EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 679A of NRS is hereby amended by adding

1-2 thereto a new section to read as follows:

1-3 The expiration or voluntary surrender of a license or certificate issued

1-4 pursuant to the provisions of this code does not:

1-5 1. Prohibit the commissioner from initiating or continuing a

1-6 disciplinary proceeding against the holder of the license or certificate; or

1-7 2. Prevent the imposition or collection of any fine or penalty

1-8 authorized pursuant to the provisions of this code against the holder of

1-9 the license or certificate.

1-10 Sec. 2. NRS 679B.190 is hereby amended to read as follows:

1-11 679B.190 1. The commissioner shall carefully preserve in the

1-12 division and in permanent form all papers and records relating to the

2-1 business and transactions of the division and shall hand them over to his

2-2 successor in office.

2-3 2. Except as otherwise provided in subsections 3, 5 and 6 , [and] other

2-4 provisions of this code and NRS 616B.015, the papers and records must be

2-5 open to public inspection.

2-6 3. Any records or information in the possession of the division related

2-7 to an investigation [or examination] conducted by the commissioner is

2-8 confidential [for the period of the investigation or examination] unless:

2-9 (a) The commissioner releases, in the manner that he deems

2-10 appropriate, all or any part of the records or information for public

2-11 inspection after determining that the release of the records or information:

2-12 (1) Will not harm his investigation [or examination] or the person

2-13 who is being investigated ; [or examined;] or

2-14 (2) Serves the interests of a policyholder, the shareholders of the

2-15 insurer or the public; or

2-16 (b) A court orders the release of the records or information after

2-17 determining that the production of the records or information will not

2-18 damage any investigation being conducted by the commissioner.

2-19 4. The commissioner may destroy unneeded or obsolete records and

2-20 filings in the division in accordance with provisions and procedures

2-21 applicable in general to administrative agencies of this state.

2-22 5. The commissioner may classify as confidential certain records and

2-23 information obtained from a governmental agency or other sources upon

2-24 the express condition that they remain confidential.

2-25 6. All information and documents in the possession of the division or

2-26 any of its employees which are related to cases or matters under

2-27 investigation [or examination] by the commissioner or his staff are

2-28 confidential for the [entire] period of the investigation [or examination]

2-29 and may not be made public unless the commissioner finds the existence of

2-30 an imminent threat of harm to the safety or welfare of the policyholder,

2-31 shareholders or the public and determines that the interests of the

2-32 policyholder, shareholders or the public will be served by publication

2-33 thereof, in which event he may make a record public or publish all or any

2-34 part of the record in any manner he deems appropriate.

2-35 Sec. 3. NRS 679B.440 is hereby amended to read as follows:

2-36 679B.440 1. The commissioner may require that reports submitted

2-43 (II) School districts; and

3-1 (III) Other political subdivisions;

3-2 (2) Public officers;

3-3 (3) Establishments where alcoholic beverages are sold;

3-4 (4) Facilities for the care of children;

3-5 (5) Labor, fraternal or religious organizations; and

3-6 (6) Officers or directors of organizations formed pursuant to Title 7

3-7 of NRS, reported separately for nonprofit entities and entities organized for

3-8 profit;

3-9 (b) Liability insurance for:

3-10 (1) Defective products;

3-11 (2) Medical malpractice;

3-12 (3) Malpractice of attorneys;

3-13 (4) Malpractice of architects and engineers; and

3-14 (5) Errors and omissions by other professionally qualified persons;

3-15 [and]

3-16 (c) Vehicle insurance, reported separately for:

3-17 (1) Private vehicles;

3-18 (2) Commercial vehicles;

3-19 (3) Liability insurance; and

3-20 (4) Insurance for property damage [.] ; and

3-21 (d) Workers’ compensation insurance.

3-22 2. The commissioner may require that the report include, without

3-23 limitation, information specifically pertaining to this state or to an insurer

3-24 in its entirety, in the aggregate or by type of insurance, and for a previous

3-25 or current year, regarding:

3-26 (a) Premiums directly written;

3-27 (b) Premiums directly earned;

3-28 (c) Number of policies issued;

3-29 (d) Net investment income, using appropriate estimates when necessary;

3-30 (e) Losses paid;

3-31 (f) Losses incurred;

3-32 (g) Loss reserves, including:

3-33 (1) Losses unpaid on reported claims; and

3-34 (2) Losses unpaid on incurred but not reported claims;

3-35 (h) Number of claims, including:

3-36 (1) Claims paid; and

3-37 (2) Claims that have arisen but are unpaid;

3-38 (i) Expenses for adjustment of losses, including allocated and

3-39 unallocated losses;

3-40 (j) Net underwriting gain or loss;

3-41 (k) Net operation gain or loss, including net investment income; and

3-42 (l) Any other information requested by the commissioner.

