[Rev. 6/29/2024 2:50:04 PM--2023]
NRS 42.001 Definitions; exceptions.
NRS 42.005 Exemplary and punitive damages: In general; limitations on amount of award; determination in subsequent proceeding.
NRS 42.007 Exemplary and punitive damages: Limitations on liability by employer for wrongful act of employee; exception.
NRS 42.010 Exemplary and punitive damages: Injury caused by operation of vehicle after consumption or use of alcohol or another substance.
NRS 42.021 Actions based on professional negligence of providers of health care: Introduction of certain evidence relating to collateral benefits; restrictions on source of collateral benefits; payment of future damages by periodic payments.
STRUCTURED SETTLEMENT PROTECTION ACT
NRS 42.200 Short title.
NRS 42.205 Definitions.
NRS 42.210 “Annuity issuer” defined.
NRS 42.215 “Assignee” defined.
NRS 42.220 “Dependents” defined.
NRS 42.225 “Discounted present value” defined.
NRS 42.230 “Gross advance amount” defined.
NRS 42.235 “Independent professional advice” defined.
NRS 42.240 “Interested party” defined.
NRS 42.245 “Net advance amount” defined.
NRS 42.250 “Payee” defined.
NRS 42.255 “Periodic payments” defined.
NRS 42.260 “Qualified assignment agreement” defined.
NRS 42.265 “Renewal date” defined.
NRS 42.270 “Settled claim” defined.
NRS 42.275 “Structured settlement” defined.
NRS 42.280 “Structured settlement agreement” defined.
NRS 42.285 “Structured settlement obligor” defined.
NRS 42.290 “Structured settlement payment rights” defined.
NRS 42.295 “Structured settlement purchase company” defined.
NRS 42.300 “Structured settlement transfer proceeding” defined.
NRS 42.305 “Terms of the structured settlement” defined.
NRS 42.310 “Transfer” defined.
NRS 42.315 “Transfer agreement” defined.
NRS 42.320 “Transfer expense” defined.
NRS 42.325 “Transfer order” defined.
NRS 42.330 “Transferee” defined.
NRS 42.335 “Unit” defined.
NRS 42.337 Regulations.
NRS 42.340 Requirement to register as structured settlement purchase company; application; fees; certification of surety bond or letter of credit that meets certain requirements.
NRS 42.345 Statement concerning obligation for child support required for issuance or renewal of registration as structured settlement purchase company. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]
NRS 42.350 Suspension of registration as structured settlement purchase company; reinstatement of registration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]
NRS 42.355 Notice of judgment against structured settlement purchase company; contents of notice.
NRS 42.360 Surety bond: Liability of surety not affected by certain acts; notice required before cancellation or modification; automatic expiration of registration for cancellation or noncomplying modification; modification or cancellation does not affect liability incurred previously.
NRS 42.365 Certain persons exempt from registration.
NRS 42.370 Prohibited acts; remedies for violation.
NRS 42.375 Applicant for approval of transfer of structured settlement payment rights required to provide evidence of registration; transfer order signed by court constitutes qualified order under federal law if transferee is registered.
NRS 42.380 Required disclosures to payee.
NRS 42.385 Approval of transfers of structured settlement payment rights.
NRS 42.390 Effects of transfer of structured settlement payment rights.
NRS 42.395 Procedure for approval of transfer of structured settlement payment rights.
NRS 42.400 General provisions; construction.
_________
NRS 42.001 Definitions; exceptions. As used in this chapter, unless the context otherwise requires and except as otherwise provided in subsection 5 of NRS 42.005:
1. “Conscious disregard” means the knowledge of the probable harmful consequences of a wrongful act and a willful and deliberate failure to act to avoid those consequences.
2. “Fraud” means an intentional misrepresentation, deception or concealment of a material fact known to the person with the intent to deprive another person of his or her rights or property or to otherwise injure another person.
3. “Malice, express or implied” means conduct which is intended to injure a person or despicable conduct which is engaged in with a conscious disregard of the rights or safety of others.
4. “Oppression” means despicable conduct that subjects a person to cruel and unjust hardship with conscious disregard of the rights of the person.
(Added to NRS by 1995, 2668)
NRS 42.005 Exemplary and punitive damages: In general; limitations on amount of award; determination in subsequent proceeding.
