenses.

NRS 687B.255        Insurer to pay claim with negotiable instrument.

NRS 687B.260        Exemption of proceeds of certain policies.

NRS 687B.270        Exemption of proceeds: Health insurance.

NRS 687B.280        Exemption of proceeds: Group insurance.

NRS 687B.290        Exemption of proceeds: Annuities; assignability of rights.

NRS 687B.300        Retention of proceeds of policy by insurer.

NRS 687B.310        Cancellations and nonrenewals; scope of application.

NRS 687B.320        Midterm cancellation; exception.

NRS 687B.325        Industrial insurance policies: Midterm cancellation; notice to policyholder.

NRS 687B.330        Anniversary cancellation.

NRS 687B.340        Nonrenewals.

NRS 687B.345        Annual review of coverage and benefits provided in policy.

NRS 687B.350        Renewal with altered terms.

NRS 687B.355        Information about claims paid on behalf of policyholder; regulations.

NRS 687B.360        Information about grounds.

NRS 687B.370        Information about applying for insurance through certain plans; exception.

NRS 687B.380        Immunity.

NRS 687B.385        Cancellation, nonrenewal or increase in premium due to claims for which insured was not at fault prohibited.

NRS 687B.390        Cancellation or nonrenewal on sole basis of age, residence, race, color, creed, national origin, ancestry or occupation prohibited.

NRS 687B.400        Discrimination on sole basis of age prohibited; burden of proof; exception.

NRS 687B.402        Compliance with certain federal laws regarding genetic information.

NRS 687B.404        Compliance with certain federal laws regarding mental health and addiction.

NRS 687B.406        Compliance with certain federal laws regarding dependent students.

NRS 687B.408        Notifications required concerning changes related to prescription drugs used for transplanted organs.

NRS 687B.410        Withdrawal of insurance for particular class of insureds: Notice; administrative review.

NRS 687B.420        Notice of proposed cancellation, nonrenewal or alteration of terms of certain policies or contracts of insurance.

NRS 687B.430        Regulations: Policies which provide for payment of expenses not covered by Medicare; sale of more than one policy of health insurance to same person.

NRS 687B.440        Umbrella policies: Disclosure statement indicating whether policy includes uninsured or underinsured motorist coverage; form.

NRS 687B.450        Required medical examination; potentially serious medical condition; notification.

NRS 687B.460        Certificates of insurance for property or casualty insurance.

NRS 687B.470        Health benefit plans: “Health benefit plan” defined. [Effective January 1, 2014.]

NRS 687B.480        Health benefit plans: Availability; waiting period; effective date. [Effective January 1, 2014.]

NRS 687B.490        Health benefit plans: Carrier required to demonstrate capacity to adequately deliver services; Commissioner to determine capacity; annual summary. [Effective January 1, 2014.]

NRS 687B.500        Health benefit plans: Basis for premium rate; exceptions. [Effective January 1, 2014.]

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      NRS 687B.010  Scope.  This chapter applies to all insurance contracts and annuity contracts other than:

      1.  Reinsurance.

      2.  Policies or contracts not issued for delivery in this state nor delivered in this state.

      3.  Wet marine and transportation insurance.

      (Added to NRS by 1971, 1712)

      NRS 687B.015  “Binder” defined.  As used in this chapter, unless the context otherwise requires, “binder” means an oral or written contract for temporary insurance which is used when a policy is not immediately issued to evidence that the coverage attaches at a specified time and continues until the policy is issued or the risk is declined.

      (Added to NRS by 1983, 1120)

      NRS 687B.021  Signatures.  Unless otherwise provided by a specific statute, if a signature is required of any person, the person may provide as the signature of the person:

      1.  An original signature;

      2.  A facsimile signature; or

      3.  An electronic signature pursuant to the provisions of chapter 719 of NRS.

      (Added to NRS by 2003, 2806)

      NRS 687B.030  Waiver of payment of premium.  With respect to any kind of insurance and any type of insurance contract, the insurer may provide for waiver of payment of premium for such causes and subject to such terms and conditions as may be specified in the contract.

      (Added to NRS by 1971, 1712; A 1981, 1142)

      NRS 687B.040  Insurable interest: Personal insurance.

      1.  Any natural person of competent legal capacity may procure or effect an insurance contract upon his or her own life or body for the benefit of any person. But a person shall not procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under the contract are payable to the person insured or the personal representatives of the person insured, or to a person having, at the time when the contract was made, an insurable interest in the person insured.

      2.  A trust shall not procure, cause to be procured or hold an insurance contract upon the life of a person unless each beneficiary of the trust:

      (a) Has an insurable interest in the person insured; or

      (b) Is a charitable, benevolent, educational or religious institution, or an agency thereof, and is designated irrevocably as a beneficiary of the trust.

      3.  If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits thereunder accruing upon the death, disablement or injury of the person insured, the person insured or the executor or administrator of the person insured, as the case may be, may maintain an action to recover such benefits from the person so receiving them.

      4.  As used in this section, “insurable interest” as to such personal insurance means that every person has an insurable interest in the life, body and health of himself or herself, and of other persons as follows:

      (a) In the case of persons related closely by blood or by law, a substantial interest engendered by love and affection; and

      (b) In the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the person insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement or injury of the person insured.

      5.  Before, on or after January 1, 1972, an individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a corporation or of an interest in such shares, has an insurable interest in the life, body and health of each individual party to the contract and for the purposes of the contract only, in addition to any insurable interest which may otherwise exist as to the person.

      6.  An insurer is entitled to rely upon all statements, declarations and representations made by an applicant for insurance relative to the insurable interest of the applicant in the insured. An insurer does not incur legal liability except as otherwise set forth in the policy, by virtue of any untrue statements, declarations or representations so relied upon in good faith by the insurer.

      (Added to NRS by 1971, 1712; A 1997, 1624; 2009, 1786)

      NRS 687B.050  Insurable interest: Exception when certain institutions designated beneficiary.

      1.  Life insurance contracts may be entered into in which the person paying the consideration for the insurance has no insurable interest in the life of the individual insured, where charitable, benevolent, educational or religious institutions or their agencies are designated irrevocably as the beneficiaries thereof.

      2.  In making such contracts the person paying the premium shall make and sign the application therefor as owner, and shall designate irrevocably a charitable, benevolent, educational or religious institution or an agency thereof as the beneficiary or beneficiaries of such contract. The application shall be signed also by the individual whose life is to be insured.

      3.  Nothing in this section shall prohibit any combination of the applicant, premium payer, owner and beneficiary from being the same person.

      4.  Such a contract shall be valid and binding among the parties thereto, notwithstanding the absence otherwise of an insurable interest in the life of the individual insured.

      (Added to NRS by 1971, 1713)

      NRS 687B.060  Insurable interest: Property.

      1.  No contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the time of the loss.

      2.  “Insurable interest” as used in this section means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.

      (Added to NRS by 1971, 1714)

      NRS 687B.070  Power to contract: Purchase of insurance and annuities by minors.

      1.  Any person of competent legal capacity may contract for insurance.

      2.  Any minor not less than 16 years of age may, notwithstanding his or her minority, contract for or own annuities or insurance, or affirm by novation or otherwise preexisting contracts for annuities or insurance, upon his or her own life, body, health, property, liabilities or other interests, or on the person of another in whom the minor has an insurable interest. Notwithstanding such minority such a minor shall be deemed competent to exercise all rights and powers with respect to or under:

      (a) Any annuity or insurance contract upon the minor’s own life, body or health;

      (b) Any contract which such minor effected upon his or her own property, liabilities or other interests; or

      (c) Any contract effected or owned by the minor on the person of another, as might be exercised by a person of full legal age.

      3.  Such a minor may at any time surrender his or her interest in any such contracts and give valid discharge for any benefit accruing or money payable thereunder. Such a minor shall not, by reason of his or her minority, be entitled to rescind, avoid or repudiate the contract, or to rescind, avoid or repudiate any exercise of a right or privilege thereunder, except that such a minor, not otherwise emancipated, shall not be bound by any unperformed agreement to pay, by promissory note or otherwise, any premium on any such annuity or insurance contract.

      4.  All insurance contracts made by a minor under the age of 16 years shall be made only with the written consent of a parent or guardian, and the exercise of all contractual rights under such contracts, or the surrender thereof, or the giving of a valid discharge for any benefit accruing or money payable thereunder shall have the written consent of a parent or guardian if made or given while such minor is under the age of 16 years.

