As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 691C.020 to 691C.230, inclusive, have the meanings ascribed to them in those sections.  (Added to NRS by 2005, 2105)
"Closed-end credit" means a credit transaction that is not open-end credit.  (Added to NRS by 2005, 2105)
"Collateral" means personal property in which a purchase money security interest is retained or personal property that is pledged as security for the satisfaction of a debt.  (Added to NRS by 2005, 2105)
"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 credit personal property insurance as part of the transaction in which the indebtedness is arranged or the application for the credit personal property insurance is made.  (Added to NRS by 2005, 2105)
"Credit agreement" means the written document that sets forth the terms of the credit transaction and includes the security agreement.  (Added to NRS by 2005, 2106)
"Credit personal property insurance" means a policy, endorsement, rider, binder, certificate or other instrument or evidence of insurance written in connection with a credit transaction that:  1. Covers perils to the goods purchased through a credit transaction or used as collateral for a credit transaction and that concerns the interest of a creditor in the purchased goods or pledged collateral either in whole or in part; or  2. Covers perils to goods purchased in connection with an open-end credit transaction.  (Added to NRS by 2005, 2106)
"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.  (Added to NRS by 2005, 2106)
"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 2005, 2106)
"Creditor-placed insurance" means single-interest insurance or dual-interest insurance that is purchased by the creditor, as the named insured, after a credit transaction:  1. According to the terms of the credit agreement as a result of the debtors failing to provide required insurance, the cost for which is charged to the debtor; and  2. For coverage against loss, expense or damage to personal property used as collateral as a result of fire, theft, collision or other risk of loss that would impair the interest of the creditor or adversely affect the value of the collateral.  (Added to NRS by 2005, 2106)
"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 2005, 2106)
"Dual-interest insurance" means credit personal property insurance covering the interest of the creditor or seller and any portion of the interest of the borrower in goods purchased through the credit transaction or pledged as collateral for the credit transaction.  (Added to NRS by 2005, 2106)
"Experience" means earned premiums and incurred losses during the experience period.  (Added to NRS by 2005, 2106)
"Experience period" means the most recent period of time that is not more than 3 years and for which earned premiums and incurred losses are reported.  (Added to NRS by 2005, 2106)
"Finance charge" means any charge payable directly or indirectly as an incident to or condition of an extension of credit, including, without limitation, interest, time-price differentials, amounts payable under a discount system of additional charges, service, transaction or carrying charges, loan fees, points or similar charges, appraisal fees or charges incurred for investigating the creditworthiness of the consumer. The term does not include charges as a result of default, taxes, license fees, delinquency charges or filing fees.  (Added to NRS by 2005, 2106)
"Gross debt" means the sum of the remaining payments owed to a creditor by a debtor.  (Added to NRS by 2005, 2107)
"Identifiable charge" means a charge for credit personal property 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.  (Added to NRS by 2005, 2107)
"Incurred losses" means total claims and claim adjustment expenses paid during the experience period plus any change in claim and claim adjustment expense reserves.  (Added to NRS by 2005, 2107)
"Loss ratio" means incurred losses divided by the sum of earned premiums.  (Added to NRS by 2005, 2107)
"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, 2107)
"Nonfiling insurance" means insurance that indemnifies the creditor for loss of its interest in the collateral due to failure to perfect a security interest in the collateral.  (Added to NRS by 2005, 2107)
"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, 2107)
"Reverse competition" means competition among insurers that regularly takes the form of insurers competing for the favor of a person who controls or may control the placement of insurance with insurers that tends to increase insurance premiums or prevents a decrease in insurance premiums in order to give greater compensation to a person who controls or may control the placement of insurance with insurers.  (Added to NRS by 2005, 2107)
"Single-interest insurance" means credit personal property insurance covering only the interest of the seller or creditor in goods purchased through a credit transaction or pledged as collateral in a credit transaction.  (Added to NRS by 2005, 2107)
All credit personal property insurance, including guaranteed asset protection insurance, written in connection with credit transactions for personal, family or household purposes is subject to the provisions of this chapter, except:  1. Credit transactions involving extensions of credit primarily for business or commercial purposes;  2. Insurance written in connection with a credit transaction that is secured by a real estate mortgage or deed of trust;  3. Creditor-placed insurance;  4. Title insurance;  5. Nonfiling insurance;  6. Insurance purchased by a creditor after repossession or a similar event in which the creditor acquired possession of the property; and  7. Insurance for which an identifiable charge is not made to or collected from the debtor.  (Added to NRS by 2005, 2107)
