reglab/statecodes huggingface dataset:
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › General Provisions › Section 686A.445 - Cost indexes

Current through June 11,
				2024
1. The life
				insurance surrender cost index is calculated by:
(a) Determining the guaranteed cash surrender
				value, if any, available at the end of the 10th and 20th policy
				years.
(b) For participating
				policies, adding the terminal dividend payable upon surrender, if any, to the
				accumulation of the annual cash dividends at 5 percent interest compounded
				annually to the end of the period selected and add this sum to the amount
				determined in paragraph (a).
(c)
				Dividing the result obtained in paragraph (b) (or paragraph (a) for guaranteed
				cost policies) by an interest factor which converts it into an equivalent level
				annual amount which, if paid at the beginning of each year, would accrue to the
				value obtained in paragraph (b) (or paragraph (a) for guaranteed cost policies)
				over the periods stipulated in paragraph (a). If the period is 10 years, the
				factor is 13.207. If the period is 20 years, the factor is 34.719.
(d) Determining the equivalent level premium
				by accumulating each annual premium payable for the basic policy or rider at 5
				percent interest compounded annually to the end of the period stipulated in
				paragraph (a) and dividing the result by the respective factors stated in
				paragraph (c). (This amount is the annual premium payable for a level premium
				plan.)
(e) Subtracting the result
				obtained in paragraph (c) from that of paragraph (d).
(f) Dividing the result obtained in paragraph
				(e) by the number of thousands of the equivalent level death benefit to arrive
				at the life insurance surrender cost index.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › General Provisions › Section 686A.450 - Equivalent level annual dividend

Current through June 11,
				2024
The equivalent level annual dividend is calculated by:
1. Accumulating the annual cash dividend at 5
				percent interest compounded annually to the end of the 10th and 20th policy
				years.
2. Dividing each
				accumulation of subsection 1 by an interest factor which converts it into one
				equivalent level annual amount which, if paid at the beginning of each year,
				would accrue to the values obtained in subsection 1 over the respective periods
				in subsection 1. If the period is 10 years, the factor is 13.207. If the period
				is 20 years, the factor is 34.719.
3. Dividing the results obtained in
				subsection 2 by the number of thousands of the equivalent level death benefit
				to arrive at the equivalent level annual dividend.
Comm'r of Insurance,
				  LH-6 § X, eff. 11-22-78
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › General Provisions › Section 686A.455 - Failure to comply

Current through June 11,
				2024
Failure of an insurer to provide or deliver a buyer's guide
				  or a policy summary as required by NAC 686A.430 constitutes an omission which
				  misrepresents the benefits, advantages, conditions or terms of an insurance
				  policy.
Comm'r of Insurance,
				  LH-6 § XI, eff. 11-22-78
NRS
					 679B.130,
					 686A.015,
					 686A.030
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.460 - Definitions

Current through June 11, 2024
As used in NAC 686A.460 to 686A.479, inclusive, unless the
				  context otherwise requires, the words and terms defined in NAC 686A.4605 to
				  686A.469, inclusive, have the meanings ascribed to them in those
				  sections.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4605 - "Actuarial Standards Board" defined

Current through June 11,
				2024
"Actuarial Standards Board" means the Board established by
				  the American Academy of Actuaries to develop and adopt standards of actuarial
				  practice.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.461 - "Basic illustration" defined

Current through June 11,
				2024
"Basic illustration" means a ledger or proposal used in
				  connection with the sale of a policy of life insurance that sets forth the
				  guaranteed and nonguaranteed elements of the policy.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4615 - "Contract premium" defined

Current through June 11,
				2024
"Contract premium" means the premium that is required to be
				  paid pursuant to a policy of life insurance that requires the payment of fixed
				  premiums, including, without limitation, a premium for a rider for which
				  benefits are set forth in the illustration for the policy.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.462 - "Currently payable scale" defined

Current through June 11,
				2024
"Currently payable scale" means a scale of nonguaranteed
				  elements that:
1. Are in effect for a
				policy form on the date of the preparation of the illustration; or
2. Will be effective within 95 days after
				that date.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4625 - "Disciplined current scale" defined

Current through June 11,
				2024
"Disciplined current scale" means a scale of nonguaranteed
				  elements constituting a limit on illustrations currently being used by an
				  insurer that is reasonably based on actual recent historical experience and is
				  certified annually by an illustration actuary designated by the insurer.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.463 - "Generic name" defined

