NRS: CHAPTER 680A - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

[Rev. 6/29/2024 4:56:59 PM--2023]

CHAPTER 680A - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

GENERAL PROVISIONS

NRS 680A.010 Definitions.

NRS 680A.020 “Charter” defined.

NRS 680A.028 “Multiple employer welfare arrangement” defined.

NRS 680A.030 “Mutual” insurer defined.

NRS 680A.040 “Reciprocal” insurer defined.

NRS 680A.050 “Stock” insurer defined.

NRS 680A.058 Applicability of chapter to self-funded multiple employer welfare arrangements.

NRS 680A.060 Certificate of authority: Required; penalty.

NRS 680A.070 Certificate of authority: Exceptions to requirement.

NRS 680A.080 Eligibility for certificate of authority: General requirements.

NRS 680A.082 Eligibility for certificate of authority: Additional requirements for self-funded multiple employer welfare arrangements.

NRS 680A.090 Eligibility for certificate of authority: Ownership; management.

NRS 680A.095 Certificate of authority: Required to transact reinsurance; eligibility; exceptions.

NRS 680A.100 Name of insurer.

NRS 680A.110 Combinations of insuring powers.

NRS 680A.120 Required capital.

NRS 680A.130 Combinations of insurance for which additional capital not required.

NRS 680A.140 Required deposit; deposit in other state.

NRS 680A.150 Certificate of authority: Application.

NRS 680A.155 Certificate of authority: Payment of certain taxes and penalties by certain applicants required.

NRS 680A.160 Certificate of authority: Issuance or refusal; contents and ownership.

NRS 680A.165 Certificate of authority: Insurer required to notify Commissioner of all material changes to information provided in application; suspension or revocation or administrative fine for failure to provide certain such notice.

NRS 680A.170 Certificate of authority: Amendment; fee.

NRS 680A.173 Transfer of insurer’s domicile: Foreign insurer may become domestic insurer.

NRS 680A.175 Transfer of insurer’s domicile: Termination of status as domestic insurer; qualification as foreign insurer.

NRS 680A.177 Transfer of insurer’s domicile: Duties of insurer; effect on policies.

NRS 680A.180 Continuance, expiration and reinstatement of certificate of authority.

NRS 680A.190 Refusal to continue or suspension or revocation of certificate of authority: Mandatory grounds; notice; hearing.

NRS 680A.200 Refusal to continue or suspension, limitation or revocation of certificate of authority: Grounds; administrative fine in lieu of certain suspension or revocation; immediate suspension; statute of limitations.

NRS 680A.205 Determination of hazardous financial condition of insurer: Regulations; hearing; disciplinary actions; review of order.

NRS 680A.210 Suspension, limitation or revocation of or refusal to continue certificate of authority: Order and notice; effect on agents’ authority.

NRS 680A.220 Suspension of certificate of authority: Duration; insurer’s obligations during suspension period; reinstatement.

NRS 680A.225 Penalty for failure of insurer to comply with certain requirements for electronic maintenance, transmittal and exchange of health information. [Effective July 1, 2024.]

NRS 680A.230 Applicability of general corporation laws to foreign insurers; exception.

NRS 680A.240 Issuance of policies under additional titles: Registration; inclusion of such business in annual statement.

NRS 680A.250 Service of process: Appointment of Commissioner as attorney in fact for receipt required for certain insurers; methods of serving.

NRS 680A.260 Service of process: Method of serving if Commissioner statutorily designated as attorney in fact for receipt; extension of time to appear; record.

NRS 680A.265 Annual financial statement: Filing; reporting of violation of law found during audit; penalty for failure to file; consolidation of statements prohibited; exception; regulations.

NRS 680A.270 Filing of annual statement and payment of fee by authorized insurers; statement of alien insurer; actions by Commissioner for failure to file; filing of quarterly statement by domestic insurer; regulations; confidentiality of certain information; compensation information.

NRS 680A.280 Annual or other required statement: Penalties for failure to file or false statements.

NRS 680A.300 Agent required; execution of emergency bond.

NRS 680A.320 Transaction or agreement with parent corporation, financial holding company, depository institution, subsidiary or affiliated person: Prohibitions; duty and obligation of insurer.

NRS 680A.330 Retaliatory provision.

DELIVERY OF NOTICES AND OTHER DOCUMENTS BY ELECTRONIC MEANS

NRS 680A.500 Definitions.

NRS 680A.510 “Deliver by electronic means” defined.

NRS 680A.520 “Party” defined.

NRS 680A.530 Applicability.

NRS 680A.540 Authority to deliver by electronic means certain types of notices or documents in certain circumstances; delivery by electronic means satisfies requirements of Nevada Insurance Code regarding delivery in physical form.

NRS 680A.550 Requirements for delivery.

NRS 680A.555 Authority of plan sponsor of health plan to consent to delivery by electronic means on behalf of party covered by health plan; requirements and restrictions for delivery by electronic means to party covered by health plan.

NRS 680A.560 Circumstances in which insurer required to cease delivery by electronic means.

NRS 680A.570 Withdrawal of consent to delivery by electronic means.

NRS 680A.580 Effect of consent to delivery by electronic means given before October 1, 2017.

NRS 680A.590 Enforceability of contract or policy of insurance if electronic consent or confirmation of consent not obtained; producer of insurance not subject to civil liability for delivery or failure to deliver by electronic means; relation to Electronic Signatures in Global and National Commerce Act.

_________

GENERAL PROVISIONS

NRS 680A.010 Definitions. As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 680A.020 to 680A.050, inclusive, shall have the meanings ascribed to them in NRS 680A.020 to 680A.050, inclusive.

(Added to NRS by 1971, 1576; A 2019, 1427)

NRS 680A.020 “Charter” defined. “Charter” means the certificate of incorporation, articles of incorporation, articles of agreement, articles of association, charter granted by legislative act, or other basic constituent document of a corporation, or the power of attorney of the attorney-in-fact of a reciprocal insurer.

(Added to NRS by 1971, 1576)

NRS 680A.028 “Multiple employer welfare arrangement” defined. “Multiple employer welfare arrangement” has the meaning ascribed to it in 29 U.S.C. § 1002(40).

(Added to NRS by 2019, 1425)

NRS 680A.030 “Mutual” insurer defined. A “mutual” insurer is an incorporated insurer without capital stock and the governing body of which is elected by its policyholders. This definition shall not be deemed to exclude as “mutual” insurers certain foreign insurers found by the Commissioner to be organized on the mutual plan under the laws of their states of domicile, but having temporary share capital or providing for election of the insurer’s governing body on a reasonable basis.

(Added to NRS by 1971, 1576)

NRS 680A.040 “Reciprocal” insurer defined. A “reciprocal” insurer is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves.

(Added to NRS by 1971, 1576)

NRS 680A.050 “Stock” insurer defined. A “stock” insurer is an incorporated insurer with its capital divided into shares and owned by its stockholders.

(Added to NRS by 1971, 1576)

NRS 680A.058 Applicability of chapter to self-funded multiple employer welfare arrangements. To the extent applicable and not inconsistent with federal law:

1. The provisions of this chapter that govern domestic insurers, their business, capital and surplus requirements and the requirements for eligibility for a certificate of authority govern self-funded multiple employer welfare arrangements; and

2. A self-funded multiple employer welfare arrangement must comply with the criteria set forth in this chapter to qualify for a certificate of authority.

(Added to NRS by 2019, 1426)

NRS 680A.060 Certificate of authority: Required; penalty.

1. A person shall not act as an insurer and an insurer shall not transact insurance in this State by mail or otherwise, except as authorized by a certificate of authority issued by the Commissioner and then in full force, and except as to such transactions as are expressly otherwise provided in this Code.

2. A domestic insurer and a foreign insurer from offices or by personnel or facilities located in this State shall not solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority granted to it by the Commissioner authorizing it to transact the same kind or kinds of insurance in this State.