      5.  All such contracts made by a minor which may result in any personal liability for assessment shall have the written assumption of any such liability by a parent or guardian in consideration of the issuance of the contract. Such assumption shall be in a form approved by the Commissioner, reasonably designed to inform the parent or guardian of the liability thus assumed. Such assumption of liability may be made a part of and included with any written consent of such parent or guardian required under the provisions of this section, and it may be provided therein that such assumption shall cover only up to the anniversary date of the policy nearest the insured’s birthday upon which the insured attains the age of 18 years.

      6.  Any annuity contract or policy of life or health insurance procured by or for a minor under subsection 2 or 3, shall be made payable either to the minor or the estate of the minor or to a person having an insurable interest in the life of the minor.

      (Added to NRS by 1971, 1714; A 1973, 1581)

      NRS 687B.080  Consent of insured to life or health insurance required; exceptions; notice of application for or request to increase coverage of insurance upon life of another required.

      1.  Except as otherwise provided in subsection 2, no life or health insurance contract upon a person, except a contract of group life insurance or of group or blanket health insurance, may be made or effectuated unless at the time of the making of the contract the person insured, being of competent legal capacity to contract, applies therefor or has consented thereto in writing.

      2.  The following persons may enter into a contract for life or health insurance upon another person without the insured’s written consent:

      (a) A spouse may effectuate such insurance upon the other spouse.

      (b) Any person having an insurable interest in the life of a minor, or any person upon whom a minor is dependent for support and maintenance, may effectuate insurance upon the life of or pertaining to the minor.

      (c) Family policies may be issued insuring any two or more members of a family on an application signed by either parent, a stepparent, a guardian, or by a husband or wife.

      3.  An insurer who receives:

      (a) An application in accordance with subsection 2 for a contract for insurance upon the life of another; or

      (b) A request to increase the existing coverage upon the life of an insured by a person other than the insured,

Ê shall, unless the application or request relates to a contract of group life insurance or of group or blanket health insurance, cause notice of the application or request to be mailed to the insured at the home or business of the insured within 48 hours after receiving the application or request.

      (Added to NRS by 1971, 1715; A 1993, 173)

      NRS 687B.090  Alteration of application: Life and health insurance.  No alteration of any written application for any life or health insurance policy shall be made by any person other than the applicant without the written consent of the applicant, except that insertions may be made by the insurer, for administrative purposes only, in such manner as to indicate clearly that such insertions are not to be ascribed to the applicant.

      (Added to NRS by 1971, 1715)

      NRS 687B.100  Application as evidence.

      1.  No application for the issuance of any life or health insurance policy or annuity contract shall be admissible in evidence in any action relative to such policy or contract, unless a true copy of the application was attached to or otherwise made a part of the policy or contract when issued. This subsection does not apply to industrial life insurance policies.

      2.  If any policy of life or health insurance delivered in this state is reinstated or renewed, and the insured or the beneficiary or assignee of the policy makes written request to the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within 30 days after receipt of such request at its home office, deliver or mail to the person making such request a copy of such application reproduced by any legible means. If such copy is not so delivered or mailed after having been so requested, the insurer shall be precluded from introducing the application in evidence in any action or proceeding based upon or involving the policy or its reinstatement or renewal. In the case of such a request from a beneficiary or assignee, the time within which the insurer is required to furnish a copy of such application shall not begin to run until after receipt of evidence satisfactory to the insurer of the beneficiary’s or assignee’s vested interest in the policy or contract.

      3.  As to kinds of insurance other than life or health insurance, no application for insurance signed by or on behalf of the insured shall be admissible in evidence in any action between the insured and the insurer arising out of the policy so applied for, if the insurer has failed, at the expiration of 30 days after receipt by the insurer of written demand therefor by or on behalf of the insured, to furnish to the insured a copy of such application reproduced by any legible means.

      (Added to NRS by 1971, 1715)

      NRS 687B.110  Representations in applications.  All statements and descriptions in any application for an insurance policy or annuity contract, by or in behalf of the insured or annuitant, shall be deemed to be representations and not warranties. Misrepresentations, omissions, concealment of facts and incorrect statements shall not prevent a recovery under the policy or contract unless either:

      1.  Fraudulent;

      2.  Material either to the acceptance of the risk, or to the hazard assumed by the insurer; or

      3.  The insurer in good faith would either not have issued the policy or contract, or would not have issued it at the same premium rate, or would not have issued a policy or contract in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss, if the true facts had been made known to the insurer as required either by the application for the policy or contract or otherwise.

      (Added to NRS by 1971, 1716)

      NRS 687B.113  Control of cost of health care: Provisions encouraging use of certain services and facilities.  An insurer shall include provisions in a policy of health insurance encouraging the insured’s use, if medically appropriate, of services and facilities that are the most efficient or that tend to control or reduce the cost of health care. Any policy or other form filed with the Commissioner pursuant to NRS 687B.120 must specifically indicate which provisions satisfy the requirements of this section.

      (Added to NRS by 1985, 1227)

      NRS 687B.117  Control of cost of health care: Insurer required to use three or more practices that control cost in administering benefits.  The Commissioner shall not approve any proposed policy of health insurance unless the Commissioner determines that the insurer has adopted and is using three or more practices in administering benefits that control or reduce the cost of health care.

      (Added to NRS by 1985, 1227)

      NRS 687B.120  Filing and approval of forms.

      1.  Except as otherwise provided in subsection 2:

      (a) No life or health insurance policy or contract, annuity contract form, policy form, health care plan or plan for dental care, whether individual, group or blanket, including those to be issued by a health maintenance organization, organization for dental care or prepaid limited health service organization, or application form where a written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, or form of individual certificate or statement of coverage to be issued under group or blanket contracts, or by a health maintenance organization, organization for dental care or prepaid limited health service organization, may be delivered or issued for delivery in this state, unless the form has been filed with and approved by the Commissioner.

      (b) As to group insurance policies effectuated and delivered outside this state but covering persons resident in this state, the group certificates to be delivered or issued for delivery in this state must be filed, for informational purposes only, with the Commissioner at the request of the Commissioner.

      2.  As to group insurance policies to be issued to a group approved pursuant to NRS 688B.030 or 689B.026, no policies of group insurance may be marketed to a resident or employer of this State unless the policy and any form or certificate to be issued pursuant to the policy has been filed with and approved by the Commissioner.

      3.  Every filing made pursuant to the provisions of subsection 1 or 2 must be made not less than 45 days in advance of any delivery pursuant to subsection 1 or marketing pursuant to subsection 2. At the expiration of 45 days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the Commissioner. Approval of any such form by the Commissioner constitutes a waiver of any unexpired portion of such waiting period. The Commissioner may extend by not more than an additional 30 days the period within which the Commissioner may so affirmatively approve or disapprove any such form, by giving notice to the insurer of the extension before expiration of the initial 45-day period. At the expiration of any such period as so extended, and in the absence of prior affirmative approval or disapproval, any such form shall be deemed approved. The Commissioner may at any time, after notice and for cause shown, withdraw any such approval.

      4.  Any order of the Commissioner disapproving any such form or withdrawing a previous approval must state the grounds therefor and the particulars thereof in such detail as reasonably to inform the insurer thereof. Any such withdrawal of a previously approved form is effective at the expiration of such a period, not less than 30 days after the giving of notice of withdrawal, as the Commissioner in such notice prescribes.

      5.  The Commissioner may, by order, exempt from the requirements of this section for so long as the Commissioner deems proper any insurance document or form or type thereof specified in the order, to which, in the opinion of the Commissioner, this section may not practicably be applied, or the filing and approval of which are, in the opinion of the Commissioner, not desirable or necessary for the protection of the public.

      6.  Appeals from orders of the Commissioner disapproving any such form or withdrawing a previous approval may be taken as provided in NRS 679B.310 to 679B.370, inclusive.

      (Added to NRS by 1971, 1716; A 1993, 2398; 1995, 1624; 2011, 3371)

      NRS 687B.122  Readability of policies: Applicability of requirements.

      1.  The provisions of NRS 687B.122 to 687B.128, inclusive:

      (a) Apply to all policies, certificates or contracts of life or health insurance, including credit insurance as defined in NRS 690A.015, delivered or issued for delivery in this state, including policies, certificates or contracts issued by fraternal benefit societies and hospital, medical or dental service corporations, health maintenance organizations and other similar organizations, and certificates issued pursuant to a policy of group insurance delivered or issued for delivery in this state, except:

             (1) Any policy which is a security subject to federal jurisdiction;

             (2) Any policy covering the lives of a group of 1,000 or more persons as of its date of issuance, other than a group policy for credit insurance and any certificate issued pursuant to any group policy;

             (3) Any group annuity which serves to finance pension, profit-sharing or deferred compensation plans; or

             (4) Any form used in connection with, as a conversion from, as an addition to or in exchange for a policy delivered or issued for delivery on a form approved or permitted to be issued before July 1, 1983.