Current through June 11,
				2024
"Generic name" means a term that is descriptive of a policy
				  of life insurance being illustrated, including, without limitation, the terms
				  "whole life," "term life" or "flexible premium adjustable life."
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4635 - "Guaranteed elements" defined

Current through June 11,
				2024
"Guaranteed elements" means the premiums, benefits, values,
				  credits or charges under a policy of life insurance that are guaranteed and
				  determined at the time the policy is issued.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.464 - "Illustrated scale" defined

Current through June 11,
				2024
"Illustrated scale" means a scale of nonguaranteed elements
				  that is not more favorable to the policy owner than the lesser of the
				  disciplined current scale or the currently payable scale.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4645 - "Illustration" defined

Current through June 11,
				2024
"Illustration" means a presentation or depiction of the
				  nonguaranteed elements of a policy of life insurance over a period of years.
				  The term includes, without limitation, a basic illustration, an in-force
				  illustration or a supplemental illustration.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.465 - "In-force illustration" defined

Current through June 11,
				2024
"In-force illustration" means an illustration furnished at
				  any time after the policy being illustrated has been in force for 1 year or
				  more.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4655 - "Lapse-supported illustration" defined

Current through June 11,
				2024
"Lapse-supported illustration" means an illustration
				  that:
1. Is not a self-supporting
				illustration; and
2. Uses
				persistency rates underlying the disciplined current scale for the first 5
				years of the policy being illustrated and a 100 percent policy persistency rate
				thereafter.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.466 - "Minimum assumed expenses" defined

Current through June 11,
				2024
"Minimum assumed expenses" means the minimum expenses that
				  may be used in the calculation of the disciplined current scale for a policy
				  form.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4665 - "Nonguaranteed elements" defined

Current through June 11,
				2024
"Nonguaranteed elements" means the premiums, benefits,
				  values, credits or charges under a policy of life insurance that are not
				  guaranteed or not determined at the time the policy is issued.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.467 - "Nonterm group policy of life insurance" defined

Current
				through June 11, 2024
"Nonterm group policy of life insurance" means a group policy
				  or an individual policy of life insurance issued to the members of a group of
				  employees or another authorized group of persons if:
1. Every plan of coverage was selected by the
				employer or group representative;
2. A portion of the premium is paid by the
				group or through payroll deduction; and
3. Group underwriting or simplified
				underwriting is used.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4675 - "Policy owner" defined

Current through June 11,
				2024
"Policy owner" means:
1. The owner named in an individual policy of
				life insurance; or
2. If the policy
				of life insurance is a group policy, the certificate holder.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.468 - "Premium outlay" defined

Current through June 11,
				2024
"Premium outlay" means the amount of premium for a policy of
				  life insurance that is paid out of pocket by the policy owner or any other
				  person.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4685 - "Self-supporting illustration" defined

Current through June 11,
				2024
"Self-supporting illustration" means an illustration for
				  which the accumulated value of the policy cash flows equals or exceeds the
				  total policy owner value available:
1.
				When using experience assumptions underlying the disciplined current scale;
				and
2. For illustrated points in
				time on or after the 15th anniversary of the policy, or the 20th anniversary of
				a policy that provides for the payment of death benefits upon the death of a
				second or subsequent person insured under the policy, commonly referred to as a
				second-or-later-to-die policy, or upon the expiration of the policy, whichever
				occurs first. For the purposes of this subsection, the policy owner value
				includes, without limitation, the cash surrender value of a policy and any
				other illustrated benefits available at the election of the policy
				owner.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.469 - "Supplemental illustration" defined

Current through June 11,
				2024
"Supplemental illustration" means an illustration that is
				  furnished in addition to a basic illustration and complies with the applicable
				  requirements of NAC 686A.460 to 686A.479, inclusive.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4695 - Applicability

Current through June 11, 2024
1. Except as otherwise provided in subsection
				2, the provisions of NAC 686A.460 to 686A.479, inclusive, apply to all group
				and individual policies and certificates of life insurance issued or delivered
				on or after January 1, 1998.
2. NAC
				686A.460 to 686A.479, inclusive, do not apply to:
(a) Variable life insurance;
(b) Individual and group annuity
				contracts;
(c) Credit life
				insurance; or
(d) Policies of life
				insurance that do not have illustrated death benefits for any person which
				exceed $10,000.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.470 - Use of standards for determining disciplined current scale established by Actuarial Standards Board