1. Except as otherwise provided in NRS 42.007, in an action for the breach of an obligation not arising from contract, where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud or malice, express or implied, the plaintiff, in addition to the compensatory damages, may recover damages for the sake of example and by way of punishing the defendant. Except as otherwise provided in this section or by specific statute, an award of exemplary or punitive damages made pursuant to this section may not exceed:
(a) Three times the amount of compensatory damages awarded to the plaintiff if the amount of compensatory damages is $100,000 or more; or
(b) Three hundred thousand dollars if the amount of compensatory damages awarded to the plaintiff is less than $100,000.
2. The limitations on the amount of an award of exemplary or punitive damages prescribed in subsection 1 do not apply to an action brought against:
(a) A manufacturer, distributor or seller of a defective product;
(b) An insurer who acts in bad faith regarding its obligations to provide insurance coverage;
(c) A person for violating a state or federal law prohibiting discriminatory housing practices, if the law provides for a remedy of exemplary or punitive damages in excess of the limitations prescribed in subsection 1;
(d) A person for damages or an injury caused by the emission, disposal or spilling of a toxic, radioactive or hazardous material or waste; or
(e) A person for defamation.
3. If punitive damages are claimed pursuant to this section, the trier of fact shall make a finding of whether such damages will be assessed. If such damages are to be assessed, a subsequent proceeding must be conducted before the same trier of fact to determine the amount of such damages to be assessed. The trier of fact shall make a finding of the amount to be assessed according to the provisions of this section. The findings required by this section, if made by a jury, must be made by special verdict along with any other required findings. The jury must not be instructed, or otherwise advised, of the limitations on the amount of an award of punitive damages prescribed in subsection 1.
4. Evidence of the financial condition of the defendant is not admissible for the purpose of determining the amount of punitive damages to be assessed until the commencement of the subsequent proceeding to determine the amount of exemplary or punitive damages to be assessed.
5. For the purposes of an action brought against an insurer who acts in bad faith regarding its obligations to provide insurance coverage, the definitions set forth in NRS 42.001 are not applicable and the corresponding provisions of the common law apply.
(Added to NRS by 1989, 486; A 1995, 2669)
NRS 42.007 Exemplary and punitive damages: Limitations on liability by employer for wrongful act of employee; exception.
1. Except as otherwise provided in subsection 2, in an action for the breach of an obligation in which exemplary or punitive damages are sought pursuant to subsection 1 of NRS 42.005 from an employer for the wrongful act of his or her employee, the employer is not liable for the exemplary or punitive damages unless:
(a) The employer had advance knowledge that the employee was unfit for the purposes of the employment and employed the employee with a conscious disregard of the rights or safety of others;
(b) The employer expressly authorized or ratified the wrongful act of the employee for which the damages are awarded; or
(c) The employer is personally guilty of oppression, fraud or malice, express or implied.
Ę If the employer is a corporation, the employer is not liable for exemplary or punitive damages unless the elements of paragraph (a), (b) or (c) are met by an officer, director or managing agent of the corporation who was expressly authorized to direct or ratify the employee’s conduct on behalf of the corporation.
2. The limitations on liability set forth in subsection 1 do not apply to an action brought against an insurer who acts in bad faith regarding its obligations to provide insurance coverage.
(Added to NRS by 1995, 2668)
NRS 42.010 Exemplary and punitive damages: Injury caused by operation of vehicle after consumption or use of alcohol or another substance.
1. In an action for the breach of an obligation, where the defendant caused an injury by the operation of a motor vehicle in violation of NRS 484C.110, 484C.130 or 484C.430 after willfully consuming or using alcohol or another substance, the plaintiff, in addition to the compensatory damages, may recover damages for the sake of example and by way of punishing the defendant.
2. The provisions of NRS 42.005 do not apply to any cause of action brought pursuant to this section.
(Added to NRS by 1965, 1143; A 1967, 738; 1981, 1928; 1989, 487; 2005, 161; 2023, 677)
NRS 42.021 Actions based on professional negligence of providers of health care: Introduction of certain evidence relating to collateral benefits; restrictions on source of collateral benefits; payment of future damages by periodic payments.
1. In an action for injury or death against a provider of health care based upon professional negligence, if the defendant so elects, the defendant may introduce evidence of any amount payable as a benefit to the plaintiff as a result of the injury or death pursuant to the United States Social Security Act, any state or federal income disability or worker’s compensation act, any health, sickness or income-disability insurance, accident insurance that provides health benefits or income-disability coverage, and any contract or agreement of any group, organization, partnership or corporation to provide, pay for or reimburse the cost of medical, hospital, dental or other health care services. If the defendant elects to introduce such evidence, the plaintiff may introduce evidence of any amount that the plaintiff has paid or contributed to secure the plaintiff’s right to any insurance benefits concerning which the defendant has introduced evidence.