      (b) Are not intended to increase any risk assumed by an insurer.

      (c) Do not supersede the provisions of this Title or other law applicable to the delivery or issuance of policies of insurance.

      (d) Are not intended to restrict or discourage the development of new policies and provisions.

      (e) Do not require standardization of forms for or provisions of policies.

      2.  Any policy written in a language other than English shall be deemed to comply with NRS 687B.124 if the insurer certifies that it is translated from a policy written in English which complies with that section.

      3.  The provisions of NRS 687B.122 to 687B.128, inclusive, apply to renewals on or after July 1, 1983, of policies delivered or issued for delivery before that date.

      (Added to NRS by 1981, 927; A 1987, 2286)

      NRS 687B.124  Readability of policies: Flesch test; style, arrangement and overall appearance; index or table of contents.

      1.  Except as provided by NRS 687B.122, a policy must not be delivered or issued for delivery in this state on or after July 1, 1983, unless:

      (a) The text of the policy achieves a score of at least 40 on the Flesch test of reading ease or an equivalent score on any comparable test which is approved by the Commissioner;

      (b) It is printed, except for pages which contain specifications, schedules or tables, in not less than 10-point type, one point leaded;

      (c) The style, arrangement and overall appearance of the policy give no undue prominence to any portion of the text of or endorsements or riders to the policy; and

      (d) It contains a table of contents or an index of the principal sections of the policy if it contains more than 3,000 words or has more than three pages.

      2.  The score for the Flesch test of reading ease must be calculated in the following manner:

      (a) If a form contains 10,000 words or less of text, the entire text must be used as a basis for calculating the score. If it contains more than 10,000 words, two samples, which are separated from each other by at least 20 printed lines, of 200 words per page must be used as the basis for calculating the score.

      (b) The number of words and sentences used in the basis for the calculation must be counted and the total number of words divided by the total number of sentences. This figure must be multiplied by 1.015.

      (c) The number of syllables must be counted and the total divided by the total number of words. This figure must be multiplied by 84.6.

      (d) The results of the calculations made pursuant to paragraphs (b) and (c) must be added together and the total must be subtracted from 206.835.

      (e) The result of the calculation made pursuant to paragraph (d) is the score for the policy.

      3.  For the purposes of performing the calculations required by subsection 2:

      (a) A contraction, hyphenated word or numbers and letters when separated by spaces must be counted as one word;

      (b) A sequence of words which ends with a period, semicolon or colon, except for headings and captions, must be counted as a sentence; and

      (c) Where a dictionary shows two or more equally acceptable pronunciations of a word, the pronunciation containing fewer syllables may be used.

      4.  As used in this section, “text” includes all printed matter except:

      (a) The name and address of the insurer, the name, number or title of the policy, the table of contents or index, captions and subcaptions and pages which contain specifications, schedules and tables; and

      (b) Any language of the policy which is drafted in a particular manner so as to meet the requirements of:

             (1) Any federal or state law or regulation or any interpretation of a law or regulation by a federal or state agency;

             (2) Any collective bargaining agreement;

             (3) Usage of medical terms; and

             (4) Definitions contained in the policy,

Ê if the insurer so identifies this language and certifies in writing that it is excepted by this paragraph.

      5.  An insurer may score riders, endorsements, applications and other forms as separate forms or as part of the policy with which they are used.

      (Added to NRS by 1981, 927)

      NRS 687B.126  Readability of policies: Filing policy for Commissioner’s approval; exceptions to score requirements on Flesch test.

      1.  An insurer shall file a copy of the policy with the Commissioner accompanied by a certificate signed by an officer of the insurer stating that the policy meets the score required for reading ease or stating that the score is lower than the minimum required and requesting that it be approved in accordance with subsection 2. Upon the request of the Commissioner, the insurer shall furnish additional information to verify the accuracy of the certification.

      2.  The Commissioner may approve a policy which has a score lower than required whenever the Commissioner finds that a lower score:

      (a) Provides a more accurate reflection of the readability of a policy;

      (b) Is necessitated by the nature of a particular type or class of policy; or

      (c) Is caused by language in the policy which is drafted in a particular manner so as to meet the requirements of any state law, regulation or interpretation of that law or regulation by a state agency.

      (Added to NRS by 1981, 928)

      NRS 687B.128  Readability of policies: Approval by Commissioner.  A policy which complies with subsection 1 of NRS 687B.124 must be approved by the Commissioner, notwithstanding any other provision of law which specifies the content of a policy, if the policy provides the policyholder and claimant with protection at least equal to that to which they are entitled under those other provisions.

      (Added to NRS by 1981, 929)

      NRS 687B.130  Grounds for disapproval.  The Commissioner shall disapprove any form filed under NRS 687B.120, or withdraw any previous approval thereof, only on one or more of the following grounds:

      1.  The form is in any respect in violation of or does not comply with this Code.

      2.  The form contains, or incorporates by reference where such incorporation is otherwise permissible, any inconsistent, ambiguous or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract, or any provision or provisions prejudicial to the interest of the insured or policyholder.

      3.  The form has any title, heading or other indication of its provisions which is misleading, or is printed in such size of type or manner of reproduction as to be difficult to read.

      4.  As to an individual health insurance policy, if the benefits provided therein are unreasonable in relation to the premium charged, or if it contains any unjust, unfair, inequitable or prejudicial provision or provisions.

      5.  As to a life insurance or individual health insurance policy, if it contains a provision or provisions such as to encourage misrepresentation.

      (Added to NRS by 1971, 1717)

      NRS 687B.140  Standard provisions.

      1.  Insurance contracts shall contain such standard or uniform provisions as are required by the applicable provisions of this Code pertaining to contracts of particular kinds of insurance. The Commissioner may waive the required use of a particular provision in a particular insurance policy form if:

      (a) The Commissioner finds such provision unnecessary for or unrelated to the protection of the insured and inconsistent with the purposes of the policy; and

      (b) The policy is otherwise approved by the Commissioner.

      2.  No policy shall contain any provision inconsistent with or contradictory to any standard or uniform provision used or required to be used, but the Commissioner may approve any substitute provision which is, in the opinion of the Commissioner, not less favorable in any particular to the insured, owner or beneficiary than the provisions otherwise required.

      3.  In lieu of the provisions required by this Code for contracts for particular kinds of insurance, substantially similar provisions required by the law of the domicile of a foreign or alien insurer may be used when approved by the Commissioner.

      4.  A policy issued by a domestic insurer for delivery in another jurisdiction may contain any provision required or permitted by the laws of such jurisdiction.

      (Added to NRS by 1971, 1718)

      NRS 687B.145  Provisions in policies of casualty insurance: Proration of recovery or benefits; uninsured and underinsured motorist coverage; coverage for medical expenses; insurer not entitled to subrogation upon payment made because of underinsured vehicle coverage.

      1.  Any policy of insurance or endorsement providing coverage under the provisions of NRS 690B.020 or other policy of casualty insurance may provide that if the insured has coverage available to the insured under more than one policy or provision of coverage, any recovery or benefits may equal but not exceed the higher of the applicable limits of the respective coverages, and the recovery or benefits must be prorated between the applicable coverages in the proportion that their respective limits bear to the aggregate of their limits. Any provision which limits benefits pursuant to this section must be in clear language and be prominently displayed in the policy, binder or endorsement. Any limiting provision is void if the named insured has purchased separate coverage on the same risk and has paid a premium calculated for full reimbursement under that coverage.

      2.  Except as otherwise provided in subsection 5, insurance companies transacting motor vehicle insurance in this State must offer, on a form approved by the Commissioner, uninsured and underinsured vehicle coverage in an amount equal to the limits of coverage for bodily injury sold to an insured under a policy of insurance covering the use of a passenger car. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage. Uninsured and underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of the insured’s own coverage any amount of damages for bodily injury from the insured’s insurer which the insured is legally entitled to recover from the owner or operator of the other vehicle to the extent that those damages exceed the limits of the coverage for bodily injury carried by that owner or operator. If an insured suffers actual damages subject to the limitation of liability provided pursuant to NRS 41.035, underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of the insured’s own coverage any amount of damages for bodily injury from the insured’s insurer for the actual damages suffered by the insured that exceed that limitation of liability.

