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2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.130 - Conversion on termination of policy.

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 person’s 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)
2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.140 - Death pending conversion.

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)
2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.150 - Information to debtor.

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)
2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.160 - Notice as to right of conversion.

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)
2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.180 - Application of dividends and rate reductions; applicability.

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)
2023 Nevada Revised Statutes › Chapter 688B - Group Life Insurance › NRS 688B.190 - Proceeds of benefits required to be paid within 30 days after death of insured; interest.

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)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.010 - Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 688C.020 to 688C.150, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2001, 2166; A 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.020 - "Advertising" defined.

"Advertising" means a written, electronic or printed communication or a communication by recorded telephone message, radio, television, the Internet or a similar medium of communication, including a film strip, motion picture or videotape, published, communicated or otherwise placed before the public to create an interest in, or induce a person to purchase or sell a policy of life insurance pursuant to, a viatical settlement.
(Added to NRS by 2001, 2167; A 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.030 - "Broker of viatical settlements" defined.

"Broker of viatical settlements" means a person who on behalf of a viator and for a fee, commission or other valuable consideration offers or attempts to negotiate a viatical settlement between the viator and one or more providers or brokers of viatical settlements. The term does not include an attorney at law, certified public accountant or financial planner accredited by a nationally recognized accrediting agency who is retained by the viator and whose compensation is not paid by a provider or purchaser of viatical settlements.
(Added to NRS by 2001, 2167; A 2009, 1791)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.040 - "Business of viatical settlements" defined.

"Business of viatical settlements" means the offering, solicitation, negotiation, procurement, effectuation, purchasing, financing, monitoring, tracking, underwriting, selling, transferring, pledging or otherwise hypothecating of viatical settlements.
(Added to NRS by 2001, 2167)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.050 - "Chronically ill" defined.

"Chronically ill" means:
1. Being unable to perform at least two activities of daily living, such as eating, moving from one place to another, bathing, dressing, continence, defecation or urination;
2. Requiring substantial supervision for protection from threats to health and safety because of cognitive impairment; or
3. Having a level of disability similar to that described in subsection 1 as determined by the Secretary of Health and Human Services.
(Added to NRS by 2001, 2167)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.060 - "Financing agent" defined.

1. "Financing agent" means an underwriter, agent for placement, enhancer of credit, lender, purchaser of securities, purchaser of a policy from a provider of viatical settlements or other person that may enter into a viatical settlement and has direct ownership in a policy that is the subject of the viatical settlement but:
(a) Whose principal activity related to the transaction is providing money to effect the viatical settlement; and
(b) Who has an agreement in writing with one or more licensed providers of viatical settlements to finance the acquisition of one or more viatical settlements.
2. The term does not include a nonaccredited investor or a purchaser of viatical settlements.
(Added to NRS by 2001, 2167)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.080 - "Provider of viatical settlements" defined.

"Provider of viatical settlements" means a person other than a viator who enters into or effectuates a viatical settlement. The term does not include:
1. A bank, savings and loan association, savings bank, thrift company, credit union or other licensed lender that takes an assignment of a policy as security for a loan;
2. The issuer of a policy that provides accelerated benefits pursuant to the contract;
3. An authorized or eligible insurer that provides stop-loss coverage to a provider or purchaser of viatical settlements;
4. A natural person who enters into no more than one agreement in a calendar year for the transfer of policies for a value less than the expected death benefit;
5. A financing agent;
6. A special organization; or
7. A purchaser of viatical settlements.
(Added to NRS by 2001, 2167; A 2009, 1791)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.090 - "Purchaser of viatical settlements" defined.

1. "Purchaser of viatical settlements" means:
(a) A person who gives a sum of money as consideration for a policy or an interest in the death benefits of a policy;
(b) A person who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract as described in subsection 2 of NRS 687B.040; or
(c) A person who is the beneficiary of a policy that has been or will be the subject of a viatical settlement contract, for the purpose of deriving an economic benefit.
2. The term does not include:
(a) A person licensed pursuant to this chapter;
(b) An accredited investor or qualified institutional buyer as defined respectively in Regulation D, Rule 501 or Rule 144A of the Federal Securities Act of 1933, as amended;
(c) A financing agent; or
(d) A special organization.
(Added to NRS by 2001, 2168; A 2009, 1791)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.095 - "Rescission period" defined.