2. A source of collateral benefits introduced pursuant to subsection 1 may not:
(a) Recover any amount against the plaintiff; or
(b) Be subrogated to the rights of the plaintiff against a defendant.
3. In an action for injury or death against a provider of health care based upon professional negligence, a district court shall, at the request of either party, enter a judgment ordering that money damages or its equivalent for future damages of the judgment creditor be paid in whole or in part by periodic payments rather than by a lump-sum payment if the award equals or exceeds $50,000 in future damages.
4. In entering a judgment ordering the payment of future damages by periodic payments pursuant to subsection 3, the court shall make a specific finding as to the dollar amount of periodic payments that will compensate the judgment creditor for such future damages. As a condition to authorizing periodic payments of future damages, the court shall require a judgment debtor who is not adequately insured to post security adequate to assure full payment of such damages awarded by the judgment. Upon termination of periodic payments of future damages, the court shall order the return of this security, or so much as remains, to the judgment debtor.
5. A judgment ordering the payment of future damages by periodic payments entered pursuant to subsection 3 must specify the recipient or recipients of the payments, the dollar amount of the payments, the interval between payments, and the number of payments or the period of time over which payments will be made. Such payments must only be subject to modification in the event of the death of the judgment creditor. Money damages awarded for loss of future earnings must not be reduced or payments terminated by reason of the death of the judgment creditor, but must be paid to persons to whom the judgment creditor owed a duty of support, as provided by law, immediately before the judgment creditor’s death. In such cases, the court that rendered the original judgment may, upon petition of any party in interest, modify the judgment to award and apportion the unpaid future damages in accordance with this subsection.
6. If the court finds that the judgment debtor has exhibited a continuing pattern of failing to make the periodic payments as specified pursuant to subsection 5, the court shall find the judgment debtor in contempt of court and, in addition to the required periodic payments, shall order the judgment debtor to pay the judgment creditor all damages caused by the failure to make such periodic payments, including, but not limited to, court costs and attorney’s fees.
7. Following the occurrence or expiration of all obligations specified in the periodic payment judgment, any obligation of the judgment debtor to make further payments ceases and any security given pursuant to subsection 4 reverts to the judgment debtor.
8. As used in this section:
(a) “Future damages” includes damages for future medical treatment, care or custody, loss of future earnings, loss of bodily function, or future pain and suffering of the judgment creditor.
(b) “Periodic payments” means the payment of money or delivery of other property to the judgment creditor at regular intervals.
(c) “Professional negligence” means a negligent act or omission to act by a provider of health care in the rendering of professional services, which act or omission is the proximate cause of a personal injury or wrongful death. The term does not include services that are outside the scope of services for which the provider of health care is licensed or services for which any restriction has been imposed by the applicable regulatory board or health care facility.
(d) “Provider of health care” means a physician licensed under chapter 630 or 633 of NRS, dentist, licensed nurse, dispensing optician, optometrist, registered physical therapist, podiatric physician, naprapath, licensed psychologist, chiropractic physician, doctor of Oriental medicine, holder of a license or a limited license issued under the provisions of chapter 653 of NRS, medical laboratory director or technician, licensed dietitian or a licensed hospital and its employees.
(Added to NRS by 2004 initiative petition, Ballot Question No. 3; A 2011, 1511; 2019, 2710; 2023, 1684)
STRUCTURED SETTLEMENT PROTECTION ACT
NRS 42.200 Short title. NRS 42.200 to 42.400, inclusive, may be known and cited as the Structured Settlement Protection Act.
(Added to NRS by 2021, 1720; A 2023, 1957)
NRS 42.205 Definitions. As used in NRS 42.200 to 42.400, inclusive, unless the context otherwise requires, the words and terms defined in NRS 42.210 to 42.335, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2021, 1720)
NRS 42.210 “Annuity issuer” defined. “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement.
(Added to NRS by 2021, 1720)
NRS 42.215 “Assignee” defined. “Assignee” means a person acquiring or proposing to acquire structured settlement payments from a structured settlement purchase company or transferee after, or concurrently with, the transfer of the structured settlement payment rights by the payee to the structured settlement purchase company or transferee.
(Added to NRS by 2021, 1720)
NRS 42.220 “Dependents” defined. “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including, without limitation, alimony.
(Added to NRS by 2021, 1720)
NRS 42.225 “Discounted present value” defined. “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the Internal Revenue Service.
(Added to NRS by 2021,1720)
NRS 42.230 “Gross advance amount” defined. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights, before any reductions for transfer expenses or other deductions to be made from such consideration.