3. Any officer, director, agent, representative or employee of any insurer who willfully authorizes, negotiates, makes or issues any insurance contract in violation of this section is guilty of a misdemeanor.

(Added to NRS by 1971, 1576; A 1983, 684; 1985, 348)

NRS 680A.070 Certificate of authority: Exceptions to requirement. A certificate of authority is not required of an insurer with respect to any of the following:

1. Investigation, settlement or litigation of claims under its policies lawfully written in this State, or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting from its former authorized operations in this State.

2. Except as otherwise provided in subsection 2 of NRS 680A.060, transactions thereunder after issuance of a policy covering only subjects of insurance that are not resident, located or expressly to be performed in this State at the time of issuance, and lawfully solicited, written and delivered outside this State.

3. Prosecution or defense of suits at law, except that no insurer unlawfully transacting insurance in this State without a certificate of authority may institute or maintain, other than defend, any action at law or in equity in any court of this State, either directly or through an assignee or successor in interest, to enforce any right, claim or demand arising out of such an insurance transaction until the insurer, assignee or successor has obtained a certificate of authority. This provision does not apply to any suit or action by the receiver, rehabilitator or liquidator of such an insurer, assignee or successor under laws similar to those contained in chapter 696B of NRS.

4. Transactions pursuant to surplus lines coverages lawfully written under chapter 685A of NRS.

5. A suit, action or proceeding for the enforcement or defense of its rights relative to its investments in this State.

6. Reinsurance, except as to a domestic reinsurer or the reinsurance of a domestic insurer, unless the reinsurance is authorized pursuant to subsection 1 of NRS 681A.110.

7. Transactions in this State involving group life insurance, group health or blanket health insurance, or group annuities where the master policy or contract of such groups was lawfully solicited, issued and delivered pursuant to the laws of a state in which the insurer was authorized to transact insurance, to a group organized for purposes other than the procurement of insurance or to a group approved pursuant to NRS 688B.030 or 689B.026, and where the policyholder is domiciled or otherwise has a bona fide situs.

8. The issuance of annuities by an affiliate of an authorized insurer if the affiliate:

(a) Is approved by the Commissioner;

(b) Is organized as a nonprofit educational corporation;

(d) Reports and pays any premium tax on the annuities required pursuant to chapter 680B of NRS.

9. Transactions, other than for workers’ compensation insurance or for industrial insurance provided pursuant to chapters 616A to 617, inclusive, of NRS, involving the procurement of excess liability insurance above underlying liability coverage or self-insured retention of at least $25,000,000, if procured from an unauthorized alien or foreign insurer who does not solicit, negotiate or enter into such transactions in this State by any means, and if procured by a person:

(a) Whose total annual premiums for property and casualty insurance, not including workers’ compensation or industrial insurance, is $1,000,000 or more; and

(b) Who employs 250 or more full-time employees.

Ê A person who procures insurance in accordance with this subsection shall report and pay any premium tax on the insurance required pursuant to NRS 680B.040.

(Added to NRS by 1971, 1581; A 1985, 1058; 1987, 484, 642; 1989, 599; 1991, 861; 1997, 286; 1999, 400)

NRS 680A.080 Eligibility for certificate of authority: General requirements. To qualify for and hold authority to transact insurance in this State, an insurer must be otherwise in compliance with this Code and with its charter powers, and must be an incorporated stock or mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this Code, except that:

1. No foreign insurer may be authorized to transact insurance in this State which does not maintain reserves as required by chapter 681B of NRS (assets and liabilities), as applicable to the kind or kinds of insurance transacted by such insurer, wherever transacted in the United States of America, or which transacts business anywhere in the United States of America on the assessment plan, or stipulated premium plan, or any similar plan.

2. No insurer may be authorized to transact a kind of insurance in this State unless duly authorized or qualified to transact such insurance in the state or country of its domicile.

3. No insurer may be authorized to transact in this State any kind of insurance which is not within the definitions as set forth in NRS 681A.010 to 681A.080, inclusive (kinds of insurance).

4. No such authority may be granted or continued to any insurer while in arrears to the State for fees, licenses, taxes, assessments, fines or penalties accrued on business previously transacted in this State.

Ê In addition to the other requirements set forth in this section, an insurer who proposes to transact in this State insurance that protects a policyholder from liability arising out of the ownership, maintenance or use of a motor vehicle must demonstrate to the satisfaction of the Department of Motor Vehicles that the insurer is able to comply with the provisions of NRS 485.314.

(Added to NRS by 1971, 1577; A 1997, 1086; 2001, 2634)

NRS 680A.082 Eligibility for certificate of authority: Additional requirements for self-funded multiple employer welfare arrangements. The Commissioner may not issue a certificate of authority to a self-funded multiple employer welfare arrangement unless the arrangement establishes to the satisfaction of the Commissioner that the following requirements have been satisfied by the arrangement:

1. The employers participating in the arrangement are members of a bona fide association.

2. The employers participating in the arrangement exercise control over the arrangement, as follows:

(a) Subject to paragraph (b), control exists if the board of directors of the bona fide association or the employers participating in the arrangement have the right to elect at least 75 percent of the individuals designated in the arrangement’s organizational documents as having control over operations of the arrangement and individuals designated in the arrangement’s organizational documents in fact exercise control over the operation of the arrangement; and

(b) The use of a third-party administrator to process claims and to assist in the administration of the arrangement is not evidence of the lack of control over the operation of the arrangement.

3. In this State, the arrangement provides only health care services.

4. In this State, the arrangement provides or arranges benefits for health care services in compliance with the provisions of this title that mandate particular benefits or offerings and with provisions that require access to particular types or categories of health care providers and facilities.

5. The arrangement provides health care services to not less than 20 employers and not less than 75 employees.

6. The arrangement may not solicit participation in the arrangement from the general public. However, the arrangement may employ licensed insurance producers who receive a commission, unlicensed individuals who do not receive a commission, and may contract with a licensed insurance producer who may be paid a commission or other remuneration, for the purpose of enrolling and renewing the enrollments of employers in the arrangement.

7. The arrangement has been in existence and operated actively for a continuous period of not less than 10 years as of December 31, 2018, except for an arrangement that has been in existence and operated actively since December 31, 2015, and is sponsored by an association that has been in existence more than 25 years.

8. The arrangement is not organized or maintained solely as a conduit for the collection of premiums and the forwarding of premiums to an insurance company.

9. The arrangement has aggregate stop loss coverage, with an attachment point of 120 percent of expected claims.

(Added to NRS by 2019, 1426)

NRS 680A.090 Eligibility for certificate of authority: Ownership; management.

1. No foreign insurer which is directly or indirectly owned or controlled in whole or substantial part by any government or governmental agency shall be authorized to transact insurance in Nevada. Membership in a mutual insurer, or subscribership in a reciprocal insurer, or ownership of stock of an insurer by the Alien Property Custodian or similar officer of the United States of America, or ownership of stock or other security which does not have voting rights with respect to the management of the insurer, or supervision of an insurer by public authority, shall not be deemed to be an ownership or control of the insurer for the purposes of this subsection.

2. The Commissioner shall not grant or continue authority to transact insurance in this state to any insurer or proposed insurer:

(a) Of which any director, officer or other individual materially part of the management is found by the Commissioner after investigation or upon reliable information to be incompetent, or dishonest, or untrustworthy, or of unfavorable business repute;

(b) Of which the managers are so lacking in insurance company managerial experience in operations of the kind proposed in this state as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of the insurance-buying or investing public of this state;

(c) Which the Commissioner has good reason to believe is affiliated directly or indirectly through ownership, control, management, reinsurance transactions or other business relations with any person or persons of unfavorable business repute; or

(d) Whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors or the public, by illegality, or by manipulation of assets, or of accounts, or of reinsurance, or by bad faith.

