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 thereto

1-2 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

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

2-2 authorized pursuant to the provisions of this code against the holder of

2-3 the license or certificate.

2-4 Sec. 2. NRS 679B.190 is hereby amended to read as follows:

2-5 679B.190 1. The commissioner shall carefully preserve in the

2-40 part of the record in any manner he deems appropriate.

3-1 Sec. 3. NRS 679B.440 is hereby amended to read as follows:

3-2 679B.440 1. The commissioner may require that reports submitted

3-43 (2) Losses unpaid on incurred but not reported claims;

4-1 (h) Number of claims, including:

4-2 (1) Claims paid; and

4-3 (2) Claims that have arisen but are unpaid;

4-4 (i) Expenses for adjustment of losses, including allocated and

4-5 unallocated losses;

4-6 (j) Net underwriting gain or loss;

4-7 (k) Net operation gain or loss, including net investment income; and

4-8 (l) Any other information requested by the commissioner.

4-9 3. The commissioner may also obtain, based upon an insurer in its

4-10 entirety, information regarding:

4-11 (a) Recoverable federal income tax;

4-12 (b) Net unrealized capital gain or loss; and

4-13 (c) All other expenses not included in subsection 2.

4-14 Sec. 4. NRS 680B.010 is hereby amended to read as follows:

4-15 680B.010 The commissioner shall collect in advance and receipt for,

4-43 (1) Application and license $78

5-1 (2) Appointment by each insurer $5

5-2 (3) Triennial renewal of each license 78

5-3 (4) Temporary license 10

5-4 (b) Other nonresident agents:

5-5 (1) Application and license 138

5-6 (2) Appointment by each insurer 25

5-7 (3) Triennial renewal of each license 138

5-8 6. Brokers’ licenses and renewals:

5-9 (a) Resident brokers and nonresident brokers qualifying under

5-10 subsection 3 of NRS 683A.340:

5-11 (1) Application and license $78

5-12 (2) Triennial renewal of each license 78

5-13 (b) Other nonresident brokers:

5-14 (1) Application and license 258

5-15 (2) Triennial renewal of each license 258

5-16 (c) [Surplus] Resident surplus lines brokers:

5-17 (1) Application and license 78

5-18 (2) Triennial renewal of each license 78

5-19 (d) Nonresident surplus lines brokers:

5-20 (1) Application and license 258

5-21 (2) Triennial renewal of each license 258

5-22 7. Solicitors’ licenses, appointments and renewals:

5-23 (a) Application and license $78

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

5-25 (c) Initial appointment 5

5-26 8. Managing general agents’ licenses, appointments and

5-27 renewals:

5-28 (a) Resident managing general agents:

5-29 (1) Application and license $78

5-30 (2) Initial appointment, each insurer 5

5-31 (3) Triennial renewal of each license 78

5-32 (b) Nonresident managing general agents:

5-33 (1) Application and license 138

5-34 (2) Initial appointment, each insurer 25

5-35 (3) Triennial renewal of each license 138

5-36 9. Adjusters’ licenses and renewals:

5-37 (a) Independent and public adjusters:

5-38 (1) Application and license $78

5-39 (2) Triennial renewal of each license 78

5-40 (b) Associate adjusters:

5-41 (1) Application and license 78

5-42 (2) Initial appointment 5

5-43 (3) Triennial renewal of each license 78

6-1 10. Licenses and renewals for appraisers of physical damage

6-2 to motor vehicles:

6-3 (a) Application and license $78

6-4 (b) Triennial renewal of each license 78

6-5 11. Additional title and property insurers pursuant to NRS

6-6 680A.240:

6-7 (a) Original registration $50

6-8 (b) Annual renewal 25

6-9 12. Insurance vending machines:

6-10 (a) Application and license, for each machine $78

6-11 (b) Triennial renewal of each license 78

6-12 13. Permit for solicitation for securities:

6-13 (a) Application for permit $100

6-14 (b) Extension of permit 50

6-15 14. Securities salesmen for domestic insurers:

6-16 (a) Application and license $25

6-17 (b) Annual renewal of license 15

6-18 15. Rating organizations:

6-19 (a) Application and license $500

6-20 (b) Annual renewal 500

6-21 16. Certificates and renewals for administrators licensed

6-22 pursuant to chapter 683A of NRS:

6-23 (a) Resident administrators:

6-24 (1) Application and certificate of registration $78

6-25 (2) Triennial renewal 78

6-26 (b) Nonresident administrators:

6-27 (1) Application and certificate of registration 138

6-28 (2) Triennial renewal 138

6-29 17. For copies of the insurance laws of Nevada, a fee which

6-30 is not less than the cost of producing the copies.