(Added to NRS by 2021, 1720)
NRS 42.235 “Independent professional advice” defined. “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser.
(Added to NRS by 2021, 1720)
NRS 42.240 “Interested party” defined. “Interested party” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor and any other party to the structured settlement that has continuing rights or obligations to receive or make payments under the structured settlement.
(Added to NRS by 2021, 1720)
NRS 42.245 “Net advance amount” defined. “Net advance amount” means the gross advance amount, less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under NRS 42.380.
(Added to NRS by 2021, 1720)
NRS 42.250 “Payee” defined. “Payee” means a natural person who:
1. Is receiving tax-free payments under a structured settlement which resolved a settled claim; and
2. Proposes to make a transfer of the structured settlement payment rights.
(Added to NRS by 2021, 1720)
NRS 42.255 “Periodic payments” defined. “Periodic payments” includes both recurring payments and scheduled future lump-sum payments.
(Added to NRS by 2021, 1720)
NRS 42.260 “Qualified assignment agreement” defined. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code, 26 U.S.C. § 130.
(Added to NRS by 2021, 1721)
NRS 42.265 “Renewal date” defined. “Renewal date” means the date on which a registered structured settlement purchase company is required to renew its registration pursuant to NRS 42.340, which date is 1 year after the initial registration or any subsequent renewal.
(Added to NRS by 2021, 1721)
NRS 42.270 “Settled claim” defined. “Settled claim” means the tort claim resolved by a structured settlement.
(Added to NRS by 2021, 1721)
NRS 42.275 “Structured settlement” defined. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim.
(Added to NRS by 2021, 1721)
NRS 42.280 “Structured settlement agreement” defined. “Structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement.
(Added to NRS by 2021, 1721)
NRS 42.285 “Structured settlement obligor” defined. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or qualified assignment agreement.
(Added to NRS by 2021, 1721)
NRS 42.290 “Structured settlement payment rights” defined. “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where the payee is domiciled in this State or the structured settlement agreement was approved by a court in this State.
(Added to NRS by 2021, 1721)
NRS 42.295 “Structured settlement purchase company” defined. “Structured settlement purchase company” means a person that acts as a transferee in this State and who is registered with the Unit pursuant to NRS 42.340.
(Added to NRS by 2021, 1721)
NRS 42.300 “Structured settlement transfer proceeding” defined. “Structured settlement transfer proceeding” means a court proceeding filed by a structured settlement purchase company seeking court approval of a transfer in accordance with NRS 42.385.
(Added to NRS by 2021, 1721)
NRS 42.305 “Terms of the structured settlement” defined. “Terms of the structured settlement,” with respect to any structured settlement, includes, without limitation, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court.
(Added to NRS by 2021, 1721)
NRS 42.310 “Transfer” defined. “Transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. The term does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce a blanket security interest against the structured settlement payment rights.
(Added to NRS by 2021, 1721)
NRS 42.315 “Transfer agreement” defined. “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights.
(Added to NRS by 2021, 1721)
NRS 42.320 “Transfer expense” defined. “Transfer expense” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions and other payments to a broker or other intermediary. The term does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of the transfer.
(Added to NRS by 2021, 1721)
NRS 42.325 “Transfer order” defined. “Transfer order” means an order approving a transfer in accordance with NRS 42.385.
(Added to NRS 2021, 1722)
NRS 42.330 “Transferee” defined. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer.
(Added to NRS by 2021, 1722)
NRS 42.335 “Unit” defined. “Unit” means the Consumer Affairs Unit of the Department of Business and Industry.
(Added to NRS by 2021, 1720)
NRS 42.337 Regulations. The Commissioner of Consumer Affairs of the Unit may, in consultation with the Director of the Department of Business and Industry, adopt regulations to carry out the provisions of NRS 42.200 to 42.400, inclusive.
(Added to NRS by 2023, 1957)
NRS 42.340 Requirement to register as structured settlement purchase company; application; fees; certification of surety bond or letter of credit that meets certain requirements.
1. A person shall not act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this State or file a structured settlement transfer proceeding in this State unless the person is registered with the Unit to do business in this State as a structured settlement purchase company.
2. A person may apply pursuant to this section with the Unit for a registration to do business in this State as a structured settlement purchase company. Except as otherwise provided in this subsection, an application for an initial or renewed registration must be accompanied by a nonrefundable fee of $250 and must be submitted on a form prescribed by the Unit. An initial or renewed registration expires 1 year after it is issued and may be renewed by the registrant on or before the renewal date for additional 1-year periods. If a registrant fails to pay the required fee or submit all required information for a renewed registration before the expiration of its registration, the registrant may:
(a) Renew its registration if, within 60 days after the expiration of its registration, the registrant submits its application for a renewed registration accompanied by all required information and a nonrefundable renewal fee of $375.
