SUMMARY--Makes various changes concerning regulation of insurance. (BDR 57-1466)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to insurance; authorizing the commissioner of insurance to assess a fee for returned checks; prohibiting the appropriation, diversion or conversion of the assets of an insurer for personal use; revising the schedule of fees and charges of the division of insurance of the department of business and industry; revising provisions governing contracts of reinsurance ceded to assuming insurers; prohibiting a manager for reinsurance from ceding certain retrocessions on behalf of a reinsurer; requiring certain insurers to report information concerning their risk-based capital; revising eligibility requirements for certain insurance licenses; prohibiting an insurance licensee knowingly to permit certain persons to transact insurance in this state; providing an administrative penalty for transacting insurance without a license; providing civil immunity to the commissioner of insurance and other persons in certain circumstances; revising the eligibility requirements for surplus lines brokers; revising provisions governing the liquidation of an insurer; prohibiting the secretary of state from accepting articles of incorporation and amendments thereto of unauthorized insurers; making various other changes relating to the regulation of insurance; making technical changes; providing penalties; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 679B of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2 The division may charge a person a fee adopted by regulation by the commissioner for each check returned to the division because the person had insufficient money or credit with the drawee to pay the check or because the person stopped payment on the check.
Sec. 3 The commissioner shall deliver to the secretary of state a copy of an order of the commissioner or the district court prohibiting an insurer from transacting insurance in this state.
Sec. 4 1. An officer, director, employee or agent of a domestic or foreign insurer who has the duty or power of investing or handling the money or assets of the insurer located in this state is a fiduciary of that money or those assets. Such an officer, director, employee or agent shall not appropriate, divert or convert to his own use such money or assets.
2. A person who violates subsection 1 is guilty of embezzlement and, in addition to any other penalty provided by law, shall be punished in accordance with NRS 205.300.
Sec. 5 NRS 679B.185 is hereby amended to read as follows:
679B.1851. If any person willfully engages in the unauthorized transaction of insurance, the commissioner may impose an administrative fine of not more than $10,000 for each act or violation.
2. An administrative fine imposed pursuant to this section is in addition to any other administrative fine or penalty provided for in this Title, except a fine or penalty imposed pursuant to NRS 686A.183, 686A.187, 696B.500 or 696B.520.
3. If the administrative fine is not paid when due, the fine must be recovered in a civil action brought by the attorney general on behalf of the commissioner.
4. Except as otherwise provided by specific statute, the commissioner shall commence a proceeding to impose an administrative fine pursuant to subsection 1 not later than 5 years after the date on which the act or violation occurred.
Sec. 6 NRS 680A.180 is hereby amended to read as follows:
680A.1801. A certificate of authority continues in force as long as the insurer is entitled thereto under this code, and until suspended or revoked by the commissioner or terminated at the insurer's request, if, each year, the insurer:
(a) Pays on or before March 1 the continuation fee provided in NRS 680B.010;
(b) Files its annual statement for the next preceding calendar year as required by NRS 680A.270; and
(c) Pays, if required, the premium taxes for the preceding calendar year.
2. If not so continued by the insurer, its certificate of authority expires at midnight on the May 31 next following such failure of the insurer to continue it in force, unless earlier revoked for failure to pay taxes as provided in NRS 680A.190. The commissioner shall promptly notify the insurer of the occurrence of any failure resulting in the impending expiration of its certificate of authority.
3. The commissioner may, upon the insurer's request made within 3 months after expiration, reinstate a certificate of authority which the insurer has inadvertently permitted to expire, after the insurer has fully cured all its failures which resulted in the expiration, and upon payment by the insurer of the fee for reinstatement specified in [paragraph (c) of] subsection 1 of NRS 680B.010. Otherwise , the insurer may be granted another certificate of authority only after filing an application therefor and meeting all other requirements for an original certificate of authority in this state.
Sec. 7 NRS 680B.010 is hereby amended to read as follows:
680B.010The commissioner shall collect in advance and receipt for, and persons so served [must] shall pay to the commissioner, fees and miscellaneous charges as follows:
1. Insurer's certificate of authority:
(a) Filing initial application $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive 283
(2) For two or more kinds of insurance as so defined 578
(3) For a reinsurer 2,450
(c) Each annual continuation of a certificate 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25
2. Charter documents, other than those filed with application for certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10
3. Annual statement or report. For filing annual statement or report $25
4. Service of process:
(a) Filing of power of attorney $5
(b) Acceptance of service of process [5] 30
5. Agents' licenses, appointments and renewals:
(a) Resident agents and nonresident agents qualifying under subsection 3 of NRS 683A.340:
(1) Application and license $78
(2) Appointment by each insurer 5
(3) Triennial renewal of each license 78
(4) Temporary license 10
(b) Other nonresident agents:
(1) Application and license 138
(2) Appointment by each insurer 25
(3) Triennial renewal of each license 138
6. Brokers' licenses and renewals:
(a) Resident brokers and nonresident brokers qualifying under subsection [4] 3 of NRS 683A.340:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Other nonresident brokers:
(1) Application and license 258
(2) Triennial renewal of each license 258
(c) Surplus lines brokers:
(1) Application and license 78
(2) Triennial renewal of each license 78
7. Solicitors' licenses, appointments and renewals:
(a) Application and license $78
(b) Triennial renewal of each license 78
(c) Initial appointment 5
8. Managing general agents' licenses, appointments and renewals:
(a) Resident managing general agents:
(1) Application and license $78
(2) Initial appointment, each insurer 5
(3) Triennial renewal of each license 78
(b) Nonresident managing general agents:
(1) Application and license 138
(2) Initial appointment, each insurer 25
(3) Triennial renewal of each license 138
9. Adjusters' licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Associate adjusters:
(1) Application and license 78
(2) Initial appointment 5
(3) Triennial renewal of each license 78
10. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license $78
(b) Triennial renewal of each license 78
11. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration $50
(b) Annual renewal 25
12. Insurance vending machines:
(a) Application and license, for each machine $78
(b) Triennial renewal of each license 78
13. Permit for solicitation for securities:
