[Rev. 8/27/2018 12:30:01 PM]

[NAC-691C Revised Date: 8-18]

CHAPTER 691C - CREDIT PERSONAL PROPERTY INSURANCE

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

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

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

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

691C.060           Actuarial justification of filed rates.

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

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

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

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

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

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

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

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

     1.  As used in NRS 691C.260:

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

          (1) Fire;

          (2) Lightning;

          (3) Internal or other explosion;

          (4) Riot;

          (5) Vehicles;

          (6) Civil commotion;

          (7) Fireplace or other smoke;

          (8) Hail;

          (9) Aircraft;

          (10) Windstorm;

          (11) Volcanic eruption;

          (12) Vandalism and malicious mischief;

          (13) Burglary;

          (14) Weight of ice, snow or sleet;

          (15) Discharge of water or steam;

          (16) Falling objects;

          (17) Freezing;

          (18) Sudden tearing, cracking or burning;

          (19) Electrical current;

          (20) Flood;

          (21) Earthquake;

          (22) Theft; and

          (23) Mysterious disappearance.

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

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

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

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

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

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

     1.  Actual and expected loss experience;

     2.  General and administrative expenses;

     3.  Loss settlement and adjustment expenses;

     4.  Reasonable producer compensation;

     5.  The manner in which premiums are charged;

     6.  Other acquisition costs;

     7.  Reserves;

     8.  Taxes;

     9.  Regulatory license fees and fund assessments;

     10.  Reasonable insurer profit; and

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

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

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

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