Any consumer credit insurance issued in connection with loans or other credit transactions for personal, family or household use is subject to the provisions of this chapter except:  1. Insurance written in connection with a credit transaction that is:  (a) Secured by a first mortgage or deed of trust; and  (b) Made to finance the purchase of real property or the construction of a dwelling thereon, or to refinance a prior credit transaction made for that purpose;  2. Insurance that is sold as an isolated transaction on the part of the insurer and not related to an agreement or a plan for insuring debtors of the creditor;  3. Insurance for which no identifiable charge is made to the debtor; or  4. Insurance on accounts receivable.  (Added to NRS by 1971, 1771; A 1987, 2296; 2005, 2144)
As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 690A.012 to 690A.0247, inclusive, have the meanings ascribed to them in those sections.  (Added to NRS by 1987, 2287; A 2005, 2144)
"Compensation" means any valuable consideration, direct or indirect, paid by or on behalf of the insurer, or by any subsidiary or parent, or subsidiary of the parent of the insurer, or by any other person to or on behalf of any group policyholder or producer or withheld from an insurer by any group policyholder or producer, and includes:  1. Paid or credited commissions or contingent commissions.  2. Fees for services, consulting fees or any other fee paid or credited within or outside this State in direct relation to the volume of premiums produced or written in this State.  3. The use of electronic data processing equipment or services, except for devices provided in lieu of books and charts of rates and refunds usable only for that purpose.  4. The furnishing of supplies, except forms approved by the Commissioner, the usual forms for claims and reports, envelopes for transmitting claims and brochures, and books and charts of rates and refunds.  5. Providing rental equipment of any type.  6. Advertising.  7. Providing telephone service without charge or at a charge less than the usual cost.  8. Participation in a profit-sharing plan.  9. Dividends and refunds or credits based on experience ratings.  10. An allowance for expenses.  11. Participation in stock plans or bonuses.  12. Any form of credit, including the use of money.  13. Commissions for reinsurance, ceded or assumed.  14. Reinsurance with a nonauthorized insurer owned or controlled by a creditor or producer or with a nonauthorized insurer in which a creditor or producer is a stockholder.  15. Any commission or fee, inducement or intention to induce, or any other consideration arising from the sale of insurance or other product or service, except consumer credit insurance as part of the transaction in which the indebtedness is arranged or the application for the consumer credit insurance is made.  (Added to NRS by 1987, 2287; A 2005, 2144)
"Credit accident and health insurance" means insurance on a debtor to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy.  (Added to NRS by 2005, 2137)
"Credit insurance" or "consumer credit insurance" means any or all of the following:  1. Credit life insurance;  2. Credit accident and health insurance;  3. Credit unemployment insurance; or  4. Any other insurance defined in this chapter.  (Added to NRS by 1987, 2288; A 2005, 2145)
"Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction to provide for satisfaction of a debt, in whole or in part, upon the death of an insured debtor.  (Added to NRS by 1987, 2288; A 2005, 2145)
"Credit transaction" means any transaction for which the terms of repayment of money loaned or loan commitment made, or payment of goods, services or properties sold or leased, is to be made at a future date or dates.  (Added to NRS by 2005, 2137)
"Credit unemployment insurance" means insurance on a debtor to provide indemnity for payments or a debt becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed as defined in the policy.  (Added to NRS by 2005, 2137)
"Creditor" means the lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, and includes:  1. The successor to the right, title or interest of;  2. An affiliate, associate or subsidiary of;  3. Any director, officer or employee of; or  4. Any other person in any way associated with,  any such lender, vendor or lessor.  (Added to NRS by 1987, 2288)
"Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.  (Added to NRS by 1987, 2288)
"Gross debt" means the sum of the remaining payments owed to a creditor by a debtor.  (Added to NRS by 2005, 2137)
"Identifiable charge" means a charge for consumer credit insurance that is made to debtors who have that insurance and not made to debtors who do not have that insurance. The term includes a charge for insurance that is disclosed in the credit agreement or other instrument furnished to the debtor which sets forth the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors who are in similar circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction.  (Added to NRS by 2005, 2137)