(b) Reinstate its registration if, more than 60 days after the expiration of its registration, the registrant submits its application for reinstatement of its registration accompanied by all required information and a nonrefundable reinstatement fee of $500.
3. The application must contain a sworn certification by an owner, officer, director or manager of the applicant, if the applicant is not a natural person, or by the applicant if the applicant is a natural person, certifying that:
(a) The applicant has secured a surety bond or has been issued a letter of credit in the amount of $50,000 which relates to its business as a structured settlement purchase company in this State;
(b) The surety bond or letter of credit:
(1) Is intended to protect payees who do business with the applicant when the applicant is acting as a structured settlement purchase company; and
(2) Complies with all applicable provisions of NRS 42.200 to 42.400, inclusive; and
(c) The applicant will comply with all of the provisions of NRS 42.200 to 42.400, inclusive, when acting as a structured settlement purchase company and filing structured settlement transfer proceedings in this State.
4. The applicant must submit to the Unit with each initial and renewal application a copy of the surety bond or letter of credit obtained by the applicant for the purposes of subsection 3.
5. A surety bond obtained for the purposes of subsection 3 must be payable to the State of Nevada.
6. A surety bond or letter of credit obtained for the purposes of subsection 3 must be effective concurrently with the registration of the applicant and must remain in effect for not less than 3 years after the expiration or termination of the registration. The surety bond or letter of credit must be renewed each year as needed to keep it continuously in effect when the registration of the applicant is renewed unless the applicant obtains alternative security described in paragraph (a) of subsection 3 which complies with all applicable provisions of NRS 42.200 to 42.400, inclusive.
7. A surety bond or letter of credit obtained for the purposes of subsection 3 must:
(a) Ensure that the structured settlement purchase company:
(1) Complies with the provisions of NRS 42.200 to 42.400, inclusive, which relate to a payee; and
(2) Performs its obligations to a payee pursuant to NRS 42.200 to 42.400, inclusive; and
(b) Provide a source for recovery for a payee if the payee obtains a judgment against the structured settlement purchase company for a violation of NRS 42.200 to 42.400, inclusive.
8. All fees received by the Unit pursuant to this section must be deposited in the Department of Business and Industry budget account and used only to acquire technology for, or improve technology used by, the Unit to carry out its duties pursuant to NRS 42.200 to 42.400, inclusive.
(Added to NRS by 2021, 1722; A 2023, 1957)
NRS 42.345 Statement concerning obligation for child support required for issuance or renewal of registration as structured settlement purchase company. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]
1. In addition to any other requirements set forth in NRS 42.200 to 42.400, inclusive, a natural person who applies for the issuance or renewal of a registration as a structured settlement purchase company shall:
(a) Include the social security number of the applicant in the application submitted to the Unit.
(b) Submit to the Unit the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.
2. The Unit shall include the statement required pursuant to subsection 1 in:
(a) The application or any other forms that must be submitted for the issuance or renewal of the registration; or
(b) A separate form prescribed by the Unit.
3. A registration may not be issued or renewed by the Unit if the applicant:
(a) Fails to submit the statement required pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Unit shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.
(Added to NRS by 2021, 1723)
NRS 42.350 Suspension of registration as structured settlement purchase company; reinstatement of registration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]
1. If the Unit receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is registered as a structured settlement purchase company, the Unit shall deem the registration issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Unit receives a letter issued to the holder of the registration by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the registration has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
2. The Unit shall reinstate a registration that has been suspended by a district court pursuant to NRS 425.540 if the Unit receives a letter issued to the holder of the registration by the district attorney or other public agency pursuant to NRS 425.550 stating that the person whose registration was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
(Added to NRS by 2021, 1723)
NRS 42.355 Notice of judgment against structured settlement purchase company; contents of notice. Not later than 10 days after a judgment is obtained against a structured settlement purchase company by a payee, the structured settlement purchase company shall file a notice with the Unit and, if applicable, the surety which issued the surety bond used by the structured settlement purchase company to satisfy the requirements of NRS 42.340. The notice must contain:
1. A copy of the judgment;
2. The name and address of the judgment creditor; and
3. The status of the matter, including, without limitation, whether the judgment will be appealed or has been paid or satisfied.