(Added to NRS by 1971, 1578)

NRS 680A.095 Certificate of authority: Required to transact reinsurance; eligibility; exceptions.

1. Except as otherwise provided in subsection 3, an insurer which is not authorized to transact insurance in this State may not transact reinsurance with a domestic insurer in this State, by mail or otherwise, unless the insurer holds a certificate of authority as a reinsurer in accordance with the provisions of NRS 680A.010 to 680A.150, inclusive, 680A.160 to 680A.280, inclusive, 680A.320 and 680A.330.

2. To qualify for authority only to transact reinsurance, an insurer must meet the same requirements for capital and surplus as are imposed on an insurer which is authorized to transact insurance in this State.

3. This section does not apply to the joint reinsurance of title insurance risks or to reciprocal insurance authorized pursuant to chapter 694B of NRS.

(Added to NRS by 1987, 642; A 2017, 2333; 2023, 1856)

NRS 680A.100 Name of insurer.

1. No insurer shall be formed or authorized to transact insurance in this state which has or uses a name which is the same as or deceptively similar to that of another insurer already so authorized, without the written consent of such other insurer.

2. No life insurer shall be so authorized which has or uses a name deceptively similar to that of another insurer, other than a predecessor in interest, authorized to transact insurance in this state within the preceding 10 years if life insurance policies originally issued by such other insurer are still outstanding in this state.

3. No insurer shall be formed or authorized to transact insurance which has or uses a name the same as or deceptively similar to that of any foreign insurer not so authorized if such foreign insurer has within the next preceding 12 months signified its intention to secure an incorporation in this state under such name, or to do business as a foreign insurer in this state under such name, by filing notice of such intention with the Commissioner, unless the written consent to the use of such name or deceptively similar name has been given by such foreign insurer.

4. No insurer shall be so authorized which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer.

5. In case of conflict of names between two insurers, or a conflict otherwise prohibited under this section, the Commissioner may permit (or shall require as a condition to the issuance of an original certificate of authority to an applicant insurer) the insurer to use in this state such supplementation or modification of its name or such business name as may reasonably be necessary to avoid the conflict.

6. Except as provided in subsection 5, an insurer shall conduct its business in this state in its own corporate (if incorporated) or proper (if a reciprocal insurer) name.

(Added to NRS by 1971, 1579)

NRS 680A.110 Combinations of insuring powers. An insurer which otherwise qualifies therefor may be authorized to transact any one kind or any combination of kinds of insurance as defined in NRS 681A.010 to 681A.080, inclusive (kinds of insurance), except:

1. A life insurer may grant annuities and may be authorized to transact in addition only health insurance; but the Commissioner may, if the insurer otherwise qualifies therefor, continue so to authorize any life insurer which immediately prior to January 1, 1972, was lawfully authorized to transact in this state a kind or kinds of insurance in addition to life and health insurances and annuity business.

2. A reciprocal insurer shall not transact life insurance.

(Added to NRS by 1971, 1579)

NRS 680A.120 Required capital.

1. Except as provided in subsections 2 and 5, to qualify for authority to transact any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive, or combinations of kinds of insurance as shown below, an insurer shall possess and thereafter maintain unimpaired paid-in capital stock, if a stock insurer, or unimpaired basic surplus, if a mutual or a reciprocal insurer, and free surplus not less than 100 percent of the minimum required capital stock or minimum required basic surplus, and when first so authorized shall possess initial free surplus, all in amounts not less than as determined from the following table:

FOREIGN MUTUAL RECIPROCAL

STOCK INSURERS INSURERS INSURERS

Minimum Minimum Minimum

Kind or Required Initial Required Initial Required Initial

Kinds of Capital Free Basic Free Basic Free

Insurance Stock Surplus Surplus Surplus Surplus Surplus

Life....................... 500,000 1,000,000 500,000 1,000,000 N/A N/A

Health, Property,

Casualty, Surety,

Marine &

Transportation

Multiple

line.................... 500,000 1,000,000 500,000 1,000,000 500,000 1,000,000

Title...................... 500,000 750,000 N/A N/A N/A N/A

Financial

Guarantee......... 10,000,000 40,000,000 N/A N/A N/A N/A

2. At the discretion of the Commissioner, a domestic insurer holding a valid certificate of authority to transact insurance in this state immediately prior to January 1, 1992, may, if otherwise qualified therefor, continue to be so authorized while possessing the amount of paid-in capital stock, if a stock insurer, or surplus, if a mutual insurer, required by the laws of this state for such authority immediately before January 1, 1992, for a period not to exceed 2 years. On or before January 1, 1994, the insurer shall meet the requirements of subsection 1. The Commissioner shall not grant such an insurer authority to transact any other or additional kinds of insurance unless it then fully complies with the requirements as to capital and surplus, as applied to all kinds of insurance which it then proposes to transact, as provided by this section for like foreign insurers applying for original certificates of authority pursuant to this Code.

3. Capital and surplus requirements are based upon all the kinds of insurance transacted by the insurer in any and all areas in which it operates or proposes to operate, whether or not only a portion of such kinds are to be transacted in this state.

4. As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers are governed by chapter 693A of NRS and domestic reciprocal insurers are governed by chapter 694B of NRS.

5. An insurer who transacts financial guaranty insurance in this state must transact only one kind of insurance and possess and maintain the minimum capital and surplus requirements pursuant to subsection 1.

(Added to NRS by 1971, 1579; A 1991, 2026)

NRS 680A.130 Combinations of insurance for which additional capital not required. Without additional capital or additional surplus, an authorized insurer is also authorized:

1. If a life insurer, to grant annuities.

2. If a health insurer, to insure against congenital defects, as defined in NRS 681A.020.

(Added to NRS by 1971, 1581)

NRS 680A.140 Required deposit; deposit in other state.

1. The Commissioner shall not authorize an insurer to transact insurance in this state, other than an alien insurer or a title insurer, unless it makes and thereafter continuously maintains on deposit in this state, through the Commissioner, cash or securities eligible for such deposit under the laws of this state of a fair market value not less than its minimum required capital stock (if a stock insurer) or minimum required basic surplus (if a mutual or reciprocal insurer), for the protection of the insurer’s policyholders or of its policyholders and creditors in the United States of America. The Commissioner may adopt regulations which allow the use of securities as a deposit without delivery of the securities to the Commissioner.

2. The Commissioner shall not so authorize a title insurer unless it so deposits and maintains such cash or securities of fair market value not less than its minimum required capital stock as a guaranty fund for the security and protection of the holders of, or beneficiaries under, the title insurance contracts issued by the insurer.

3. The Commissioner shall not so authorize an alien insurer unless it so makes and thereafter continuously maintains such a deposit, representing money in excess of all the insurer’s liabilities under insurance contracts in force in the United States of America, of a fair market value of not less than that required under subsection 1, as to a like foreign insurer. The deposit must be held in trust for the protection of all the insurer’s policyholders, or policyholders and creditors, in the United States of America.

4. In lieu of such a deposit made or maintained in this state, the Commissioner shall accept the certificate in proper form of the public officer having general supervision of insurers in any other state to the effect that a deposit of like quality and amount, or part thereof, by an insurer is being maintained for like purposes in public custody or control pursuant to the laws of that state, if the Commissioner is satisfied as to the like quality and amount of the deposit.