6-31 18. Certified copies of certificates of authority and licenses

6-32 issued pursuant to the insurance code $10

6-33 19. For copies and amendments of documents on file in the

6-34 division, a reasonable charge fixed by the commissioner,

6-35 including charges for duplicating or amending the forms and for

6-36 certifying the copies and affixing the official seal.

6-37 20. Letter of clearance for an agent or broker $10

6-38 21. Certificate of status as a licensed agent or broker $10

6-39 22. Licenses, appointments and renewals for bail agents:

6-40 (a) Application and license $78

6-41 (b) Initial appointment by each surety insurer 5

6-42 (c) Triennial renewal of each license 78

7-1 23. Licenses and renewals for bail enforcement agents:

7-2 (a) Application and license $78

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

7-4 24. Licenses, appointments and renewals for general bail

7-5 agents:

7-6 (a) Application and license $78

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

7-8 (c) Triennial renewal of each license 78

7-9 25. Licenses and renewals for bail solicitors:

7-10 (a) Application and license $78

7-11 (b) Triennial renewal of each license 78

7-12 26. Licenses and renewals for title agents and escrow

7-13 officers:

7-14 (a) Resident title agents and escrow officers:

7-15 (1) Application and license $78

7-16 (2) Triennial renewal of each license 78

7-17 (b) Nonresident title agents and escrow officers:

7-18 (1) Application and license 138

7-19 (2) Triennial renewal of each license 138

7-20 (c) Change in name or location of business or in association 10

7-21 27. Certificate of authority and renewal for a seller of

7-22 prepaid funeral contracts $78

7-23 28. Licenses and renewals for agents for prepaid funeral

7-24 contracts:

7-25 (a) Resident agents:

7-26 (1) Application and license $78

7-27 (2) Triennial renewal of each license 78

7-28 (b) Nonresident agents:

7-29 (1) Application and license 138

7-30 (2) Triennial renewal of each license 138

7-31 29. Licenses, appointments and renewals for agents for

7-32 fraternal benefit societies:

7-33 (a) Resident agents:

7-34 (1) Application and license $78

7-35 (2) Appointment 5

7-36 (3) Triennial renewal of each license 78

7-37 (b) Nonresident agents:

7-38 (1) Application and license 138

7-39 (2) Triennial renewal of each license 138

7-40 30. Reinsurance intermediary broker or manager:

7-41 (a) Resident agents:

7-42 (1) Application and license $78

7-43 (2) Triennial renewal of each license 78

8-1 (b) Nonresident agents:

8-2 (1) Application and license $138

8-3 (2) Triennial renewal of each license 138

8-4 31. Agents for and sellers of prepaid burial contracts:

8-5 (a) Resident agents and sellers:

8-6 (1) Application and certificate or license $78

8-7 (2) Triennial renewal 78

8-8 (b) Nonresident agents and sellers:

8-9 (1) Application and certificate or license 138

8-10 (2) Triennial renewal 138

8-11 32. Risk retention groups:

8-12 (a) Initial registration and review of an application $2,450

8-13 (b) Each annual continuation of a certificate of registration 2,450

8-14 33. Required filing of forms:

8-15 (a) For rates and policies $25

8-16 (b) For riders and endorsements 10

8-17 Sec. 5. NRS 681B.290 is hereby amended to read as follows:

8-18 681B.290 1. [On] Except as otherwise provided in subsection 3, on

8-42 direct premiums written by the insurer.

8-43 Secs. 5.2-5.8. (Deleted by amendment.)

9-1 Sec. 6. Chapter 683A of NRS is hereby amended by adding thereto the

9-2 provisions set forth as sections 7 to 16, inclusive, of this act.

9-3 Sec. 7. As used in NRS 683A.085 to 683A.0893, inclusive, and

9-4 sections 7 to 16, inclusive, of this act, unless the context otherwise

9-5 requires, the words and terms defined in sections 8 to 11, inclusive, of

9-6 this act have the meanings ascribed to them in those sections.

9-7 Sec. 8. "Affiliate" has the meaning ascribed to it in NRS 692C.030.

9-8 Sec. 9. "Control" has the meaning ascribed to it in NRS 692C.050.