Current through June 11,
				2024
Standards for determining a disciplined current scale
				  established by the Actuarial Standards Board may be used if such
				  standards:
1. Are consistent with the
				provisions of NAC 686A.460 to 686A.479, inclusive;
2. Limit the disciplined current scale to
				reflect only actions that have been taken or events that have
				occurred;
3. Do not permit the
				disciplined current scale to include any projected trends of improvements in
				experience or any assumed improvements in experience beyond the illustration
				date; and
4. Do not permit the
				assumed expenses to be less than the minimum assumed expenses.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4705 - Method for determining assumed expenses; use of marginal expenses

Current through June 11, 2024
1. An insurer may, pursuant to the provisions
				of subsection 2, designate each year the method of determining assumed expenses
				for all policy forms from among the following methods:
(a) Fully allocated expenses;
(b) Marginal expenses; and
(c) A generally recognized expense table that
				is based on fully allocated expenses that are representative of a significant
				portion of insurance companies and is approved by the Commissioner.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.471 - Notification to Commissioner whether or not policy includes illustration; quotation of potential value required with nonterm group policy

Current through June 11, 2024
1. An insurer selling policies of life
				insurance shall notify the Commissioner in writing whether a policy form will
				be sold with or without an illustration. Any notice may be changed by filing an
				amended notice with the Commissioner.
2. If a policy form is designated pursuant to
				subsection 1 as one to be sold:
(a) Without an
				illustration, an illustration must not be used for any policy using that form
				before the first anniversary of the policy.
(b) With an illustration, the basic
				illustration must be prepared and delivered in accordance with NAC 686A.460 to
				686A.479, inclusive, except that a basic illustration is not required to be
				provided to individual members of a group or to persons insured under coverage
				issued to a single applicant on multiple lives unless the coverage is sold to
				such persons. An illustration furnished to an applicant for a group policy of
				life insurance or a policy issued to a single applicant on multiple lives may
				be an individual or composite illustration representative of the coverage for
				the lives of members of the group or the multiple lives covered.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4715 - Required provisions of life insurance illustration

Current
				through June 11, 2024
An illustration must be clearly labeled as a "life insurance
				  illustration" and set forth the:
1.
				Name of the insurer;
2. Name and
				business address of the insurer's agent, broker or other authorized
				representative;
3. Name, age and
				gender of the proposed insured, unless a composite illustration is permitted
				pursuant to NAC 686A.460 to 686A.479, inclusive;
4. Underwriting or rating classification upon
				which the illustration is based;
5.
				Generic name and form number of the policy;
6. The product name of the company if it is
				different from the generic name;
7.
				Amount of the initial death benefit; and
8. Election of a dividend option or the
				application of nonguaranteed elements.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.472 - Use of rate of interest to determine nonguaranteed elements of policy

Current through June 11, 2024
If a rate of interest used to determine the nonguaranteed
				  elements of a policy is shown in an illustration, the rate must not be greater
				  than the earned rate of interest underlying the disciplined current
				  scale.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4725 - Requirements for basic illustration