4-1 3. The commissioner may also obtain, based upon an insurer in its

4-2 entirety, information regarding:

4-3 (a) Recoverable federal income tax;

4-4 (b) Net unrealized capital gain or loss; and

4-5 (c) All other expenses not included in subsection 2.

4-6 Sec. 4. NRS 680B.010 is hereby amended to read as follows:

4-7 680B.010 The commissioner shall collect in advance and receipt for,

5-1 6. Brokers’ licenses and renewals:

5-2 (a) Resident brokers and nonresident brokers qualifying

5-3 under subsection 3 of NRS 683A.340:

5-4 (1) Application and license $78

5-5 (2) Triennial renewal of each license 78

5-6 (b) Other nonresident brokers:

5-7 (1) Application and license 258

5-8 (2) Triennial renewal of each license 258

5-9 (c) [Surplus] Resident surplus lines brokers:

5-10 (1) Application and license 78

5-11 (2) Triennial renewal of each license 78

5-12 (d) Nonresident surplus lines brokers:

5-13 (1) Application and license 258

5-14 (2) Triennial renewal of each license 258

5-15 7. Solicitors’ licenses, appointments and renewals:

5-16 (a) Application and license $78

5-17 (b) Triennial renewal of each license 78

5-18 (c) Initial appointment 5

5-19 8. Managing general agents’ licenses, appointments and

5-20 renewals:

5-21 (a) Resident managing general agents:

5-22 (1) Application and license $78

5-23 (2) Initial appointment, each insurer 5

5-24 (3) Triennial renewal of each license 78

5-25 (b) Nonresident managing general agents:

5-26 (1) Application and license 138

5-27 (2) Initial appointment, each insurer 25

5-28 (3) Triennial renewal of each license 138

5-29 9. Adjusters’ licenses and renewals:

5-30 (a) Independent and public adjusters:

5-31 (1) Application and license $78

5-32 (2) Triennial renewal of each license 78

5-33 (b) Associate adjusters:

5-34 (1) Application and license 78

5-35 (2) Initial appointment 5

5-36 (3) Triennial renewal of each license 78

5-37 10. Licenses and renewals for appraisers of physical damage

5-38 to motor vehicles:

5-39 (a) Application and license $78

5-40 (b) Triennial renewal of each license 78

5-41 11. Additional title and property insurers pursuant to NRS

5-42 680A.240:

6-1 (a) Original registration $50

6-2 (b) Annual renewal 25

6-3 12. Insurance vending machines:

6-4 (a) Application and license, for each machine $78

6-5 (b) Triennial renewal of each license 78

6-6 13. Permit for solicitation for securities:

6-7 (a) Application for permit $100

6-8 (b) Extension of permit 50

6-9 14. Securities salesmen for domestic insurers:

6-10 (a) Application and license $25

6-11 (b) Annual renewal of license 15

6-12 15. Rating organizations:

6-13 (a) Application and license $500

6-14 (b) Annual renewal 500

6-15 16. Certificates and renewals for administrators licensed

6-16 pursuant to chapter 683A of NRS:

6-17 (a) Resident administrators:

6-18 (1) Application and certificate of registration $78

6-19 (2) Triennial renewal 78

6-20 (b) Nonresident administrators:

6-21 (1) Application and certificate of registration 138

6-22 (2) Triennial renewal 138

6-23 17. For copies of the insurance laws of Nevada, a fee which

6-24 is not less than the cost of producing the copies.

6-25 18. Certified copies of certificates of authority and licenses

6-26 issued pursuant to the insurance code $10

6-27 19. For copies and amendments of documents on file in the

6-28 division, a reasonable charge fixed by the commissioner,

6-29 including charges for duplicating or amending the forms and for

6-30 certifying the copies and affixing the official seal.

