Assembly Bill No. 304–Assemblyman Brower

 

March 8, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Limits amount of money that certain resident agents may receive as commission for countersigning policy of insurance. (BDR 57‑580)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to insurance; limiting the amount of money that certain resident agents may receive as a commission for countersigning a policy of insurance; providing that certain policies, endorsements or bonds may be countersigned by the use of a digital signature; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. NRS 680A.300 is hereby amended to read as follows:

1-2    680A.300  1.  Except as otherwise provided in NRS 680A.310, no

1-3  authorized insurer may make, write, place, renew or cause to be made,

1-4  placed or renewed, any policy or duplicate policy of insurance of any kind

1-5  upon persons, property or risks resident, located or to be performed in this

1-6  state, except through its [duly] appointed and licensed agents resident in

1-7  this state, any one of whom [shall] must countersign the policy.

1-8    2.  [Where] If two or more insurers jointly issue a single policy, the

1-9  policy may be countersigned, on behalf of all insurers appearing thereon,

1-10  by a licensed agent resident in this state of any one insurer.

1-11    3.  In any case [where] if it is necessary to execute an emergency bond

1-12  and a commissioned agent authorized to execute the bond is not present, a

1-13  manager or other employee of the insurer having authority under a power

1-14  of attorney may execute the bond [in order] to produce a valid contract

1-15  between the insurer and the obligee. The bond must subsequently be

1-16  countersigned by a resident commissioned agent, who shall make and

1-17  retain an adequate office record of the transaction.

1-18    4.  [Nothing contained in] The provisions of this section [prevents] do

1-19  not prevent the exercise of the free and unlimited right to negotiate

1-20  contracts by licensed nonresident agents or brokers outside this state, if the

1-21  policies, endorsements or evidence of those contracts covering properties

1-22  or insurable interests in this state are countersigned by a resident agent of

2-1  this state. [Every] Each such policy or contract must be countersigned by a

2-2  resident agent.

2-3    5.  On business produced by a licensed nonresident agent or broker,

2-4  which is countersigned by a resident commissioned agent of this state,

2-5  there must be a division of the usual commission between the licensed

2-6  nonresident producing agent or broker and the resident countersigning

2-7  commissioned agent which must not produce for the latter a commission of

2-8  [at least] more than 5 percent of the premium. No commission or fee is

2-9  required as to policies with an annual premium of $250 or less or if the

2-10  insurer maintains an office in this state that employs at least one salaried

2-11  employee who is licensed pursuant to NRS 683A.090. The insurer issuing

2-12  any policy or bond is responsible for payment to the countersigning agent

2-13  of the fee or commission for the countersignature. [Where] If the licensed

2-14  nonresident agent or broker or the insurer assuming the risk desires the

2-15  resident commissioned agent to render additional services during the life of

2-16  a policy, the compensation to the countersigning commissioned resident

2-17  agent is a matter of contract between the parties in interest.

2-18    6.  An insurer may use an endorsement to the policy for the sole

2-19  purpose of countersigning the policy, as required in this section, only if:

2-20    (a) The endorsement is attached to the policy to which it applies; and

2-21    (b) The policy insures persons or property in this state and one or more

2-22  other states.

2-23    7.  Any policy, endorsement, evidence of a contract or bond specified

2-24  in this section may be countersigned by the use of a digital signature in

2-25  accordance with the provisions of chapter 720 of NRS.

2-26    Sec. 2.  This act becomes effective on July 1, 2001.

 

2-27  H