Current through June 11,
				2024
A basic illustration must conform with the following:
1. The illustration must include the date on
				which it was prepared.
2. Each page
				of the illustration, including, without limitation, any explanatory notes or
				pages, must be numbered in a manner that shows its relationship to the total
				number of pages in the illustration.
3. The assumed dates of payment of premiums
				and benefits within a policy year must be clearly identified.
4. If the age of the proposed insured is
				shown as a component of the tabular detail, it must be his or her age upon
				issuance of the policy plus the number of years the policy is assumed to be in
				force.
5. The assumed payments on
				which the illustrated benefits and values are based must be identified as the
				premium outlay or contract premium. For policies that do not require a contract
				premium, the illustrated payment of premiums must be identified as premium
				outlay.
6. Guaranteed death
				benefits and cash surrender values of the policy, if any, for the illustrated
				premium outlay or contract premium must be shown and clearly labeled as
				guaranteed.
7. If the illustration
				shows any nonguaranteed elements, they must not be based on a scale more
				favorable to the policy owner than the insurer's illustrated scale at any time
				during the term of the contract. Such elements must be clearly labeled as
				nonguaranteed.
8. The guaranteed
				elements must be shown before corresponding nonguaranteed elements and must be
				specifically referred to on any page of an illustration that shows or describes
				only the nonguaranteed elements.
9.
				If the account or accumulation value of the policy being illustrated is
				depicted, it must be identified by the name this value is given in the policy
				and shown in close proximity to the corresponding cash surrender
				value.
10. The cash surrender value
				of the policy being illustrated must be identified by the name the cash
				surrender value is given in the policy and must be the amount available to the
				policy owner in a lump sum after deduction of any charges for surrendering the
				policy, policy loans and interest on policy loans.
11. The illustration may show policy benefits
				and values in a graph or chart in addition to a tabular form.
12. An illustration of nonguaranteed elements
				must be accompanied by a statement that the:
(a) Benefits and values are not
				guaranteed;
(b) Assumptions on
				which they are based are subject to change by the insurer; and
(c) Actual results may be more or less
				favorable than is illustrated.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.473 - Contents of narrative summary in basic illustration

Current
				through June 11, 2024
A basic illustration must contain a narrative summary which
				  must include, without limitation, each of the following:
1. A brief description of the policy being
				illustrated, including, without limitation, a statement that it is a policy of
				life insurance.
2. A brief
				description of the premium outlay or contract premium for the policy. If a
				policy does not require the payment of a contract premium, the illustration
				must show the premium outlay that must be paid to guarantee coverage for the
				term of the contract, subject to maximum premiums allowable to qualify as a
				policy of life insurance under the applicable provisions of the Internal
				Revenue Code.
3. A brief
				description of any guaranteed or nonguaranteed elements, policy features,
				riders or options that are shown in the basic illustration and the impact they
				may have on the benefits and values of the policy.
4. An identification and a brief definition
				of column headings and key terms used in the illustration.
5. A statement in substantially the following
				form:
This illustration assumes that the currently illustrated
				  nonguaranteed elements will continue unchanged for all of the years shown. This
				  is not likely to occur and actual results may be more or less favorable than
				  those shown.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4735 - Contents of numeric summary of death benefits and values of policy in basic illustration

Current through June 11,
				2024
1. A basic
				illustration must include after the narrative summary a numeric summary of the
				death benefits and values of the policy being illustrated, and the premium
				outlay or contract premium. If the policy provides for a contract premium, the
				guaranteed death benefits and values must be based on the contract premium.
				This summary must be shown for policy years 5, 10 and 20, and at the age of 70
				years of the insured. For a policy issued to a single applicant on multiple
				lives, commonly referred to as a multiple-life policy, the summary must be
				shown for policy years 5, 10, 20 and 30.
2. A numeric summary for any policy must
				include, without limitation:
(a) The
				guaranteed elements of the policy;
(b) The illustrated scale; and
(c) The illustrated scale with the
				nonguaranteed elements reduced as follows:
(1)
				Dividends at 50 percent of the dividends contained in the illustrated scale
				used;
(2) Nonguaranteed credited
				interest at rates that are the average of the guaranteed rates and the rates
				contained in the illustrated scale used; and
(3) All nonguaranteed charges, including, but
				not limited to, charges for term insurance, mortality and expenses, at rates
				that are the average of the guaranteed rates and the rates contained in the
				illustrated scale used.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.474 - Signed statements required if illustration is provided at time of delivery of policy

Current through June 11,
				2024
The following statements must be included on the same page as
				  the numeric summary and must be signed by the applicant, or the policy owner if
				  an illustration is provided at the time of the delivery of the policy, and the
				  insurance agent or broker. The statements must be in substantially the
				  following form:
I, the applicant or policy owner, have received a copy of
				  this illustration and understand that any nonguaranteed elements illustrated
				  are subject to change and could be higher or lower. The insurance agent or
				  broker has informed me they are not guaranteed.
I, the insurance agent or broker, certify that this
				  illustration has been presented to the applicant or policy owner and that I
				  have explained that any nonguaranteed elements illustrated are subject to
				  change. I have made no statements that are inconsistent with the
				  illustration.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4745 - Information to be included in basic illustration when premium outlay or contract premium changes; other information required under certain circumstances