"Rescission period" means the shorter period of 60 days after the date on which a viatical settlement is signed by all parties thereto or 30 days after the viator receives the proceeds from that viatical settlement.
(Added to NRS by 2009, 1787)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.130 - "Viatical settlement" defined.

"Viatical settlement" means a written agreement between a viator and a provider of viatical settlements or an affiliate thereof for the payment of money, or anything else of value, which is less than the expected death benefit of a policy, in exchange for the viator’s assignment, sale, transfer or devise of the death benefit or ownership of any portion of the policy. The term includes an agreement to transfer ownership or change the beneficiary, in the future, regardless of the date of payment to the viator.
(Added to NRS by 2001, 2168; A 2009, 1791)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.135 - "Viatical settlement investment agent" and "investment agent of viatical settlements" defined.

"Viatical settlement investment agent" or "investment agent of viatical settlements" means a person who is appointed by or contracts with a licensed provider of viatical settlements to solicit or arrange for the funding for the purchase of a viatical settlement by a purchaser of viatical settlements on behalf of the provider of viatical settlements.
(Added to NRS by 2009, 1787)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.137 - "Viatical settlement purchase agreement" defined.

"Viatical settlement purchase agreement" means a contract or agreement to which the viator is not a party, and which is entered into by a purchaser of viatical settlements to purchase a life insurance policy or an interest in a life insurance policy for the purpose of deriving an economic benefit.
(Added to NRS by 2009, 1787)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.150 - "Viator" defined.

1. "Viator" means the owner of a policy or the holder of a certificate of insurance under a policy of group insurance who resides in this State and who enters or seeks to enter into a viatical settlement. The term is not limited to an owner who is terminally or chronically ill except where that limitation is expressly provided.
2. The term does not include:
(a) A producer of life insurance acting as a broker of viatical settlements pursuant to this chapter;
(b) A qualified institutional buyer as defined in Rule 144A of the federal Securities Act of 1933, 15 U.S.C. §§ 77a et seq., as amended;
(c) A financing agent; or
(d) A special organization.
(Added to NRS by 2001, 2168; A 2009, 1792)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.160 - Governing law when residents of different states are viators or purchasers of viatical settlements with respect to single policy.

If there is more than one viator or purchaser of viatical settlements with respect to a single policy and they are residents of different states, one of whom resides in this State and enters or seeks to enter into a viatical settlement or an agreement to purchase a viatical settlement, the legal effect of the viatical settlement or agreement to purchase a viatical settlement, as applicable, is governed by the law of the state in which the viator or the purchaser having the largest fractional ownership resides. If the viators or purchasers of viatical settlements own equal fractions, they may agree in writing to choose which state, among the states in which the viators or purchasers of viatical settlements reside, will be the state whose law will govern.
(Added to NRS by 2001, 2169; A 2009, 1792)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.170 - Regulations.

The Commissioner may adopt regulations to:
1. Establish standards for evaluating the reasonableness of payments under viatical settlements to persons chronically or terminally ill, including the regulation of the rates of discount used to determine the amount paid in exchange for an assignment, transfer, sale or devise of a benefit under a policy.
2. Require a bond or otherwise ensure financial accountability of providers and brokers of viatical settlements.
3. Govern the relationship of insurers with providers and brokers of viatical settlements during the viatication of a policy.
4. Establish standards and requirements for licensing and registering producers of insurance acting as brokers of viatical settlements.
(Added to NRS by 2001, 2179; A 2005, 2135)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.175 - Applicability of other provisions.