6-31 20. Letter of clearance for an agent or broker $10

6-32 21. Certificate of status as a licensed agent or broker $10

6-33 22. Licenses, appointments and renewals for bail agents:

6-34 (a) Application and license $78

6-35 (b) Initial appointment by each surety insurer 5

6-36 (c) Triennial renewal of each license 78

6-37 23. Licenses and renewals for bail enforcement agents:

6-38 (a) Application and license $78

6-39 (b) Triennial renewal of each license 78

6-40 24. Licenses, appointments and renewals for general bail

6-41 agents:

6-42 (a) Application and license $78

7-1 (b) Initial appointment by each insurer $5

7-2 (c) Triennial renewal of each license 78

7-3 25. Licenses and renewals for bail solicitors:

7-4 (a) Application and license $78

7-5 (b) Triennial renewal of each license 78

7-6 26. Licenses and renewals for title agents and escrow

7-7 officers:

7-8 (a) Resident title agents and escrow officers:

7-9 (1) Application and license $78

7-10 (2) Triennial renewal of each license 78

7-11 (b) Nonresident title agents and escrow officers:

7-12 (1) Application and license 138

7-13 (2) Triennial renewal of each license 138

7-14 (c) Change in name or location of business or in association 10

7-15 27. Certificate of authority and renewal for a seller of

7-16 prepaid funeral contracts $78

7-17 28. Licenses and renewals for agents for prepaid funeral

7-18 contracts:

7-19 (a) Resident agents:

7-20 (1) Application and license $78

7-21 (2) Triennial renewal of each license 78

7-22 (b) Nonresident agents:

7-23 (1) Application and license 138

7-24 (2) Triennial renewal of each license 138

7-25 29. Licenses, appointments and renewals for agents for

7-26 fraternal benefit societies:

7-27 (a) Resident agents:

7-28 (1) Application and license $78

7-29 (2) Appointment 5

7-30 (3) Triennial renewal of each license 78

7-31 (b) Nonresident agents:

7-32 (1) Application and license 138

7-33 (2) Triennial renewal of each license 138

7-34 30. Reinsurance intermediary broker or manager:

7-35 (a) Resident agents:

7-36 (1) Application and license $78

7-37 (2) Triennial renewal of each license 78

7-38 (b) Nonresident agents:

7-39 (1) Application and license 138

7-40 (2) Triennial renewal of each license 138

7-41 31. Agents for and sellers of prepaid burial contracts:

7-42 (a) Resident agents and sellers:

7-43 (1) Application and certificate or license $78

8-1 (2) Triennial renewal $78

8-2 (b) Nonresident agents and sellers:

8-3 (1) Application and certificate or license 138

8-4 (2) Triennial renewal 138

8-5 32. Risk retention groups:

8-6 (a) Initial registration and review of an application $2,450

8-7 (b) Each annual continuation of a certificate of registration 2,450

8-8 33. Required filing of forms:

8-9 (a) For rates and policies $25

8-10 (b) For riders and endorsements 10

8-11 Sec. 5. NRS 681B.290 is hereby amended to read as follows:

8-12 681B.290 1. [On] Except as otherwise provided in subsection 3, on

8-36 direct premiums written by the insurer.

8-37 Sec. 6. Chapter 683A of NRS is hereby amended by adding thereto

8-38 the provisions set forth as sections 7 to 16, inclusive, of this act.

8-39 Sec. 7. As used in NRS 683A.085 to 683A.0893, inclusive, and

8-40 sections 7 to 16, inclusive, of this act, unless the context otherwise

8-41 requires, the words and terms defined in sections 8 to 11, inclusive, of

8-42 this act have the meanings ascribed to them in those sections.

8-43 Sec. 8. "Affiliate" has the meaning ascribed to it in NRS 692C.030.

9-1 Sec. 9. "Control" has the meaning ascribed to it in NRS 692C.050.

9-2 Sec. 10. "Insurer" includes, without limitation:

9-3 1. An insurance company licensed pursuant to the provisions of this

9-4 code;

9-5 2. A prepaid limited health service organization that has been issued

9-6 a certificate of authority pursuant to chapter 695F of NRS;

9-7 3. A health maintenance organization that has been issued a

9-8 certificate of authority pursuant to chapter 695C of NRS;

9-9 4. A multiple employer welfare arrangement as defined in 29 U.S.C.

9-10 5. An employer for whom a program of self-insurance is

9-11 administered by an administrator; and

9-12 6. An organization for dental care that has been issued a certificate

9-13 of authority pursuant to chapter 695D of NRS.

9-14 Sec. 11. "Underwrite" includes, without limitation:

9-15 1. Accepting applications for insurance coverage in accordance with

9-16 the written rules of an insurer;

9-17 2. Planning and coordinating a program of insurance; and

9-18 3. Procuring bonds and excess insurance.

9-19 Sec. 12. The commissioner:

9-20 1. Shall suspend or revoke the certificate of registration of an

9-21 administrator if the commissioner has determined, after notice and a

9-22 hearing, that the administrator:

9-23 (a) Is in an unsound financial condition;

9-24 (b) Uses methods or practices in the conduct of his business that are

9-25 hazardous or injurious to insured persons or members of the general

9-26 public; or

9-27 (c) Has failed to pay any judgment against him in this state within 60

9-28 days after the judgment became final.