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

9-10 1. An insurance company licensed pursuant to the provisions of this

9-11 code;

9-12 2. A prepaid limited health service organization that has been issued

9-13 a certificate of authority pursuant to chapter 695F of NRS;

9-14 3. A health maintenance organization that has been issued a

9-15 certificate of authority pursuant to chapter 695C of NRS;

9-16 4. A multiple employer welfare arrangement as defined in 29 U.S.C.

9-17 5. An employer for whom a program of self-insurance is

9-18 administered by an administrator; and

9-19 6. An organization for dental care that has been issued a certificate

9-20 of authority pursuant to chapter 695D of NRS.

9-21 Sec. 11. "Underwrite" includes, without limitation:

9-22 1. Accepting applications for insurance coverage in accordance with

9-23 the written rules of an insurer;

9-24 2. Planning and coordinating a program of insurance; and

9-25 3. Procuring bonds and excess insurance.

9-26 Sec. 12. The commissioner:

9-27 1. Shall suspend or revoke the certificate of registration of an

9-28 administrator if the commissioner has determined, after notice and a

9-29 hearing, that the administrator:

9-30 (a) Is in an unsound financial condition;

9-31 (b) Uses methods or practices in the conduct of his business that are

9-32 hazardous or injurious to insured persons or members of the general

9-33 public; or

9-34 (c) Has failed to pay any judgment against him in this state within 60

9-35 days after the judgment became final.

9-36 2. May suspend or revoke the certificate of registration of an

9-37 administrator if the commissioner determines, after notice and a hearing,

9-38 that the administrator:

9-39 (a) Has willfully violated or failed to comply with any provision of this

9-40 code, any regulation adopted pursuant to this code or any order of the

9-41 commissioner;

10-1 (b) Has refused to be examined by the commissioner or has refused to

10-2 produce accounts, records or files for examination upon the request of

10-3 the commissioner;

10-4 (c) Has, without just cause, refused to pay claims or perform services

10-5 pursuant to his contracts or has, without just cause, caused persons to

10-6 accept less than the amount of money owed to them pursuant to the

10-7 contracts, or has caused persons to employ an attorney or bring a civil

10-8 action against him to receive full payment or settlement of claims;

10-9 (d) Is affiliated with, managed by or owned by another administrator

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

10-11 authority or a certificate of registration;

10-12 (e) Fails to comply with any of the requirements for a certificate of

10-13 registration;

10-14 (f) Has been convicted of, or has entered a plea of guilty or nolo

10-15 contendere to a felony, whether or not adjudication was withheld; or

10-16 (g) Has had his authority to act as an administrator in another state

10-17 limited, suspended or revoked.

10-18 3. May, upon notice to the administrator, suspend the certificate of

10-19 registration of the administrator pending a hearing if:

10-20 (a) The administrator is impaired or insolvent;

10-21 (b) A proceeding for receivership, conservatorship or rehabilitation

10-22 has been commenced against the administrator in any state; or

10-23 (c) The financial condition or the business practices of the

10-24 administrator represent an imminent threat to the public health, safety or

10-25 welfare of the residents of this state.

10-26 4. May, in addition to or in lieu of the suspension or revocation of

10-27 the certificate of registration of the administrator, impose a fine of

10-28 $2,000 for each act or violation.

10-29 Sec. 13. Each application for a certificate of registration as an

10-30 administrator must include or be accompanied by:

10-31 1. A financial statement that is certified by an officer of the applicant

10-32 and must include:

10-33 (a) The amount of money that the applicant expects to collect from or

10-34 disburse to residents of this state during the next calendar year;

10-35 (b) Financial information for the 90 days immediately preceding the

10-36 date the application was filed with the commissioner; and

10-37 (c) An income statement and balance sheet for the 2 years

10-38 immediately preceding the application that are prepared in accordance

10-39 with generally accepted accounting principles. The submission by the

10-40 applicant of his consolidated income statement and balance sheet does

10-41 not constitute compliance with the provisions of this paragraph.

10-42 2. The documents used to create the business association of the

10-43 administrator, including, without limitation, articles of incorporation,

11-1 articles of association, a partnership agreement, a trust agreement and a

11-2 shareholder agreement.

11-3 3. The documents used to regulate the internal affairs of the

11-4 administrator, including, without limitation, the bylaws, rules or

11-5 regulations of the administrator.

11-6 4. A certificate of registration issued pursuant to NRS 600.350 for a

11-7 trade name or trade-mark used by the administrator.