5. All such deposits in this state are subject to the applicable provisions of chapter 682B of NRS.

(Added to NRS by 1971, 1581; A 1985, 607)

NRS 680A.150 Certificate of authority: Application. To apply for an original certificate of authority an insurer shall file with the Commissioner its written application therefor on forms as prescribed and furnished by the Commissioner, accompanied by the applicable fees specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110, stating under the oath of the president or vice president or other chief officer and the secretary of the insurer, or of the attorney-in-fact if a reciprocal insurer, the insurer’s name, location of its home office, or principal office in the United States if an alien insurer, the kinds of insurance to be transacted, date of organization or incorporation, form of organization, state or country of domicile, and such additional information as the Commissioner may reasonably require, together with the following documents, as applicable:

1. If a corporation, a copy of its charter or certificate or articles of incorporation, together with all amendments thereto, or as restated and amended under the laws of its state or country of domicile, currently certified by the public officer with whom the originals are on file in that state or country.

2. If a domestic incorporated insurer or a mutual insurer, a copy of its bylaws, certified by the insurer’s corporate secretary.

3. If a reciprocal insurer, a copy of the power of attorney of its attorney-in-fact, certified by the attorney-in-fact; and if a domestic reciprocal insurer, the declaration provided for in NRS 694B.060.

4. A complete copy of its financial statement as of not earlier than the December 31 next preceding in form as customarily used in the United States by like insurers, sworn to by at least two executive officers of the insurer or certified by the public insurance supervisory officer of the insurer’s state of domicile, or of entry into the United States if an alien insurer.

5. A copy of the report of last examination made of the insurer within not more than 5 years next preceding, certified by the public insurance supervisory officer of the insurer’s state of domicile, or of entry into the United States if an alien insurer.

6. The appointment of the Commissioner pursuant to NRS 680A.250 as its attorney to receive service of legal process.

7. If a foreign or alien insurer, a certificate of the public insurance supervisory officer of its state or country of domicile showing that it is authorized or qualified for authority to transact in such state or country the kinds of insurance proposed to be transacted in this state.

8. If a foreign insurer, a certificate as to a deposit if it is to be tendered pursuant to NRS 680A.140.

9. A copy of the insurer’s rate book and of each form of policy currently proposed to be issued in this state, and of the form of application therefor.

10. If an alien insurer, a copy of the appointment and authority of its United States manager, certified by its officer having custody of its records.

11. Designation by the insurer of its officer or representative authorized to appoint and remove its agents in this state.

(Added to NRS by 1971, 1581; A 1989, 2175; 1995, 1753; 2009, 1764)

NRS 680A.155 Certificate of authority: Payment of certain taxes and penalties by certain applicants required. An insurer which has transacted insurance in this state without a certificate of authority must not be granted a certificate of authority unless it pays the tax imposed by NRS 680B.027 and the penalties provided by NRS 685B.190 for the 5 years immediately preceding the date upon which it applies for a certificate of authority.

(Added to NRS by 1985, 606; A 1995, 1612)

NRS 680A.160 Certificate of authority: Issuance or refusal; contents and ownership.

1. If upon completion of its application the Commissioner finds that the insurer has met the requirements therefor under this Code, the Commissioner may issue to the insurer a proper certificate of authority; if the Commissioner does not so find, the Commissioner shall issue an order refusing such certificate.

2. The certificate, if issued, shall state the insurer’s name, home office address, state or country of organization, and the kinds of insurance the insurer is authorized to transact throughout Nevada. At the insurer’s request, the Commissioner may issue a certificate of authority limited to particular types of insurance or coverages within a kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive (kinds of insurance).

3. Although issued and delivered to the insurer, the certificate of authority at all times shall be the property of the State of Nevada.

(Added to NRS by 1971, 1583; A 2019, 1689)

1. Each insurer to which the Commissioner issues a certificate of authority shall notify the Commissioner of all material changes to the information provided by the insurer in its written application pursuant to NRS 680A.150, including, without limitation:

(a) Any change of address, such as a change to:

(1) The mailing address of the home office, or any other physical address, of the insurer; and

(2) Any other mailing address of the insurer, including, without limitation, the address used for general correspondence or for annual renewal notices;

(b) Any changes in the officers, directors or ownership of the insurer;

(d) Any changes to the articles of incorporation, by-laws or power of attorney for the attorney-in-fact of the insurer.

2. The notice required by subsection 1 must be provided to the Commissioner within 30 days after the date on which the change occurs.

3. If an insurer changes its physical or mailing address without giving written notice and the Commissioner is unable to locate the insurer after diligent effort, the Commissioner may suspend or revoke the insurer’s certificate of authority without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the insurer at its last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner. In lieu of such a suspension or revocation, the Commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 for each act or violation.

(Added to NRS by 2017, 2333)

NRS 680A.170 Certificate of authority: Amendment; fee. Upon written application therefor by the insurer and due cause shown, the Commissioner may amend the certificate of authority of an insurer as required by change of name or to show any change in the kinds of insurance the insurer may thereafter transact and is qualified to transact in this state. The insurer shall accompany such request with the fee for amendment as specified in NRS 680B.010 (fee schedule).

(Added to NRS by 1971, 1583)

NRS 680A.173 Transfer of insurer’s domicile: Foreign insurer may become domestic insurer. A foreign insurer with a certificate of authority to transact insurance in this state may become a domestic insurer by complying with the requirements of this Code for forming a domestic insurer of the same type. After complying with those requirements, the insurer has the same rights and obligations as other domestic insurers.

(Added to NRS by 1983, 683)

NRS 680A.175 Transfer of insurer’s domicile: Termination of status as domestic insurer; qualification as foreign insurer.

1. If a domestic insurer transfers its domicile to another state, it ceases to be a domestic insurer.

2. The Commissioner shall issue to such an insurer a certificate of authority to transact insurance as a foreign insurer if:

(a) The insurer qualifies as a foreign insurer; and

(b) Such certification is in the best interest of the policyholders of this state.

(Added to NRS by 1983, 683)

NRS 680A.177 Transfer of insurer’s domicile: Duties of insurer; effect on policies.

1. The Commissioner may require a domestic insurer which converts to a foreign insurer or a foreign insurer which converts to a domestic insurer to:

(a) Obtain new licenses for its agents;

(b) Make new appointments of agents; or

Ê Any license, appointment or authorization which the Commissioner does not require an insurer to renew continues in effect after the conversion.

2. All policies of an insurer remain in effect when it transfers its domicile into or out of this state. The Commissioner may require that the insurer endorse the policies with its new name or location.

3. Every insurer which transfers its domicile into or out of this state shall notify the Commissioner at least 30 days before the transfer. Such an insurer shall file new forms for its policies and any other documents required by the Commissioner with the Commissioner on or before the effective date of the transfer. The insurer may use existing forms if approved by and under the conditions imposed by the Commissioner.

(Added to NRS by 1983, 683)

NRS 680A.180 Continuance, expiration and reinstatement of certificate of authority.

1. 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 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110;

(b) Files its annual statement for the next preceding calendar year as required by NRS 680A.270; and

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 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.

(Added to NRS by 1971, 1583; A 1987, 643; 1997, 3017; 2009, 1765)

NRS 680A.190 Refusal to continue or suspension or revocation of certificate of authority: Mandatory grounds; notice; hearing.

1. The Commissioner shall refuse to continue or shall suspend or revoke an insurer’s certificate of authority:

(a) If such action is required by any provision of this Code;

(b) If it is a foreign insurer and it no longer meets the requirements for a certificate of authority, on account of deficiency of capital or surplus or otherwise;

(c) If it is a domestic insurer and it has failed to cure an impairment of capital or surplus within the time allowed therefor by the Commissioner under this Code or is otherwise no longer qualified for the certificate of authority;

(d) If the insurer’s certificate of authority to transact insurance therein is suspended or revoked by its state of domicile, or state of entry into the United States of America if an alien insurer;

(e) For failure of the insurer to pay taxes on its premiums if required by this Code; or

(f) For failure of the insurer to furnish information to the Commissioner relating to medical malpractice insurance issued by the insurer in this State or any other state.