9-29 2. May suspend or revoke the certificate of registration of an

9-30 administrator if the commissioner determines, after notice and a hearing,

9-31 that the administrator:

9-32 (a) Has willfully violated or failed to comply with any provision of this

9-33 code, any regulation adopted pursuant to this code or any order of the

9-34 commissioner;

9-35 (b) Has refused to be examined by the commissioner or has refused to

9-36 produce accounts, records or files for examination upon the request of

9-37 the commissioner;

9-38 (c) Has, without just cause, refused to pay claims or perform services

9-39 pursuant to his contracts or has, without just cause, caused persons to

9-40 accept less than the amount of money owed to them pursuant to the

9-41 contracts, or has caused persons to employ an attorney or bring a civil

9-42 action against him to receive full payment or settlement of claims;

10-1 (d) Is affiliated with, managed by or owned by another administrator

10-2 or an insurer who transacts insurance in this state without a certificate of

10-3 authority or a certificate of registration;

10-4 (e) Fails to comply with any of the requirements for a certificate of

10-5 registration;

10-6 (f) Has been convicted of, or has entered a plea of guilty or nolo

10-7 contendere to a felony, whether or not adjudication was withheld; or

10-8 (g) Has had his authority to act as an administrator in another state

10-9 limited, suspended or revoked.

10-10 3. May, upon notice to the administrator, suspend the certificate of

10-11 registration of the administrator pending a hearing if:

10-12 (a) The administrator is impaired or insolvent;

10-13 (b) A proceeding for receivership, conservatorship or rehabilitation

10-14 has been commenced against the administrator in any state; or

10-15 (c) The financial condition or the business practices of the

10-16 administrator represent an imminent threat to the public health, safety or

10-17 welfare of the residents of this state.

10-18 4. May, in addition to or in lieu of the suspension or revocation of

10-19 the certificate of registration of the administrator, impose a fine of

10-20 $2,000 for each act or violation.

10-21 Sec. 13. Each application for a certificate of registration as an

10-22 administrator must include or be accompanied by:

10-23 1. A financial statement that is certified by an officer of the applicant

10-24 and must include:

10-25 (a) The amount of money that the applicant expects to collect from or

10-26 disburse to residents of this state during the next calendar year;

10-27 (b) Financial information for the 90 days immediately preceding the

10-28 date the application was filed with the commissioner; and

10-29 (c) An income statement and balance sheet for the 2 years

10-30 immediately preceding the application that are prepared in accordance

10-31 with generally accepted accounting principles. The submission by the

10-32 applicant of his consolidated income statement and balance sheet does

10-33 not constitute compliance with the provisions of this paragraph.

10-34 2. The documents used to create the business association of the

10-35 administrator, including, without limitation, articles of incorporation,

10-36 articles of association, a partnership agreement, a trust agreement and a

10-37 shareholder agreement.

10-38 3. The documents used to regulate the internal affairs of the

10-39 administrator, including, without limitation, the bylaws, rules or

10-40 regulations of the administrator.

10-41 4. A certificate of registration issued pursuant to NRS 600.350 for a

10-42 trade name or trade-mark used by the administrator.

11-1 5. An organizational chart that identifies each person who directly or

11-2 indirectly controls the administrator and each affiliate of the

11-3 administrator.

11-4 6. A notarized affidavit from each person who manages or controls

11-5 the administrator, including, without limitation, each member of the

11-6 board of directors or board of trustees, each officer, partner, and member

11-7 of the business association of the administrator, and each shareholder of

11-8 the administrator who holds not less than 10 percent of the voting stock

11-9 of the administrator. The affidavit must include, without limitation:

11-10 (a) The personal history, business record and insurance experience of

11-11 the affiant;

11-12 (b) Whether the affiant has been investigated by any regulatory

11-13 authority or has had any license or certificate denied, suspended or

11-14 revoked in any state; and

11-15 (c) Any other information that the commissioner may require.

11-16 7. The complete name and address of each office of the

11-17 administrator, including, offices located outside this state.

11-18 8. A statement that sets forth whether the administrator has:

11-19 (a) Held a license or certificate to transact any kind of insurance in

11-20 this state or any other state and whether that license or certificate has

11-21 been refused, suspended or revoked;

11-22 (b) Been indebted to any person and, if so, the circumstances of that

11-23 debt; and

11-24 (c) Had an administrative agreement canceled and, if so, the

11-25 circumstances of that cancellation.

11-26 9. A statement that describes the business plan of the administrator.