Current through June 11, 2024
1. A basic illustration must include, without
				limitation, the following information for each policy year from years 1 to 10,
				inclusive, for every fifth policy year thereafter ending at the age of 100
				years of the insured, or upon maturity or final expiration of the policy, and
				except for term insurance beyond the 20th year, for any year in which the
				premium outlay or contract premium changes:
(a) The premium outlay or contract premium,
				and the method by which the applicant intends to pay the premium;
(b) The corresponding guaranteed death
				benefit; and
(c) The corresponding
				guaranteed cash surrender value of the policy.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.475 - Supplemental illustration: When authorized; format; notice referring to basic illustration required

Current through June 11,
				2024
1. A supplemental
				illustration may be provided if:
(a) It is
				appended to, accompanied by or preceded by a basic illustration that complies
				with the provisions of NAC 686A.460 to 686A.479, inclusive;
(b) The nonguaranteed elements depicted are
				not more favorable to the policy owner than the corresponding elements based on
				the illustrated scale used in the basic illustration;
(c) It contains a statement that the
				nonguaranteed elements are not guaranteed; and
(d) The contract premium or premium outlay
				underlying the supplemental illustration is equal to the contract premium or
				premium outlay depicted in the basic illustration.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4755 - Solicitor to provide insurer and applicant copy of basic illustration to which policy conforms; required provisions of revised basic illustration; requirements when basic illustration not used in connection with sale

Current through June 11, 2024
1. If a basic illustration is used by an
				insurer's agent, broker or other authorized representative in connection with
				the sale of a policy of life insurance and the policy is applied for as
				illustrated, the agent, broker or authorized representative shall submit a copy
				of that illustration, signed in accordance with NAC 686A.460 to 686A.479,
				inclusive, to the insurer and the applicant at the time the applicant applies
				for the policy.
2. If the policy is
				issued other than as applied for, the agent, broker or authorized
				representative shall deliver a revised basic illustration conforming to the
				policy as issued to the applicant or policy owner at the time the policy is
				delivered. The revised illustration must:
(a)
				Conform to the requirements of NAC 686A.460 to 686A.479, inclusive, that apply
				to basic illustrations;
(b) Be
				labeled "Revised Illustration";
(c)
				Be signed and dated by the applicant or policy owner and the insurer's agent,
				broker or other authorized representative of the insurer no later than the date
				on which the policy is delivered; and
(d) Be provided to the insurer and the
				applicant or policy owner.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.476 - Requirements when basic illustration or revised basic illustration is delivered by mail; insurer to retain illustration or certificate that illustration was not used

Current through June 11,
				2024
1. If a basic
				illustration or a revised basic illustration is delivered by an insurer to an
				applicant or policy owner by mail, it must include instructions for the
				applicant or policy owner to sign a duplicate copy of the page of the
				illustration containing the numeric summary and return the signed copy to the
				insurer. An insurer shall be deemed to have complied with the provisions of
				this subsection if it can demonstrate that it has made a diligent effort to
				secure a signed copy of the page containing the numeric summary. An insurer
				shall be deemed to have made a diligent effort if it includes in the mailing a
				self-addressed postage paid envelope with instructions for the return of the
				signed copy of the page containing the numeric summary.
2. A copy of a basic illustration, a revised
				basic illustration or a certification that an illustration was not used in
				connection with the sale of a policy or that a policy was applied for other
				than as illustrated, which is signed by the policy owner, must be retained by
				the insurer for not less than 3 years after the policy is no longer in force. A
				copy does not need to be retained if no policy is issued.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 679B.137,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4765 - Annual report on status of policy: When required; contents