      3.  An insurance company transacting motor vehicle insurance in this State must offer an insured under a policy covering the use of a passenger car, the option of purchasing coverage in an amount of at least $1,000 for the payment of reasonable and necessary medical expenses resulting from an accident. The offer must be made on a form approved by the Commissioner. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage.

      4.  An insurer who makes a payment to an injured person on account of underinsured vehicle coverage as described in subsection 2 is not entitled to subrogation against the underinsured motorist who is liable for damages to the injured payee. This subsection does not affect the right or remedy of an insurer under subsection 5 of NRS 690B.020 with respect to uninsured vehicle coverage. As used in this subsection, “damages” means the amount for which the underinsured motorist is alleged to be liable to the claimant in excess of the limits of bodily injury coverage set by the underinsured motorist’s policy of casualty insurance.

      5.  An insurer need not offer, provide or make available uninsured or underinsured vehicle coverage in connection with a general commercial liability policy, an excess policy, an umbrella policy or other policy that does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, operation or use of a specifically insured motor vehicle.

      6.  As used in this section:

      (a) “Excess policy” means a policy that protects a person against loss in excess of a stated amount or in excess of coverage provided pursuant to another insurance contract.

      (b) “Passenger car” has the meaning ascribed to it in NRS 482.087.

      (c) “Umbrella policy” means a policy that protects a person against losses in excess of the underlying amount required to be covered by other policies.

      (Added to NRS by 1979, 1090; A 1981, 15; 1983, 1105; 1989, 1567, 1846; 1991, 1943; 1997, 3032; 2003, 3312)

      NRS 687B.147  Exclusion, reduction or limitation of certain coverage in motor vehicle insurance policies allowed; conditions; form and contents of disclosure.  A policy of motor vehicle insurance covering a private passenger car may be delivered or issued for delivery in this state if it contains an exclusion, reduction or other limitation of coverage for the liability of any named insured for bodily injury to:

      1.  Another named insured; or

      2.  Any member of the household of a named insured,

Ê unless the named insured rejects the exclusion, reduction or other limitation of coverage after full disclosure of the limitation by the insurer on a form approved by the Commissioner. The form must be written in a manner which is easily understood, printed in at least 12-point type and contain the statement “I understand that this policy excludes, reduces and limits coverage for bodily injury to members of my family and other named insureds, including the following persons:” (followed by a list of the names of the family members and other named insureds whose coverage has been excluded, reduced or limited). The list of names must be handwritten by the insured and followed by the full signature of the insured. The disclosed exclusion, reduction or other limitation of coverage continues until the named insured notifies the insurer in writing of the desire of the insured to reject it. The insurer must disclose upon renewal of the policy that coverage has been excluded, reduced or limited and that the named insured has the right to reject the exclusion, reduction or limitation. The insurer must also disclose to the named insured upon renewal any additional motor vehicle coverages that the insurer sells. These disclosures must be written in a form easily understood and printed in at least 12-point type.

      (Added to NRS by 1989, 1851)

      NRS 687B.150  Inclusion of portion of charter or bylaws.

      1.  No policy shall contain any provision purporting to make any portion of the charter, bylaws or other constituent document of the insurer (other than the subscriber’s agreement or power of attorney of a reciprocal insurer) a part of the contract unless such portion is set forth in full in the policy.

      2.  Any policy provision in violation of this section is invalid.

      (Added to NRS by 1971, 1718)

      NRS 687B.160  Execution of policies.

      1.  Every insurance policy must be executed in the name of and on behalf of the insurer by its officer, attorney-in-fact, employee or representative duly authorized by the insurer.

      2.  Any such executing individual may use, in lieu of an original signature:

      (a) A facsimile signature; or

      (b) An electronic signature pursuant to the provisions of chapter 719 of NRS.

      3.  An insurance contract issued before, on or after January 1, 1972, which is otherwise valid is not rendered invalid by reason of the apparent execution thereof on behalf of the insurer by the imprinted facsimile signature of an individual not authorized so to execute as of the date of the policy.

      (Added to NRS by 1971, 1718; A 1997, 1625; 2003, 2806)

      NRS 687B.170  Underwriters’ and combination policies.

      1.  Two or more authorized insurers may jointly issue, and shall be jointly and severally liable on, an underwriters’ policy bearing their names. Any one insurer may issue policies in the name of an underwriter’s department and such policy shall plainly show the true name of the insurer.

      2.  Two or more insurers may, with the approval of the Commissioner, issue a combination policy which shall contain provisions substantially as follows:

      (a) That the insurers executing the policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of insurance under the policy; and

      (b) That service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing the policy, shall constitute service upon all such insurers.

      3.  This section does not apply to cosurety obligations.

      (Added to NRS by 1971, 1719)

      NRS 687B.180  Validity and construction of noncomplying forms.

      1.  A policy delivered or issued for delivery after January 1, 1972, to any person in this state in violation of this Code but otherwise binding on the insurer, shall be held valid, but shall be construed as provided in this Code.

      2.  Any condition, omission or provision not in compliance with the requirements of this Code and contained in any policy, rider or endorsement issued after January 1, 1972, and otherwise valid shall not thereby be rendered invalid but shall be construed and applied in accordance with such condition, omission or provision as would have applied had the same been in full compliance with this Code.

      (Added to NRS by 1971, 1719)

      NRS 687B.182  Binders: Issuance; effective dates.

      1.  A binder may be issued only by a resident or nonresident agent appointed by the insurer which is to issue the policy.

      2.  Except as provided in subsection 3, a binder must not be effective for more than 90 days.

      3.  The effective period of a binder may be extended 30 days at a time with the written approval of the Commissioner.

      (Added to NRS by 1983, 1120)

      NRS 687B.183  Binders: Forms; required statement; delivery.

      1.  All written binders must be made on forms approved by the Commissioner.

      2.  A binder related to a policy of insurance which provides coverage of less than $1,000,000 must contain a statement printed in at least 10-point bold type that any person who refuses to accept the binder as proof of insurance pursuant to the provisions of NRS 687B.186 is subject to the penalties provided in that section.

      3.  If a binder is in writing, one copy must be delivered either in person or by mailing first class to:

      (a) The insured; and

      (b) The insurer providing coverage under the binder,

Ê within 24 hours after the binder becomes effective.

      (Added to NRS by 1983, 1120; A 1985, 1161)

      NRS 687B.184  Binders: Form and premium for policy issued as replacement.

      1.  A policy which is issued to replace a binder must include:

      (a) Limits of coverage which are equal to the limits stated in the binder; and

      (b) An effective date for the policy which is the same as the effective date of the initial binder.

      2.  The premium for such a policy must include the charge for the period covered by the binder and that charge must be in accordance with rates filed with the Commissioner pursuant to chapter 686B of NRS.

      (Added to NRS by 1983, 1120)

      NRS 687B.185  Binders: Prohibition of use to lower premiums.  An insurer may not use a binder as a means to lower a premium which an insured is charged.

      (Added to NRS by 1983, 1121)

      NRS 687B.186  Binders: Proof of insurance coverage.

      1.  A binder which is issued in accordance with NRS 687B.182 to 687B.187, inclusive, shall be deemed a policy for the purpose of proving that a person has insurance coverage.

      2.  Any party to a contract or other agreement who refuses to accept such a binder as proof of insurance when that proof is required by that contract or agreement:

      (a) Shall be fined not more than $500.

      (b) Is liable to the party presenting the binder as proof of insurance for actual damages sustained therefrom.

      3.  The provisions of this section do not apply to a binder related to a policy of insurance which provides coverage of at least $1,000,000.

      (Added to NRS by 1983, 1121; A 1985, 1161)

      NRS 687B.187  Binders: Disapproval of insurer.  NRS 687B.182 to 687B.187, inclusive, do not prevent the exercise of a right to disapprove of the insurer or its representative on the basis of:

      1.  The adequacy and terms of the coverage with respect to the interest of the vendor, lender, lessor or other person providing a service to the insured;

      2.  The financial standards to be met by the insurer; or

      3.  The ability of the insurer or its representative to service the policy.

      (Added to NRS by 1983, 1120)

      NRS 687B.190  Delivery of policy.