(a) Application for permit $100
(b) Extension of permit 50
14. Securities salesmen for domestic insurers:
(a) Application and license $25
(b) Annual renewal of license 15
15. Rating organizations:
(a) Application and license $500
(b) Annual renewal 500
16. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Resident administrators:
(1) Application and certificate of registration $78
(2) Triennial renewal 78
(b) Nonresident administrators:
(1) Application and certificate of registration 138
(2) Triennial renewal 138
17. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
18. Certified copies of certificates of authority and licenses issued pursuant to the insurance code $10
19. For copies and amendments of documents on file in the division, a reasonable charge fixed by the commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
20. Letter of clearance for an agent or broker [$5] $10
21. Certificate of status as a licensed agent or broker [$5] $10
22. Licenses, appointments and renewals for bail agents:
(a) Application and license $78
(b) Initial appointment by each surety insurer 5
(c) Triennial renewal of each license 78
23. Licenses and renewals for property bondsmen:
(a) Application and license $78
(b) Triennial renewal of each license 78
24. Licenses, appointments and renewals for general bail agents:
(a) Application and license $78
(b) Initial appointment by each insurer 5
(c) Triennial renewal of each license 78
25. Licenses and renewals for bail solicitors:
(a) Application and license $78
(b) Triennial renewal of each license 78
26. Licenses and renewals for title agents and escrow officers:
(a) Resident title agents and escrow officers:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident title agents and escrow officers:
(1) Application and license 138
(2) Triennial renewal of each license 138
(c) Change in name or location of business or in association 10
27. Certificate of authority and renewal for a seller of prepaid funeral contracts $78
28. Licenses and renewals for agents for prepaid funeral contracts:
(a) Resident agents:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
29. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Resident agents:
(1) Application and license $78
(2) Appointment 5
(3) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
30. [Surplus lines:
(a) Filing of affidavit pursuant to NRS 685A.050 $25
(b) Filing of memorandum pursuant to NRS 685A.060 25
(c) Filing of amendment to the memorandum when additional premium is reported 10]
Reinsurance intermediary broker or manager:
(a) Resident agents:
(1) Application and license $78
(2) Triennial renewal of each license 78
(b) Nonresident agents:
(1) Application and license 138
(2) Triennial renewal of each license 138
31. Agents for and sellers of prepaid burial contracts:
(a) Resident agents and sellers:
(1) Application and certificate or license $78
(2) Triennial renewal 78
(b) Nonresident agents and sellers:
(1) Application and certificate or license 138
(2) Triennial renewal 138
32. Risk retention groups:
(a) Initial registration and review of an application $2,450
(b) Each annual continuation of a certificate of registration 2,450
33. Required filing of forms:
(a) For rates and policies $25
(b) For riders and endorsements 10
Sec. 8 NRS 681A.230 is hereby amended to read as follows:
681A.2301. Credit must be allowed as an asset or as a deduction from liability to any ceding insurer for reinsurance lawfully ceded to an assuming insurer qualified therefor [under] pursuant to NRS 681A.110, 681A.150, 681A.160, 681A.170, 681A.180 or 681A.190, but no such credit may be allowed unless the contract for reinsurance [is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contracts reinsured without diminution because of insolvency of the ceding insurer.] provides in substance that, in the event of the insolvency of the ceding insurer, the reinsurance is payable pursuant to a contract reinsured by the assuming insurer on the basis of reported claims allowed in any liquidation proceedings, subject to court approval, without diminution because of the insolvency of the ceding insurer. Such payments must be made directly to the ceding insurer or to its domiciliary liquidator unless:
(a) The contract of reinsurance or other written contract specifically designates another payee of the payments in the event of the insolvency of the ceding insurer; or
(b) The assuming insurer, with the consent of the persons directly insured, has assumed the obligations from the policies issued by the ceding insurer as direct obligations of the assuming insurer, and in substitution for the obligations of the ceding insurer, to the payees under those policies.
2. The domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of any claim against the ceding insurer on any contract reinsured within a reasonable time after such a claim is filed in the liquidation proceeding. During the pendency of the claim, the assuming insurer may investigate the claim and, at its own expense, interpose in the proceeding in which the claim is to be adjudicated any defense that the assuming insurer deems available to the ceding insurer or its liquidator.
Sec. 9 NRS 681A.430 is hereby amended to read as follows:
681A.4301. The commissioner may issue a license to act as an intermediary to any person who has complied with the requirements of NRS 681A.250 to 681A.580, inclusive [.] , and who submits a written application for a license to act as an intermediary and the appropriate fee set forth in NRS 680B.010. A license issued to a firm or association authorizes all the members of the firm or association and any designated employees to act as intermediaries. All those persons must be named in the application and any supplements thereto. A license issued to a corporation authorizes all of the officers and any designated employees and directors of the corporation to act as intermediaries on behalf of the corporation. All those persons must be named in the application and in any supplements thereto.
2. If an applicant for a license to act as an intermediary is a nonresident, he shall:
(a) Designate the commissioner as agent for service of process;
(b) Furnish the commissioner with the name and address of a resident of Nevada upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served; and
(c) Promptly notify the commissioner in writing of every change in his designated agent for service of process. The change is not effective until acknowledged by the commissioner.
Sec. 10 NRS 681A.540 is hereby amended to read as follows:
681A.540A manager for reinsurance shall not:
1. Except as otherwise provided in this section, [bind] cede retrocessions on behalf of the reinsurer. A manager for reinsurance may [bind] cede facultative retrocessions pursuant to facultative agreements if the contract with the reinsurer contains guidelines for underwriting the retrocessions. The guidelines must include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
2. Commit the reinsurer to participate in syndicates for reinsurance.
3. Appoint any producer without verifying that the producer is licensed to transact the type of reinsurance for which he is appointed.
4. Without approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the policyholder's surplus of the reinsurer as of December 31 of the last complete calendar year.
5. Collect any payment from a retrocessionaire or commit the reinsurer to any settlement of a claim with a retrocessionaire, without the approval of the reinsurer. If approval is given, the manager for reinsurance shall promptly forward a report to the reinsurer.