11-27 The statement must include information:

11-28 (a) Concerning the number of persons on the staff of the

11-29 administrator and the activities proposed in this state or in any other

11-30 state.

11-31 (b) That demonstrates the capability of the administrator to provide a

11-32 sufficient number of experienced and qualified persons for the

11-33 processing of claims, the keeping of records and, if applicable,

11-34 underwriting.

11-35 10. If the applicant intends to solicit new or renewal business, proof

11-36 that the applicant employs or has contracted with an agent licensed in

11-37 this state to solicit and take applications. An applicant who intends to

11-38 solicit insurance contracts directly or to act as an insurance agent must

11-39 provide proof that he is licensed as an insurance agent in this state.

11-40 Sec. 14. 1. Except as otherwise provided by subsection 2, the

11-41 commissioner shall issue a certificate of registration as an administrator

11-42 to an applicant who:

11-43 (a) Submits an application on a form prescribed by the commissioner;

12-1 (b) Has complied with the provisions of section 13 of this act; and

12-2 (c) Pays the fee for the issuance of a certificate of registration

12-3 prescribed in NRS 680B.010.

12-4 2. The commissioner may refuse to issue a certificate of registration

12-5 as an administrator to an applicant if the commissioner determines that

12-6 the applicant or any person who has completed an affidavit pursuant to

12-7 subsection 6 of section 13 of this act:

12-8 (a) Is not competent to act as an administrator;

12-9 (b) Is not trustworthy or financially responsible;

12-10 (c) Does not have a good personal or business reputation;

12-11 (d) Has had a license or certificate to transact insurance denied for

12-12 cause, suspended or revoked in this state or any other state; or

12-13 (e) Has failed to comply with any provision of this chapter.

12-14 Sec. 15. 1. A certificate of registration as an administrator is valid

12-15 for 3 years after the date the commissioner issues the certificate to the

12-16 administrator.

12-17 2. An administrator may renew a certificate of registration if he

12-18 submits to the commissioner:

12-19 (a) An application on a form prescribed by the commissioner; and

12-20 (b) The fee for the renewal of the certificate of registration prescribed

12-21 in NRS 680B.010.

12-22 3. A certificate of registration that is suspended or revoked must be

12-23 surrendered immediately to the commissioner.

12-24 Sec. 16. Not later than March 1 of each year, each holder of a

12-25 certificate of registration as an administrator shall file a financial

12-26 statement with the commissioner on a form approved by the

12-27 commissioner.

12-28 Sec. 17. NRS 683A.025 is hereby amended to read as follows:

12-29 683A.025 1. Except as limited by this section, "administrator"

12-42 benefits for his employees [.] ; or

13-1 (e) Is an insurance company that is licensed to do business in this

13-2 state or is acting as an insurer with respect to a policy lawfully issued and

13-3 delivered in a state where the insurer is authorized to do business, if the

13-4 insurance company performs any act described in paragraphs (a) to (d),

13-5 inclusive, for or on behalf of another insurer.

13-6 2. "Administrator" does not include:

13-7 (a) An employee authorized to act on behalf of an administrator who

13-8 holds a certificate of registration from the commissioner.

13-9 (b) An employer acting on behalf of his employees or the employees of

13-10 a subsidiary or affiliated concern.

13-11 (c) A labor union acting on behalf of its members.

13-12 (d) [An] Except as otherwise provided in paragraph (e) of subsection

13-13 1, an insurance company licensed to do business in this state or acting as

13-14 an insurer with respect to a policy lawfully issued and delivered in a state

13-15 in which the insurer was authorized to do business.

13-16 (e) A life or health insurance agent or broker licensed in this state, when

13-17 his activities are limited to the sale of insurance.

13-18 (f) A creditor acting on behalf of his debtors with respect to insurance

13-19 covering a debt between the creditor and debtor.

13-20 (g) A trust and its trustees, agents and employees acting for it, if the

13-21 trust was established under the provisions of 29 U.S.C. § 186.

13-22 (h) A trust which is exempt from taxation under section 501(a) of the

13-23 Internal Revenue Code, 26 U.S.C. § 501(2), its trustees and employees,

13-24 and a custodian, his agents and employees acting under a custodial account

13-25 which meets the requirements of section 401(f) of the Internal Revenue

13-26 Code [.] , 26 U.S.C. § 401(f).

13-27 (i) A bank, credit union or other financial institution which is subject to

13-28 supervision by federal or state banking authorities.

13-29 (j) A company which issues credit cards, and which advances for and

13-30 collects premiums or charges from credit card holders who have authorized

13-31 it to do so, if the company does not adjust or settle claims.