      1.  If the original policy is delivered or is so required to be delivered to or for deposit with any vendor, mortgagee or pledgee of any motor vehicle, in which policy any interest of the vendee, mortgagor or pledgor in or with reference to such vehicle is insured, a duplicate of such policy setting forth the name and address of the insurer, insurance classification of vehicle, type of coverage, limits of liability, premiums for the respective coverages and duration of the policy, or memorandum thereof containing the same such information, shall be delivered by the vendor, mortgagee or pledgee to each such vendee, mortgagor or pledgor named in the policy or coming within the group of persons designated in the policy to be so included. If the policy does not provide coverage of legal liability for injury to persons or damage to the property of third parties, a statement of such fact shall be printed, written or stamped conspicuously on the face of such duplicate policy or memorandum.

      2.  This section does not apply to inland marine floater policies.

      (Added to NRS by 1971, 1719)

      NRS 687B.200  Assignability.

      1.  The purpose of this section is to confirm and clarify the right to provide for an assignment by which a person covered by a life or health insurance policy may divest himself or herself of all incidents of ownership provided by the policy, including the conversion privileges of the policy.

      2.  Any person insured under a life or health insurance policy may make an assignment of all or any part of the incidents of ownership of the person under the policy, including, but not limited to, the privilege to have issued to the person an individual policy of life or health insurance pursuant to the provisions of this Code and the right to name a beneficiary. Subject to the terms of the policy or agreement between the insured, the policyholder and the insurer relating to assignment of incidents of ownership thereunder, such an assignment by an insured, whenever made, is valid for the purpose of vesting in the assignee all of the incidents of ownership so assigned. Such an assignment does not prejudice the insurer on account of any payment it may make or individual policy it may issue prior to receipt of notice of the assignment.

      3.  This section also applies to contracts issued by organizations for dental care and nonprofit hospital, medical and dental service corporations.

      (Added to NRS by 1971, 1720; A 1983, 2029)

      NRS 687B.210  Payment discharges insurer.

      1.  Whenever the proceeds of or payments under a life or health insurance policy or annuity contract issued before, on or after January 1, 1972, become payable in accordance with the terms of the policy or contract, or the exercise of any right or privilege thereunder, and the insurer makes payment thereof in accordance therewith or in accordance with any written assignment thereof, the person then designated as being entitled thereto is entitled to receive the proceeds or payments and to give full acquittance therefor, and the payments fully discharge the insurer from all claims under the policy or contract unless, before payment is made, the insurer has received at its home office written notice by or on behalf of some other person that the other person claims to be entitled to the payment or some interest in the policy or contract.

      2.  This section also applies to contracts issued by organizations for dental care and nonprofit hospital, medical and dental service corporations.

      (Added to NRS by 1971, 1720; A 1983, 2029; 1997, 1625)

      NRS 687B.220  Forms for proof of loss to be furnished.  Upon receiving due notice of a claim of loss under an insurance contract issued or assumed by it, an insurer shall promptly furnish to the insured claimant such forms of proof of loss as it may require, for completion by such person, but such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.

      (Added to NRS by 1971, 1720)

      NRS 687B.225  Requirements for contracts for payment of cost of medical or dental care which require prior authorization of care.

      1.  Except as otherwise provided in NRS 689A.0405, 689A.0413, 689A.044, 689A.0445, 689B.031, 689B.0313, 689B.0317, 689B.0374, 695B.1912, 695B.1914, 695B.1925, 695B.1942, 695C.1713, 695C.1735, 695C.1745, 695C.1751, 695G.170, 695G.171 and 695G.177, any contract for group, blanket or individual health insurance or any contract by a nonprofit hospital, medical or dental service corporation or organization for dental care which provides for payment of a certain part of medical or dental care may require the insured or member to obtain prior authorization for that care from the insurer or organization. The insurer or organization shall:

      (a) File its procedure for obtaining approval of care pursuant to this section for approval by the Commissioner; and

      (b) Respond to any request for approval by the insured or member pursuant to this section within 20 days after it receives the request.

      2.  The procedure for prior authorization may not discriminate among persons licensed to provide the covered care.

      (Added to NRS by 1983, 2028; A 1985, 2098; 1997, 307, 1729; 1999, 1943; 2007, 3236)

      NRS 687B.240  Administration of claims not waiver.  Without limitation of any right or defense of an insurer otherwise, none of the following acts by or on behalf of an insurer shall be deemed to constitute a waiver of any provision of a policy or of any defense of the insurer thereunder:

      1.  Acknowledgment of the receipt of notice of loss or claim under the policy.

      2.  Furnishing forms for reporting a loss or claim, for giving information relative thereto, or for making proof of loss, or receiving or acknowledging receipt of any such forms or proofs completed or uncompleted.

      3.  Investigating any loss or claim under any policy or engaging in negotiations looking toward a possible settlement of any such loss or claim.

      (Added to NRS by 1971, 1721)

      NRS 687B.250  Payment not to constitute admission of liability or waiver of defenses.

      1.  No payment or payments made by any person, or by an insurer of the person by virtue of a liability insurance policy, on account of bodily injury or death or damage to or loss of property of another shall constitute an admission of liability or waiver of defenses as to such injury, death, loss or damage, or be admissible in evidence in any action brought against the insured person or the insurer of the person for damages, indemnity or benefits arising out of such injury, death, loss or damage, unless pleaded as a defense to the action.

      2.  All such payments shall be credited upon any settlement made by, or judgment rendered in such an action against, the payer or the insurer of the payer, and in favor of any person to whom or on whose account payment was made.

      (Added to NRS by 1971, 1721)

      NRS 687B.255  Insurer to pay claim with negotiable instrument.  If an insurer is required to pay a claim, the insurer shall pay that claim with an instrument which is immediately negotiable. An insurer shall be deemed to have complied with the provisions of this section if the insurer enters into an agreement, with a bank located in this state, which provides that the bank will accept the insurer’s drafts in as timely a manner as it accepts the insurer’s checks.

      (Added to NRS by 1989, 1799)

      NRS 687B.260  Exemption of proceeds of certain policies.

      1.  If a policy of insurance, whether issued before, on or after January 1, 1972, is effected by any person on his or her own life, or on another life, in favor of a person other than himself or herself, or, except in cases of transfer with intent to defraud creditors, if a policy of life insurance is assigned or in any way made payable to any such person, the lawful beneficiary or assignee thereof, other than the insured or the person so effecting such insurance or executors or administrators of the insured or the person so effecting such insurance, is entitled to its proceeds and avails against the creditors and representatives of the insured and of the person effecting the same, whether or not the right to change the beneficiary is reserved or permitted and whether or not the policy is made payable to the person whose life is insured or to the executors or administrators of such person if the beneficiary or assignee predeceases the person. Except as otherwise provided in this subsection, such proceeds and avails are exempt from all liability for any debt of the beneficiary existing at the time the proceeds and avails are made available for the use of the beneficiary. Subject to the statute of limitations, the amount of any premiums for such insurance paid with intent to defraud creditors, with interest thereon, inures to the benefit of the creditors from the proceeds of the policy. The insurer issuing the policy is discharged of all liability thereon by payment of its proceeds in accordance with its terms, unless, before the payment, the insurer has received written notice at its home office, by or in behalf of a creditor, of a claim to recover for transfer made or premiums paid with intent to defraud creditors, with specification of the amount claimed along with such facts as will assist the insurer to ascertain the particular policy.

      2.  For the purposes of subsection 1, a policy shall also be deemed to be payable to a person other than the insured if and to the extent that a facility-of-payment clause or a similar clause in the policy permits the insurer to discharge its obligation after the death of the individual insured by paying the death benefits to a person as permitted by such a clause.

      3.  This section does not apply to insurance issued pursuant to this Code to a creditor covering his or her debtors to the extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued.

      (Added to NRS by 1971, 1722; A 1997, 1625)

      NRS 687B.270  Exemption of proceeds: Health insurance.

      1.  Except as otherwise expressly provided by the policy or contract, the proceeds and avails of all contracts of health insurance and of provisions providing benefits on account of the disability of the insured which are supplemental to life insurance or annuity contracts effected before, on or after January 1, 1972, are exempt from all liability for any debt of the insured, and from any debt of the beneficiary existing at the time the proceeds are made available for the use of the beneficiary.

      2.  This section does not apply to insurance issued pursuant to this Code to a creditor covering his or her debtors to the extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued.

      (Added to NRS by 1971, 1722; A 1997, 1626)

      NRS 687B.280  Exemption of proceeds: Group insurance.

      1.  A policy of group life insurance or group health insurance or the proceeds thereof payable to the individual insured or to the beneficiary thereunder shall not be liable, either before or after payment, to be applied by any legal or equitable process to pay any debt or liability of such insured individual or his or her beneficiary or of any other person having a right under the policy. The proceeds thereof, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of the debts of the individual insured.