11-8 5. An organizational chart that identifies each person who directly or

11-9 indirectly controls the administrator and each affiliate of the

11-10 administrator.

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

11-12 the administrator, including, without limitation, each member of the

11-13 board of directors or board of trustees, each officer, partner, and member

11-14 of the business association of the administrator, and each shareholder of

11-15 the administrator who holds not less than 10 percent of the voting stock

11-16 of the administrator. The affidavit must include, without limitation:

11-17 (a) The personal history, business record and insurance experience of

11-18 the affiant;

11-19 (b) Whether the affiant has been investigated by any regulatory

11-20 authority or has had any license or certificate denied, suspended or

11-21 revoked in any state; and

11-22 (c) Any other information that the commissioner may require.

11-23 7. The complete name and address of each office of the

11-24 administrator, including, offices located outside this state.

11-25 8. A statement that sets forth whether the administrator has:

11-26 (a) Held a license or certificate to transact any kind of insurance in

11-27 this state or any other state and whether that license or certificate has

11-28 been refused, suspended or revoked;

11-29 (b) Been indebted to any person and, if so, the circumstances of that

11-30 debt; and

11-31 (c) Had an administrative agreement canceled and, if so, the

11-32 circumstances of that cancellation.

11-33 9. A statement that describes the business plan of the administrator.

11-34 The statement must include information:

11-35 (a) Concerning the number of persons on the staff of the

11-36 administrator and the activities proposed in this state or in any other

11-37 state.

11-38 (b) That demonstrates the capability of the administrator to provide a

11-39 sufficient number of experienced and qualified persons for the

11-40 processing of claims, the keeping of records and, if applicable,

11-41 underwriting.

11-42 10. If the applicant intends to solicit new or renewal business, proof

11-43 that the applicant employs or has contracted with an agent licensed in

12-1 this state to solicit and take applications. An applicant who intends to

12-2 solicit insurance contracts directly or to act as an insurance agent must

12-3 provide proof that he is licensed as an insurance agent in this state.

12-4 Sec. 14. 1. Except as otherwise provided by subsection 2, the

12-5 commissioner shall issue a certificate of registration as an administrator

12-6 to an applicant who:

12-7 (a) Submits an application on a form prescribed by the commissioner;

12-8 (b) Has complied with the provisions of section 13 of this act; and

12-9 (c) Pays the fee for the issuance of a certificate of registration

12-10 prescribed in NRS 680B.010.

12-11 2. The commissioner may refuse to issue a certificate of registration

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

12-13 the applicant or any person who has completed an affidavit pursuant to

12-14 subsection 6 of section 13 of this act:

12-15 (a) Is not competent to act as an administrator;

12-16 (b) Is not trustworthy or financially responsible;

12-17 (c) Does not have a good personal or business reputation;

12-18 (d) Has had a license or certificate to transact insurance denied for

12-19 cause, suspended or revoked in this state or any other state; or

12-20 (e) Has failed to comply with any provision of this chapter.

12-21 Sec. 15. 1. A certificate of registration as an administrator is valid

12-22 for 3 years after the date the commissioner issues the certificate to the

12-23 administrator.

12-24 2. An administrator may renew a certificate of registration if he

12-25 submits to the commissioner:

12-26 (a) An application on a form prescribed by the commissioner; and

12-27 (b) The fee for the renewal of the certificate of registration prescribed

12-28 in NRS 680B.010.

12-29 3. A certificate of registration that is suspended or revoked must be

12-30 surrendered immediately to the commissioner.

12-31 Sec. 16. Not later than March 1 of each year, each holder of a

12-32 certificate of registration as an administrator shall file a financial

12-33 statement with the commissioner on a form approved by the

12-34 commissioner.

12-35 Sec. 17. NRS 683A.025 is hereby amended to read as follows:

12-36 683A.025 1. Except as limited by this section, "administrator" means

12-43 employees;

13-1 (b) Administers [a trust under] an internal service fund pursuant to

13-2 NRS 287.010;

13-3 (c) Administers a program of self-insurance for an employer; [or]

13-4 (d) Administers a program which is funded by an employer and which

13-5 provides pensions, annuities, health benefits, death benefits or other similar

13-6 benefits for his employees [.] ; or

13-7 (e) Is an insurance company that is licensed to do business in this

13-8 state or is acting as an insurer with respect to a policy lawfully issued and

13-9 delivered in a state where the insurer is authorized to do business, if the

13-10 insurance company performs any act described in paragraphs (a) to (d),

13-11 inclusive, for or on behalf of another insurer.