"Net debt" means the amount required to liquidate the remaining debt in a single lump-sum payment, excluding all unearned interest and other unearned finance charges.  (Added to NRS by 2005, 2138)
"Open-end credit" means credit extended by a creditor under an agreement in which:  1. The creditor reasonably contemplates repeated transactions;  2. The creditor periodically imposes a finance charge on any outstanding unpaid balance; and  3. The amount of credit that may be extended to the debtor during the term of the agreement up to any limit set by the creditor is generally made available to the extent that any outstanding balance is repaid.  (Added to NRS by 2005, 2138)
  1. Except as otherwise provided in this section, the amount of credit life insurance must not exceed the greater of the actual net debt or the scheduled net debt.  2. If coverage is written on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt less any payments that are more than 2 months past due.  3. If the coverage is written on any scheduled net debt, the amount payable at the time of loss must not be less than:  (a) If the actual net debt is less than or equal to the scheduled net debt, the scheduled net debt;  (b) If the actual net debt is greater than the scheduled net debt but less than or equal to the scheduled net debt plus 2 months of payments, the actual net debt; or  (c) If the actual net debt is greater than the scheduled net debt plus 2 months of payments, the scheduled net debt plus 2 months of payments.  4. If a premium is assessed to the debtor on a monthly basis and is based on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt on the date of death. If the premium is based on a balance that does not include accrued past due interest, the amount payable at the time of loss must not be less than the actual net debt less any accrued interest that is more than 2 months past due.  5. Insurance on agricultural loan commitments that do not exceed 1 year in duration may be written for not more than the amount of the loan on a nondecreasing or level term plan.  6. Insurance on educational loan commitments may be written for the net unpaid debt plus any unused commitment.  7. Coverage may be written for less than the net debt through the following methods:  (a) The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 2;  (b) The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 3;  (c) The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 2;  (d) The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 3; or  (e) In the absence of any exclusions for a preexisting condition, the amount of insurance payable in the event of death by natural causes may be limited to the balance as it existed 6 months before the date of death if:  (1) There have been one or more increases in the outstanding balance during the 6-month period other than increases resulting from the accrual of interest or late charges; and  (2) Evidence of individual insurability has not been required during the 6-month period.  8. Other kinds of insurance may be used if those kinds are not inconsistent with the provisions of this section.  (Added to NRS by 2005, 2138)
  1. Except as otherwise provided in subsection 2, the total amount of periodic indemnity payable pursuant to a policy of credit accident and health insurance or credit unemployment insurance in the event of disability or unemployment, as defined in the policy, must not exceed the aggregate of the periodic scheduled unpaid installments of the gross debt, and the amount of each periodic indemnity payment must not exceed the original gross debt divided by the number of periodic installments.  2. For credit accident and health insurance or credit unemployment insurance written in connection with an open-end credit agreement, the amount of insurance must not exceed the gross debt which would accrue on that amount using the periodic indemnity. Subject to any policy maximum, the periodic indemnity must not be less than the minimum repayment schedule of the creditor.  (Added to NRS by 1971, 1773; A 1987, 2297; 2005, 2145)
The types of consumer credit insurance defined in this chapter may be written separately or in combination with other types of consumer credit insurance on an individual policy or group policy basis. The Commissioner may by regulation prohibit or limit any combination.  (Added to NRS by 2005, 2138)