For credit personal property insurance sold in conjunction with a closed-end credit transaction, an insurer shall not:  1. Issue credit personal property insurance unless the amount financed exceeds $300;  2. Issue credit personal property insurance in an amount that exceeds the amount of the underlying credit transaction; and  3. Sell credit personal property insurance with a term that exceeds the scheduled term of the underlying credit transaction.  (Added to NRS by 2005, 2108)
Credit personal property insurance must:  1. At a minimum, include the coverage in the standard fire policy with coverage attachment and extended coverage endorsement; and  2. Cover a substantial risk of loss of or damage to the property related to the credit transaction.  (Added to NRS by 2005, 2108)
  1. An insurer shall not:  (a) Require the bundling of other credit insurance coverage with the purchase of credit personal property insurance; and  (b) Use gross debt in any manner to determine the premiums for credit personal property insurance.  2. A debtor must have a choice to purchase credit personal property insurance separately from other credit insurance coverage.  (Added to NRS by 2005, 2108)
  1. Before a debtor elects to purchase credit personal property insurance in connection with a credit transaction, the following information must be disclosed to the debtor in writing:  (a) That the purchase of credit personal property insurance from the creditor is not mandatory and is not a condition for obtaining credit approval;  (b) If more than one type of credit insurance is made available to the debtor, whether the debtor may purchase credit personal property insurance separately from any other credit insurance;  (c) The conditions of eligibility;  (d) That if the debtor has other insurance that covers the risk, the debtor may not want or need credit personal property 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, extensions, limitations, perils 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 credit personal property insurance; and  (g) If the premium or charge for the insurance is financed, 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 credit personal property 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 credit personal property 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 by the creditor to the debtor.  (Added to NRS by 2005, 2108)
An offer to extend coverage for an open-end credit transaction must include, at the time of the invitation to contract, a written disclosure or, if the solicitation is made by telephone and the written disclosure is mailed to the debtor not later than 10 days after enrollment, an oral summary of the written disclosure. The written disclosure must be in not smaller than 12-point type and be in substantially the following form:  This coverage may duplicate existing coverage if you have a residential property insurance policy. It applies to any item of covered property on which you owe a debt. This coverage is primary, so it is the first source to be used in the event of a loss on property it covers. You may cancel this coverage at any time by calling the insurer during business hours at the telephone number provided to you or by writing to the insurer. We are charging you a premium that may be based on subjects for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.  (Added to NRS by 2005, 2109)
  1. All credit personal property insurance must be evidenced by an individual policy or a certificate of insurance that is delivered to the debtor.  2. The individual policy or certificate of insurance 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 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 or to repair or replace the property and that if the benefits exceed the unpaid debt, any excess benefit must be paid to the debtor;  (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; and  (g) If the policy is related to open-end credit, a statement that the debtor will, at least once each year, receive the statement as required pursuant to subsection 3.  3. For credit personal property insurance related to open-end credit, the creditor must provide to the debtor at least once each year with the account statement a statement in the following form in at least 12-point type:  You are paying a premium for credit personal property insurance based on the outstanding balance of this account. You may cancel this coverage at any time by calling the insurer during business hours at the telephone number provided to you or by writing to the insurer. You are being charged a premium that may be based on subjects for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.  (Added to NRS by 2005, 2109)
  1. Except as otherwise provided in subsection 2, the individual policy or certificate of insurance must be delivered to the debtor upon acceptance of the insurance by the insurer.  2. An individual policy or certificate of insurance made in connection with an open-end credit agreement or any credit personal property insurance requested by the debtor after the date the debt is incurred must be delivered to the debtor not more than 30 days after the debtor requested the insurance.  (Added to NRS by 2005, 2110)
  1. Except as otherwise provided in NRS 691C.330 and 691C.340, 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 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, 2110)