13-32 (k) An attorney at law who adjusts or settles claims in the normal course

13-33 of his practice or employment, but who does not collect charges or

13-34 premiums in connection with life or health insurance coverage or with

13-35 annuities.

13-36 Sec. 18. NRS 683A.085 is hereby amended to read as follows:

13-37 683A.085 [1.] No person may act as [an administrator,] , offer to act

13-43 reasonably requires, and has paid the required fee, unless the commissioner

14-1 has determined, after notice and hearing, that the applicant is not

14-2 competent, trustworthy, financially responsible or of good personal and

14-3 business reputation.

14-4 3. No certificate may be issued to any person who, within the 5 years

14-5 immediately preceding his application, has had an insurance license

14-6 revoked or an application denied for cause.

14-7 4. The commissioner may revoke or suspend the certificate of any

14-8 administrator if he finds, after notice and hearing, that the administrator

14-9 has violated any provision of this Title or any regulation adopted under it.]

14-10 pursuant to section 14 of this act.

14-11 Sec. 19. NRS 683A.0857 is hereby amended to read as follows:

14-12 683A.0857 1. [Every] Each administrator shall file with the

14-31 bond.

14-32 Sec. 20. NRS 683A.086 is hereby amended to read as follows:

14-33 683A.086 1. No person may act as an administrator unless he has

14-42 authorized to administer on behalf of the insurer.

15-1 3. A copy of an agreement entered into under the provisions of this

15-2 section must be retained in the records of the administrator and of the

15-3 insurer for a period of 5 years after the termination of the agreement.

15-4 [3.] 4. When a policy is issued to a trustee or trustees, a copy of the

15-5 trust agreement and amendments must be obtained by the administrator

15-6 and a copy forwarded to the insurer. Each agreement must be retained by

15-7 the administrator and [by] the insurer for a period of 5 years after the

15-8 termination of the policy.

15-9 [4.] 5. The commissioner may adopt regulations which specify the

15-10 functions an administrator may perform on behalf of an insurer.

15-11 6. The insurer or administrator may, upon written notice to the other

15-12 party to the agreement and to the commissioner, terminate the written

15-13 agreement for any cause specified in the agreement. The insurer may

15-14 suspend the authority of the administrator while any dispute regarding

15-15 the cause for termination is pending. The insurer shall perform any

15-16 obligations with respect to the policies affected by the agreement

15-17 regardless of any dispute with the administrator.

15-18 Sec. 21. NRS 683A.087 is hereby amended to read as follows:

15-19 683A.087 An administrator may advertise the insurance which he

15-21 underwrites the business involved.

15-22 Sec. 22. NRS 683A.0873 is hereby amended to read as follows:

15-23 683A.0873 1. Each administrator shall maintain at his principal

15-41 administrator.

16-1 Sec. 23. NRS 683A.0877 is hereby amended to read as follows:

16-2 683A.0877 1. All insurance charges and premiums collected by an

16-34 insurer with copies of those records.

16-35 Sec. 24. NRS 683A.088 is hereby amended to read as follows:

16-36 683A.088 Each claim paid by the administrator from [funds] money

16-38 draft upon and as authorized by the insurer.

16-39 Sec. 25. NRS 683A.0883 is hereby amended to read as follows:

16-40 683A.0883 1. The compensation paid to an administrator for his

16-43 the administrator and the insurer, except as provided in subsection 2.

17-1 2. Compensation paid to an administrator may not be based upon or

17-2 contingent upon :

17-3 (a) The claim experience of the policies [which he handles.] that he

17-4 handles; or

17-5 (b) The savings realized by the administrator by adjusting, settling or

17-6 paying the losses covered by an insurer.

17-7 Sec. 26. NRS 683A.0887 is hereby amended to read as follows:

17-8 683A.0887 1. Each administrator shall advise each insured, by

17-20 reinsurance or excess of loss insurance.

17-21 Sec. 27. NRS 685A.120 is hereby amended to read as follows:

17-22 685A.120 1. No person in this state may act as, hold himself out as,

17-43 may be renewed upon submission of the statement required pursuant to

18-1 NRS 685A.127 and payment of the applicable fee for renewal and a fee of

18-2 $15 for deposit in the insurance recovery account created by NRS

18-3 679B.305 to the commissioner on or before the last day of the month in

18-4 which the license is renewable.

18-5 5. A license which is not renewed expires at midnight on the last day

18-6 specified for its renewal. The commissioner may accept a request for

18-7 renewal received by him within 30 days after the expiration of the license

18-8 if the request is accompanied by the statement required pursuant to NRS

18-9 685A.127, a fee for renewal of 150 percent of the fee otherwise required

18-10 and a fee of $15 for deposit in the insurance recovery account created by

18-11 NRS 679B.305.