  1. Except as otherwise provided in this section, for consumer credit insurance that is made available to and elected by a debtor before or with the credit transaction to which it relates, the term of the insurance must, subject to acceptance by the insurer, commence on the date on which the debtor becomes obligated to the creditor. If the insurer requires evidence of individual insurability and the evidence is provided to the insurer more than 30 days after the date on which the debtor becomes obligated to the creditor, the insurance may commence on the date on which the insurer determines the evidence to be satisfactory.  2. Except as otherwise provided in this section, for consumer credit insurance that is made available to and elected by a debtor after the credit transaction to which it relates, the term of the insurance must, subject to acceptance by the insurer, commence on a date not earlier than the date the election is made by the debtor and not later than 30 days after the date on which the insurance company accepts the risk for coverage. If the coverage does not commence on the date on which the insurance company accepts the risk for coverage, the date that coverage commences must be related to an objective method for determining the date, including, without limitation, the billing cycle, the payment cycle or a calendar month.  3. If a group policy provides coverage with respect to debts existing on the effective date of the policy, the insurance related to a debt must not commence before the effective date of the group policy.  4. A creditor or insurer shall not charge or retain payment from a debtor before commencement of the insurance to which the charge is related.  (Added to NRS by 2005, 2139)
  1. The term of any consumer credit insurance must not extend beyond the date of termination specified in the policy. The date of termination of the insurance must not occur more than 15 days after the scheduled maturity date of the debt to which it relates unless:  (a) The date is extended at no additional cost to the debtor; or  (b) The date is extended pursuant to a written agreement signed by the debtor and relates to a variable rate credit transaction or a deferral, renewal, refinancing or consolidation of debt.  2. If a debt is discharged because of any renewal, refinancing or consolidation before the scheduled date of termination of the consumer credit insurance, the insurance must be cancelled before any new consumer credit insurance is written in relation to the renewed, refinanced or consolidated debt.  3. If consumer credit insurance is terminated before the scheduled termination date, unless the insurance is terminated because of the performance by the insurer of all obligations with respect to the insurance, the insurer shall make an appropriate refund or credit to the debtor of any unearned charge that was paid by the debtor.  4. A debtor may cancel consumer credit insurance at any time by providing a request to the insurer. The insurer may require the request to be submitted in writing and may require the debtor to surrender any individual policy or group certificate. The right of the debtor to cancel the insurance may be subject to the terms of the credit transaction.  (Added to NRS by 2005, 2139)
  1. Before a debtor elects to purchase consumer credit insurance in connection with a credit transaction, the following information must be disclosed to the debtor in writing:  (a) That the purchase of consumer credit insurance from the creditor is not mandatory and is not a condition for obtaining credit approval;  (b) If more than one type of consumer credit insurance is made available to the debtor, whether the debtor may purchase each separately or only as a package;  (c) The conditions of eligibility;  (d) That if the debtor has other insurance that covers the risk, the debtor may not want or need consumer credit insurance;  (e) That the debtor may cancel the insurance at any time, or if evidence of insurance is required for the extension of credit, upon proof of insurance that is acceptable to the creditor, and obtain a refund of or credit for:  (1) If the cancellation is not more than 30 days after the debtor receives the individual policy or certificate of insurance, any premium paid by the debtor; or  (2) If the cancellation is more than 30 days after the debtor receives the individual policy or certificate of insurance, any unearned premium paid by the debtor;  (f) A brief description of the coverage, including a description of the amount, term, exceptions, limitations and exclusions, the insured event, any waiting or elimination period, any deductible, any applicable waiver of premium, the person who would receive any benefits, and the premium or premium rate for the consumer credit insurance; and  (g) If the premium or insurance charge is financed, that it will be subject to finance charges at the rate applicable to the credit transaction.  2. The disclosures required pursuant to subsection 1:  (a) If made in connection with consumer credit insurance offered at the same time as the extension of credit or offered through direct mail advertisements, must be made in writing and presented to the customer in a clear and conspicuous manner; or  (b) If made in connection with consumer credit insurance offered after the extension of credit other than through direct mail advertisements, may be provided orally or electronically if written disclosures are provided not later than the earlier of:  (1) Ten days after the debtor elects to accept the coverage; or  (2) The date any other written material is provided to the debtor.  (Added to NRS by 2005, 2140)