2. Except in case of insolvency, impairment of required capital or surplus, or suspension or revocation by another state, the Commissioner shall give the insurer at least 20 days’ notice in advance of any such refusal, suspension or revocation under this section, and of the particulars of the reasons therefor. If the insurer requests a hearing thereon within those 20 days, the Commissioner’s proposed action is automatically stayed until an order by the Commissioner is made after the hearing.

(Added to NRS by 1971, 1584; A 1975, 1304; 1987, 643)

1. Except as otherwise provided in NRS 616B.472, the Commissioner may refuse to continue or may suspend, limit or revoke an insurer’s certificate of authority if the Commissioner finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:

(a) Violated or failed to comply with any lawful order of the Commissioner;

(b) Conducted business in an unsuitable manner;

(d) Violated any provision of this Code other than one for violation of which suspension or revocation is mandatory.

Ê In lieu of such a suspension or revocation, the Commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 for each act or violation.

2. Except as otherwise provided in chapter 696B of NRS, the Commissioner shall suspend or revoke an insurer’s certificate of authority on any of the following grounds if the Commissioner finds after a hearing thereon that the insurer:

(a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this State currently or prospectively hazardous or injurious to policyholders or to the public.

(b) With such frequency as to indicate its general business practice in this State:

(1) Has without just cause failed to pay, or delayed payment of, claims arising under its policies, whether the claims are in favor of an insured or in favor of a third person with respect to the liability of an insured to the third person; or

(2) Without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

(c) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the Commissioner when required, or refuse to perform any legal obligation relative to the examination.

(d) Except as otherwise provided in NRS 681A.110, has reinsured all its risks in their entirety in another insurer.

(e) Has failed to pay any final judgment rendered against it in this State upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.

3. In addition to the grounds specified in subsections 1 and 2, the Commissioner may refuse to continue or may suspend, limit or revoke an insurer’s certificate of authority if the Commissioner finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has failed to comply with any provision of NRS 439B.800 to 439B.875, inclusive, if applicable, or any applicable regulation adopted pursuant thereto.

4. The Commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.

5. No proceeding to suspend, limit or revoke a certificate of authority pursuant to this section may be maintained unless it is commenced by the giving of notice to the insurer within 5 years after the occurrence of the charged act or omission. This limitation does not apply if the Commissioner finds fraudulent or willful evasion of taxes.

(Added to NRS by 1971, 1584; A 1983, 431; 1991, 808; 1995, 1613, 1754; 1997, 530; 1999, 1734; 2021, 3060)

NRS 680A.205 Determination of hazardous financial condition of insurer: Regulations; hearing; disciplinary actions; review of order.

1. The Commissioner may adopt regulations to define when an insurer is considered to be in a hazardous financial condition and to set forth the standards to be considered by the Commissioner in determining whether the continued operation of an insurer transacting business in this state may be considered to be hazardous to its policyholders or creditors or to the general public.

2. If the Commissioner determines after a hearing that any insurer is in a hazardous financial condition, the Commissioner may, instead of suspending or revoking the insurer’s certificate of authority, limit the insurer’s certificate of authority as the Commissioner deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.

3. An order or decision of the Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

(Added to NRS by 1995, 1752)

NRS 680A.210 Suspension, limitation or revocation of or refusal to continue certificate of authority: Order and notice; effect on agents’ authority.

1. All suspensions, limitations or revocations of, or refusals to continue, an insurer’s certificate of authority must be by the Commissioner’s order given to the insurer.

2. Upon issuance of the order, the Commissioner shall forthwith give notice thereof to the insurer’s agents in this state, of record in the Division, and shall also suspend, limit or revoke the authority of such agents to represent the insurer.

(Added to NRS by 1971, 1585; A 1991, 1621; 1993, 1904)

NRS 680A.220 Suspension of certificate of authority: Duration; insurer’s obligations during suspension period; reinstatement.

1. Suspension of an insurer’s certificate of authority must be for such period as the Commissioner specifies in the order of suspension, but not to exceed 1 year. During the suspension period the Commissioner may rescind or shorten the suspension by further order.

2. During the suspension period the insurer shall not solicit or write any new business in this state, but must file its annual statement, pay fees, licenses and taxes as required under this Code, and may service its business already in force in this state, as if the certificate of authority had continued in full force.

3. Upon expiration of the suspension period, if within such period the certificate of authority has not terminated, the insurer’s certificate of authority is automatically reinstated unless the Commissioner finds that the causes of the suspension, being other than a past event, are continuing, or that the insurer is otherwise not in compliance with the requirements of this Code, and of which the Commissioner shall give the insurer notice not less than 30 days in advance of expiration of the suspension period.

4. Upon reinstatement of the insurer’s certificate of authority, the authority of its agents in this state to represent the insurer is also reinstated. The Commissioner shall promptly notify the insurer and its agents in this state, of record in the Division, of such reinstatement.

(Added to NRS by 1971, 1586; A 1991, 1621; 1993, 1904)

NRS 680A.225 Penalty for failure of insurer to comply with certain requirements for electronic maintenance, transmittal and exchange of health information. [Effective July 1, 2024.]

1. If the Commissioner receives notification from the Department of Health and Human Services pursuant to NRS 439.5895 that an insurer is not in compliance with the requirements of subsection 4 of NRS 439.589, the Commissioner may, after notice and the opportunity for a hearing in accordance with the provisions of this title, require corrective action or impose an administrative fine in the amount prescribed by NRS 680A.200.

2. The Commissioner shall not suspend or revoke the certificate of authority of an insurer for failure to comply with the requirements of subsection 4 of NRS 439.589.

(Added to NRS by 2023, 1855, effective July 1, 2024)

NRS 680A.230 Applicability of general corporation laws to foreign insurers; exception. The general corporation laws of this state do not apply to foreign insurers holding certificates of authority to transact insurance in this state, except as otherwise provided in NRS 80.190.

(Added to NRS by 1971, 1586; A 1971, 1933; 1987, 1063; 1989, 627; 1991, 1318)

NRS 680A.240 Issuance of policies under additional titles: Registration; inclusion of such business in annual statement.

1. A property insurer or multiple line insurer authorized to transact insurance in Nevada shall have the right to issue property insurance policies under its own name and under additional “titles” or under additional “titles” duly registered by the insurer with the Commissioner.

2. A life insurer or multiple line insurer authorized to transact insurance in Nevada shall have the right to issue life or health insurance policies under its own name and under additional “titles” or under additional “titles” duly registered by the insurer with the Commissioner.

3. The Commissioner shall, upon the insurer’s request, furnish to the insurer the form required for such registration, and the insurer shall pay the fee for registration as specified in NRS 680B.010 (fee schedule). Registered titles shall be shown on the insurer’s certificate of authority and shall remain in effect for so long as the insurer’s certificate of authority is in effect, subject to earlier termination of the registration at the insurer’s request.

4. All business transacted by the insurer under additional titles shall be included in business and transactions of the insurer to be shown by its annual statement filed with the Commissioner, for all purposes under this Code.

(Added to NRS by 1971, 1586; A 2017, 2333)

NRS 680A.250 Service of process: Appointment of Commissioner as attorney in fact for receipt required for certain insurers; methods of serving.

1. Before the Commissioner may authorize it to transact insurance in this state, each insurer must appoint the Commissioner as its attorney in fact to receive service of legal process issued against the insurer in this state. The appointment must be made on a form as designated and furnished by the Commissioner, and must be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, showing that those officers who executed the appointment were authorized to do so on behalf of the insurer.

2. The appointment must be irrevocable, must bind the insurer and any successor in interest to the assets or liabilities of the insurer, and must remain in effect as long as there is in force any contract of the insurer in this state or any obligation of the insurer arising out of its transactions in this state.

3. Service of such process against a foreign or alien insurer must be made only by service thereof upon the Commissioner.

4. Service of such process against a domestic insurer may be made as provided in this section, or in any other manner provided by Nevada Rules of Civil Procedure.