1. Persons engaged in the business of viatical settlements are subject to the provisions of this chapter and to the following provisions, to the extent reasonably applicable:
(a) NRS 679B.230 to 679B.300, inclusive, concerning examinations of insurers.
(b) NRS 679B.310 to 679B.370, inclusive, concerning hearings regarding insurers and employees of insurers.
(c) Chapter 680A of NRS.
(d) Chapter 683A of NRS.
(e) NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.
2. Nothing in this chapter or elsewhere in this title preempts or otherwise limits the provisions of chapter 90 of NRS, or of any rules, regulations or orders issued by or through the Administrator of the Securities Division of the Office of the Secretary of State or the Administrator’s designee acting pursuant to the authority granted by chapter 90 of NRS.
3. Compliance with the provisions of this chapter does not constitute compliance with any applicable provisions of chapter 90 of NRS or with any rule, regulation or order adopted or issued thereunder.
(Added to NRS by 2009, 1787; A 2023, 20)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.180 - Examinations and investigations by Commissioner.

The Commissioner may examine or investigate a licensee under this chapter as often as the Commissioner considers appropriate. An examination will be conducted in the manner provided in NRS 679B.230 to 679B.300, inclusive. The Commissioner may also examine or investigate any other person or business insofar as the Commissioner considers necessary or material to the examination or investigation of the licensee. Instead of an examination or investigation under this chapter of a foreign or alien person licensed under this chapter, the Commissioner may accept a report on examination or investigation of the licensee by the equivalent authority of the licensee’s state of domicile or port of entry.
(Added to NRS by 2001, 2170)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.190 - License to operate as investment agent or provider or broker of viatical settlements: Required application; renewal; expiration; fees; information regarding certain persons; effect; exception.

1. Except as otherwise provided in NRS 688C.215, a person shall not, without first obtaining a license from the Commissioner, operate in or from this State as an investment agent or a provider or broker of viatical settlements.
2. Application for a license must be made to the Commissioner on a form prescribed by the Commissioner, accompanied by all applicable fees. A license may be renewed from year to year on its anniversary by payment of all applicable fees. The license expires if all applicable fees are not paid by that date.
3. An applicant shall provide information on forms required by the Commissioner, who may at any time require the applicant to disclose the identity of all stockholders, partners, members, officers and employees. The Commissioner may refuse to issue a license to an organization if the Commissioner is not satisfied that a stockholder, partner, member or officer who may materially influence the applicant’s conduct satisfies the requirements of this chapter.
4. A license issued to an organization authorizes all partners, members, officers and designated employees to act as investment agents or providers or brokers of viatical settlements. Those persons must be named in the application or a supplement to it.
(Added to NRS by 2001, 2169; A 2005, 2135; 2009, 1792, 1793)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.200 - Investigation of applicant; issuance of license; requirements regarding evidence of financial responsibility; requirements regarding service of process for nonresident; provision of certain new or revised information to Commissioner.

1. Upon the filing of an application and payment of all applicable fees, the Commissioner shall investigate the applicant, and issue a license if the Commissioner finds that the applicant:
(a) If a provider of viatical settlements, has set forth a detailed plan of operation;
(b) Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;
(c) Has a good reputation in business and, if a natural person, has had experience, training or education which qualifies the applicant in that capacity;
(d) If an organization, provides a certificate of good standing from the state of its domicile; and
(e) If a provider or broker of viatical settlements:
(1) Has included a plan to prevent fraud which satisfies the requirements of NRS 688C.490; and
(2) Has demonstrated evidence of financial responsibility through either:
(I) A surety bond which complies with NRS 679B.175 and is in an amount determined by the Commissioner, which must be not less than $250,000; or
(II) A deposit of cash, certificates of deposit, securities or any combination thereof in the amount of $250,000.
2. The Commissioner shall not issue a license to a nonresident unless a written designation of an agent for service of process, or an irrevocable written consent to the commencement of an action against the applicant by service of process upon the Commissioner, accompanies the application.
3. A provider or broker of viatical settlements shall furnish to the Commissioner new or revised information concerning partners, members, officers, holders of more than 10 percent of its stock, and designated employees within 30 days after a change occurs.
4. Notwithstanding any provision of this section to the contrary, the Commissioner shall accept as evidence of financial responsibility proof that financial instruments complying with the requirements of this section have been filed with a state where the applicant is licensed as a provider or broker of viatical settlements.
5. A surety bond issued for the purposes of this section must specifically authorize recovery by the Commissioner on behalf of any person in this State who sustained damages as a result of:
(a) Erroneous acts;
(b) Failure to act; or
(c) Conviction of:
(1) Fraud; or
(2) Unfair practices,
by the provider or broker of viatical settlements.
6. The Commissioner may request evidence of financial responsibility as described in subparagraph (2) of paragraph (e) of subsection 1 at any time the Commissioner deems necessary.
(Added to NRS by 2001, 2169; A 2009, 1793; 2011, 3375; 2021, 2971)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.210 - Suspension, revocation or refusal of license: Grounds; limitation on suspension period for certain grounds; application for hearing.