6. Employ a person who is employed by the reinsurer unless the manager for reinsurance is under common control with the reinsurer within the meaning of chapter 692C of NRS.
7. Appoint another person to act as a manager for reinsurance.
Sec. 11 NRS 681A.570 is hereby amended to read as follows:
681A.5701. If the commissioner believes that the reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560, inclusive, or any regulation adopted or order issued pursuant thereto, the commissioner may, after a hearing conducted in accordance with NRS 679B.310 to 679B.370, inclusive, order:
(a) For each separate violation, the payment of a penalty in an amount not exceeding $5,000; and
(b) The revocation or suspension of the license of the reinsurance intermediary.
2. If the commissioner finds that the material noncompliance of the reinsurance intermediary has caused the insurer or reinsurer any loss or damage, the commissioner may initiate a civil action against the intermediary on behalf of the insurer or reinsurer and the policyholders and creditors of the insurer or reinsurer to recover compensatory damages or other appropriate relief [.] for the benefit of the insurer or reinsurer and the policyholders and creditors.
3. If an order of rehabilitation or liquidation of the insurer has been entered and the receiver appointed by that order determines that:
(a) The reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560, inclusive, or any regulation adopted or order issued pursuant thereto; and
(b) The insurer has suffered any loss or damage as a result of that noncompliance,
the receiver may bring a civil action for the recovery of damages or for any other appropriate sanctions on behalf of the insurer.
Sec. 12 Chapter 681B of NRS is hereby amended by adding thereto a new section to read as follows:
1. On or before March 1 of each year, each domestic insurer, and each foreign insurer domiciled in a state which does not have requirements for reporting risk-based capital, that transacts property, casualty, life or health insurance in this state shall prepare and submit to the commissioner, and to each person designated by the commissioner, a report of the level of the risk-based capital of the insurer as of the end of the immediately preceding calendar year. The report must be in such form and contain such information as required by the regulations adopted by the commissioner pursuant to this section.
2. The commissioner shall adopt regulations concerning the amount of risk-based capital required to be maintained by each insurer licensed to do business in this state that is transacting property, casualty, life or health insurance in this state. The regulations must be consistent with the instructions for reporting risk-based capital adopted by the National Association of Insurance Commissioners, as those instructions existed on January 1, 1997. If the instructions are amended, the commissioner may amend the regulations to maintain consistency with the instructions if he determines that the amended instructions are appropriate for use in this state.
Sec. 13 NRS 681B.240 is hereby amended to read as follows:
681B.240 1. Every opinion must:
(a) Be submitted with the annual statement reflecting the valuation of reserve liabilities for each year ending on or [before] after December 31, 1996.
(b) Apply to all business in force , including individual and group health insurance plans, in form and substance acceptable to the commissioner as specified by regulation.
(c) Be based on standards adopted from time to time by the Actuarial Standards Board or a successor organization approved by the commissioner and on such additional standards as the commissioner may by regulation prescribe.
2. In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by that company with the commissioner of insurance of another state if he determines that the opinion reasonably meets the requirements applicable to an insurer domiciled in this state.
Sec. 14 Chapter 683A of NRS is hereby amended by adding thereto a new section to read as follows:
A person licensed to transact insurance in this state shall not knowingly permit any other person whose license to transact insurance in this state has been revoked or suspended to transact insurance or in any manner participate in the transaction of insurance in this state.
Sec. 15 NRS 683A.090 is hereby amended to read as follows:
683A.0901. [No] A person shall not in this state be, act as or hold himself out to be, with respect to subjects of insurance resident, located or to be performed in this state or elsewhere, an agent, broker or solicitor unless licensed as such under this code. [No] A managing general agent, whether or not located in this state, shall not be or act as such with respect to the business of an insurer in this state unless licensed as such under this code.
2. [No] An agent, broker or solicitor shall not take an application for, procure or place for others any kind of insurance as to which he is not then so licensed.
3. Except as otherwise provided in NRS 683A.440 [(] concerning the sharing of commissions [), no] , an agent shall not place any insurance with any insurer as to which he does not then hold a license and an appointment as agent under this code.
4. A person who acts as an agent, broker or solicitor in this state without a license may be assessed an administrative fine of not more than $1,000 for each violation.
5. In addition to or in lieu of any applicable denial, suspension or revocation of license or administrative fine, any person violating this section is guilty of a misdemeanor.
Sec. 16 NRS 683A.130 is hereby amended to read as follows:
683A.1301. For the protection of the people of this state, the commissioner shall not issue, continue or permit to exist any agent's, broker's or solicitor's license except in compliance with this chapter. Any natural person for whom such a license is issued, continued or permitted to exist must:
(a) Be a bona fide resident of, and reside within, this state. This paragraph does not apply to:
(1) An agent brought into this state by an insurer to replace an agent disabled, deceased or dismissed.
(2) A licensed nonresident agent or nonresident broker of this state who otherwise qualifies for a license and is licensed as a resident within 60 days after he becomes a bona fide resident of this state. This subparagraph does not otherwise apply to nonresident agents and nonresident brokers.
(3) A licensed resident agent or resident broker during the 60 days next following the date he establishes his residence in another state.
(b) Be at least 18 years of age.
(c) If he applies for or holds an agent's license, have been appointed an agent by an authorized insurer, subject to the issuance of the license.
(d) If he applies for or holds a solicitor's license, be the bona fide employee of a licensed resident agent or a licensed resident broker as a solicitor, or be so employed subject to the issuance of the license.
(e) If he applies for or holds a broker's license, have had experience for at least 1 year as an agent, solicitor, managing general agent, adjuster, insurer's underwriter or broker or have had other special experience, education or training, all of sufficient content and duration reasonably necessary for competence in fulfilling the responsibilities of a broker.
(f) Be competent, trustworthy and financially responsible.
(g) Pass each examination required for the license pursuant to this chapter.
(h) Successfully complete each course of instruction which the commissioner requires by regulation.
(i) Not have been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.