5. At the time of application for a certificate of authority the insurer shall file the appointment with the Commissioner, together with a designation of the person to whom process against it served upon the Commissioner is to be forwarded. The insurer shall provide written notice to the Commissioner of any change of such a designation by a new filing.

6. Service of process against an insurer for whom the Commissioner is attorney in fact must be made in accordance with NRS 680A.260.

(Added to NRS by 1971, 1587; A 1985, 607; 2021, 2943)

NRS 680A.260 Service of process: Method of serving if Commissioner statutorily designated as attorney in fact for receipt; extension of time to appear; record.

1. If the Commissioner is designated by specific statute as attorney in fact for the purpose of receiving service of process, such service must be made by delivering to and leaving with the Division, one copy of the process, together with the fee therefor as specified in NRS 680B.010, taxable as costs in the action.

2. Upon such service, the Division shall forthwith forward such process, with the date and time of service of the same on the Division noted thereon, to the person currently designated to receive the copy as provided by specific statute. Service of process is complete when the copy has been so forwarded.

3. Process served in the manner provided by this section for all purposes constitutes valid and binding personal service within this state. If summons is served under this section, the time within which the insurer is required to appear must be extended an additional 10 days beyond that otherwise allowed by Nevada Rules of Civil Procedure.

4. The Commissioner shall keep a record of the day of service upon him or her of all legal process.

5. For the purposes of this section, “process” includes only a summons or the initial documents served in an action. The Commissioner is not required to serve any documents after the initial service of process.

(Added to NRS by 1971, 1587; A 1985, 608; 2021, 2944)

NRS 680A.265 Annual financial statement: Filing; reporting of violation of law found during audit; penalty for failure to file; consolidation of statements prohibited; exception; regulations.

1. Except as otherwise provided in subsection 5, every:

(a) Domestic insurer;

(b) Fraternal benefit society authorized to do business in this State pursuant to chapter 695A of NRS; and

Ê shall file with the Commissioner, on or before June 1 of each year, a financial statement as of December 31 of the preceding calendar year that is certified by a certified public accountant who is not an employee of the insurer. The Commissioner may request a financial statement from a foreign or alien insurer.

2. If a certified public accountant finds any violation of the laws of this State during any audit he or she conducts pursuant to subsection 1, the certified public accountant shall, if the Commissioner has adopted regulations pursuant to subsection 6 pertaining to the reporting of a violation found during an audit, report the violation in accordance with those regulations.

3. An insurer who does not file a report pursuant to subsection 1 on or before June 1 of each year is subject to the penalty imposed pursuant to NRS 680A.280.

4. A statement filed with the Commissioner must not be a consolidated report with any other subsidiary, affiliate or parent company.

5. The provisions of this section do not apply to a domestic insurer who:

(a) Is not licensed or authorized to do business in any state other than Nevada; or

(b) Is exempted from the requirements of this section by order of the Commissioner for good cause shown.

6. The Commissioner may adopt reasonable regulations relating to annual audited financial reports to administer the provisions of this section.

(Added to NRS by 1991, 2026; A 1995, 1755)

1. Each authorized insurer shall annually on or before March 1, or within any reasonable extension of time therefor which the Commissioner for good cause may have granted on or before that date, file with the Commissioner a full and true statement of its financial condition, transactions and affairs as of December 31 preceding. The statement must be:

(a) In the general form and context of, and require information as called for by, an annual statement as is currently in general and customary use in the United States for the type of insurer and kinds of insurance to be reported upon, with any useful or necessary modification or adaptation thereof, supplemented by additional information required by the Commissioner;

(b) Prepared in accordance with:

(1) The Annual Statement Instructions for the type of insurer to be reported on as adopted by the National Association of Insurance Commissioners for the year in which the insurer files the statement; and

(2) The Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners and effective on January 1, 2001, and as amended by the National Association of Insurance Commissioners after that date; and

(c) Verified by the oath of the insurer’s president or vice president and secretary or actuary, as applicable, or, in the absence of the foregoing, by two other principal officers, or if a reciprocal insurer, by the oath of the attorney-in-fact, or its like officers if a corporation.

2. The statement of an alien insurer must be verified by its United States manager or other officer who is authorized to do so, and may relate only to the insurer’s transactions and affairs in the United States unless the Commissioner requires otherwise. If the Commissioner requires a statement as to the insurer’s affairs throughout the world, the insurer shall file the statement with the Commissioner as soon as reasonably possible.

3. The Commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of any insurer failing to file its annual statement when due.

4. At the time of filing its annual statement with the Commissioner, the insurer shall pay the fee for filing its annual statement as prescribed by NRS 680B.010.

5. Each domestic insurer shall file with the Commissioner and the National Association of Insurance Commissioners a quarterly statement in the form most recently adopted by the National Association of Insurance Commissioners for that type of insurer. The quarterly statement must be:

(a) Prepared in accordance with the instructions which are applicable to that form, including, without limitation, the required date of submission for the form; and

(b) Filed by electronic means.

6. The Commissioner may adopt regulations requiring each domestic, foreign and alien insurer which is authorized to transact insurance in this state to file the insurer’s annual statement with the National Association of Insurance Commissioners or its successor organization.

7. Except as otherwise provided in NRS 239.0115, all work papers, documents and materials prepared pursuant to this section by or on behalf of the Division are confidential and must not be disclosed by the Division.

8. To the extent that the Annual Statement Instructions referenced in subparagraph (1) of paragraph (b) of subsection 1 or the instructions for the preparation of quarterly statements referenced in paragraph (a) of subsection 5 require the disclosure of compensation paid to or on behalf of an insurer’s officers, directors or employees, the information may be filed with the Commissioner and the National Association of Insurance Commissioners as exhibits separate from the annual and quarterly statements required by this section. Except as otherwise provided in NRS 239.0115, the compensation information described in this subsection is confidential and must not be disclosed by the Division.

(Added to NRS by 1971, 1588; A 1995, 1755; 2003, 3279; 2007, 2155; 2017, 2334; 2019, 1690)

NRS 680A.280 Annual or other required statement: Penalties for failure to file or false statements.

1. Any insurer failing, without just cause beyond the reasonable control of the insurer, to file a statement as required in NRS 680A.265 and 680A.270 shall be required to pay a penalty of $100 for each day’s delay, but not to exceed $3,000 in aggregate amount, to be recovered in the name of the State of Nevada by the Attorney General.

2. Any director, officer, agent or employee of any insurer who subscribes to, makes or concurs in making or publishing, any annual or other statement required by law, knowing the same to contain any material statement which is false, is guilty of a gross misdemeanor.

(Added to NRS by 1971, 1588; A 2017, 2335; 2019, 1691)

NRS 680A.300 Agent required; execution of emergency bond.

1. No authorized insurer may make, write, place, renew or cause to be made, placed or renewed, any policy or duplicate policy, endorsement or contract of insurance of any kind upon persons, property or risks resident, located or to be performed in this State, except through its duly appointed and licensed agents.

2. In any case where it is necessary to execute an emergency bond and a commissioned agent authorized to execute the bond is not present, a manager or other employee of the insurer having authority under a power of attorney may execute the bond in order to produce a valid contract between the insurer and the obligee. The commissioned agent who executes the bond shall make and retain an adequate office record of the transaction.

(Added to NRS by 1971, 1589; A 1981, 704; 2009, 1765; 2019, 1691)

NRS 680A.320 Transaction or agreement with parent corporation, financial holding company, depository institution, subsidiary or affiliated person: Prohibitions; duty and obligation of insurer.

1. For the purposes of this section:

(a) An “affiliated person” is a person controlled by any combination of the insurer, the parent corporation, a subsidiary or the principal stockholders or officers or directors of any of the foregoing.

(b) “Depository institution” has the meaning ascribed to it in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(1).