Current through June 11, 2024
1. Except as otherwise provided in subsection
				2, if a policy is designated pursuant to NAC 686A.471 as one for which an
				illustration will be used, the insurer shall provide each policy owner with an
				annual report on the status of the policy. The report must set forth:
(a) For a policy of universal life insurance:
(1) The beginning and end date of the current
				reporting period;
(2) The value of
				the policy at the end of the previous reporting period and at the end of the
				current reporting period;
(3) The
				total amounts that have been credited to or debited from the value of the
				policy during the current reporting period, identifying each by type,
				including, without limitation, credits and debits related to interest,
				mortality, expenses and riders;
(4)
				The death benefit at the end of the current reporting period for each life
				covered by the policy;
(5) The net
				cash surrender value of the policy at the end of the current reporting
				period;
(6) The amount of
				outstanding loans, if any, at the end of the current reporting
				period;
(7) If the policy requires
				the payment of fixed premiums and the policy's net cash surrender value will
				not maintain insurance in force until the end of the next reporting period, a
				notice to this effect; and
(8) If
				the policy allows the payment of flexible premiums and the policy's net cash
				surrender value will not maintain insurance in force until the end of the next
				reporting period unless additional premiums are paid, a notice to this
				effect.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.477 - In-force illustration to be furnished upon request

Current
				through June 11, 2024
Upon the request of a policy owner, an insurer shall furnish
				  an in-force illustration of current and future benefits and values for the
				  policy based on the insurer's present illustrated scale. This illustration must
				  comply with the requirements of NAC 686A.4715, 686A.472, 686A.4725 and
				  686A.4745. A signature or other acknowledgment of receipt of this illustration
				  is not required.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4772 - Illustration actuary: Appointment required; qualifications; notification to Commissioner of certain acts; notification of change in status

Current
				through June 11, 2024
1.
				Each insurer that sells policies of life insurance shall appoint at least one
				illustration actuary.
2. The
				illustration actuary must:
(a) Be a member in
				good standing of the American Academy of Actuaries;
(b) Be familiar with the standard of practice
				regarding illustrations for policies of life insurance; and
(c) Not have been found by the Commissioner,
				after notice and a hearing, to have:
(1)
				Violated any provision of, or failed to satisfy any obligation imposed by, the
				laws of this State relating to insurance in the course of his or her dealings
				as an illustration actuary;
(2)
				Been convicted of a crime involving fraud or dishonesty;
(3) Demonstrated incompetence, lack of
				cooperation or untrustworthiness to act as an illustration actuary;
				or
(4) Resigned or been removed as
				an illustration actuary within the past 5 years as a result of acts or
				omissions indicated in any adverse report on an examination or as a result of a
				failure to adhere to generally acceptable actuarial standards.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4775 - Illustration actuary to certify illustration; required disclosure in certification

Current through June 11,
				2024
1. An illustration
				actuary shall certify that:
(a) The
				disciplined current scale used in illustrations authorized by the insurer
				comply with the "Actuarial Standard of Practice for Compliance with the NAIC
				Model Regulation on Life Insurance Illustrations" adopted by the Actuarial
				Standards Board; and
(b) The
				illustrated scales used in illustrations authorized by the insurer comply with
				the requirements of NAC
				686A.460 to
				686A.479, inclusive.
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.478 - Annual certification by officer of insurer that sells policies required

Current through June 11,
				2024
An officer of an insurer that sells policies of life
				  insurance, other than the illustration actuary, shall certify on or before
				  December 31 of each year, for the current calendar year, that:
1. The formats for the illustrations the
				insurer intends to use comply with the requirements of NAC
				686A.460 to
				686A.479, inclusive;
2. The scales used in illustrations
				authorized by the insurer are those scales certified by the illustration
				actuary; and
3. The insurer has
				provided its agents and brokers with information about the method that is used
				by the insurer to allocate expenses in its illustrations and is disclosed as
				required in subsection 3 of NAC
				686A.4775.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98; A by
				  R081-16A,
				  eff. 11/2/2016
NRS
				  679B.130,
				  686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.4785 - Prohibited acts in connection with sale of policy

Current through
				June 11, 2024
If an insurer or its agent, broker or other authorized
				  representative is using an illustration in connection with the sale of a policy
				  of life insurance, the insurer, agent, broker or authorized representative
				  shall not:
1. Represent the policy as
				anything other than a policy of life insurance;
2. Use or describe nonguaranteed elements in
				a manner that is misleading or has the capacity or tendency to
				mislead;
3. State or imply that the
				payment or amount of nonguaranteed elements is guaranteed;
4. Use an illustration that does not comply
				with the requirements of NAC 686A.460 to 686A.479, inclusive;
5. Use an illustration that at any time
				during the term of the contract depicts policy performance more favorable to
				the policy owner than that produced by the illustrated scale of the insurer
				whose policy is being illustrated;
6. Provide an applicant with an incomplete
				illustration;
7. Represent in any
				way that the payment of premiums will not be required for each year of the
				policy in order to maintain the illustrated death benefits, unless the
				representation is true;
8. Use a
				term that implies that the policy will become paid up, including, without
				limitation, the terms, "vanish" or "vanishing premium," to describe a plan for
				using nonguaranteed elements to pay for any portion of a future
				premium;
9. Except for policies
				that can never develop a nonforfeiture value, use a lapse-supported
				illustration; or
10. Use an
				illustration that is not a self-supporting illustration.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › Illustrations › Section 686A.479 - Penalties

