Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Prohibited Acts and Practices Concerning Solicitation of or Sale to Active Duty Service Members › Section 686A.493 - Engaging in corrupt practice or improper influence or inducement at any location

Current through June 11,
				2024
An insurer or producer of insurance engages in a corrupt
				  practice, or an improper influence or inducement, which constitutes an unfair
				  or deceptive act or practice in violation of
				  NRS
				  686A.020 if, at any location, the insurer or
				  producer of insurance:
1. Except as
				otherwise provided in this subsection, submits, processes or assists in the
				submission or processing of any allotment form or similar device used by the
				United States Armed Forces to direct the pay of an active duty service member
				to a third party for the purchase of a life insurance product. Violations of
				this subsection include, without limitation, using, or assisting in the use of,
				the myPay account of an active duty service member or other similar Internet or
				electronic medium for such purposes. An insurer or producer of insurance does
				not violate this subsection if the insurer or producer of insurance only
				provides to an active duty service member insurer or premium information which
				is necessary to complete an allotment form.
2. Knowingly receives funds for the payment
				of a premium of an active duty service member from a depository institution
				with which the active duty service member has no formal banking
				relationship.
3. Employs any device
				or method, or enters into any agreement, whereby funds for the payment of the
				insurance premium of an active duty service member, which are received by
				allotment from a depository institution with which the service member has no
				formal banking relationship, are identified on the Leave and Earnings Statement
				of an active duty service member, or an equivalent or successor form, as
				"savings" or "checking."
4. Enters
				into any agreement with a depository institution, for the purpose of receiving
				funds from an active duty service member, whereby the depository institution,
				with or without compensation, agrees to accept direct deposits from an active
				duty service member with whom it has no formal banking relationship.
5. Uses Department of Defense personnel,
				directly or indirectly, as a representative or agent in any official or
				unofficial capacity, with or without compensation, with respect to the
				solicitation or sale of a life insurance product to an active duty service
				member who is junior in rank or grade, or to the family members of such an
				active duty service member.
6.
				Offers or gives anything of value, directly or indirectly, to Department of
				Defense personnel to procure assistance in encouraging, assisting or
				facilitating the solicitation or sale of a life insurance product to an active
				duty service member.
7. Knowingly
				offers or gives anything of value to an active duty service member for his or
				her attendance at any event where an application for a life insurance product
				is solicited.
8. Advises an active
				duty service member to change his or her income tax withholding or state of
				legal residence for the sole purpose of increasing disposable income to
				purchase a life insurance product.
9. For the purposes of this section, a formal
				banking relationship is established when the depository institution:
(a) Provides the active duty service member a
				deposit agreement and periodic statements and makes the disclosures required by
				the Truth in Savings Act,
				12 U.S.C. §§
											4301 et seq., and any regulations adopted
				pursuant thereto; and
(b) Allows
				the active duty service member to make deposits and withdrawals unrelated to
				the payment or processing of insurance premiums.