(Added to NRS by 2021, 1724)
NRS 42.360 Surety bond: Liability of surety not affected by certain acts; notice required before cancellation or modification; automatic expiration of registration for cancellation or noncomplying modification; modification or cancellation does not affect liability incurred previously.
1. The liability of the surety which issued a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 must not be affected by any:
(a) Breach of contract, breach of warranty, failure to pay a premium or other act or omission of the structured settlement purchase company; or
(b) Insolvency or bankruptcy of the structured settlement purchase company.
2. A surety which issued a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 and the structured settlement purchase company which obtained the surety bond shall not cancel or modify the surety bond during the term for which it is issued unless the surety or the structured settlement purchase company provides written notice to the Unit at least 20 days before the effective date of the cancellation or modification.
3. If a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 is modified so as to make the surety bond not comply with any provision of NRS 42.200 to 42.400, inclusive, or the surety bond is cancelled, the registration of the structured settlement purchase company automatically expires on the effective date of the modification or cancellation unless a new surety bond or letter of credit which complies with NRS 42.200 to 42.400, inclusive, is filed with the Unit on or before the effective date of the modification or cancellation.
4. A modification or cancellation of a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 does not affect any liability of the bonded surety company incurred before the modification or cancellation of the surety bond.
(Added to NRS by 2021, 1724; A 2023, 1958)
NRS 42.365 Certain persons exempt from registration.
1. An assignee is not required to register as a structured settlement purchase company to acquire structured settlement payment rights or to take a security interest in structured settlement payment rights that were transferred by the payee to a structured settlement purchase company.
2. An employee of a structured settlement purchase company, if acting on behalf of the structured settlement purchase company in connection with a transfer, is not required to be registered.
(Added to NRS by 2021, 1724)
NRS 42.370 Prohibited acts; remedies for violation.
1. A transferee, a structured settlement purchase company and an employee or other representative of a transferee or structured settlement purchase company shall not engage in any of the following actions:
(a) Pursue or complete a transfer with a payee without complying with all applicable provisions of NRS 42.200 to 42.400, inclusive.
(b) Refuse or fail to fund a transfer after court approval of the transfer.
(c) Acquire structured settlement payment rights from a payee without complying with all applicable provisions of NRS 42.200 to 42.400, inclusive, including, without limitation, obtaining court approval of the transfer in accordance with NRS 42.200 to 42.400, inclusive.
(d) Intentionally file a structured settlement transfer proceeding in any court other than the court specified in NRS 42.395, unless the transferee is required to file in a different court by applicable law.
(e) Except as otherwise provided in this paragraph, pay a commission or finder’s fee to any person for facilitating or arranging a structured settlement transfer with a payee. The provisions of this paragraph do not prevent a structured settlement purchase company from paying:
(1) A commission or finder’s fee to a person who is a structured settlement purchase company or is an employee of a structured settlement purchase company;
(2) To third parties any routine transfer expenses, including, without limitation, court filing fees, escrow fees, lien recordation fees, judgment and lien search fees, attorney’s fees and other similar types of fees relating to a transfer; and
(3) A reasonable referral fee to an attorney, certified public accountant, actuary, licensed insurance agent or other licensed professional adviser in connection with a transfer.
(f) Intentionally advertise materially false or misleading information regarding the products or services of the transferee or structured settlement purchase company.
(g) Attempt to coerce, bribe or intimidate a payee seeking to transfer structured settlement payment rights.
(h) Attempt to defraud a payee or any party to a structured settlement transfer or any interested party in a structured settlement transfer proceeding by means of forgery or false identification.
(i) Except as otherwise provided in this paragraph, intervene in a pending structured settlement transfer proceeding if the transferee or structured settlement purchase company is not a party to the proceeding or an interested party relative to the proposed transfer which is the subject of the pending structured settlement transfer proceeding. The provisions of this paragraph do not prevent a structured settlement purchase company from intervening in a pending structured settlement transfer proceeding if the payee has signed a transfer agreement with the structured settlement purchase company within 60 days before the filing of the pending structured settlement transfer proceeding and the structured settlement purchase company which filed the pending structured settlement transfer proceeding violated any provision of NRS 42.200 to 42.400, inclusive, in connection with the proposed transfer that is the subject of the pending structured settlement transfer proceeding.
(j) Except as otherwise provided in this paragraph, knowingly contact a payee who has signed a transfer agreement and is pursuing a proposed transfer with another structured settlement purchase company for the purpose of inducing the payee into cancelling the proposed transfer or transfer agreement with the other structured settlement purchase company if a structured settlement transfer proceeding has been filed by the other structured settlement purchase company and is pending. The provisions of this paragraph do not apply if no hearing has been held in the pending structured settlement transfer proceeding within 90 days after the filing of the pending structured settlement transfer proceeding.