(c) “Financial holding company” means a bank holding company that satisfies the requirements of section 4(l)(1) of the Bank Holding Company Act of 1956, 12 U.S.C. § 1841(l)(1).

(d) “Health facility” has the meaning ascribed to it in NRS 439A.015.

(e) A “subsidiary” is a person of which either the insurer and the parent corporation or the insurer or the parent corporation holds practical control.

2. No insurer may engage directly or indirectly in any transaction or agreement with its parent corporation, a financial holding company, a depository institution, or any subsidiary or affiliated person which will result or tend to result in:

(a) Substitution contrary to the interest of the insurer and through any method of any asset of the insurer with an asset or assets of inferior quality or lower fair market value;

(b) Deception as to the true operating results of the insurer;

(d) Allocation to the insurer of a proportion of the expense of combined facilities or operations which is unfair and unfavorable to the insurer;

(e) Unfair or excessive charges against the insurer for services, facilities, supplies or reinsurance;

(f) Unfair and inadequate charges by the insurer for reinsurance, services, facilities or supplies furnished by the insurer to others;

(g) Payment by the insurer for services, facilities, supplies or reinsurance not reasonably needed by the insurer;

(h) Depletion of the insurer’s surplus, through payment of dividends or other distribution or withdrawal, below the amount thereof reasonably required for conduct of the insurer’s business and maintenance of growth with safety to policyholders; or

(i) Payment by the insurer for services or products for which the health facility has charged less than fair market value, unless the reduced charge is reflected in the form of reduced premiums. In determining what constitutes fair market value, consideration must be given to reasonable agreements for the preferential provision of health care, in accordance with regulations adopted by the Commissioner. An insurer which pays less than fair market value for services or products in a transaction which is subject to the provisions of this paragraph shall annually file a certification with the Commissioner that the reduced payment has been reflected in the form of reduced premiums, together with documentation supporting the certification.

3. In all transactions between the insurer and its parent corporation, or involving the insurer and any subsidiary or affiliated person, full recognition must be given to the paramount duty and obligation of the insurer to protect the interests of policyholders, both existing and future.

4. If a health facility is a parent, subsidiary or affiliate of an insurer or of a parent or facility of an insurer, and the insurer purchases medical or any other services or products from the health facility, the health facility may not:

(a) Attempt artificially to reduce or increase its margin of profit by altering the charges to the insurer.

(b) Alter its true operating results or financial condition through charges to the insurer for services or products.

Ê This subsection does not prohibit activities authorized pursuant to paragraph (i) of subsection 2.

5. If a health facility is found, after notice and a hearing, to have violated the provisions of subsection 4, the Commissioner may impose an administrative fine of not more than $5,000 for each violation.

(Added to NRS by 1971, 1590; A 1987, 884; 1989, 599; 2001, 2183)

NRS 680A.330 Retaliatory provision.

1. When, by or pursuant to the laws of any other state or foreign country or province, any taxes, licenses and other fees in the aggregate, and any fines, penalties, deposit requirements or other material requirements, obligations, prohibitions or restrictions are or would be imposed upon Nevada insurers doing business or that might seek to do business in such state, country or province, or upon the agents or representatives of such insurers or upon brokers or adjusters, which are in excess of such taxes, licenses and other fees in the aggregate, or which are in excess of the fines, penalties, deposit requirements or other requirements, obligations, prohibitions or restrictions directly imposed upon similar insurers, or upon the agents or representatives of such insurers, or upon brokers, or upon adjusters, of such other state, country or province under the statutes of this state, so long as such laws of such other state, country or province continue in force or are so applied, the same taxes, licenses and other fees in the aggregate, or fines, penalties or deposit requirements or other material requirements, obligations, prohibitions or restrictions of whatever kind must be imposed by the Commissioner or the Department of Taxation upon the insurers, or upon the agents or representatives of such insurers, or upon brokers, of such other state, country or province doing business or seeking to do business in Nevada. Any tax, license or other fee or other obligation imposed by any city, county or other political subdivision or agency of such other state, country or province on Nevada insurers or their agents, representatives or adjusters shall be deemed to be imposed by such state, country or province within the meaning of this section.

2. This section does not apply to:

(a) Personal income taxes;

(b) Ad valorem taxes on real or personal property; or

(c) Special purpose obligations or assessments imposed by another state in connection with particular kinds of insurance other than property insurance,

Ê except that deductions, from premium taxes or other taxes otherwise payable, allowed on account of real or personal property taxes paid must be taken into consideration by the Commissioner and the Executive Director of the Department of Taxation in determining the propriety and extent of retaliatory action under this section.

3. For the purposes of this section the domicile of an alien insurer, other than insurers formed under the laws of Canada or a province thereof, is that state designated by the insurer in writing filed with the Commissioner at the time of admission to this state or within 6 months after January 1, 1972, whichever date is the later, and may be any one of the following states:

(a) That in which the insurer was first authorized to transact insurance;

(b) That in which is located the insurer’s principal place of business in the United States of America; or

(c) That in which is held the largest deposit of trusteed assets of the insurer for the protection of its policyholders in the United States of America.

Ê If the insurer makes no such designation, its domicile shall be deemed to be that state in which is located its principal place of business in the United States of America.

4. The domicile of a Canadian insurer is the province of Canada in which its head office is located.

(Added to NRS by 1971, 1590; A 1993, 1905)

DELIVERY OF NOTICES AND OTHER DOCUMENTS BY ELECTRONIC MEANS

NRS 680A.500 Definitions. As used in NRS 680A.500 to 680A.600, inclusive, unless the context otherwise requires, the words and terms defined in NRS 680A.510 and 680A.520 have the meanings ascribed to them in those sections.

(Added to NRS by 2017, 611; A 2023, 2621)

NRS 680A.510 “Deliver by electronic means” defined. “Deliver by electronic means” means:

1. To deliver to an electronic mail address at which a party has consented to receive notices or documents; or

2. To post a notice or document on an electronic network or website accessible via the Internet or a mobile application or using a computer, mobile device, tablet or any other electronic device and to deliver a separate notice of the posting of the notice or document to an electronic mail address at which a party has consented to receive notices or documents.

(Added to NRS by 2017, 611)

NRS 680A.520 “Party” defined. “Party” means any recipient of a notice or document required to be provided as part of an insurance transaction, including, without limitation, an applicant, insured, policyholder or holder of an annuity contract.

(Added to NRS by 2017, 611)

NRS 680A.530 Applicability. The provisions of NRS 680A.500 to 680A.600, inclusive:

1. Do not apply to a notice or other document delivered by an insurer in an electronic form before October 1, 2017, to a party who consented before that date to receive the notice or other document in an electronic form which was authorized by law at the time of delivery; and

2. Shall not be construed to affect any other provision of law relating to the content or timing of delivery of any notice or other document.

(Added to NRS by 2017, 611; A 2023, 2621)

1. A notice to a party or any other document which is required by law to be provided as part of an insurance transaction or which serves as evidence of insurance coverage may be delivered by electronic means if such delivery satisfies the requirements of chapter 719 of NRS and NRS 680A.550.

2. The delivery of a notice or other document pursuant to subsection 1 is deemed to satisfy any requirement of this Code to deliver a notice or other document in physical form, including, without limitation, by:

(a) Mail;

(b) Mail, postage prepaid;

(d) Certified mail, return receipt requested;

(e) First-class mail;

(f) Registered mail;

(g) Registered mail, return receipt requested; or

(h) Overnight delivery using a nationally recognized carrier.

(Added to NRS by 2017, 611)

NRS 680A.550 Requirements for delivery.