1. After notice, and after a hearing if requested, the Commissioner may suspend, revoke, refuse to issue or refuse to renew a license under this chapter if the Commissioner finds that:
(a) There was material misrepresentation in the application for the license;
(b) The licensee or an officer, partner, member or significant managerial employee has been convicted of fraudulent or dishonest practices, is subject to a final administrative action for disqualification, or is otherwise shown to be untrustworthy or incompetent;
(c) A provider of viatical settlements has engaged in a pattern of unreasonable payments to viators;
(d) The applicant or licensee has been found guilty or guilty but mentally ill of, or pleaded guilty, guilty but mentally ill or nolo contendere to, a felony or a misdemeanor involving fraud, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude, whether or not a judgment of conviction has been entered by the court;
(e) A provider of viatical settlements has entered into a viatical settlement in a form not approved pursuant to NRS 688C.220;
(f) A provider of viatical settlements has failed to honor obligations of a viatical settlement or an agreement to purchase a viatical settlement;
(g) The licensee no longer meets a requirement for initial licensure;
(h) A provider of viatical settlements has assigned, transferred or pledged a viaticated policy to a person other than another provider licensed under this chapter, a purchaser of the viatical settlement or a special organization;
(i) The applicant or licensee has provided materially untrue information to an insurer that issued a policy that is the subject of a viatical settlement;
(j) The applicant or licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS;
(k) The applicant or licensee has violated a provision of this chapter or other applicable provisions; or
(l) The applicant or licensee has acted in bad faith with regard to a viator.
2. A suspension imposed for grounds set forth in paragraph (k) or (l) of subsection 1 must not exceed a period of 12 months.
3. If the Commissioner takes action as described in subsection 1, the applicant or licensee may apply in writing for a hearing before the Commissioner to determine the reasonableness of the action taken by the Commissioner, pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive.
(Added to NRS by 2001, 2169; A 2005, 1785; 2007, 1481; 2009, 1794; 2015, 2951)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.212 - Financial planner who performs certain activities related to viatical settlements required to be licensed as insurance consultant.

1. A financial planner who, on behalf of a viator and for a fee, commission or other valuable consideration not paid by a provider or purchaser of viatical settlements, offers or attempts to negotiate a viatical settlement between the viator and one or more providers or brokers of viatical settlements must be licensed as an insurance consultant pursuant to NRS 683C.020.
2. As used in this section, "financial planner" means a person who for compensation advises others upon the investment of money or upon provision for income to be needed in the future, or who holds himself or herself out as qualified to perform either of these functions, but does not include:
(a) An attorney and counselor at law admitted by the Supreme Court of this State;
(b) A certified public accountant or a public accountant pursuant to NRS 628.190 to 628.310, inclusive;
(c) A broker-dealer or sales representative licensed pursuant to NRS 90.310 or exempt under NRS 90.320;
(d) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340 or 90.345; or
(e) A producer of insurance licensed pursuant to chapter 683A of NRS or an insurance consultant licensed pursuant to chapter 683C of NRS,
whose advice upon investment or provision of future income is incidental to the practice of his or her profession or business.
(Added to NRS by 2009, 1787; A 2017, 1797; 2021, 249)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.213 - Probation of broker or investment agent of viatical settlements for acting in bad faith.