(k) Fail to dismiss a pending structured settlement transfer proceeding at the request of the payee. A dismissal of a structured settlement proceeding after a structured settlement purchase company has violated the provisions of this paragraph does not exempt the structured settlement purchase company from any liability under this paragraph.
2. A payee may pursue a private action as a result of a violation of subsection 1 and may recover all damages and pursue all rights and remedies to which the payee may be entitled pursuant to NRS 42.200 to 42.400, inclusive, or any other applicable law.
3. A structured settlement purchase company may pursue a private action to enforce paragraphs (d), (g), (i), (j) and (k) of subsection 1 and may recover all damages and pursue all remedies to which the structured settlement purchase company may be entitled pursuant to NRS 42.200 to 42.400, inclusive, or any other applicable law.
4. If a court determines that a structured settlement purchase company or transferee is in violation of subsection 1, the court may:
(a) Revoke the registration of the structured settlement purchase company;
(b) Suspend the registration of the structured settlement purchase company for a period to be determined at the discretion of the court; and
(c) Enjoin the structured settlement purchase company or transferee from filing new structured settlement transfer proceedings in this State or otherwise pursuing transfers in this State.
(Added to NRS by 2021, 1725)
NRS 42.375 Applicant for approval of transfer of structured settlement payment rights required to provide evidence of registration; transfer order signed by court constitutes qualified order under federal law if transferee is registered.
1. At the time an application is made under NRS 42.200 to 42.400, inclusive, for the approval of a transfer of structured settlement payment rights, the application of the transferee must include evidence that the transferee is registered to do business in this State as a structured settlement purchase company.
2. Except as otherwise provided in this subsection, a transfer order signed by a district court of competent jurisdiction pursuant to NRS 42.200 to 42.400, inclusive, constitutes a qualified order under 26 U.S.C. § 5891. If a transferee to which the transfer order applies is not registered as a structured settlement purchase company pursuant to NRS 42.200 to 42.400, inclusive, at the time the transfer order is signed, the transfer order does not constitute a qualified order under 26 U.S.C. § 5891.
(Added to NRS by 2021, 1726)
NRS 42.380 Required disclosures to payee. Not less than 3 days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14-point font, setting forth the following:
1. The amounts and due dates of the structured settlement payments to be transferred.
2. The aggregate amount of such payments.
3. The discounted present value of the payments to be transferred, which must be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating such discounted present value.
4. The gross advance amount.
5. An itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements, payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such attorney’s fees and related disbursements.
6. The effective annual interest rate, which must be disclosed in a statement in the following form:
On the basis of the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are transferring to us, you will, in effect be paying interest to us at a rate of ___ percent per year.
7. The net advance amount.
8. The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee.
9. That the payee has the right to cancel the transfer agreement, without penalty or further obligation, until the transfer is approved by the court.
10. That the payee has the right to seek and receive independent professional advice regarding the proposed transfer and should consider doing so before agreeing to transfer any structured settlement payment rights.
11. That the payee has the right to seek out and consider additional offers for transferring the structured settlement payment rights and should do so.
(Added to NRS by 2021, 1726)
NRS 42.385 Approval of transfers of structured settlement payment rights. A direct or indirect transfer of structured settlement payment rights is not effective, and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee or assignee of structured settlement payment rights, unless the transfer has been approved in advance in a final court order based on express findings by the court that all of the following apply:
1. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents, if any;
2. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived in writing the opportunity to seek and receive such advice; and
3. The transfer does not contravene any applicable statute or any applicable order of any court or other governmental authority.
(Added to NRS by 2021, 1727)
NRS 42.390 Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights:
1. The structured settlement obligor and the annuity issuer may rely on the transfer order in redirecting periodic payments to an assignee or transferee in accordance with the transfer order and is, as to all parties except the transferee or an assignee designated by the transferee, discharged and released from any and all liability for the redirected payments. The discharge and release is not affected by the failure of any party to the transfer to comply with NRS 42.200 to 42.400, inclusive, or with the transfer order.
2. The transferee is liable to the structured settlement obligor and the annuity issuer:
(a) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by the structured settlement obligor or annuity issuer as a consequence of the transfer; and
(b) For any other liabilities or costs, including reasonable costs and attorney’s fees, arising from:
(1) Compliance by the structured settlement obligor or annuity issuer with the transfer order; or
(2) The failure of any party to the transfer to comply with NRS 42.200 to 42.400, inclusive.