      2.  This section does not apply to group insurance issued pursuant to this Code to a creditor covering his or her debtors, to the extent that such proceeds are applied to payments of the obligation for the purpose of which the insurance was so issued.

      (Added to NRS by 1971, 1723)

      NRS 687B.290  Exemption of proceeds: Annuities; assignability of rights.

      1.  The benefits, rights, privileges and options which under any annuity contract issued prior to or after January 1, 1972, are due or prospectively due the annuitant shall not be subject to execution nor shall the annuitant be compelled to exercise any such rights, powers or options, nor shall creditors be allowed to interfere with or terminate the contract, except as to amounts paid for or as premium on any such annuity with intent to defraud creditors, with interest thereon, and of which the creditor has given the insurer written notice at its home office prior to the making of the payment to the annuitant out of which the creditor seeks to recover. Any such notice shall specify the amount claimed or such facts as will enable the insurer to ascertain such amount, and shall set forth such facts as will enable the insurer to ascertain the annuity contract, the annuitant and the payment sought to be avoided on the ground of fraud.

      2.  If the contract so provides, the benefits, rights, privileges or options accruing under such contract to a beneficiary or assignee shall not be transferable or subject to commutation, and the same exemptions and exceptions contained in this section for the annuitant shall apply with respect to such beneficiary or assignee.

      (Added to NRS by 1971, 1723; A 2011, 3571)

      NRS 687B.300  Retention of proceeds of policy by insurer.

      1.  Any life insurer shall have power to hold payment of proceeds, as has been agreed to in writing by the insurer and the insured or beneficiary. The insurer shall not be required to segregate funds so held but may hold them as a part of its general corporate assets.

      2.  The provisions of this section shall not impair or affect any rights of creditors under NRS 687B.260 or 687B.290.

      (Added to NRS by 1971, 1724)

      NRS 687B.310  Cancellations and nonrenewals; scope of application.

      1.  NRS 687B.310 to 687B.420, inclusive, apply to all binders and all contracts of insurance the general terms of which are required to be approved or are subject to disapproval by the Commissioner, except as otherwise provided by statute or by rule pursuant to subsection 3.

      2.  The contract may provide terms more favorable to policyholders than are required by NRS 687B.310 to 687B.420, inclusive.

      3.  The Commissioner may by rule exempt from NRS 687B.310 to 687B.420, inclusive, classes of insurance contracts where the policyholders do not need protection against arbitrary termination.

      4.  The rights provided by NRS 687B.310 to 687B.420, inclusive, are in addition to and do not prejudice any other rights the policyholder may have at common law or under other statutes.

      5.  NRS 687B.310 to 687B.420, inclusive, do not prevent the rescission or reformation of any life or health insurance contract not otherwise denied by the terms of the contract or by any other statute.

      6.  Any notice to an insured required pursuant to NRS 687B.320 to 687B.350, inclusive, must be personally delivered to the insured or mailed first class or certified to the insured at the address of the insured last known by the insurer. The notice must state the effective date of the cancellation or nonrenewal and be accompanied by a written explanation of the specific reasons for the cancellation or nonrenewal.

      (Added to NRS by 1971, 1724; A 1971, 1949; 1983, 1121; 1987, 985, 1063; 1993, 2399; 2003, 3313)

      NRS 687B.320  Midterm cancellation; exception.

      1.  Except as otherwise provided in subsection 3, no insurance policy that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer before the expiration of the agreed term or 1 year from the effective date of the policy or renewal, whichever occurs first, except on any one of the following grounds:

      (a) Failure to pay a premium when due;

      (b) Conviction of the insured of a crime arising out of acts increasing the hazard insured against;

      (c) Discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder;

      (d) Discovery of:

             (1) An act or omission; or

             (2) A violation of any condition of the policy,

Ê which occurred after the first effective date of the current policy and substantially and materially increases the hazard insured against;

      (e) A material change in the nature or extent of the risk, occurring after the first effective date of the current policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the policy was issued or last renewed;

      (f) A determination by the Commissioner that continuation of the insurer’s present volume of premiums would jeopardize the insurer’s solvency or be hazardous to the interests of policyholders of the insurer, its creditors or the public; or

      (g) A determination by the Commissioner that the continuation of the policy would violate, or place the insurer in violation of, any provision of the Code.

      2.  No cancellation under subsection 1 is effective until in the case of paragraph (a) of subsection 1 at least 10 days and in the case of any other paragraph of subsection 1, at least 30 days after the notice is delivered or mailed to the policyholder.

      3.  The provisions of this section do not apply to a policy of industrial insurance.

      (Added to NRS by 1971, 1724; A 1987, 986; 2003, 3313)

      NRS 687B.325  Industrial insurance policies: Midterm cancellation; notice to policyholder.

      1.  No policy of industrial insurance that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer before the expiration of the agreed term or 1 year after the effective date of the policy or renewal, whichever occurs first, except on any one of the following grounds:

      (a) A failure by the policyholder to pay a premium for the policy of industrial insurance when due, including the failure of the policyholder to remit an amount due because of an endorsement for a deductible;

      (b) A failure by the policyholder to:

             (1) Report any payroll;

             (2) Allow the insurer to audit any payroll in accordance with the terms of the policy or any previous policy issued by the insurer; or

             (3) Pay any additional premium charged because of an audit of any payroll as required by the terms of the policy or any previous policy issued by the insurer;

      (c) A material failure by the policyholder to comply with any federal or state order concerning safety or any written recommendation of the insurer’s designated representative for loss control;

      (d) A material change in ownership of the policyholder or any change in the policyholder’s business or operations that:

             (1) Materially increases the hazard for frequency or severity of loss;

             (2) Requires additional or different classifications for the calculation of premiums; or

             (3) Contemplates an activity that is excluded by any reinsurance treaty of the insurer;

      (e) A material misrepresentation made by the policyholder; or

      (f) A failure by the policyholder to cooperate with the insurer in conducting an investigation of a claim.

      2.  An insurer shall not cancel a policy of industrial insurance pursuant to paragraph (a) of subsection 1 except upon 10 days’ written notice submitted by the insurer to the policyholder.

      3.  Except as otherwise provided in this subsection, an insurer shall not cancel a policy of industrial insurance pursuant to paragraph (b), (c), (d), (e) or (f) of subsection 1 except upon 30 days’ written notice by the insurer to the policyholder. An insurer is not required to provide a written notice to a policyholder pursuant to this subsection if the policyholder and the insurer consent to the cancellation of the policy of industrial insurance and to the reissuance of another policy of industrial insurance effective upon a material change in the ownership or operations of the insured. If the policyholder corrects the condition to the satisfaction of the insurer within the period specified in the policy of insurance, the insurer shall not cancel the policy.

      4.  Any written notice submitted to a policyholder pursuant to this section must be given by first-class mail addressed to the policyholder at the address of the policyholder set forth in the policy of industrial insurance. Evidence indicating that a written notice specified in this section has been mailed is sufficient proof of notice.

      5.  The provisions of this section do not prohibit, during any period in which a policy of industrial insurance is in force, any change in the premium rate required or authorized by any law, regulation or order of the Commissioner, or otherwise agreed upon by the policyholder and the insurer.

      6.  For the purposes of this section, any policy of industrial insurance that is written for a term of more than 1 year, or any policy of industrial insurance with no fixed date of expiration, shall be deemed to be written for successive periods of 1 year.

      (Added to NRS by 2003, 3310; A 2005, 2134)

      NRS 687B.330  Anniversary cancellation.  A policy issued for a term longer than 1 year may be cancelled by the insurer by giving notice of the cancellation:

      1.  For commercial or business policies, 60 days before any anniversary date of the policy.

      2.  For all other policies, 30 days before any anniversary date of the policy.

      (Added to NRS by 1971, 1725; A 1987, 987)

      NRS 687B.340  Nonrenewals.

      1.  Subject to subsection 2, a policyholder has a right to have his or her policy renewed, on the terms then being applied by the insurer to persons, similarly situated, for an additional period equivalent to the expiring term if the agreed term is 1 year or less, or for 1 year if the agreed term is longer than 1 year, unless:

      (a) At least 60 days for commercial or business policies; and

      (b) At least 30 days for all other policies,

Ê before the date of expiration provided in the policy the insurer mails or delivers to the policyholder a notice of intention not to renew the policy beyond the agreed expiration date. If an insurer fails to provide a timely notice of nonrenewal, the insurer shall provide the insured with a policy of insurance on the identical terms as in the expiring policy.