  1. If a named insurer does not accept the insurance and another insurer accepts the insurance, the insurer shall provide an individual policy or group certificate that includes the name and address of the home office of the insurer who accepted the insurance and the amount of the premium to be charged. If the premium is less than the premium paid by the debtor, the insurer shall provide a refund of the excess premium not more than 30 days after the date it was paid by the debtor.  2. If a named insurer does not accept the insurance and no other insurer accepts the insurance, a person who received any premium payment related to the insurance shall refund the payment not more than 30 days after the date it was paid by the debtor.  (Added to NRS by 2005, 2141)
  1. All consumer credit insurance must be evidenced by an individual policy or a group certificate that is delivered to the debtor.  2. The individual policy or group certificate must, in addition to other requirements of law, include:  (a) The name and address of the home office of the insurer;  (b) The name of each debtor or, on a certificate of insurance, the identity by name or otherwise of each debtor;  (c) The amount of the premium or payment of the debtor stated separately for each type of coverage or as a package or, for open-end credit, the premium rate, basis of the calculation of premiums and balance to which the premium rate applies;  (d) A complete description of the coverage or coverages, including the amount, term and any exceptions, limitations and exclusions of coverage;  (e) A statement that all benefits must be paid to the creditor to reduce or extinguish the unpaid debt and that if the benefits exceed the unpaid debt, any excess benefit must be paid to the debtor, to a beneficiary, other than the creditor, named by the debtor or to the estate of the debtor; and  (f) If the scheduled term of the insurance is less than the scheduled term of the credit transaction, a statement indicating that fact set forth on the face of the individual policy or certificate of insurance in not less than 10-point bold type.  3. The insurer shall deliver the individual policy or group certificate to the debtor upon acceptance of insurance by the insurer and not more than 30 days after the debtor elects to purchase the insurance. An individual policy or group certificate related to open-end credit or consumer credit insurance that is requested by the debtor after the date of the credit transaction to which it is related shall be deemed to have been delivered at the time the debtor elected to purchase insurance if the actual delivery is made not more than 30 days after the date on which the insurer accepts the insurance.  (Added to NRS by 2005, 2140)
  1. If the individual policy or group certificate is not delivered to the debtor at the time the debt is incurred or at such other time as the debtor purchases consumer credit insurance, a copy of the application or a notice of proposed insurance, signed by the debtor, must be delivered to the debtor. The application or notice of proposed insurance must include:  (a) The name and address of the home office of the insurer;  (b) The name of each debtor;  (c) The premium or amount of payment by the debtor for the insurance;  (d) The amount, term and a brief description of the coverage; and  (e) A statement that upon acceptance by the insurer, the insurance will become effective as described in NRS 690A.063.  2. The application or notice of insurance provided pursuant to subsection 1 must:  (a) Refer exclusively to consumer credit insurance; and  (b) Be separate from the loan, sale or other credit statement, instrument or agreement unless the information required pursuant to subsection 1 is prominently set forth in the statement, instrument or agreement.  3. The application or notice of insurance provided pursuant to subsection 1 may be used to meet the requirements of NRS 690A.073 and 690A.077 if it includes the information required by those sections.  (Added to NRS by 2005, 2141)
  1. Except as otherwise provided in NRS 690A.087 and 690A.093, all policies, certificates of insurance, applications for insurance, enrollment forms, endorsements and riders delivered or issued for delivery in this State and the schedules of premium rates related thereto must be filed with the Commissioner.  2. An item filed with the Commissioner pursuant to subsection 1 may not be issued or used until 60 days after it is filed with the Commissioner or until the written prior approval of the Commissioner is obtained.  