The Commissioner may place a broker or investment agent of viatical settlements on probation if the Commissioner finds that the broker or investment agent of viatical settlements has acted in bad faith with regard to a viator.
(Added to NRS by 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.214 - Action by Commissioner against producer of life insurance for violation or acting in bad faith regarding viator; application for hearing.

1. If the Commissioner finds that a producer of life insurance has violated a provision of this chapter or other applicable provisions or has acted in bad faith with regard to a viator, the Commissioner may:
(a) Refuse to:
(1) Issue a license to the producer of life insurance; or
(2) Renew a license of the producer of life insurance;
(b) Suspend the producer of life insurance for a period not to exceed 12 months; or
(c) Place the producer of life insurance on probation.
2. If the Commissioner takes action as described in paragraph (a), (b) or (c) of subsection 1, the producer of life insurance may apply in writing for a hearing before the Commissioner to determine the reasonableness of the action taken by the Commissioner, pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive.
(Added to NRS by 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.215 - License to operate as investment agent or broker of viatical settlements not required for certain producers of insurance; registration with Division and compliance with certain provisions required; fee; penalty.

1. A natural person who has been licensed for at least 1 year and who is in good standing as a resident or nonresident producer of insurance with a life insurance qualification is not required to be licensed as an investment agent or a broker of viatical settlements.
2. A licensed producer of insurance specified in subsection 1 must register with the Division not more than 30 days after first operating as an investment agent or a broker of viatical settlements, on a form prescribed by the Commissioner, and pay the fee for registration pursuant to NRS 680B.010. Failure to register within the required period or late payment of or failure to pay the fee may result in the imposition of an administrative fine of not more than $500.
3. A producer of insurance who acts as an investment agent or a broker of viatical settlements pursuant to subsection 1 shall comply with the provisions of NRS 688C.220 to 688C.250, inclusive, and 688C.310.
(Added to NRS by 2005, 2135; A 2009, 1795)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.220 - Filing and approval of forms; submission of advertising material.

A person shall not use a form of viatical settlement or of disclosure in this state unless the form has been filed with and approved by the Commissioner. The Commissioner shall disapprove such a form if, in the opinion of the Commissioner, the settlement or any of its terms is unreasonable, contrary to the interests of the public or otherwise misleading or unfair to the viator. The Commissioner may require the submission of advertising material before its use.
(Added to NRS by 2001, 2170)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.230 - Filing by licensee of annual statement; confidentiality of information; authorized disclosure of identity of insured; regulations.

1. Each licensee under this chapter shall file with the Commissioner on or before March 1 of each year an annual statement containing such information as the Commissioner prescribes by regulation. Pursuant to subsection 7 of NRS 679B.190, the Commissioner shall classify as confidential any information received pursuant to this subsection that is:
(a) Data of individual transactions in the business of viatical settlements; or
(b) Data that could compromise the privacy of personal, financial or health information of a viator or insured.
2. Except as allowed or required by a statute other than this chapter, a provider or broker of viatical settlements, an investment agent, an insurer, a producer of insurance, an information bureau, a rating agency or any other person knowing the identity of an insured shall not disclose that identity as an insured to any other person unless the disclosure is:
(a) Necessary to effect a viatical settlement between the viator and a provider of viatical settlements and the viator and the insured have given prior written consent to the disclosure;
(b) Necessary to effect an agreement for the purchase of a viatical settlement between the purchaser and a provider of viatical settlements, and the viator and the insured have given prior written consent to the disclosure;
(c) Furnished in response to an investigation or examination by the Commissioner or another governmental officer or agency;
(d) A term of or condition to the transfer of a policy by one provider of viatical settlements to another provider; or
(e) Necessary to permit a financing agent to finance the purchase of a policy by a provider of viatical settlements and the insured has given prior written consent to the disclosure.
(Added to NRS by 2001, 2170; A 2009, 1795)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.240 - Retention of records and documents by licensee.