      2.  This section does not apply if the policyholder has accepted replacement coverage or has requested or agreed to nonrenewal, or if the policy is expressly designated as nonrenewable by a clause approved or deemed to be approved by the Commissioner.

      (Added to NRS by 1971, 1725; A 1971, 1950; 1987, 987)

      NRS 687B.345  Annual review of coverage and benefits provided in policy.  Each insurer who delivers a policy in this state which is effective for 1 year or more may, for the period in which the policy is effective, review annually with the policyholder to whom the policy is delivered the coverage and benefits provided in the policy.

      (Added to NRS by 1995, 1747)

      NRS 687B.350  Renewal with altered terms.

      1.  Except as otherwise provided in subsection 2, an insurer shall not renew a policy on different terms, including different rates, unless the insurer notifies the insured in writing of the different terms or rates at least 30 days before the expiration of the policy. If the insurer fails to provide adequate and timely notice, the insurer shall renew the policy at the expiring terms and rates:

      (a) For a period that is equal to the expiring term if the agreed term is 1 year or less; or

      (b) For 1 year if the agreed term is more than 1 year.

      2.  The provisions of this section do not apply to a change in the rate for a policy of industrial insurance which is based on:

      (a) A change to a prospective loss cost filed by the Advisory Organization pursuant to NRS 686B.177 that is applicable to the risk; or

      (b) A correction based on the experience that is applicable to the risk in accordance with the Uniform Plan for Rating Experience filed with the Commissioner pursuant to NRS 686B.177.

      (Added to NRS by 1971, 1725; A 1995, 1747; 2003, 3314; 2007, 3322)

      NRS 687B.355  Information about claims paid on behalf of policyholder; regulations.

      1.  If a policyholder requests information for the renewal of his or her policy, an insurer shall provide to the policyholder information regarding claims paid on behalf of the policyholder. The information must be provided within 30 working days after the insurer receives a written request from the policyholder. The insurer may charge the policyholder a reasonable fee for the information.

      2.  The Commissioner may adopt regulations to carry out the provisions of subsection 1.

      (Added to NRS by 1991, 2033)

      NRS 687B.360  Information about grounds.  If a notice of cancellation or nonrenewal under NRS 687B.310 to 687B.420, inclusive, does not state with reasonable precision the facts on which the insurer’s decision is based, the insurer shall supply that information within 6 days after receipt of a written request by the policyholder. No notice is effective unless it contains adequate information about the policyholder’s right to make such a request.

      (Added to NRS by 1971, 1725; A 1971, 1950; 1993, 2399; 2003, 3314)

      NRS 687B.370  Information about applying for insurance through certain plans; exception.  Except for a notice of cancellation for the failure to pay a premium when due, no notice required pursuant to NRS 687B.310 to 687B.420, inclusive, is effective unless it contains adequate instructions enabling the policyholder to apply for insurance through any voluntary or mandatory risk-sharing plan established pursuant to NRS 686B.180 and 686B.200 existing at the time of the notice, for which the policyholder may be eligible.

      (Added to NRS by 1971, 1726; A 1985, 577; 1993, 2400; 2003, 3314)

      NRS 687B.380  Immunity.  There is no liability on the part of and no cause of action of any nature may arise against any insurer, its authorized representative, its agents, its employees, or any person furnishing to the insurer information as to reasons for cancellation or nonrenewal, for any statement made by them in complying with NRS 687B.310 to 687B.420, inclusive, or for the providing of information pertaining thereto.

      (Added to NRS by 1971, 1726; A 1993, 2400; 2003, 3315)

      NRS 687B.385  Cancellation, nonrenewal or increase in premium due to claims for which insured was not at fault prohibited.  An insurer shall not cancel, refuse to renew or increase the premium for renewal of a policy of motor vehicle insurance covering private passenger cars or commercial vehicles as a result of any claims made under the policy with respect to which the insured was not at fault.

      (Added to NRS by 1987, 1063; A 1997, 3033)

      NRS 687B.390  Cancellation or nonrenewal on sole basis of age, residence, race, color, creed, national origin, ancestry or occupation prohibited.  No insurer shall cancel or refuse to renew an automobile liability insurance policy solely because of the age, residence, race, color, creed, national origin, ancestry or occupation of anyone who is an insured.

      (Added to NRS by 1971, 1726)

      NRS 687B.400  Discrimination on sole basis of age prohibited; burden of proof; exception.

      1.  No insurer shall refuse to issue, reduce liability limits of, or increase the premium of any automobile liability insurance policy issued to a resident of this state for the sole reason that the policyholder has reached a certain age.

      2.  Where age is a factor in an increase of rates for an individual policyholder, the increase must be justified to the Commissioner and the burden of proving justification is on the insurer. If a medical examination is required for the purpose of a rate increase, such examination shall be at the expense of the insurer.

      3.  This section does not apply to applicants and policyholders under the age of 25 years.

      (Added to NRS by 1973, 251)

      NRS 687B.402  Compliance with certain federal laws regarding genetic information.  An insurer or other organization providing health coverage pursuant to chapter 689A, 689B, 689C, 695A, 695B, 695C, 695D or 695F of NRS shall comply with the provisions of the Genetic Information Nondiscrimination Act of 2008, Public Law 110-233, and any federal regulations issued pursuant thereto.

      (Added to NRS by 2009, 1785)

      NRS 687B.404  Compliance with certain federal laws regarding mental health and addiction.  An insurer or other organization providing health coverage pursuant to chapter 689B, 695A, 695B, 695C or 695F of NRS shall comply with the provisions of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, Public Law 110-343, Division C, Title V, Subtitle B, and any federal regulations issued pursuant thereto.

      (Added to NRS by 2009, 1785)

      NRS 687B.406  Compliance with certain federal laws regarding dependent students.  An insurer or other organization providing health coverage pursuant to chapter 689B, 689C, 695A, 695B, 695C or 695F of NRS shall comply with the provisions of Michelle’s Law, Public Law 110-381, and any federal regulations issued pursuant thereto.

      (Added to NRS by 2009, 1785)

      NRS 687B.408  Notifications required concerning changes related to prescription drugs used for transplanted organs.  If a policy of health insurance issued pursuant to chapter 689A, 689B, 689C, 695A, 695B, 695C or 695G of NRS includes coverage for a prescription drug that is necessary for an insured to prevent the rejection of a transplanted organ, the insurer must notify the insured and, if known, the physician of the insured who prescribed the drug at least 30 days before a change in the formulary of the insurer within the plan year which affects that prescription becomes effective.

      (Added to NRS by 2009, 1785)

      NRS 687B.410  Withdrawal of insurance for particular class of insureds: Notice; administrative review.

      1.  An insurer which intends to withdraw from providing insurance for a particular class of insureds shall notify the Commissioner of that intention at least 60 days before the notice of cancellation or nonrenewal is delivered or mailed to the insureds.

      2.  Upon receipt of a written request from an insured, the Division shall, within 15 days after the receipt of the request, review the ground for cancellation or nonrenewal. If after the review the Division fails to find that the insurer can demonstrate the grounds for cancellation or nonrenewal by clear and convincing evidence, the cancellation or nonrenewal shall be deemed withdrawn by the insurer and the policy reinstated or renewed. Such a request for review by the Division must be made within 30 days after the insured receives the notice of cancellation or nonrenewal.

      (Added to NRS by 1987, 985; A 1991, 1631; 1993, 1918)

      NRS 687B.420  Notice of proposed cancellation, nonrenewal or alteration of terms of certain policies or contracts of insurance.  An insurer shall not cancel, fail to renew or renew with altered terms a policy or contract issued pursuant to chapter 688B, 689A, 689B, 689C, 695A, 695B, 695C, 695D or 695F of NRS unless notice in writing of the proposal is given to the insured at least 60 days before the date the proposed action becomes effective. The notice must include, without limitation, any changes in specific rates by line of coverage.

      (Added to NRS by 1989, 1248; A 1993, 1982, 2400, 2405)

      NRS 687B.430  Regulations: Policies which provide for payment of expenses not covered by Medicare; sale of more than one policy of health insurance to same person.

      1.  The Commissioner may adopt regulations relating to the form, content and sale of policies of insurance which provide for the payment of expenses which are not covered by Medicare.

      2.  The Commissioner may adopt regulations relating to the sale of more than one policy of health insurance to the same person.