2. The commissioner shall not differentiate between persons entitled to act as agents on the basis that the persons are engaged in other businesses to which the insurance agency is incidental or supplemental.
3. The commissioner may require applicants for licensing to pay, in addition to the fee required by NRS 683A.150, a fee of $15 for deposit in the insurance recovery account created by NRS 679B.305.
4. A conviction of, or a plea of guilty or nolo contendere to, any crime listed in paragraph (i) of subsection 1 is a sufficient ground for the denial of a license to the applicant.
Sec. 17 NRS 683A.230 is hereby amended to read as follows:
683A.2301. The license must state the name and address of the licensee, the date of issue, general conditions relative to expiration or termination, the kind or kinds of insurance, if applicable, covered by the license, and such other information and conditions as the commissioner may deem proper and consistent with law.
2. The license of an agent or managing general agent must not specify the name of any particular insurer or underwriter's department by which the licensee is appointed, [except as provided in subsection 4 as to limited licenses,] and the licensee may represent as an agent or managing general agent, under the [one] license, as many insurers or underwriter's departments as may appoint him therefor in accordance with this chapter.
3. The license of a solicitor must show also the name and address of the agent or broker who employs him.
[4. Each limited license issued under NRS 683A.260 must show also the name of the insurer so represented, and a separate license is required for each represented insurer.]
Sec. 18 NRS 683A.450 is hereby amended to read as follows:
683A.4501. In addition to any other authority conferred upon him by the provisions of this chapter, the commissioner may suspend for not more than 12 months, or may revoke, limit or refuse to continue , any license issued pursuant to this chapter or any surplus lines broker's license if, after notice to the licensee, each insurer the licensee represents as an agent or managing general agent and each person by whom the licensee is employed as a solicitor, and upon a hearing, unless the hearing is waived pursuant to NRS 683A.460, [he] the commissioner finds that as to the licensee any one or more of the following causes exist:
(a) For any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner.
(b) For willful violation of or willful noncompliance with any applicable provision of this code, or for willful violation of any lawful rule, regulation or order of the commissioner.
(c) For an intentional material misstatement in an application for a license or in connection therewith.
(d) For obtaining or attempting to obtain any such license by fraud or willful misrepresentation.
(e) For misappropriation or conversion to his own use, or illegal withholding, of money belonging to policyholders, insurers, beneficiaries or others and received in the conduct of business under the license.
(f) For a material misrepresentation of the terms of any existing or proposed insurance contract.
(g) If , in the conduct of his affairs under the license , the licensee has used fraudulent, coercive or dishonest practices, or has shown himself to be incompetent, untrustworthy, financially irresponsible or a source of injury and loss to the public.
(h) For aiding, abetting or assisting another person to violate any of the provisions of this code.
2. The commissioner shall:
(a) Revoke the license of any licensed resident agent or resident broker who establishes his residence in another state, 60 days after the establishment of [such] that residence.
(b) Immediately revoke the license of any licensee [convicted by final judgment of a felony] who has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.
3. If a licensee changes his address without written notice to the commissioner [,] and the commissioner after diligent effort is unable to locate the licensee, the commissioner may revoke the license without a hearing. If the commissioner mails a letter by certified mail, with return receipt requested, addressed to the licensee at his address last of record with the division, and the letter is returned to the commissioner undelivered, such mailing shall be deemed an adequate effort by the commissioner to locate the licensee.
4. The license of a firm or corporation may be suspended, revoked or refused also for any of such causes as relate to any natural person designated in or registered as to the license to exercise its powers.
5. In addition to or in lieu of suspension, revocation or refusal to continue [any such] a license for any of the causes specified in subsection 1, the commissioner may impose an administrative fine upon the licensee of not less than $25 or more than $500 [.] for each violation. The order levying the fine must specify the date, not less than 15 days or more than 30 days after the date of the order, before which the fine must be paid. Upon failure of the licensee to pay the fine when due, the commissioner shall immediately revoke the licenses of the licensee and the fine must be recovered in a civil action brought in behalf of the commissioner by the attorney general. The commissioner shall immediately deposit all such fines collected with the state treasurer.
Sec. 19 NRS 684A.070 is hereby amended to read as follows:
684A.0701. For the protection of the people of this state, the commissioner may not issue or continue any license as an adjuster except in compliance with the provisions of this chapter. Any individual for whom a license is issued or continued must:
[1.] (a) Be at least [21] 18 years of age;
[2. Be]
(b) Except as otherwise provided in subsection 2, be a bona fide resident of this state [, and have resided therein for at least 90 days prior to his application for the license. The commissioner may, in his discretion, waive this residence requirement as to:
(a) An adjuster theretofore licensed under the laws of another state and brought to Nevada by an employer firm or corporation licensed as an adjuster in this state to fill a vacancy in the firm or corporation in this state; or
(b) An adjuster licensed in an adjoining state whose principal place of business is located within 50 miles of the boundary of this state;
3.] ;
(c) Be competent, trustworthy, financially responsible and of good reputation;
[4.] (d) Never have been convicted of [a felony;
5.] , or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude;
(e) Have had at least 2 years' recent experience with respect to handling of loss claims of sufficient character reasonably to enable him to fulfill the responsibilities of an adjuster;
[6. Pass successfully]
(f) Pass all examinations required under this chapter; and
[7.] (g) Not be concurrently licensed as an agent, broker, solicitor or surplus lines broker, except as a bail bondsman.
2. The commissioner may, in his discretion, waive the residency requirement set forth in paragraph (b) of subsection 1 if the applicant is:
(a) An adjuster licensed under the laws of another state who has been brought to this state by an employer firm or corporation licensed as an adjuster in this state to fill a vacancy in the firm or corporation in this state; or
(b) An adjuster licensed in an adjoining state whose principal place of business is located within 50 miles from the boundary of this state.
3. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in paragraph (d) of subsection 1 is a sufficient ground for the commissioner to deny a license to the applicant, or to suspend, revoke or limit the license of an adjuster pursuant to NRS 684A.210.