1. A person required to be licensed under this chapter shall retain for 5 years copies of all:
(a) Contracts, underwriting documents, forms of policy and applications, from the date of the proposal, offer or execution, whichever is latest;
(b) Checks, drafts and other evidence or documentation relating to the payment, transfer or release of money, from the date of the transaction; and
(c) Records and documents related to the requirements of this chapter.
2. This section does not relieve a person of the obligation to produce a document described in subsection 1 to the Commissioner after the expiration of the relevant period if the person has retained the document.
3. Records required by this section to be retained must be legible and complete. They may be retained in any form or by any process that accurately reproduces or is a durable medium for the reproduction of the record.
(Added to NRS by 2001, 2171)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.242 - Viatical settlement investment agent: Representation of appointing or contracting provider of viatical settlements.

A viatical settlement investment agent is deemed to represent the provider of viatical settlements who appointed or contracted with the viatical settlement investment agent.
(Added to NRS by 2009, 1787)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.244 - Viatical settlement investment agent: Knowledge of identity of or communication with viator or insured prohibited.

A viatical settlement investment agent shall not:
1. Have knowledge of the identity of; or
2. Communicate either directly or indirectly with,
a viator or an insured whose policy of insurance is the object of a viatical settlement for which the viatical settlement investment agent solicits or arranges for the funding for the purchase.
(Added to NRS by 2009, 1787)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.264 - Additional disclosure required to be provided by provider of viatical settlements or viatical settlement investment agent to purchaser of viatical settlement upon or before date of assignment, transfer or sale of policy.

Not later than the date of assignment, transfer or sale of all or a portion of a viaticated policy, a provider of viatical settlements or a viatical settlement investment agent who contracted with or was appointed by the provider of viatical settlements shall provide a purchaser of a viatical settlement with the following disclosures:
1. All certifications relating to the life expectancy of the viator that were obtained by the provider of viatical settlements in the process of determining the price that was paid to the viator.
2. A statement as to whether premium payments or money for the payment of other costs related to the policy has been deposited in an escrow account.
3. If payments or money has been deposited in an escrow account, a statement of the date that the escrow account will be depleted and as to whether the purchaser of viatical settlements will be responsible for payment of premiums thereafter and, if so, a statement of the amount of the premiums.
4. A statement as to whether premiums or other costs related to the policy have been waived.
5. If premiums or other costs have been waived, a statement as to whether the purchaser will be responsible for payment of the premiums if the insurer that issued the policy terminates the waiver after the purchase, and a statement of the amount of the premiums.
6. The type of policy offered or sold, any additional benefits included with the policy and the status of the policy.
7. If the policy is term insurance, a statement of the additional risks associated with term insurance, including, without limitation, the purchaser’s responsibility for additional premiums if the viator renews the policy at the end of the term which is effective at the time of the purchase.
8. The period of contestability, if any, remaining under the policy.
9. A statement of rights held by the insurer that could negatively affect or extinguish the rights of the purchaser of viatical settlements and the conditions under which the rights can be exercised.
(Added to NRS by 2009, 1789)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.266 - Form of certain disclosures.

Disclosures made pursuant to NRS 688C.262 and 688C.264 must be printed conspicuously in at least 12-point type in any contract or in a separate document signed by the purchaser of viatical settlements and:
1. The provider of viatical settlements; or
2. The viatical settlement investment agent who contracted with or was appointed by the provider of viatical settlements.
(Added to NRS by 2009, 1789)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.268 - Disclosure required to issuer of policy by broker or provider of viatical settlements who is party to plan or transaction related to policy before or during certain period after issuance of policy.

If a broker or provider of viatical settlements is a party to a plan, a transaction or a series of transactions to originate, renew or continue a policy of life insurance for the purpose of engaging in the business of viatical settlements before or during the first 5 years after the issuance of the policy, the broker or provider shall fully disclose the plan, transaction or transactions to the issuer of the policy.
(Added to NRS by 2009, 1789)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.270 - Prerequisites to entry by viator into settlement within 5 years after issuance of policy; submission of independent evidence or certification to insurer.