13-12 2. "Administrator" does not include:

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

13-14 holds a certificate of registration from the commissioner.

13-15 (b) An employer acting on behalf of his employees or the employees of

13-16 a subsidiary or affiliated concern.

13-17 (c) A labor union acting on behalf of its members.

13-18 (d) [An] Except as otherwise provided in paragraph (e) of subsection

13-19 1, an insurance company licensed to do business in this state or acting as an

13-20 insurer with respect to a policy lawfully issued and delivered in a state in

13-21 which the insurer was authorized to do business.

13-22 (e) A life or health insurance agent or broker licensed in this state, when

13-23 his activities are limited to the sale of insurance.

13-24 (f) A creditor acting on behalf of his debtors with respect to insurance

13-25 covering a debt between the creditor and debtor.

13-26 (g) A trust and its trustees, agents and employees acting for it, if the trust

13-27 was established under the provisions of 29 U.S.C. § 186.

13-28 (h) A trust which is exempt from taxation under section 501(a) of the

13-29 Internal Revenue Code, 26 U.S.C. § 501(2), its trustees and employees, and

13-30 a custodian, his agents and employees acting under a custodial account

13-31 which meets the requirements of section 401(f) of the Internal Revenue

13-32 Code [.] , 26 U.S.C. § 401(f).

13-33 (i) A bank, credit union or other financial institution which is subject to

13-34 supervision by federal or state banking authorities.

13-35 (j) A company which issues credit cards, and which advances for and

13-36 collects premiums or charges from credit card holders who have authorized

13-37 it to do so, if the company does not adjust or settle claims.

13-38 (k) An attorney at law who adjusts or settles claims in the normal course

13-39 of his practice or employment, but who does not collect charges or

13-40 premiums in connection with life or health insurance coverage or with

13-41 annuities.

14-1 Sec. 18. NRS 683A.085 is hereby amended to read as follows:

14-2 683A.085 [1.] No person may act as [an administrator,] , offer to act

14-18 pursuant to section 14 of this act.

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

14-20 683A.0857 1. [Every] Each administrator shall file with the

14-39 bond.

14-40 Sec. 20. NRS 683A.086 is hereby amended to read as follows:

14-41 683A.086 1. No person may act as an administrator unless he has

14-43 contains provisions to effectuate the requirements contained in NRS

15-1 [683A.0867] 683A.087 to 683A.0883, inclusive, and section 1 of Senate

15-2 Bill No. 145 of this [act] session, and sections 12 to 16, inclusive, of this

15-3 act which apply to the duties of the administrator.

15-4 2. The written agreement must set forth:

15-5 (a) The duties the administrator will be required to perform on behalf

15-6 of the insurer; and

15-7 (b) The lines, classes or types of insurance that the administrator is

15-8 authorized to administer on behalf of the insurer.

15-9 3. A copy of an agreement entered into under the provisions of this

15-10 section must be retained in the records of the administrator and of the

15-11 insurer for a period of 5 years after the termination of the agreement.

15-12 [3.] 4. When a policy is issued to a trustee or trustees, a copy of the

15-13 trust agreement and amendments must be obtained by the administrator and

15-14 a copy forwarded to the insurer. Each agreement must be retained by the

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

15-16 termination of the policy.

15-17 [4.] 5. The commissioner may adopt regulations which specify the

15-18 functions an administrator may perform on behalf of an insurer.

15-19 6. The insurer or administrator may, upon written notice to the other

15-20 party to the agreement and to the commissioner, terminate the written

15-21 agreement for any cause specified in the agreement. The insurer may

15-22 suspend the authority of the administrator while any dispute regarding

15-23 the cause for termination is pending. The insurer shall perform any

15-24 obligations with respect to the policies affected by the agreement

15-25 regardless of any dispute with the administrator.

15-26 Sec. 21. NRS 683A.087 is hereby amended to read as follows:

15-27 683A.087 An administrator may advertise the insurance which he

15-29 underwrites the business involved.

15-30 Sec. 22. NRS 683A.0873 is hereby amended to read as follows:

15-31 683A.0873 1. Each administrator shall maintain at his principal

15-42 to 679B.300, inclusive.

16-1 3. The names and addresses of insured persons and any other material

16-2 which is in the books and records of an administrator are confidential

16-3 except when used in proceedings against the administrator.