Sec. 20 Chapter 685A of NRS is hereby amended by adding thereto a new section to read as follows:
1. The commissioner, the division and employees of the division, and any nonprofit organization of surplus lines brokers formed pursuant to NRS 685A.075 and its members, officers, committee members, agents and employees are not liable in a civil action for any act performed in good faith and within the scope of their duties or the exercise of their authority pursuant to this chapter.
2. The commissioner may, pursuant to NRS 679B.190, classify as confidential:
(a) Any investigation conducted by a nonprofit organization of surplus lines brokers formed pursuant to NRS 685A.075; and
(b) Any communications between such an organization and the commissioner and other appropriate authorities pursuant to this chapter.
3. The immunities and privileges provided by this section do not affect:
(a) The availability of any other immunities or privileges otherwise provided by law; or
(b) Any rights of hearing and review otherwise provided in this chapter.
Sec. 21 NRS 685A.070 is hereby amended to read as follows:
685A.0701. A broker shall not knowingly place surplus lines insurance with an insurer which is unsound financially or ineligible pursuant to this section.
2. No insurer is eligible for the acceptance of surplus lines risks pursuant to this chapter unless it has surplus as to policyholders [not less] in an amount of not less than $5,000,000 and, if an alien insurer, unless it has and maintains in a bank or trust company which is a member of the United States Federal Reserve System a trust fund established pursuant to terms reasonably adequate for the protection of all of its policyholders in the United States [of America] in an amount of not less than $1,500,000. Such a trust fund must not have an expiration date which is at any time less than 5 years in the future, on a continuing basis. In the case of:
(a) A group of insurers which includes individual unincorporated insurers, such a trust fund must [be] not be less than $100,000,000.
(b) A group of incorporated insurers under common administration, such a trust fund must not be less than $100,000,000. The group of incorporated insurers must:
(1) Operate under the supervision of the Department of Trade and Industry of the United Kingdom;
(2) Possess aggregate policyholders surplus of $10,000,000,000, which must consist of money in trust in an amount not less than the assuming insurers' liabilities attributable to insurance written in the United States; and
(3) Maintain a joint trusteed surplus of which $100,000,000 must be held jointly for the benefit of United States ceding insurers of any member of the group.
(c) An insurance exchange created by the laws of a state, such a trust fund must not be less than $50,000,000. If an insurance exchange maintains money for the protection of all policyholders, each syndicate shall maintain minimum capital and surplus [or the substantial equivalent thereof,] of not less than [$3,000,000. If the insurance exchange does not maintain money for the protection of all policyholders, each syndicate must meet the minimum capital and surplus requirements stated in paragraph (a).] $5,000,000 and must qualify separately to be eligible for the acceptance of surplus lines risks pursuant to this chapter.
The commissioner may require larger trust funds than those set forth in this section if, in his judgment, the volume of business being transacted or proposed to be transacted warrants larger amounts.
3. No insurer is eligible to write surplus lines of insurance unless it has established a reputation for financial integrity and satisfactory practices in underwriting and handling claims. In addition, a foreign insurer must be authorized in the state of its domicile to write the kinds of insurance which it intends to write in Nevada.
4. The commissioner may from time to time compile or approve a list of all surplus lines insurers deemed by him to be eligible currently, and may mail a copy of the list to each broker at his office last of record with the commissioner. To be placed on the list, a surplus lines insurer must file an application with the commissioner. The application must be accompanied by a nonrefundable fee of $2,450. This subsection does not require the commissioner to determine the actual financial condition or claims practices of any unauthorized insurer. The status of eligibility, if granted by the commissioner, indicates only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the commissioner has no credible evidence to the contrary. While any such list is in effect, the broker shall restrict to the insurers so listed all surplus lines business placed by him.
Sec. 22 NRS 685B.035 is hereby amended to read as follows:
685B.0351. If the commissioner has reason to believe that an insurer has committed or engaged in, is committing or engaging in, or is about to commit or engage in any practice, transaction or act prohibited by NRS 685B.030, he may:
(a) Apply to the district court for injunctive relief pursuant to NRS 685B.040 and for an order imposing an administrative fine pursuant to NRS 685B.080;
(b) Issue a statement of charges and a notice of an administrative hearing to be held before the commissioner on those charges and serve the statement and notice upon the person so charged; or
(c) Issue a cease and desist order if the commissioner deems, in his discretion, that the insurer's conduct is injurious to the rights and interests of the public or policyholders in this state and that emergency action is imperatively required. If the commissioner issues a cease and desist order pursuant to this paragraph, he shall hold a hearing within 30 days after a request by the insurer in accordance with the provisions of NRS 679B.310.
2. Any statement of charges and notice of an administrative hearing pursuant to this section must be:
(a) Issued as provided in NRS 679B.320; and
(b) Served personally or by certified or registered mail.
3. After the commissioner conducts a hearing pursuant to this section, he shall issue an order pursuant to NRS 679B.360. If the commissioner determines that the person being charged has engaged in a practice prohibited by this Title, the commissioner:
(a) Shall order the person to cease and desist from that practice;
(b) May order the person to pay an administrative fine pursuant to NRS 685B.080; and
(c) Shall order the person to pay premium taxes at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If the person fails to pay premium taxes on or before March 1 of the year in which the taxes are due, the person is liable for the penalties set forth in NRS 685A.190.
4. The commissioner may modify or set aside, in whole or in part, any order issued by him pursuant to this section, but any such action must be made before the expiration of the time for taking an appeal or before the official record of the proceeding has been filed with the court.
5. An order issued pursuant to this section:
(a) May be reviewed pursuant to NRS 679B.370.
(b) Becomes final:
(1) Upon the expiration of the time for taking an appeal, if no petition for judicial review has been filed; or
(2) Upon the final decision of the court.
6. If a person violates an order issued pursuant to this section, the commissioner may, after notice and a hearing, impose an administrative fine of not more than $5,000 for each violation.
7. The commissioner shall not, sooner than 1 year after the date on which an order pursuant to this section has been issued, grant an authorization as a surplus lines insurer or issue any license pursuant to this Title [57 of NRS] to the violator.
