1. This chapter may be known and cited as the Group Life Insurance Law.  2. This chapter applies only to group life insurance and wholesale life insurance.  3. This chapter does not apply to any group life insurance contract entered into or issued prior to January 1, 1972, or to any extensions, renewals or modifications thereof or amendments thereto whenever made.  (Added to NRS by 1971, 1746)
  1. As used in this Code, "wholesale life insurance" is that plan of life insurance, other than salary savings life insurance or pension trust insurance and annuities, issued to:  (a) Three or more employees of any corporation, copartnership or individual employer or any governmental corporation, agency or department thereof; or  (b) Ten or more members, employees or employees of members of any trade or professional association, or of a labor union, or of any association of members in the same or related occupations, profession or industry having had an active existence for at least 2 years, where such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance,  where such persons, with or without their dependents are issued the same form of an individual policy on the plan, varying only as to amounts of coverage applied for by such persons and under an arrangement whereby the premiums on such policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the insured or association or union for its members, or by some designated person acting on behalf of such employer, association or union. The term "employees" as used in this section shall be deemed to include the officers, managers, employees and retired employees of the employer and the individual proprietor or partners if the employer is an individual or partnership.  2. Each policy issued under this section shall provide that the coverage shall terminate when the insured individual no longer qualifies for such policy under this section; but the policy may provide that it may be continued in force or be replaced with another policy if the premium, benefits and other relevant factors of the continued or replacement policy are the same as those of a similar individual policy not issued under or pursuant to this section.  (Added to NRS by 1971, 1746)
  1. Except as otherwise provided in this section, no policy of group life insurance may be delivered or issued for delivery in this State to a group which was formed for the purpose of purchasing one or more policies of group life insurance.  2. A policy of group life insurance may be delivered to a group described in subsection 1 if the Commissioner approves the issuance. The Commissioner must not grant approval unless the Commissioner finds that:  (a) The benefits of the policy are reasonable in relation to the premiums charged; and  (b) The group to which the policy is issued is organized and operated in a fiscally sound manner.  3. The provisions of subsection 1 do not apply to a policy of group life insurance which is delivered or issued for delivery in this State to a group whose members:  (a) Are related by blood, marriage or legal adoption;  (b) Have a common interest through ownership of a business enterprise or a substantial legal interest or equity therein, and who are actively engaged in the management thereof; or  (c) Otherwise have an insurable interest in each others lives.  4. An insurer may exclude or limit the coverage in a policy issued pursuant to this section of any person as to whom evidence of insurability is not satisfactory to the insurer.  5. The provisions of this section apply to the offering in this State of a policy issued in another state.  (Added to NRS by 1971, 1747; A 1987, 118)
No policy of group life insurance shall be delivered in this State unless it contains in substance the provisions set forth in NRS 688B.040 to 688B.150, inclusive, or provisions which in the opinion of the Commissioner are more favorable to the persons insured, or at least as favorable to the persons insured and more favorable to the policyholder; except:  1. NRS 688B.100 to 688B.140, inclusive, do not apply to policies issued to a creditor to insure debtors of such creditor;  2. The standard provisions required for individual life insurance policies do not apply to group life insurance policies; and  3. If the group life insurance policy is on a plan of insurance other than the term plan, it shall contain a nonforfeiture provision or provisions which in the opinion of the Commissioner is or are equitable to the insured persons and to the policyholder; but nothing in this subsection shall be construed to require that group life insurance policies contain the same nonforfeiture provisions as are required for individual life insurance policies.  (Added to NRS by 1971, 1747)
The group life insurance policy shall contain a provision that the policyholder is entitled to a grace period of 31 days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless the policyholder has given the insurer written notice of discontinuance in advance of the date of discontinuance and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during such grace period.  (Added to NRS by 1971, 1747)
The group life insurance policy shall contain a provision that the validity of the policy shall not be contested, except for nonpayment of premium, after it has been in force for 2 years from its date of issue; and that no statement made by any person insured under the policy relating to the insurability of the person shall be used in contesting the validity of the insurance with respect to which such statement was made after such insurance has been in force prior to the contest for a period of 2 years during such persons lifetime nor unless it is contained in a written instrument signed by the person.  (Added to NRS by 1971, 1748)
The group life insurance policy shall contain a provision:  1. That a copy of the application, if any, of the policyholder shall be attached to the policy when issued and become a part of the contract;  2. That all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties; and  3. That no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to such person or to the beneficiary of the person.  (Added to NRS by 1971, 1748)
The group life insurance policy shall contain a provision setting forth the conditions, if any, under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as a condition to part or all of the coverage of the person.  (Added to NRS by 1971, 1748)
The group life insurance policy shall contain a provision specifying an equitable adjustment of premiums or of benefits or both to be made if the age of a person insured has been misstated, such provision to contain a clear statement of the method of adjustment to be used.  (Added to NRS by 1971, 1748)
The group life insurance policy shall contain a provision that any sum becoming due by reason of the death of the person insured shall be payable to the beneficiary designated by the person insured, subject to the provision of the policy if there is no designated beneficiary, as to all or any part of such sum, living at the death of the person insured, and subject to any right reserved by the insurer in the policy and set forth in the certificate to pay at its option a part of such sum not exceeding $500 to any person appearing to the insurer to be equitably entitled thereto by reason of having incurred funeral or other expenses incident to the last illness or death of the person insured.  (Added to NRS by 1971, 1748)