16-4 4. The insurer may inspect and examine all books and records to the

16-5 extent necessary to fulfill all contractual obligations to insured persons,

16-6 subject to restrictions in the written agreement between the insurer and

16-7 administrator.

16-8 Sec. 23. NRS 683A.0877 is hereby amended to read as follows:

16-9 683A.0877 1. All insurance charges and premiums collected by an

16-41 insurer with copies of those records.

17-1 Sec. 24. NRS 683A.088 is hereby amended to read as follows:

17-2 683A.088 Each claim paid by the administrator from [funds] money

17-4 draft upon and as authorized by the insurer.

17-5 Sec. 25. NRS 683A.0883 is hereby amended to read as follows:

17-6 683A.0883 1. The compensation paid to an administrator for his

17-15 paying the losses covered by an insurer.

17-16 Sec. 26. NRS 683A.0887 is hereby amended to read as follows:

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

17-29 reinsurance or excess of loss insurance.

17-30 Sec. 26.5. NRS 685A.070 is hereby amended to read as follows:

17-31 685A.070 1. A broker shall not knowingly place surplus lines

17-43 basis. In the case of:

18-1 (a) A group of insurers which includes individual unincorporated

18-2 insurers, such a trust fund must not be less than $100,000,000.

18-3 (b) A group of incorporated insurers under common administration,

18-4 such a trust fund must not be less than $100,000,000. The group of

18-5 incorporated insurers must:

18-6 (1) Operate under the supervision of the Department of Trade and

18-7 Industry of the United Kingdom;

18-8 (2) Possess aggregate policyholders surplus of $10,000,000,000,

18-9 which must consist of money in trust in an amount not less than the

18-10 assuming insurers’ liabilities attributable to insurance written in the United

18-11 States; and

18-12 (3) Maintain a joint trusteed surplus of which $100,000,000 must be

18-13 held jointly for the benefit of United States ceding insurers of any member

18-14 of the group.

18-15 (c) An insurance exchange created by the laws of a state, [such] the

18-16 insurance exchange shall have and maintain a trust fund [must not be] in

18-17 an amount of not less than $50,000,000 [.] or have a surplus as to

18-18 policyholders in an amount of not less than $50,000,000. If an insurance

18-19 exchange maintains money for the protection of all policyholders, each

18-20 syndicate shall maintain minimum capital and surplus of not less than

18-21 $5,000,000 and must qualify separately to be eligible for the acceptance of

18-22 surplus lines risks pursuant to this chapter.

18-23 The commissioner may require larger trust funds or surplus as to

18-24 policyholders than those set forth in this section if, in his judgment, the

18-25 volume of business being transacted or proposed to be transacted warrants

18-26 larger amounts.

18-27 3. No insurer is eligible to write surplus lines of insurance unless it has

18-28 established a reputation for financial integrity and satisfactory practices in

18-29 underwriting and handling claims. In addition, a foreign insurer must be

18-30 authorized in the state of its domicile to write the kinds of insurance which

18-31 it intends to write in Nevada.

18-32 4. The commissioner may from time to time compile or approve a list

18-33 of all surplus lines insurers deemed by him to be eligible currently, and may

18-34 mail a copy of the list to each broker at his office last of record with the

18-35 commissioner. To be placed on the list, a surplus lines insurer must file an

18-36 application with the commissioner. The application must be accompanied

18-37 by a nonrefundable fee of $2,450. This subsection does not require the

18-38 commissioner to determine the actual financial condition or claims

18-39 practices of any unauthorized insurer. The status of eligibility, if granted by

18-40 the commissioner, indicates only that the insurer appears to be sound

18-41 financially and to have satisfactory claims practices, and that the

18-42 commissioner has no credible evidence to the contrary. While any such list

19-1 is in effect, the broker shall restrict to the insurers so listed all surplus lines

19-2 business placed by him.

19-3 Sec. 27. NRS 685A.120 is hereby amended to read as follows:

19-4 685A.120 1. No person in this state may act as, hold himself out as,

19-36 NRS 679B.305.

19-37 Sec. 28. NRS 685A.140 is hereby amended to read as follows:

19-38 685A.140 1. In addition to other grounds therefor, the commissioner

19-43 where he was issued a license as a resident broker, or to keep the records,

20-1 or to allow the commissioner to examine his records as required by this

20-2 chapter, or if he removes his records from the state; or

20-3 (c) If the broker places a surplus lines coverage in an insurer other than

20-4 as authorized under this chapter.