1. Except as otherwise provided in subsection 2 and NRS 680A.555 and 680A.560, a notice or other document may be delivered by electronic means by an insurer to a party pursuant to subsection 1 of NRS 680A.540 if:

(a) The party has affirmatively consented to delivery by electronic means and has not withdrawn such consent;

(b) Before giving consent to delivery by electronic means, the party is provided with a clear and conspicuous statement informing the party of:

(1) The right of the party to withdraw consent to delivery by electronic means at any time and any conditions or consequences which may be imposed in the event consent is withdrawn;

(2) The types of notices and other documents to which the consent of the party to delivery by electronic means would apply;

(3) The right of the party to have a notice or other document delivered in paper form; and

(4) The procedures the party must follow to withdraw consent to delivery by electronic means and to update the electronic mail address of the party;

(c) The party, after being provided with a statement of the hardware and software requirements for access to and retention of a notice or other document delivered by electronic means, consents or confirms consent electronically in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for delivery by electronic means of notices or other documents to which the party has given consent;

(d) The insurer takes measures reasonably calculated to ensure that delivery by electronic means results in the receipt of a notice or other document by the party; and

(e) Upon a change in the hardware or software requirements for access to and retention of a notice or other document delivered by electronic means which occurs after the party has consented to delivery by electronic means which creates a material risk that the party will not be able to access or retain a subsequent notice or other document, the insurer provides the party with:

(1) A statement that describes the revised hardware or software requirements for access to and retention of a notice or other documents delivered by electronic means and the right of the party to withdraw consent without the imposition of any condition or consequence not described in the statement initially provided to the party pursuant to paragraph (b); and

(2) A revised statement containing the information described in paragraph (b) which applies to the revised hardware or software requirements.

2. If a provision of this Code or any other law applicable to the delivery of a notice or other document, including, without limitation, a notice required pursuant to NRS 687B.320 to 687B.350, inclusive, requires verification or acknowledgment of receipt of the notice or other document, the notice or other document may be delivered by electronic means only if the electronic form used for delivery provides for verification or acknowledgment of receipt. If the insurer does not receive verification or acknowledgment of receipt within 3 days after delivery by electronic means of a notice or other document described by this subsection, the insurer shall deliver the notice or other document by any other delivery method authorized by law.

(Added to NRS by 2017, 612; A 2023, 2621)

1. The plan sponsor of a health plan may, on behalf of a party covered by the health plan, provide the consent for delivery of any notice or other document relating to the health plan required by paragraph (a) of subsection 1 of NRS 680A.550.

2. Before providing consent on behalf of a party covered by the health plan pursuant to subsection 1, the plan sponsor must confirm, using reasonable means, that the party routinely uses electronic communications during the normal course of employment.

3. Before delivering by electronic means any notice or other document to a party on whose behalf a plan sponsor has provided consent pursuant to subsection 1, the insurer for the health plan must:

(a) Provide the party an opportunity to opt out of delivery by electronic means; and

(b) Document that the conditions set forth in paragraphs (b) to (e), inclusive, of subsection 1 of NRS 680A.550 are satisfied.

4. A notice of cancellation, nonrenewal or termination of a health plan must be sent to a party covered by the health plan by mail unless the notice is delivered by electronic means in a manner that provides for the verification of the receipt of the notice.

5. As used in this section:

(a) “Health plan” means a policy, contract, certificate or agreement entered into, offered by or issued by an insurer to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services, including, without limitation, services relating to vision or dental care.

(b) “Plan sponsor” means a person, other than a person regulated by the Commissioner or Division, who establishes, adopts or maintains a health plan that covers residents of this State. The term includes, without limitation:

(1) An employer who establishes, adopts or maintains such a health plan;

(2) An employer and one or more employee organizations that jointly establish, adopt or maintain such a health plan; and

(3) An association, committee, joint board or trustees or any similar group of representatives that establish, adopt or maintain such a health plan.

(Added to NRS by 2023, 2620)

NRS 680A.560 Circumstances in which insurer required to cease delivery by electronic means. An insurer shall cease delivering by electronic means any notice or other document and shall deliver such notices and other documents by any other delivery method authorized by law if:

1. The insurer attempts to deliver by electronic means a notice or other document and has a reasonable basis to believe that the notice or other document was not received by the party; or

2. The insurer becomes aware that the electronic mail address provided by the party is no longer valid.

(Added to NRS by 2017, 613)

NRS 680A.570 Withdrawal of consent to delivery by electronic means.

1. The withdrawal of consent by a party to delivery by electronic means does not affect the legal effectiveness, validity or enforceability of a notice or other document delivered by electronic means to the party before the withdrawal of consent is effective.

2. A withdrawal of consent by a party becomes effective within a reasonable period of time after receipt of the withdrawal of consent by the insurer.

3. The failure of an insurer to comply with the provisions of paragraph (e) of subsection 1 of NRS 680A.550 or 680A.580 is deemed to constitute a withdrawal of consent to delivery by electronic means unless a party elects to continue to grant consent.

(Added to NRS by 2017, 613)

NRS 680A.580 Effect of consent to delivery by electronic means given before October 1, 2017. If a party consented to the delivery by electronic means of certain notices or documents by an insurer before October 1, 2017, the insurer may continue to deliver by electronic means such notices or documents if, before delivering by electronic means such notices or documents, the insurer provides the party with:

1. A statement that describes:

(a) Any notices or documents to be delivered by electronic means pursuant to NRS 680A.500 to 680A.600, inclusive, which were not previously delivered by electronic means; and

(b) The right of the party to withdraw consent without the imposition of any condition or consequence that was not disclosed at the time the party gave consent; and

2. A statement that satisfies the requirements of paragraph (b) of subsection 1 of NRS 680A.550.

(Added to NRS by 2017, 613)

1. The failure to obtain the electronic consent or confirmation of consent of a party pursuant to paragraph (c) of subsection 1 of NRS 680A.550 may not be the sole basis for determining that a contract or policy of insurance is not legally effective, valid or enforceable.

2. A producer of insurance is not subject to civil liability for any harm or injury that occurs as a result of the election of a party for the delivery by electronic means of any notice or other document or for the failure of an insurer to deliver by electronic means a notice or other document.

3. Nothing in NRS 680A.500 to 680A.600, inclusive, shall be construed to modify, limit or supersede the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq.

(Added to NRS by 2017, 613)

NRS 680A.600 Insurer authorized to satisfy requirement to mail or deliver a standard policy of property or casualty insurance or standard endorsement of such policy which does not contain personally identifiable information by posting on Internet website in certain circumstances. If a standard policy of property or casualty insurance or a standard endorsement of such a policy does not contain personally identifiable information, the insurer offering such a policy or endorsement may satisfy a requirement to mail or deliver the policy or endorsement by posting the policy or endorsement on the Internet website of the insurer if:

1. The policy or endorsement is accessible to the insured and to any producer of insurance who transacted insurance involving the policy or endorsement with the insured for as long as the policy or endorsement is in force;

2. The insurer retains an archive of expired policies and endorsements for not less than 5 years after the expiration of each policy or endorsement and makes expired policies and endorsements available upon request;

3. The policy or endorsement is posted in a manner that enables the insured and any producer of insurance who transacted insurance involving the policy or endorsement with the insured to print and save the policy or endorsement using any program or other application which is widely available on the Internet and free to use;

4. The insurer provides, in or with the declarations page provided at the time of issuance of the initial policy and each renewal of the policy:

(a) A description of the exact form of policy or endorsement purchased by the insured;

(b) A description of the right of the insured to receive, upon request and without charge, a paper copy of the policy or endorsement by mail; and

5. Upon request of the insured and without charge, the insurer mails a paper copy of the policy or endorsement to the insured;

6. The insurer provides notice in the manner preferred by the insured of any change to the policy or endorsement which includes a description of the right of the insured to obtain, upon request and without charge, a paper copy of the revised policy or endorsement and the address of the Internet website where the revised policy or endorsement is posted; and

7. The insurer complies with all applicable provisions of chapter 719 of NRS.

(Added to NRS by 2017, 613)