1. A viator may not enter into a viatical settlement within 5 years after the issuance of the policy to which the settlement relates unless one or more of the following conditions is or has been satisfied:
(a) The policy was issued upon the owner’s exercise of a right of conversion arising out of a group policy if the total of the time covered under the policy plus the time covered under the group policy is at least 60 months. The time covered under the group policy must be calculated without regard to a change in insurance carriers if the coverage has been continuous.
(b) The viator or owner submits to the provider of viatical settlements independent evidence that within the 5-year period:
(1) The owner or insured has been diagnosed as terminally ill;
(2) The owner or insured has been diagnosed as chronically ill or has an illness or condition that is life-threatening or requires a course of treatment for at least 2 years, long-term care or health care at home, or any combination of these;
(3) The spouse of the owner or insured has died;
(4) The owner or insured has divorced his or her spouse;
(5) The owner or insured has retired from full-time employment;
(6) The owner or insured has become physically or mentally disabled and a physician determines that the disability precludes the owner or insured from maintaining full-time employment;
(7) A final judgment or order has been entered or issued by a court of competent jurisdiction, on the application of a creditor or owner of the insured, adjudging the owner or insured bankrupt or insolvent, or approving a petition for reorganization of the owner or insured or appointing a receiver, trustee or liquidator for all or a substantial part of the assets of the owner or insured; or
(8) The owner of the policy experiences a significant decrease in income which is unexpected by the owner and impairs the reasonable ability of the owner to pay the premium on the policy.
2. The independent evidence must be submitted to the insurer when the provider of viatical settlements submits a request to the insurer to effect transfer of the policy to the provider of viatical settlements. The insurer shall respond timely to the request. This section does not prohibit an insurer from exercising its right to contest a policy on the ground of fraud.
3. If a provider of viatical settlements submits to an insurer a copy of the owner’s or insured’s certification that one of the events described in paragraph (b) of subsection 1 has occurred, the certification conclusively establishes that the viatical settlement is valid, and the insurer shall timely respond to the provider’s request to effect a transfer of the policy.
(Added to NRS by 2001, 2173; A 2009, 1798)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.275 - Restrictions on business of broker and provider of viatical settlements.

With respect to a viatical settlement or a policy of insurance:
1. A broker of viatical settlements shall not knowingly solicit an offer from, effectuate a viatical settlement with or make a sale to any provider, purchaser or investment agent of viatical settlements who:
(a) Controls;
(b) Is controlled by; or
(c) Is under common control with,
the broker of viatical settlements.
2. A provider of viatical settlements shall not knowingly enter into a viatical settlement with a viator if, in connection with that viatical settlement, anything of value will be paid to a broker of viatical settlements who controls, is controlled by or is under common control with a provider, purchaser or investment agent of viatical settlements who is involved in the viatical settlement.
(Added to NRS by 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.280 - Acquisition of certain documents by provider or broker of viatical settlements before entry into settlement; notice to issuer of policy; requests for and responses related to verification of coverage.

1. A provider of viatical settlements who enters into a settlement shall first obtain:
(a) If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a settlement;
(b) A witnessed document in which the viator:
(1) Consents to the viatical settlement;
(2) Represents that he or she has a full and complete understanding of the settlement and of the benefits of the policy;
(3) Acknowledges that he or she has entered into the settlement freely and voluntarily; and
(4) If applicable to determine a payment to a person terminally or chronically ill, acknowledges that he or she is terminally or chronically ill and that the illness was diagnosed after the policy was issued; and
(c) A document in which the insured consents to the release of his or her medical records to a provider or broker of viatical settlements and the insurer that issued the policy covering the insured.
2. Within 20 days after a viator executes documents necessary to transfer rights under a policy, or enters into an agreement in any form, express or implied, to viaticate the policy, the provider of viatical settlements shall give written notice to the issuer of the policy that the policy has or will become viaticated. The notice must be accompanied by:
(a) A copy of the release of medical records;
(b) The application for the viatical settlement; and
(c) A request for verification of coverage.
3. Any of the acts described in subsections 1 and 2, if performed by a broker of viatical settlements, will be deemed to have been performed by the provider of viatical settlements for the purposes of fulfilling the requirements of subsections 1 and 2.
4. Within 30 days after receiving a request for verification of coverage from a provider or broker of viatical settlements, an insurer shall respond by:
(a) Verifying coverage; and
(b) Indicating whether, on the basis of the medical evidence and documents provided, the insurer intends to pursue an investigation regarding the validity of the insurance or possible fraud.
(Added to NRS by 2001, 2172; A 2009, 1799)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.285 - Insurer prohibited in certain circumstances from requiring viator, insured or provider or broker of viatical settlements from signing form or disclosure not approved by Commissioner for use in connection with viatical settlements.