  1. The Commissioner may adopt by regulation forms for use in the issuance of credit personal property insurance, including applications, policies, forms for claims and any other forms required for the sale, issuance and administration of credit personal property 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 691C.320.  (Added to NRS by 2005, 2111)
The Commissioner may, by regulation, establish rates that an insurer may use without filing pursuant to NRS 691C.320. In establishing such rates, the Commissioner shall consider and apply the following factors:  1. Actual and expected loss experience;  2. General and administrative expenses;  3. Loss settlement and adjustment expenses;  4. Reasonable creditor compensation;  5. The manner in which premiums are charged;  6. Other acquisition costs;  7. Reserves;  8. Taxes;  9. Regulatory license fees and fund assessments;  10. Reasonable insurer profit; and  11. Other relevant data consistent with generally accepted actuarial standards.  (Added to NRS by 2005, 2111; A 2017, 2383)
Except as otherwise provided in NRS 691C.340:  1. A rate that has been filed and approved pursuant to NRS 691C.320 is effective for a period not to exceed 3 years after the date of approval. The insurer shall file a rate for approval before the expiration of the 3-year period. The insurer may file a rate for approval at any time before the expiration of the 3-year period.  2. If an insurer revises its schedule of premium rates, the insurer shall file the revised schedule with the Commissioner pursuant to NRS 691C.320. An insurer shall not issue credit personal property insurance for which the premium rates exceed the rates determined by the schedule approved by the Commissioner.  (Added to NRS by 2005, 2111)
For open-end credit transactions, the rating plan of the insurer must address, by the grouping of similar accounts, the expected variance in the ratio of goods purchased that are covered under the credit personal property insurance and goods that are not covered by that insurance. Accounts must be separated into groups that have or are expected to have a similar ratio of goods purchased that are covered under the credit personal property insurance and goods that are not covered by that insurance.  (Added to NRS by 2005, 2111)
Each year, not later than the date specified in the Instructions to the Annual Statement published by the National Association of Insurance Commissioners, an insurer doing business in this State shall file with the Commissioner and the National Association of Insurance Commissioners a report of credit personal property insurance written on the basis of a calendar year. The report must be prepared using the Credit Insurance Supplement-Annual Statement Blank approved by the National Association of Insurance Commissioners and must contain separate data for each state.  (Added to NRS by 2005, 2112)
  1. Except as otherwise provided in subsection 2, an authorized insurer issuing credit personal property insurance may not enter into any agreement whereby the authorized insurer transfers, by reinsurance or otherwise, to an unauthorized insurer, as they relate to credit personal property insurance written or issued in this State:  (a) A substantial portion of the risk of loss under the credit personal property insurance written by the authorized insurer in this State;  (b) All of one or more kinds, lines, types or classes of credit personal property insurance;  (c) All of the credit personal property insurance produced through one or more agents, agencies or creditors;  (d) All of the credit personal property insurance written or issued in a designated geographical area; or  (e) All of the credit personal property 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 credit personal property 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 2005, 2112)
  1. Each individual policy or certificate of insurance must provide for a refund of unearned premiums if the credit personal property 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 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, 2113; A 2017, 2383)
  1. All claims must be promptly reported to the insurer or its designated claim 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.  (Added to NRS by 2005, 2113)
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 claims, except that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due the group policyholder subject to the periodic audit by the insurer.  (Added to NRS by 2005, 2113)
A claim made pursuant to credit personal property insurance must not be denied more than 60 days after the initiation of coverage because the debtor was ineligible for coverage unless the debtor misrepresented a material fact. If a claim is denied within 60 days after the initiation of coverage because the debtor was ineligible for coverage or because the debtor misrepresented a material fact, the insurer shall refund to the debtor any premium paid and the creditor shall refund to the debtor any finance charge paid on the premium.  (Added to NRS by 2005, 2113)
The Commissioner may adopt regulations to carry out the provisions of this chapter.  (Added to NRS by 2005, 2113)
In addition to any other penalty provided by law, a person who violates a provision of this chapter or a final order of or a regulation adopted by the Commissioner pursuant to this chapter, after notice and a hearing, upon order of the Commissioner is subject to:  1. The imposition of an administrative fine not to exceed $5,000 per violation, or $10,000 per violation if the Commissioner determines that the violation was willful; and  2. Revocation, suspension or limitation of the license or certificate of authority held by the person.  (Added to NRS by 2005, 2113)