18-12 Sec. 28. NRS 685A.140 is hereby amended to read as follows:

18-13 685A.140 1. In addition to other grounds therefor, the commissioner

18-25 same individual under this code.

18-26 Sec. 29. NRS 685A.160 is hereby amended to read as follows:

18-27 685A.160 1. Each broker shall keep in his office [in this state] a full

18-42 and where located or to be performed; and

19-1 (i) [Other] Any other information as may be required by the

19-2 commissioner.

19-3 2. The record [shall] must not be removed from [this state and shall]

19-4 the office of the broker and must be open to examination by the

19-5 commissioner or his representative at all times within 5 years after issuance

19-6 of the coverage to which it relates.

19-7 Sec. 30. NRS 686A.130 is hereby amended to read as follows:

19-8 686A.130 1. No property, casualty, surety or title insurer or

19-43 policy or contract of casualty insurance.

20-1 6. [Nothing in this section prohibits:] The provisions of this section do

20-2 not prohibit:

20-3 (a) The payment of commissions or other compensation to licensed

20-4 agents, brokers or solicitors.

20-5 (b) The extension of credit to an insured for the payment of any

20-6 premium and for which credit a reasonable rate of interest is charged and

20-7 collected.

20-8 (c) Any insurer from allowing or returning to its participating

20-9 policyholders, members or subscribers, dividends, savings or unabsorbed

20-10 premium deposits.

20-11 [As to title insurance, nothing in this section prohibits]

20-12 (d) With respect to title insurance, bulk rates or special rates for

20-13 customers of prescribed classes if [such] the bulk or special rates are

20-14 provided for in the [currently] effective schedule of fees and charges of the

20-15 title insurer or underwritten title company.

20-16 7. [This section does] The provisions of this section do not apply to

20-17 wet marine and transportation insurance.

20-18 Sec. 31. NRS 686C.035 is hereby amended to read as follows:

20-19 686C.035 1. This chapter does not provide coverage for:

20-43 employer, association or [similar entity] other person under:

21-1 (1) A [Multiple Employer Welfare Arrangement] multiple employer

21-2 welfare arrangement as defined in 29 U.S.C. § 1002;

21-3 (2) A minimum-premium group insurance plan;

21-4 (3) A stop-loss group insurance plan; or

21-5 (4) A contract for administrative services only.

21-6 (e) Any portion of a policy or contract to the extent that it provides for

21-7 dividends, credits for experience, voting rights or the payment of any fee

21-8 or allowance to any person, including the [policyholder,] holder of a

21-9 policy or contract, for services or administration connected with the policy

21-10 or contract.

21-11 (f) Any policy or contract issued in this state by a member insurer at a

21-12 time when the member insurer was not authorized to issue the policy or

21-13 contract [.] in this state.

21-14 (g) [Any certificate for an annuity or group annuity which is not issued

21-15 to or owned by a natural person, except to the extent of any annuity

21-16 guaranteed to a natural person by an insurer under the contract or

21-17 certificate except that annuities issued in connection with and for the

21-18 purpose of funding structured settlements of liability are covered policies.

21-19 (h) Any health or life insurance policy purchased by the Federal

21-20 Government, if no premium taxes are paid on such policies.

21-21 (i) Any annuity issued pursuant to subsection 8 of NRS 680A.070.] A

21-22 portion of a policy or contract to the extent that the assessments required

21-23 by NRS 686C.230 for the policy or contract are preempted by federal law.

21-24 (h) An obligation that does not arise under the written terms of a

21-25 policy or contract issued by the insurer.

21-26 (i) An unallocated annuity contract.

21-27 2. As used in this section, "Moody’s Corporate Bond Yield Average"

21-28 means the monthly average for corporate bonds published by Moody’s

21-29 Investors Service, Inc., or any successor average.

21-30 Sec. 32. NRS 687B.440 is hereby amended to read as follows:

21-31 687B.440 1. An insurer offering an umbrella policy to an individual

21-41 limits of the uninsured/underinsured vehicle coverage in your

22-1 primary auto insurance only if the requirements for the

22-2 uninsured/underinsured vehicle coverage in your underlying auto

22-3 insurance are maintained. [The minimum uninsured/underinsured

22-4 vehicle coverage in your umbrella insurance policy is $……… . The

22-5 limits of the uninsured/underinsured vehicle coverage in your primary

22-6 auto insurance policy are $………. .] Your uninsured/underinsured

22-7 vehicle coverage provided by this umbrella policy is limited to

22-8 $……… .