      3.  As used in this section, “Medicare” means the program of health insurance for aged persons and persons with disabilities established pursuant to Title XVIII of the Social Security Act (42 U.S.C. §§ 1395 et seq.).

      (Added to NRS by 1993, 2398)

      NRS 687B.440  Umbrella policies: Disclosure statement indicating whether policy includes uninsured or underinsured motorist coverage; form.

      1.  An insurer offering an umbrella policy to an individual shall obtain a signed disclosure statement from the individual indicating whether the umbrella policy includes uninsured or underinsured vehicle coverage.

      2.  The disclosure statement for an umbrella policy that includes uninsured or underinsured vehicle coverage must be on a form provided by the Commissioner or in substantially the following form:

 

UMBRELLA POLICY DISCLOSURE STATEMENT

UNINSURED/UNDERINSURED VEHICLE COVERAGE

 

¨ Your Umbrella Policy does provide coverage in excess of the limits of the uninsured/underinsured vehicle coverage in your primary auto insurance only if the requirements for the uninsured/underinsured vehicle coverage in your underlying auto insurance are maintained. Your uninsured/underinsured vehicle coverage provided by this umbrella policy is limited to $........ .

 

I understand and acknowledge the above disclosure.

 

..................................................                 ...............................

Insured                                                      Date

 

      3.  The disclosure statement for an umbrella policy that does not include uninsured or underinsured vehicle coverage must be on a form provided by the commissioner or in substantially the following form:

 

¨ Your Umbrella Liability Policy does not provide any uninsured/underinsured vehicle coverage.

 

I understand and acknowledge the above disclosure.

 

..................................................                 ...............................

Insured                                                      Date

 

      4.  As used in this section, “umbrella policy” means a policy that protects a person against losses in excess of the underlying amount required to be covered by other policies.

      (Added to NRS by 1997, 3031; A 1999, 2801)

      NRS687B.450  Required medical examination; potentially serious medical condition; notification.

      1.  Except as otherwise provided in this subsection, if an insurer requires a medical examination of an applicant or an insured before the issuance, renewal, reinstatement or reevaluation of the terms of any policy or certificate of insurance or annuity contract, the insurer shall:

      (a) If the applicant or insured has a primary care physician, notify:

             (1) The physician of any potentially serious medical condition that is detected as a result of that medical examination; and

             (2) The applicant or insured:

                   (I) Of any potentially serious medical condition that is detected as a result of that medical examination; and

                   (II) That the primary care physician of the applicant or insured has also been notified of any potentially serious medical condition detected as a result of that medical examination.

      (b) If the applicant or insured does not have a primary care physician, notify the applicant or insured of any potentially serious medical condition that is detected as a result of that medical examination.

Ê Any notice required pursuant to this section must be sent by registered or certified mail not later than 30 days after the date on which the potentially serious medical condition is detected. If the applicant or insured is under the age of 18 years, any notice required pursuant to this section must not be sent to the applicant or insured, but instead must be sent to a parent or legal guardian of the applicant or insured.

      2.  The Commissioner may adopt regulations to carry out the provisions of this section.

      3.  The provisions of this section do not apply to a policy of workers’ compensation insurance or industrial insurance.

      4.  As used in this section, “potentially serious medical condition” includes, without limitation, any medical condition that:

      (a) Is life-threatening or potentially life-threatening if it is not treated immediately or is not closely monitored; or

      (b) Causes the insurer to refuse to issue, renew, reinstate or reevaluate the terms of a policy or certificate of insurance or annuity contract.

      (Added to NRS by 2007, 249)

      NRS 687B.460  Certificates of insurance for property or casualty insurance.  A certificate of insurance issued regarding a contract or policy of property or casualty insurance, other than a group master policy, which is delivered or issued for delivery in this State:

      1.  Does not constitute any part of the contract or policy of insurance; and

      2.  Does not amend any term or alter or extend any coverage, exclusion or condition of the contract or policy of insurance.

      (Added to NRS by 2011, 1834)

      NRS 687B.470  Health benefit plans: “Health benefit plan” defined. [Effective January 1, 2014.]

      1.  “Health benefit plan” means a policy, contract, certificate or agreement offered by a carrier to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes catastrophic health insurance policies and a policy that pays on a cost-incurred basis.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics;

      (h) Other similar insurance coverage specified pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, under which benefits for medical care are secondary or incidental to other insurance benefits;

      (i) Coverage under a short-term health insurance policy; and

      (j) Coverage under a blanket student accident and health insurance policy.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract, there is no coordination between the provisions of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;

      (b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, CHAMPUS, 10 U.S.C. §§ 1071 et seq.; and

      (c) Similar supplemental coverage provided under a group health plan.

      (Added to NRS by 2013, 3606, effective January 1, 2014)

      NRS 687B.480  Health benefit plans: Availability; waiting period; effective date. [Effective January 1, 2014.]

      1.  All health benefit plans must be made available in the manner required by 45 C.F.R. § 147.104.

      2.  In addition to the requirements of subsection 1, any health benefit plan for individuals that is not purchased on the Silver State Health Insurance Exchange established by NRS 695I.210:

      (a) Must be made available for purchase at any time during the calendar year;

      (b) Is subject to a waiting period of not more than 90 days after the date on which the application for coverage was received;

      (c) Is effective upon the first day of the month immediately succeeding the month in which the waiting period expires; and

      (d) Is not retroactive to the date on which the application for coverage was received.

      (Added to NRS by 2013, 3607, effective January 1, 2014)

      NRS 687B.490  Health benefit plans: Carrier required to demonstrate capacity to adequately deliver services; Commissioner to determine capacity; annual summary. [Effective January 1, 2014.]

      1.  A carrier that offers coverage in the group or individual market must, before making any network plan available for sale in this State, demonstrate the capacity to deliver services adequately by applying to the Commissioner for the issuance of a network plan and submitting a description of the procedures and programs to be implemented to meet the requirements described in subsection 2.

      2.  The Commissioner shall determine, within 90 days after receipt of the application required pursuant to subsection 1, if the carrier, with respect to the network plan:

      (a) Has demonstrated the willingness and ability to ensure that health care services will be provided in a manner to ensure both availability and accessibility of adequate personnel and facilities in a manner that enhances availability, accessibility and continuity of service;

      (b) Has organizational arrangements established in accordance with regulations promulgated by the Commissioner; and

      (c) Has a procedure established in accordance with regulations promulgated by the Commissioner to develop, compile, evaluate and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the Commissioner.

      3.  The Commissioner may certify that the carrier and the network plan meet the requirements of subsection 2, or may determine that the carrier and the network plan do not meet such requirements. Upon a determination that the carrier and the network plan do not meet the requirements of subsection 2, the Commissioner shall specify in what respects the carrier and the network plan are deficient.

      4.  A carrier approved to issue a network plan pursuant to this section must file annually with the Commissioner a summary of information compiled pursuant to subsection 2 in a manner determined by the Commissioner.

      5.  The Commissioner shall, not less than once each year, or more often if deemed necessary by the Commissioner for the protection of the interests of the people of this State, make a determination concerning the availability and accessibility of the health care services of any network plan approved pursuant to this section.

      6.  The expense of any determination made by the Commissioner pursuant to this section must be assessed against the carrier and remitted to the Commissioner.

      7.  As used in this section, “network plan” has the meaning ascribed to it in NRS 689B.570.

      (Added to NRS by 2013, 3607, effective January 1, 2014)

      NRS 687B.500  Health benefit plans: Basis for premium rate; exceptions. [Effective January 1, 2014.]

      1.  The premium rate charged by a health insurer for health benefit plans offered in the individual or small group market may vary with respect to the particular plan or coverage involved based solely on these characteristics:

      (a) Whether the plan or coverage applies to an individual or a family;

      (b) Geographic rating area;

      (c) Tobacco use, except that the rate shall not vary by a ratio of more than 1.5 to 1 for like individuals who vary in tobacco use; and

      (d) Age, except that the rate must not vary by a ratio of more than 3 to 1 for like individuals of different age who are age 21 years or older and that the variation in rate must be actuarially justified for individuals who are under the age of 21 years, consistent with the uniform age rating curve established in the Federal Act. For the purpose of identifying the appropriate age adjustment under this paragraph and the age band defined in the Federal Act to a specific enrollee, the enrollee’s age as of the date of policy issuance or renewal must be used.

      2.  The provisions of subsection 1:

      (a) Apply to a fraternal benefit society organized under chapter 695A of NRS; and

      (b) Do not apply to grandfathered plans.

      (Added to NRS by 2013, 3608, effective January 1, 2014)