3. The structured settlement obligor and the annuity issuer are not required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees.
4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of NRS 42.200 to 42.400, inclusive.
(Added to NRS by 2021, 1727)
NRS 42.395 Procedure for approval of transfer of structured settlement payment rights.
1. An application under NRS 42.200 to 42.400, inclusive, for approval of a transfer of structured settlement payment rights must be made by the transferee. The application must be brought in the district court of the county in which the payee is domiciled, except that if the payee is not domiciled in this State, the application must be brought in the court in this State that approved the structured settlement agreement.
2. A timely hearing must be held on an application for approval of a transfer of structured settlement payment rights. The payee must appear in person at the hearing, unless the court determines that good cause exists to excuse the payee from appearing in person.
3. Not less than 20 days before the scheduled hearing on any application for approval of a transfer of structured settlement payment rights pursuant to NRS 42.200 to 42.400, inclusive, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization. The notice and application must include all of the following:
(a) A copy of the transferee’s application.
(b) A copy of the transfer agreement.
(c) A copy of the disclosure statement required by NRS 42.380.
(d) The payee’s name, age and county of domicile, and the age of each of the payee’s dependents, if any.
(e) A summary of:
(1) All prior transfers by the payee to the transferee or an affiliate of the transferee, or through the transferee or an affiliate of the transferee to an assignee, within the 4 years immediately preceding the date of the transfer agreement;
(2) All proposed transfers by the payee to the transferee or an affiliate of the transferee, or through the transferee or an affiliate of the transferee, the applications for approval of which were denied within the 2 years immediately preceding the date of the transfer agreement;
(3) All prior transfers by the payee to any person or entity other than the transferee or an affiliate of the transferee or an assignee of the transferee or an affiliate of the transferee within the 3 years immediately preceding the date of the transfer agreement, to the extent that the transfers or proposed transfers have been disclosed to the transferee by the payee in writing or otherwise are actually known to the transferee; and
(4) All prior proposed transfers by the payee to any person or entity other than the transferee or an affiliate of the transferee or an assignee of the transferee or affiliate of the transferee, the applications for approval of which were denied within the 1 year immediately preceding the date of the current transfer agreement, to the extent that the transfers or proposed transfers have been disclosed to the transferee by the payee in writing or otherwise are actually known to the transferee.
(f) Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing.
(g) Notification of the time and place of the hearing and notification of the manner in which and the date by which written responses to the application must be filed to be considered by the court, which date must not be less than 5 days before the hearing.
(h) Evidence of the transferee’s registration to do business in this State as a structured settlement purchase company.
(Added to NRS by 2021, 1728)
NRS 42.400 General provisions; construction.
1. The provisions of NRS 42.200 to 42.400, inclusive, may not be waived by a payee.
2. Any transfer agreement entered into by a payee who is domiciled in this State must provide that disputes under the transfer agreement, including, without limitation, any claims that the payee has breached the agreement, must be determined in and under the laws of this State. A transfer agreement must not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee.
3. A transfer of structured settlement payment rights must not extend to any payments that are life-contingent unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the structured settlement obligor and the annuity issuer for periodically confirming the payee’s survival and giving the structured settlement obligor and the annuity issuer prompt written notice in the event of the payee’s death.
4. If the payee cancels a transfer agreement, or if the transfer agreement otherwise terminates, after an application for approval of a transfer of structured settlement payment rights has been filed and before it has been granted or denied, the transferee must promptly request the dismissal of the application.
5. A payee who proposes to make a transfer of structured settlement payment rights does not incur any penalty, forfeit any application fee or other payment or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of NRS 42.200 to 42.400, inclusive.
6. Nothing contained in NRS 42.200 to 42.400, inclusive, shall:
(a) Be construed to authorize any transfer of structured settlement payment rights in contravention of any applicable law or to imply that any transfer under a transfer agreement entered into before October 1, 2021, is valid or invalid.
(b) Affect the validity of any transfer of structured settlement payment rights, whether under a transfer agreement entered into before or after October 1, 2021, in which the structured settlement obligor and annuity issuer waived, or have not asserted their rights under, terms of the structured settlement prohibiting or restricting the sale, assignment or encumbrance of the structured settlement payment rights.
7. Compliance with the requirements set forth in NRS 42.200 to 42.400, inclusive, and fulfillment of the conditions set forth in NRS 42.200 to 42.400, inclusive, are solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer, if any, has any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions.
8. NRS 42.200 to 42.400, inclusive, apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after October 1, 2021.
(Added to NRS by 2021, 1729)