3. The Commissioner shall, not more than 60 days after an item is submitted to the Commissioner pursuant to subsection 1, disapprove the item if the benefits are not reasonable in relation to the premium charged or if the item contains provisions that are unjust, unfair, inequitable, misleading or deceptive or encourage misrepresentation of the coverage or are contrary to any provision of the Code or any regulation adopted pursuant to the Code. If the Commissioner does not disapprove an item filed pursuant to subsection 1 in accordance with this subsection, the item shall be deemed to be approved.  4. If the Commissioner notifies an insurer that an item is disapproved pursuant to subsection 3, the insurer shall not use the item. The notice must include the reason for the disapproval and state that a hearing will be granted not more than 30 days after the insurer submits a written request for a hearing to the Commissioner, unless postponed by mutual consent or by order of the Commissioner.  5. The Commissioner may hold a hearing to withdraw approval of an item submitted pursuant to subsection 1 not less than 20 days after providing a written notice of the hearing to the insurer. The written notice must include one of the reasons described in subsection 3 for the proposed withdrawal of approval of the item. An insurer shall not use an item if approval of the item is withdrawn pursuant to this subsection.  (Added to NRS by 2005, 2142)
  1. The Commissioner may adopt by regulation forms for use in the issuance of consumer credit insurance, including applications, policies, forms for claims and any other forms required for the sale, issuance and administration of consumer credit insurance. An insurer may elect to use those forms in lieu of any other forms.  2. If an officer of the insurer submits, in the manner prescribed by the Commissioner, a written certification to the Commissioner that the forms used by the insurer are identical to those adopted by the Commissioner, the insurer is not required to file those forms with the Commissioner for approval pursuant to NRS 690A.085.  (Added to NRS by 2005, 2142)
  1. The Commissioner shall, by regulation, establish reasonable rates as described in this chapter and in accordance with the standards established in NRS 686B.050 and 686B.060. The rates must be reasonable in relation to the benefits provided and must not be excessive, inadequate or unfairly discriminatory.  2. The Commissioner may, by regulation, establish rates that an insurer may use without filing pursuant to NRS 690A.085. In establishing such rates, the Commissioner shall consider and apply the following factors:  (a) Actual and expected loss experience;  (b) General and administrative expenses;  (c) Loss settlement and adjustment expenses;  (d) Reasonable creditor compensation;  (e) The manner in which premiums are charged;  (f) Other acquisition costs;  (g) Reserves;  (h) Taxes;  (i) Regulatory license fees and fund assessments;  (j) Reasonable insurer profit; and  (k) Other relevant data consistent with generally accepted actuarial standards.  (Added to NRS by 2005, 2142)
Except as otherwise provided in NRS 690A.093, if an insurer revises its schedule of premium rates, the insurer shall file the revised schedule with the Commissioner pursuant to NRS 690A.085. An insurer shall not issue consumer credit insurance for which the premium rates differ from the rates determined by the schedule approved by the Commissioner.  (Added to NRS by 2005, 2143)
  1. Each individual policy or group certificate must provide for a refund of unearned premiums if the consumer credit insurance is cancelled before the scheduled date of termination of the insurance.  2. Except as otherwise provided in this section, any refund must be provided to the person to whom it is entitled as soon as practicable after the date of cancellation of the insurance.  3. The Commissioner shall, by regulation, establish the minimum amount of unearned premiums that must remain outstanding at the time of cancellation in order for a person to be entitled to a refund. If the amount of unearned premiums that remains outstanding at the time of cancellation is less than the minimum amount established by regulation, the person is not entitled to a refund.  4. The formula that an insurer uses to determine the amount of a refund must be submitted to and approved by the Commissioner before it is used.  (Added to NRS by 2005, 2143)
If a creditor requires a debtor to make a payment for consumer credit insurance and an individual policy or group certificate is not issued, the creditor shall immediately notify the debtor in writing and make an appropriate credit to the account of the debtor or issue a refund.  (Added to NRS by 2005, 2143)
The amount charged to a debtor for any consumer credit insurance must not exceed the amount of the premiums charged by the insurer as determined at the time that the contract was accepted by the debtor.  (Added to NRS by 2005, 2143)
All policies and certificates of consumer credit insurance may be delivered or issued for delivery in this State only by an insurer authorized to do an insurance business in this State, and may be issued only through holders of licenses or certificates of authority issued by the Commissioner.  (Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145)