20-5 2. Upon suspending or revoking the broker’s surplus lines license the

20-6 commissioner may also suspend or revoke all other licenses of or as to the

20-7 same individual under this code.

20-8 Sec. 29. NRS 685A.160 is hereby amended to read as follows:

20-9 685A.160 1. Each broker shall keep in his office [in this state] a full

20-30 of the coverage to which it relates.

20-31 Sec. 30. NRS 686A.130 is hereby amended to read as follows:

20-32 686A.130 1. No property, casualty, surety or title insurer or

21-1 2. No title insurer or underwritten title company may:

21-2 (a) Pay, directly or indirectly, to the insured or any person acting as

21-3 agent, representative, attorney or employee of the owner, lessee,

21-4 mortgagee, existing or prospective, of the real property or interest therein

21-5 which is the subject matter of title insurance or as to which a service is to

21-6 be performed, any commission , rebate or part of its fee or charges or other

21-7 consideration as inducement or compensation for the placing of any order

21-8 for a title insurance policy or for performance of any escrow or other

21-9 service by the insurer or underwritten title company with respect thereto; or

21-10 (b) Issue any policy or perform any service in connection with which it

21-11 or any agent or other person has paid or contemplates paying any

21-12 commission, rebate or inducement in violation of this section.

21-13 3. No insured named in a policy or any employee of [such] that insured

21-14 may knowingly receive or accept, directly or indirectly, any such rebate,

21-15 discount, abatement, credit or reduction of premium, or any such special

21-16 favor or advantage or valuable consideration or inducement.

21-17 4. No such insurer may make or permit any unfair discrimination

21-18 between insured or property having like insuring or risk characteristics, in

21-19 the premium or rates charged for insurance, or in the dividends or other

21-20 benefits payable thereon, or in any other of the terms and conditions of

21-21 insurance.

21-22 5. No casualty insurer may make or permit any unfair discrimination

21-23 between persons legally qualified to provide a particular service, in the

21-24 amount of the fee or charge for that service payable as a benefit under any

21-25 policy or contract of casualty insurance.

21-26 6. [Nothing in this section prohibits:] The provisions of this section do

21-27 not prohibit:

21-28 (a) The payment of commissions or other compensation to licensed

21-29 agents, brokers or solicitors.

21-30 (b) The extension of credit to an insured for the payment of any

21-31 premium and for which credit a reasonable rate of interest is charged and

21-32 collected.

21-33 (c) Any insurer from allowing or returning to its participating

21-34 policyholders, members or subscribers, dividends, savings or unabsorbed

21-35 premium deposits.

21-36 [As to title insurance, nothing in this section prohibits]

21-37 (d) With respect to title insurance, bulk rates or special rates for

21-38 customers of prescribed classes if [such] the bulk or special rates are

21-39 provided for in the [currently] effective schedule of fees and charges of the

21-40 title insurer or underwritten title company.

21-41 7. [This section does] The provisions of this section do not apply to

21-42 wet marine and transportation insurance.

22-1 Sec. 31. NRS 686C.035 is hereby amended to read as follows:

22-2 686C.035 1. This chapter does not provide coverage for:

22-42 guaranteed to a natural person by an insurer under the contract or certificate

23-1 except that annuities issued in connection with and for the purpose of

23-2 funding structured settlements of liability are covered policies.

23-3 (h) Any health or life insurance policy purchased by the Federal

23-4 Government, if no premium taxes are paid on such policies.

23-5 (i) Any annuity issued pursuant to subsection 8 of NRS 680A.070.] A

23-6 portion of a policy or contract to the extent that the assessments required

23-7 by NRS 686C.230 for the policy or contract are preempted by federal law.

23-8 (h) An obligation that does not arise under the written terms of a

23-9 policy or contract issued by the insurer.

23-10 (i) An unallocated annuity contract.

23-11 2. As used in this section, "Moody’s Corporate Bond Yield Average"

23-12 means the monthly average for corporate bonds published by Moody’s

23-13 Investors Service, Inc., or any successor average.

23-14 Sec. 32. NRS 687B.440 is hereby amended to read as follows:

23-15 687B.440 1. An insurer offering an umbrella policy to an individual

24-1 3. The disclosure statement for an umbrella policy that does not

24-2 include uninsured or underinsured vehicle coverage must be on a form

24-3 provided by the commissioner or in substantially the following form:

24-4 ¨ Your Umbrella Liability Policy does not provide any

24-5 uninsured/underinsured vehicle coverage.