Current through June 11, 2024
An insurer, agent, broker or other authorized representative
				  of an insurer who violates any provision of NAC 686A.460 to 686A.4785,
				  inclusive, shall be deemed to have violated the provisions of
				  NRS
				  686A.030 or
				  686A.040,
				  or both, and, in addition to any other penalties provided by law, is subject to
				  the penalties set forth in
				  NRS
				  686A.183.
Added to NAC by Comm'r
				  of Insurance by R089-97, eff. 1-14-98
NRS
					 679B.130,
					 686A.015
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.485 - Applicability and effect

Current through June 11,
				2024
1. NAC 686A.485 to
				686A.4955, inclusive, apply to the solicitation or sale of a life insurance
				product by an insurer or producer of insurance to an active duty service
				member.
2. Nothing in NAC 686A.485
				to 686A.4955, inclusive, abrogates the ability of nonprofit organizations, or
				any other organization, to educate active duty service members in accordance
				with Department of Defense Instruction 1344.07, "Personal Commercial
				Solicitation on DoD Installations," or any successor directive.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.4855 - Definitions

Current through June 11, 2024
As used in NAC 686A.485 to 686A.4955, inclusive, unless the
				  context otherwise requires, the words and terms defined in NAC 686A.486 to
				  686A.4915, inclusive, have the meanings ascribed to them in those
				  sections.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.486 - "Active duty service member" defined

Current through June 11,
				2024
"Active duty service member" means:
1. Any commissioned or warrant officer or
				enlisted member of the United States Armed Forces who is on full-time duty in
				the active military service of the United States; or
2. A member of a reserve component of the
				United States Armed Forces or the National Guard while the member is serving
				under published orders for active duty or full-time training.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.4865 - "Department of Defense personnel" defined

Current through June 11,
				2024
"Department of Defense personnel" means all active duty
				  service members and all civilian employees, including, without limitation,
				  nonappropriated fund employees and special government employees, of the
				  Department of Defense.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.487 - "Door-to-door" defined

Current through June 11,
				2024
"Door-to-door" means a solicitation or sales method whereby a
				  producer of insurance proceeds randomly or selectively from household to
				  household without prior specific appointment.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.4875 - "General advertisement" defined

Current through June 11,
				2024
"General advertisement" means an advertisement having as its
				  sole purpose the promotion of interest in the concept of insurance or the
				  promotion of the insurer or the producer of insurance who is the subject of the
				  advertisement.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.488 - "Known" and "knowingly" defined

Current through June 11,
				2024
"Known" or "knowingly" means that the insurer or producer of
				  insurance had actual awareness, or with the exercise of ordinary care, would
				  have been aware, at the time of the act or practice complained of, that the
				  person solicited is an active duty service member.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.4885 - "Life insurance product" defined

Current through June 11,
				2024
"Life insurance product" has the meaning ascribed to it in
				  the Military Personnel Financial Services Protection Act,
				  Public Law
				  109-290, 120 Stat. 1317-26.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.489 - "Military installation" defined

Current through June 11,
				2024
"Military installation" means any base, reservation, post,
				  camp, building or other facility to which active duty service members are
				  assigned for duty and which is owned, leased or operated by the United States
				  Government. The term includes, without limitation, barracks, transient housing
				  and family quarters.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015
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.4895 - "MyPay" defined

Current through June 11,
				2024
"MyPay" means the system of the Defense Finance and
				  Accounting Service which enables an active duty service member to process
				  discretionary pay transactions or update personal information data elements
				  without using paper forms.
Added to NAC by Comm'r
				  of Insurance by R031-07, 8-31-2007, eff. 9-1-2007
NRS
					 679B.130,
					 686A.015