8. Except as otherwise provided by specific statute, the commissioner shall commence a proceeding pursuant to this section against a person for committing an act of unauthorized insurance not later than 5 years after the date on which the act occurred.
Sec. 23 Chapter 688B of NRS is hereby amended by adding thereto a new section to read as follows:
An insurer shall pay the proceeds of any benefits under a group life insurance policy not more than 30 days after the death of the insured. If the proceeds are not paid within this period, the insurer shall pay interest on the proceeds, at a rate that is not less than the current rate of interest on death proceeds on deposit with the insurer, from the date of death of the insured to the date when the proceeds are paid.
Sec. 24 NRS 689.235 is hereby amended to read as follows:
689.2351. To qualify for an agent's license, the applicant [must:
(a) File] :
(a) Must file a written application with the commissioner on forms [furnished] prescribed by the commissioner; [and
(b) Have]
(b) Must have a good business and personal reputation [.] ; and
(c) Must not have been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant's identity, address , [and] personal background and business, professional or work history.
(b) Contain such other pertinent information as the commissioner may require.
(c) Be accompanied by a complete set of his fingerprints and written permission authorizing the commissioner to forward those fingerprints to the Federal Bureau of Investigation for its report.
(d) Be accompanied by a fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant.
(e) Be accompanied by the applicable fee established in NRS 680B.010, which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in paragraph (c) of subsection 1 is a sufficient ground for the commissioner to deny a license to the applicant, or to suspend or revoke the agent's license pursuant to NRS 689.265.
Sec. 25 NRS 689.520 is hereby amended to read as follows:
689.5201. To qualify for an agent's license, the applicant [must have a good business and personal reputation and must] :
(a) Must file a written application with the commissioner on forms [furnished] prescribed by the commissioner [.] ; and
(b) Must not have been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant's identity, address, personal background and business, professional or work history.
(b) Contain such other pertinent information as the commissioner may require.
(c) Be accompanied by a complete set of fingerprints and written permission authorizing the commissioner to forward those fingerprints to the Federal Bureau of Investigation for its report.
(d) Be accompanied by a fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant.
(e) Be accompanied by the applicable fee established in NRS 680B.010, which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in paragraph (b) of subsection 1 is a sufficient ground for the commissioner to deny a license to the applicant, or to suspend or revoke the agent's license pursuant to NRS 689.535.
Sec. 26 NRS 692A.105 is hereby amended to read as follows:
692A.1051. The commissioner may refuse to license any title agent or escrow officer or may suspend or revoke any license or impose a fine of not more than $500 for each violation by entering an order to that effect, with his findings in respect thereto, if upon a hearing, it is determined that the applicant or licensee:
(a) In the case of a title agent, is insolvent or in such a financial condition that he cannot continue in business with safety to his customers;
(b) Has violated any provision of this chapter or any regulation adopted pursuant thereto or has aided and abetted another to do so;
(c) Has committed fraud in connection with any transaction governed by this chapter;
(d) Has intentionally or knowingly made any misrepresentation or false statement to, or concealed any essential or material fact known to him from, any principal or designated agent of the principal in the course of the escrow business;
(e) Has intentionally or knowingly made or caused to be made to the commissioner any false representation of a material fact or has suppressed or withheld from him any information which the applicant or licensee possesses;
(f) Has failed without reasonable cause to furnish to the parties of an escrow their respective statements of the settlement within a reasonable time after the close of escrow;
(g) Has failed without reasonable cause to deliver, within a reasonable time after the close of escrow, to the respective parties of an escrow transaction any money, documents or other properties held in escrow in violation of the provisions of the escrow instructions;
(h) Has refused to permit an examination by the commissioner of his books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the commissioner pursuant to the provisions of this chapter;
(i) Has been convicted of a felony or any misdemeanor of which an essential element is fraud;
(j) In the case of a title agent, has failed to maintain complete and accurate records of all transactions within the last 7 years;
(k) Has commingled the money of others with his own or converted the money of others to his own use;
(l) Has failed, before the close of escrow, to obtain written instructions concerning any essential or material fact or intentionally failed to follow the written instructions which have been agreed upon by the parties and accepted by the holder of the escrow; [or]
(m) Has failed to disclose in writing that he is acting in the dual capacity of escrow agent or agency and undisclosed principal in any transaction [.] ; or
(n) In the case of an escrow agent, has been convicted of, or entered a plea of guilty or nolo contendere to, any crime involving moral turpitude.
2. It is sufficient cause for the imposition of a fine or the refusal, suspension or revocation of the license of a partnership, corporation or any other association if any member of the partnership or any officer or director of the corporation or association has been guilty of any act or omission directly arising from the business activities of a title agent which would be cause for such action had the applicant or licensee been a natural person.
3. The commissioner may suspend or revoke the license of a title agent, or impose a fine, if the commissioner finds that the title agent:
(a) Failed to maintain adequate supervision of an escrow officer title agent he has appointed or employed.
(b) Instructed an escrow officer to commit an act which would be cause for the revocation of the escrow officer's license and the escrow officer committed the act. An escrow officer is not subject to disciplinary action for committing such an act under instruction by the title agent.
4. The commissioner may refuse to issue a license to any person who, within 10 years before the date of applying for a current license, has had suspended or revoked a license issued pursuant to this chapter or a comparable license issued by any other state, district or territory of the United States or any foreign country.
Sec. 27 NRS 695B.320 is hereby amended to read as follows:
695B.320Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 687B.410, 687B.420, 687B.430, 689C.015 to 689C.350, inclusive, and chapters 692C and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.
Sec. 28 Chapter 695F of NRS is hereby amended by adding thereto a new section to read as follows:
A prepaid limited health service organization shall contract with an insurance company licensed in this state or authorized to do business in this state for the provision of insurance, indemnity or reimbursement against the cost of health care services provided by the prepaid limited health service organization.