An insurer shall not, as a condition of responding to a request for verification of coverage or of effecting the transfer of a policy pursuant to a viatical settlement, require that the viator, insured, provider or broker of viatical settlements sign a form or disclosure that has not been expressly approved by the Commissioner for use in connection with a viatical settlement in this State.
(Added to NRS by 2009, 1790)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.290 - Submission by viator of certain documents to escrow agent; duties of escrow agent; payment of viator.

1. A provider of viatical settlements shall instruct the viator to send the executed documents required to effect the change in ownership or assignment or change of beneficiary of the affected policy to a designated independent escrow agent. Within 3 business days after the date the escrow agent receives the documents, or within 3 business days after the provider receives the documents if by mistake they are sent directly to the provider, the escrow agent shall deposit the proceeds of the settlement into an escrow or trust account maintained in a regulated financial institution whose deposits are insured by the Federal Deposit Insurance Corporation.
2. Upon deposit of the proceeds in that account, the escrow agent shall deliver to the provider the original documents executed by the viator. Upon the provider’s receipt from the insurer of an acknowledgment of the change in ownership or assignment or change of beneficiary of the affected policy, the provider shall instruct the escrow agent to pay the proceeds of the settlement to the viator.
3. Payment to the viator must be made within 3 business days after the date the provider received the acknowledgment from the insurer. Failure to make the payment within that time makes the viatical settlement voidable by the viator for lack of consideration until payment is tendered to and accepted by the viator. Payment to the viator shall be deemed to have been made as of the date that the escrow agent:
(a) Releases money for a wire transfer to the viator; or
(b) Deposits a check for the amount of the proceeds with the United States Postal Service or with a commercially reasonable delivery service.
(Added to NRS by 2001, 2173; A 2009, 1800)
2023 Nevada Revised Statutes › Chapter 688C - Viatical Settlements › NRS 688C.300 - Rescission of viatical settlement.

1. A viatical settlement entered into in this state must reserve to the viator an unconditional right to rescind the settlement within the rescission period. Rescission, if exercised by the viator, is effective only if the viator:
(a) Gives notice of the rescission to the provider or broker of viatical settlements; and
(b) Repays to the provider of viatical settlements all proceeds and any premiums, loans and loan interest paid on account of the viatical settlement or on behalf of the provider of viatical settlements,
within the rescission period.
2. If the insured dies during the rescission period, the settlement is deemed rescinded and all proceeds and any premiums, loans and loan interest paid on account of the viatical settlement or on behalf of the provider of viatical settlements must be repaid to the provider of viatical settlements within 60 days after the death of the insured.
3. In the event of a rescission, if the provider of viatical settlements has paid commissions or other compensation to a broker of viatical settlements in connection with the rescinded transaction, the broker of viatical settlements shall refund all such commissions and compensation to the provider of viatical settlements within 5 business days following receipt of written demand from the provider of viatical settlements. The demand must be accompanied by:
(a) The viator’s notice of rescission, if the rescission was exercised by the viator; or
(b) Notice of the death of the insured, if the rescission was due to the death of the insured within the rescission period.
4. A purchaser of viatical settlements has the right to rescind an agreement to purchase a viatical settlement within 3 business days after the purchaser of viatical settlements receives the disclosures set forth in NRS 688C.262 and 688C.264.
(Added to NRS by 2001, 2173; A 2009, 1800)