22-9 I understand and acknowledge the above disclosure.

22-10

22-11 Insured Date

22-12 3. The disclosure statement for an umbrella policy that does not

22-13 include uninsured or underinsured vehicle coverage must be on a form

22-14 provided by the commissioner or in substantially the following form:

22-15 ¨ Your Umbrella Liability Policy does not provide any

22-16 uninsured/underinsured vehicle coverage.

22-17 I understand and acknowledge the above disclosure.

22-18

22-19 Insured Date

22-20 [3.] 4. As used in this section, "umbrella policy" means a policy that

22-21 protects a person against losses in excess of the underlying amount

22-22 required to be covered by other policies.

22-23 Sec. 33. NRS 689A.505 is hereby amended to read as follows:

22-24 689A.505 "Creditable coverage" means, with respect to a person,

22-36 organization;

23-1 7. A state health benefit risk pool;

23-2 8. A health plan offered pursuant to [chapter 89 of Title 5, United

23-3 States Code (] the Federal Employees Health Benefits Program

23-4 [(FEHBP));] , FEHBP, 5 U.S.C. §§ 8901 et seq.;

23-5 9. A public health plan as defined in federal regulations authorized by

23-6 the Public Health Service Act, [section 2701(c)(1)(I), as amended by

23-7 Public Law 104-191; or] 42 U.S.C. §§ 201 et seq.;

23-8 10. A health benefit plan under section 5(e) of the Peace Corps Act ,

23-9 [(] 22 U.S.C. § 2504(e) [).] ;

23-10 11. A short-term health insurance policy; or

23-11 12. A blanket student accident and health insurance policy.

23-12 Sec. 34. NRS 689A.515 is hereby amended to read as follows:

23-13 689A.515 "Eligible person" means:

23-43 person as set forth in subsection 1.

24-1 Sec. 35. NRS 689A.540 is hereby amended to read as follows:

24-2 689A.540 1. "Health benefit plan" means a policy, contract,

24-42 (b) Hospital indemnity or other fixed indemnity insurance.

25-1 5. The term does not include any of the following, if offered as a

25-2 separate policy, certificate or contract of insurance:

25-3 (a) Medicare supplemental health insurance as defined in section

25-4 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section

25-5 existed on July 16, 1997;

25-6 (b) Coverage supplemental to the coverage provided pursuant to

25-7 [chapter 55 of Title 10, United States Code (] the Civilian Health and

25-8 Medical Program of Uniformed Services [(CHAMPUS));] , CHAMPUS,

25-9 10 U.S.C. §§ 1071 et seq.; and

25-10 (c) Similar supplemental coverage provided under a group health plan.

25-11 Sec. 36. NRS 689A.650 is hereby amended to read as follows:

25-12 689A.650 1. An individual carrier is not required to provide

25-25 in this state for 5 years after the date of the notification.

25-26 Sec. 37. NRS 689A.660 is hereby amended to read as follows:

25-27 689A.660 An individual carrier shall not:

25-33 otherwise covered by the plan.

25-34 Sec. 38. NRS 689A.680 is hereby amended to read as follows:

25-35 689A.680 1. An individual carrier shall develop its rates for its

25-43 average rate charged to all the insureds in the block of business. In

26-1 determining whether the rate of a block of business complies with the

26-2 provisions of this subsection, any differences in rating factors between

26-3 blocks of business must be considered.

26-4 2. In determining the rating factors to establish premium rates for a

26-5 health benefit plan, an individual carrier shall not use characteristics other

26-6 than age, sex, occupation, geographic area, composition of the family of

26-7 the individual and health status.

26-8 3. If an individual carrier uses health status as a rating factor in

26-9 establishing premium rates, the highest factor associated with any

26-10 classification for health status may not exceed the lowest factor by more

26-11 than 75 percent.

26-12 4. For the purposes of this section, rating characteristics must not

26-13 include durational or tier rating, or adverse changes in health status or

26-14 claim experience after the policy is issued.

26-15 5. As used in this section, "characteristics" means demographic or

26-16 other information concerning individuals that is considered by a carrier in

26-17 the determination of premium rates for individuals.

26-18 Sec. 39. NRS 689B.027 is hereby amended to read as follows:

26-19 689B.027 1. The commissioner shall adopt regulations which require

26-43 acting on behalf of an employer upon request a copy of the disclosure

27-1 approved by the commissioner pursuant to this section for each policy of

27-2 health insurance coverage for which that employer may be eligible.

27-3 Sec. 40. NRS 689B.380 is hereby amended to read as follows:

27-4 689B.380 "Creditable coverage" means health benefits or coverage