Sec. 29 NRS 695F.090 is hereby amended to read as follows:
695F.090Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions , [of this Title,] to the extent reasonably applicable:
1. NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.
2. NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.
3. The requirements of NRS 679B.152.
4. The fees imposed pursuant to NRS 449.465.
5. NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.
6. The assessment imposed pursuant to subsection 3 of NRS 679B.158.
7. Chapter 683A of NRS.
8. NRS 680B.025 to 680B.039, inclusive, concerning premium tax, premium tax rate, annual report and estimated quarterly tax payments. For the purposes of this subsection, unless the context otherwise requires that a section apply only to insurers, any reference in those sections to "insurer" must be replaced by a reference to "prepaid limited health service organization."
9. Chapter 692C of NRS, concerning holding companies.
Sec. 30 Chapter 696B of NRS is hereby amended by adding thereto a new section to read as follows:
The commissioner and the officers, agents, employees and attorneys of the division are not liable for any action or omission made in good faith by the commissioner, officer, agent, employee or attorney in the performance of his duties or exercise of authority pursuant to this chapter. Nothing in this section abrogates or modifies any other privilege otherwise provided by law to the commissioner or the officers, agents, employees and attorneys of the division.
Sec. 31 NRS 696B.190 is hereby amended to read as follows:
696B.1901. The district court [shall have] has original jurisdiction of delinquency proceedings under NRS 696B.010 to 696B.560, inclusive, and section 30 of this act, and any court with jurisdiction [is authorized to] may make all necessary or proper orders to carry out the purposes of those sections.
2. The venue of delinquency proceedings against a domestic insurer must be in the county in this state of the insurer's principal place of business or, if the principal place of business is located in another state, in any county in this state selected by the commissioner for the purpose. The venue of proceedings against foreign insurers must be in any county in this state selected by the commissioner for the purpose.
3. At any time after commencement of a proceeding, the commissioner or any other party may apply to the court for an order changing the venue of, and removing, the proceeding to any other county of this state in which the proceeding may most conveniently, economically and efficiently be conducted.
4. No court has jurisdiction to entertain, hear or determine any petition or complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of any insurer, or for an injunction or restraining order or other relief preliminary, incidental or relating to such proceedings, other than in accordance with NRS 696B.010 to 696B.560, inclusive [.] , and section 30 of this act.
5. An appeal to the supreme court may be taken from any court granting or refusing rehabilitation, liquidation, conservation or receivership, and from every order in delinquency proceedings having the character of a final order as to the particular portion of the proceedings embraced therein.
Sec. 32 NRS 696B.415 is hereby amended to read as follows:
696B.4151. Upon the issuance of an order of liquidation with a finding of insolvency against a domestic insurer , the commissioner shall apply to the district court for authority to disburse [funds] money to the Nevada insurance guaranty association or the Nevada life and health insurance guaranty association out of the insurer's marshaled assets, as [funds become] money becomes available, in amounts equal to disbursements made or to be made by the association for claims-handling expense and covered-claims obligations upon the presentation of evidence that disbursements have been made by the association. The commissioner shall apply to the district court for authority to make similar disbursements to insurance guaranty associations in other jurisdictions if one of the Nevada associations is entitled to like payment under the laws relating to insolvent insurers in the jurisdiction in which the organization is domiciled.
2. The commissioner, in determining the amounts available for disbursement to the Nevada insurance guaranty association, the Nevada life and health insurance guaranty association, and similar organizations in other jurisdictions, shall reserve sufficient assets for the payment of expenses of administration.
3. The commissioner shall establish procedures for the ratable allocation of disbursements to the Nevada insurance guaranty association, the Nevada life and health insurance guaranty association, and similar organizations in other jurisdictions, and shall secure from each organization to which money is paid as a condition to advances in reimbursement of covered-claims obligations an agreement to return to the commissioner, on demand, amounts previously advanced which are required to pay claims of secured creditors and claims falling within the priorities established in [subsections 1 and 2 of] NRS 696B.420 [.] for administration costs and expenses, and wage debts due employees for services performed.
Sec. 33 NRS 696B.420 is hereby amended to read as follows:
696B.4201. The order of distribution of claims from the insurer's estate on liquidation of the insurer [shall] must be as stated in this section. The first $50 of the amount allowed on each claim in the classes under [subsections 2 to 6, inclusive, shall] paragraphs (b) to (g), inclusive, must be deducted from the claim and included in the class under [subsection 8.] paragraph (i). Claims may not be cumulated by assignment to avoid application of the $50 deductible provision. Subject to the $50 deductible provision, every claim in each class [shall] must be paid in full or adequate [funds] money retained for the payment before the members of the next class receive any payment. No subclasses [shall] may be established within any class. [The] Except as otherwise provided in subsection 2, the order of distribution and of priority [shall] must be as follows:
[1.] (a) Administration costs [. The costs and expenses of administration,] and expenses, including , but not limited to , the following:
(1) The actual and necessary costs of preserving or recovering the assets of the insurer; [compensation]
(2) Compensation for all services rendered in the liquidation; [any]
(3) Any necessary filing fees; [the]
(4) The fees and mileage payable to witnesses; and [reasonable]
(5) Reasonable attorney's fees.
[2. Wages. Debts due to employees for services performed, not to exceed $1,000 to each employee, which have been earned within 1 year before the filing of the petition for liquidation. Officers of the insurer shall not be entitled to the benefit of this priority. Such priority shall be in lieu of any other similar priority authorized by law as to wages or compensation of employees.
3.] (b) Loss claims [. All] , including all claims under policies for losses incurred, including third party claims, [and] all claims against the insurer for liability for bodily injury or for injury to or destruction of tangible property which are not under policies, and all claims of the Nevada insurance guaranty association, the Nevada life and health insurance guaranty association, and other similar statutory organizations in other jurisdictions, except the first $200 of losses otherwise payable to any claimant under this [subsection.] paragraph. All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds or investment values, [shall] must be treated as loss claims. Claims may not be cumulated by assignment to avoid application of the $200 deductible provision. That portion of any loss for which indemnification is provided by other benefits or advantages recovered or recoverable by the claimant [shall] may not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death or as proceeds of life insurance, or as gratuities. No payment made by an employer to his employee [shall] may be treated as a gratuity.