  1. All claims must be promptly reported to the insurer or its designated representative, and the insurer shall maintain adequate files on all reported claims. All claims must be settled as soon as practicable and in accordance with the terms of the insurance contract.  2. All claims must be paid by draft drawn upon the insurer, by electronic funds transfer or by check of the insurer to the order of:  (a) The claimant to whom payment of the claim is due pursuant to the provisions of the policy; or  (b) Any other person designated by the claimant to whom payment is due.  3. A plan or arrangement may not be used whereby a person other than the insurer or its designated claim representative is authorized to settle or adjust claims. The creditor may not be designated as the representative for the insurer in adjusting a claim, except that a group policyholder may, by arrangement with the group insurer, draw drafts, electronic transfers or checks in payment of claims due the group policyholder subject to the periodic audit by the insurer.  (Added to NRS by 1971, 1776; A 1987, 2302; 2005, 2145)
When any form of consumer credit insurance is required as additional security for any debt, the debtor may furnish the required amount of insurance through existing policies of insurance owned or controlled by the debtor or procure or furnish the required coverage through any insurer authorized to transact the business of insurance in this State.  (Added to NRS by 1971, 1777; A 1987, 2303; 2005, 2146)
  1. Except as otherwise provided in subsection 2, an authorized insurer issuing consumer credit insurance may not enter into any agreement whereby the authorized insurer transfers, by reinsurance or otherwise, to an unauthorized insurer, as they relate to consumer credit insurance written or issued in this State:  (a) A substantial portion of the risk of loss under the consumer credit insurance written by the authorized insurer in this State;  (b) All of one or more kinds, lines, types or classes of consumer credit insurance;  (c) All of the consumer credit insurance produced through one or more agents, agencies or creditors;  (d) All of the consumer credit insurance written or issued in a designated geographical area; or  (e) All of the consumer credit insurance under a policy of group insurance.  2. An authorized insurer may make the transfers listed in subsection 1 to an unauthorized insurer if the unauthorized insurer:  (a) Maintains security on deposit with the Commissioner in an amount which when added to the actual capital and surplus of the insurer is equal to the capital and surplus required of an authorized stock insurer pursuant to NRS 680A.120. The security may consist only of the following:  (1) Cash.  (2) General obligations of, or obligations guaranteed by, the Federal Government, this State or any of its political subdivisions. These obligations must be valued at the lower of market value or par value.  (3) Any other type of security that would be acceptable if posted by a domestic or foreign insurer.  (b) Files an annual statement with the Commissioner pursuant to NRS 680A.270.  (c) Maintains reserves on its consumer credit insurance business pursuant to NRS 681B.050.  (d) Values its assets and liabilities pursuant to NRS 681B.010 to 681B.040, inclusive.  (e) Agrees to examinations conducted by the Commissioner pursuant to NRS 679B.230.  (f) Complies with the standards adopted by the Commissioner pursuant to NRS 679A.150.  (g) Does not hold, issue or have an arrangement for holding or issuing any of its stock for which dividends are paid based on:  (1) The experience of a specific risk of all of one or more kinds, lines, types or classes of insurance;  (2) All of the business produced through one or more agents, agencies or creditors;  (3) All of the business written in a designated geographical area; or  (4) All of the business written for one or more forms of insurance.  (Added to NRS by 1987, 2294; A 2005, 2146)
Except as otherwise prohibited by law, any duty imposed on an insurer pursuant to this chapter may be carried out by a creditor who is acting as an agent of the insurer.  (Added to NRS by 2005, 2143)
The Commissioner may adopt regulations to carry out the provisions of this chapter.  (Added to NRS by 2005, 2143)
In addition to any other penalty provided by law, any person who violates any provision of this chapter or a regulation adopted or a final order of the Commissioner issued pursuant to this chapter shall, after notice and hearing, pay an administrative penalty:  1. In an amount not to exceed $5,000; or  2. If the violation is willful, in an amount not to exceed $10,000,  and the Commissioner may, after notice and a hearing, revoke or suspend the license or certificate of authority of that person.  (Added to NRS by 1987, 2296; A 2005, 2147)