  1. The group life policy shall contain a provision that the insurer will issue to the policyholder for delivery to each person insured a certificate setting forth a statement in summary form of the essential features of the insurance coverage of such employee or member, to whom benefits thereunder are payable, and the rights and conditions set forth in NRS 688B.120, 688B.130 and 688B.140. If dependents are included in the coverage, only one statement need be issued for each family unit.  2. The Commissioner may, in the discretion of the Commissioner, require the form of each such certificate proposed to be delivered in this state under a group policy not made under the laws of this state, to be filed with the Commissioner by the insurer for informational purposes only.  (Added to NRS by 1971, 1749)
The group life insurance policy shall contain a provision that if the insurance on a person covered under the policy ceases because of termination of employment or of membership in the class or classes eligible for coverage under the policy, such person shall be entitled to have issued to him or her by the insurer, without evidence of insurability, an individual policy of life insurance without disability or other supplementary benefits, provided application for the individual policy shall be made, and the first premium paid to the insurer, within 31 days after such termination, and provided further that:  1. The individual policy shall, at the option of such person, be on any one of the forms, except term insurance, then customarily issued by the insurer at the age and for the amount applied for;  2. The individual policy shall be in an amount not in excess of the amount of life insurance which ceases because of such termination less the amount of any life insurance for which such person is or becomes eligible under the same or any other group policy within 31 days after such termination, but any amount of insurance which has matured on or before the date of such termination as an endowment payable to the person insured, whether in one sum or in installments or in the form of an annuity, shall not, for the purposes of this section, be included in the amount which is considered to cease because of such termination; and  3. The premium on the individual policy shall be at the insurers then customary rate applicable to the form and amount of the individual policy, to the class of risk to which such person then belongs, and to the age of the person attained on the effective date of the individual policy.  (Added to NRS by 1971, 1749)
The group life insurance policy shall contain a provision that if the group policy terminates or is amended so as to terminate the insurance of any class of insured persons, every person insured thereunder at the date of such termination whose insurance terminates and who has been so insured for at least 5 years prior to such termination date shall be entitled to have issued to the person by the insurer an individual policy of life insurance, subject to the same conditions and limitations as are provided by NRS 688B.120, except that the group policy may provide that the amount of such individual policy shall not exceed the smaller of:  1. The amount of the persons life insurance protection ceasing because of the termination or amendment of the group policy, less the amount of any life insurance for which the person is or becomes eligible under any group policy issued or reinstated by the same or another insurer within 31 days after such termination; and  2. $2,000.  (Added to NRS by 1971, 1750)
The group life insurance policy shall contain a provision that if a person insured under the policy dies during the period within which the person would have been entitled to have an individual policy issued to him or her in accordance with NRS 688B.120 or 688B.130 and before such an individual policy has become effective, the amount of life insurance which the person would have been entitled to have issued to him or her under such individual policy shall be payable as a claim under the group policy, whether or not application for the individual policy or the payment of the first premium therefor has been made.  (Added to NRS by 1971, 1750)
A policy issued to a creditor to insure debtors of such creditor shall contain a provision that the insurer will furnish to the policyholder for delivery to each debtor insured under the policy a form which will contain a statement that the life of the debtor is insured under the policy and that any death benefit paid thereunder by reason of the death of the debtor shall be applied to reduce or extinguish the indebtedness.  (Added to NRS by 1971, 1750)
  1. If any individual insured under a group life insurance policy delivered in this state after January 1, 1972, becomes entitled under the terms of such policy to have an individual policy of life insurance issued to the individual without evidence of insurability, subject to the making of an application and payment of the first premium within the period specified in such policy, and if such individual is not given notice of the existence of such right at least 15 days prior to the expiration date of such period, then the individual shall have an additional period within which to exercise such right; but nothing contained in this section shall be construed to continue any insurance beyond the period provided in such policy.  2. This additional period shall expire 15 days next after the individual is given such notice, but in no event shall such additional period extend beyond 60 days next after the expiration date of the period provided in such policy.  3. Written notice presented to the individual or mailed by the policyholder to the last known address of the individual or mailed by the insurer to the last known address of the individual as furnished by the policyholder shall constitute notice for the purpose of this section.  (Added to NRS by 1971, 1750)
Any group life insurance contract may provide for a readjustment of the premium rate based upon the experience thereunder.  (Added to NRS by 1971, 1751)
  1. If a policy dividend is declared after January 1, 1972, or a reduction in rate is made after January 1, 1972, or continued for the first or any subsequent year of insurance under any policy of group life insurance issued before, on or after January 1, 1972, to any policyholder, the excess, if any, of the aggregate dividends or rate reductions under such a policy and all other group insurance policies of the policyholder over the aggregate expenditure for insurance under such policies made from money contributed by the policyholder, or by an employer of insured persons, or by a union or association to which the insured persons belong, including expenditures made in connection with administration of such policies, must be applied by the policyholder for the sole benefit of insured employees or members.  2. This section does not apply to debtor groups.  (Added to NRS by 1971, 1751; A 1997, 1626)
An insurer shall pay the proceeds of any benefits under a group life insurance policy not more than 30 days after the death of the insured. If the proceeds are not paid within this period, the insurer shall pay interest on the proceeds, at a rate that is not less than the current rate of interest on death proceeds on deposit with the insurer, from the date of death of the insured to the date when the proceeds are paid.  (Added to NRS by 1997, 3033)