[4.] (c) Unearned premiums and small loss claims [. Claims] , including claims under nonassessable policies for unearned premiums or other premium refunds and the first $200 of loss excepted by the deductible provision in [subsection 3.
5.] paragraph (b).
(d) Claims of the Federal Government and any state or local government, including, but not limited to, a claim of any governmental body for a penalty or forfeiture.
(e) Wage debts due employees for services performed, not to exceed $1,000 to each employee, that have been earned within 1 year before the filing of the petition for liquidation. Officers of the insurer are not entitled to the benefit of this priority. The priority set forth in this paragraph must be in lieu of any other similar priority authorized by law as to wages or compensation of employees.
(f) Residual classification [. All] , including all other claims [, including claims of the federal or any state or local government,] not falling within other classes under this section. Claims [, including those of any governmental body,] for a penalty or forfeiture [, shall] must be allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of such claims [shall] must be postponed to the class of claims under [subsection 8.
6. Judgments. Claims] paragraph (i).
(g) Judgment claims based solely on judgments. If a claimant files a claim and bases it both on the judgment and on the underlying facts, the claim [shall] must be considered by the liquidator, who shall give the judgment such weight as he deems appropriate. The claim as allowed [shall] must receive the priority it would receive in the absence of the judgment. If the judgment is larger than the allowance on the underlying claim, the remaining portion of the judgment [shall] must be treated as if it were a claim based solely on a judgment.
[7.] (h) Interest on claims already paid [. Interest] , which must be calculated at the legal rate compounded annually on all claims in the classes under [subsections 1 to 6,] paragraphs (a) to (g), inclusive, from the date of the petition for liquidation or the date on which the claim becomes due, whichever is later, until the date on which the dividend is declared. The liquidator, with the approval of the court, may make reasonable classifications of claims for purposes of computing interest, may make approximate computations and may ignore certain classifications and [time] periods as de minimis.
[8.] (i) Miscellaneous subordinated claims [. The] , including the remaining claims or portions of claims not already paid, with interest as in [subsection 7:
(a)] paragraph (h):
(1) The first $50 of each claim in the classes under [subsections 2 to 6,] paragraph (b) to (g), inclusive, subordinated under this section;
[(b)] (2) Claims subordinated by NRS 696B.430;
[(c)] (3) Claims filed late;
[(d)] (4) Portions of claims subordinated under [subsection 5;
(e)] paragraph (f);
(5) Claims or portions of claims the payment of which is provided by other benefits or advantages recovered or recoverable by the claimant; and
[(f)] (6) Claims not otherwise provided for in this section.
[9.] (j) Preferred ownership claims [. Surplus] , including surplus or contribution notes, or similar obligations, and premium refunds on assessable policies. Interest at the legal rate [shall] must be added to each claim, as in [subsections 7 and 8.
10.] paragraphs (h) and (i).
(k) Proprietary claims [. The claims] of shareholders or other owners.
2. If there are no existing or potential claims of the government against the estate, claims for wages have priority over all claims set forth in paragraphs (c) to (j), inclusive, of subsection 1. The provisions of this subsection must not be construed to require the deduction of $50 or the accumulation of interest for claims as described in paragraph (h) of subsection 1.
Sec. 34 NRS 696B.430 is hereby amended to read as follows:
696B.430If an ancillary receiver in another state or foreign country, by whatever name called, fails to transfer to the domiciliary liquidator in this state any assets within his control other than special deposits, diminished only by the expenses, if any, of the ancillary receivership, claims filed in the ancillary receivership, other than special deposit claims or secured claims, [shall] must be placed in the class of claims under paragraph (i) of subsection [8] 1 of NRS 696B.420.
Sec. 35 NRS 697.150 is hereby amended to read as follows:
697.150A person is not entitled to receive, renew or hold a license as a bail agent unless he:
1. Is a bona fide resident of and resides within this state, and must have so resided for not less than 1 year immediately preceding the application for the license.
2. Is a natural person not less than 18 years of age.
3. Has been appointed as a bail agent by an authorized surety insurer, subject to issuance of the license.
4. Is competent, trustworthy and financially responsible [.] , and has not been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in this subsection is a sufficient ground for the commissioner to deny a license to the applicant or to suspend or revoke the agent's license.
5. Has passed any written examination required under this chapter.
6. Has filed the bond required by NRS 697.190.
Sec. 36 NRS 78.045 is hereby amended to read as follows:
78.0451. The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed under the laws of this state which provides that the name of the corporation contain the word "bank" or "trust," unless:
(a) It appears from the articles or the certificate of amendment that the corporation proposes to carry on business as a banking or trust company, either exclusively or in connection with its business as a bank or savings and loan association; and
(b) The articles or certificate of amendment is first approved by the commissioner of financial institutions.
2. The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed under this chapter when it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance or by the commissioner of financial institutions, unless the articles or certificate of amendment is first approved by the commissioner who will be supervising the business of the corporation.
3. Except as otherwise provided in subsection 4, the secretary of state shall not accept for filing any articles of incorporation or any certificate or amendment of articles of incorporation of any corporation formed under the laws of this state if the name of the corporation contains the words "engineer," "engineered," "engineering," "professional engineer" or "licensed engineer" unless:
(a) The state board of professional engineers and land surveyors certifies that the principals of the corporation are registered to practice engineering or are registered to practice engineering and architecture, except landscape architecture, under the laws of this state; or
(b) The state board of professional engineers and land surveyors certifies that the corporation is exempt from the prohibitions of NRS 625.520.
4. The provisions of subsection 3 do not apply to any corporation, whose securities are publicly traded and regulated by the Securities Exchange Act of 1934, which does not engage in the practice of professional engineering.
5. The commissioner of financial institutions and the commissioner of insurance may approve or disapprove the articles or amendments referred to them under the provisions of this section.
6. The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of a corporation that wishes to transact, or is transacting, insurance in this state if the secretary of state has on file a current order from the commissioner of insurance or the district court prohibiting the corporation from transacting insurance in this state.
Sec. 37 The amendatory provisions of this act that impose criminal liability do not apply to offenses that are committed before October 1, 1997.
Sec. 38 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.