24-6 I understand and acknowledge the above disclosure.

24-7

24-8 Insured Date

24-9 [3.] 4. As used in this section, "umbrella policy" means a policy that

24-10 protects a person against losses in excess of the underlying amount required

24-11 to be covered by other policies.

24-12 Sec. 33. NRS 689A.505 is hereby amended to read as follows:

24-13 689A.505 "Creditable coverage" means, with respect to a person,

24-30 9. A public health plan as defined in 45 C.F.R. § 146.113, authorized

24-31 by the Public Health Service Act, [section 2701(c)(1)(I), as amended by

24-32 Public Law 104-191,] 42 U.S.C. § 300gg(c)(1)(I);

24-33 10. A health benefit plan under section 5(e) of the Peace Corps Act, 22

24-34 U.S.C. § 2504(e); [or]

24-35 11. The children’s health insurance program established pursuant to 42

24-36 U.S.C. §§ 1397aa to 1397jj, inclusive [.] ;

24-37 12. A short-term health insurance policy; or

24-38 13. A blanket student accident and health insurance policy.

25-1 Sec. 34. NRS 689A.515 is hereby amended to read as follows:

25-2 689A.515 "Eligible person" means:

25-32 as set forth in subsection 1.

25-33 Sec. 35. NRS 689A.540 is hereby amended to read as follows:

25-34 689A.540 1. "Health benefit plan" means a policy, contract,

25-43 (b) Coverage issued as a supplement to liability insurance;

26-1 (c) Liability insurance, including general liability insurance and

26-2 automobile liability insurance;

26-3 (d) Workers’ compensation or similar insurance;

26-4 (e) Coverage for medical payments under a policy of automobile

26-5 insurance;

26-6 (f) Credit insurance;

26-7 (g) Coverage for on-site medical clinics; [and]

26-8 (h) Other similar insurance coverage specified in federal regulations

26-9 issued pursuant to Public Law 104-191 under which benefits for medical

26-10 care are secondary or incidental to other insurance benefits [.] ;

26-11 (i) Coverage under a short-term health insurance policy; and

26-12 (j) Coverage under a blanket student accident and health insurance

26-13 policy.

26-14 3. The term does not include the following benefits if the benefits are

26-15 provided under a separate policy, certificate or contract of insurance or are

26-16 otherwise not an integral part of a health benefit plan:

26-17 (a) Limited-scope dental or vision benefits;

26-18 (b) Benefits for long-term care, nursing home care, home health care or

26-19 community-based care, or any combination thereof; and

26-20 (c) Such other similar benefits as are specified in any federal regulations

26-21 adopted pursuant to the Health Insurance Portability and Accountability

26-22 Act of 1996, Public Law 104-191.

26-23 4. The term does not include the following benefits if the benefits are

26-24 provided under a separate policy, certificate or contract of insurance, there

26-25 is no coordination between the provision of the benefits and any exclusion

26-26 of benefits under any group health plan maintained by the same plan

26-27 sponsor, and [such] the benefits are paid for a claim without regard to

26-28 whether benefits are provided for such a claim under any group health plan

26-29 maintained by the same plan sponsor:

26-30 (a) Coverage that is only for a specified disease or illness; and

26-31 (b) Hospital indemnity or other fixed indemnity insurance.

26-32 5. The term does not include any of the following, if offered as a

26-33 separate policy, certificate or contract of insurance:

26-34 (a) Medicare supplemental health insurance as defined in section

26-35 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section

26-36 existed on July 16, 1997;

26-37 (b) Coverage supplemental to the coverage provided pursuant to

26-38 [chapter 55 of Title 10, United States Code (] the Civilian Health and

26-39 Medical Program of Uniformed Services [(CHAMPUS));] , CHAMPUS,

26-40 10 U.S.C. §§ 1071 et seq.; and

26-41 (c) Similar supplemental coverage provided under a group health plan.

27-1 Sec. 36. NRS 689A.650 is hereby amended to read as follows:

27-2 689A.650 1. An individual carrier is not required to provide

27-15 in this state for 5 years after the date of the notification.

27-16 Sec. 37. NRS 689A.660 is hereby amended to read as follows:

27-17 689A.660 An individual carrier shall not:

27-23 otherwise covered by the plan.

27-24 Sec. 38. NRS 689A.680 is hereby amended to read as follows:

27-25 689A.680 1. An individual carrier shall develop its rates for its