The Nevada Commissioner of Insurance has the authority to issue a cease and desist order when it appears that a person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of the Nevada Insurance Code (NRS 679A to 697), or any rule, regulation, or order issued thereunder. This power is outlined in NRS 679B.370. The Commissioner must believe that such action is necessary or appropriate in the public interest or for the protection of policyholders or the public. If an individual believes a cease and desist order was issued in error, they have the right to request a hearing to challenge the order. NRS 679B.360 details the procedures for such hearings. The request must be made within a specified timeframe (usually 30 days) after the order is served. The hearing will be conducted according to Nevada’s Administrative Procedure Act, allowing the individual to present evidence and arguments against the order. Ultimately, a court can review the Commissioner’s decision.

If the Nevada Division of Insurance denies an insurance license application, the applicant has the right to appeal the decision. The process typically begins with a written request for a hearing, submitted to the Division within a specified timeframe, usually 30 days from the date of the denial notice, as dictated by NRS 679B.310. The request must clearly state the grounds for the appeal and provide any supporting documentation that demonstrates why the denial was unwarranted. This documentation might include character references, evidence of relevant experience, or explanations for any past issues that led to the denial. Following the hearing, if the applicant remains dissatisfied with the Division’s decision, they may further appeal to the district court in Nevada, as outlined in NRS 679B.370. This appeal must also be filed within a specific timeframe, usually 30 days from the date of the Division’s final order. The court will review the administrative record and determine whether the Division’s decision was supported by substantial evidence and free from legal error.

“Unfair discrimination” in insurance, as defined and prohibited by the Nevada Insurance Code, refers to the practice of charging different rates or applying different terms and conditions to individuals or risks in the same class and with the same hazard, without a reasonable basis for the difference. NRS 686A.170 specifically addresses unfair discrimination. Examples of unfair discrimination include: 1. Charging a higher premium to an individual based solely on their race, religion, or national origin. 2. Refusing to insure someone solely because of their geographic location within a specific area, unless there is a statistically valid reason related to risk. 3. Denying coverage or charging higher rates to individuals with disabilities without a sound actuarial basis. 4. Varying rates or benefits between individuals of the same class and life expectancy. These practices are considered unfair because they are not based on legitimate risk factors and violate the principle of treating similarly situated individuals equally. The Nevada Insurance Code aims to prevent such discriminatory practices to ensure fair access to insurance coverage for all residents.

Nevada insurance regulations mandate that all insurers and producers maintain adequate records of insurance transactions. These records must accurately reflect all dealings and activities related to insurance business conducted in the state. The specific types of records that must be maintained include, but are not limited to: policies issued, applications received, claims filed and paid, premium collections, commission payments, and all correspondence related to insurance transactions. NRS 686A.200 outlines the general requirements for record keeping. The retention period for these records is generally five years from the date of the transaction or the expiration of the policy, whichever is later. This requirement ensures that the Division of Insurance has access to necessary information for audits, investigations, and regulatory oversight. Failure to comply with these record-keeping requirements can result in various penalties, including fines, suspension or revocation of licenses, and other administrative actions. The Commissioner of Insurance has the authority to impose these penalties under NRS 680A.200 if it is determined that an insurer or producer has failed to maintain adequate records or has intentionally destroyed or concealed records to obstruct an investigation.

The Nevada Insurance Guaranty Association (NIGA) is a statutory entity created to provide a safety net for policyholders in the event that an insurance company becomes insolvent and is unable to meet its obligations. NIGA’s role is to step in and pay covered claims up to certain limits, preventing financial hardship for policyholders. NIGA covers most direct insurance policies, including property and casualty insurance, workers’ compensation, and some portions of health insurance. However, it typically does not cover life insurance, annuity contracts, surety bonds, or certain types of reinsurance. The specific types of policies covered are defined in NRS 687A.030. There are limitations on NIGA’s coverage. The maximum amount NIGA will pay for a covered claim is generally \$300,000, regardless of the policy limits. This limit is designed to protect a large number of policyholders while managing the Association’s resources. NIGA is funded through assessments on solvent insurance companies operating in Nevada. These assessments are based on the insurers’ premiums written in the state and are used to pay covered claims and administrative expenses. NRS 687A.080 details the assessment process.

Nevada law permits insurers to use credit information in underwriting and rating personal lines insurance, such as auto and homeowners insurance, but it also imposes significant restrictions to protect consumers. NRS 679B.850 through 679B.880 outline these regulations. Insurers must adhere to the following: 1. **Adverse Action Notice:** If an insurer takes an adverse action (denial, cancellation, or increased premium) based on credit information, they must provide the consumer with a clear and specific explanation of the reasons for the action. 2. **Credit Information Source:** Insurers must disclose the source of the credit information used in the decision-making process. 3. **Re-evaluation:** Consumers are entitled to a re-evaluation of their insurance rates if their credit information improves. 4. **Prohibited Use:** Insurers are prohibited from using credit information as the sole basis for denying, canceling, or non-renewing a policy. They must consider other underwriting factors. 5. **Dispute Resolution:** Insurers must have procedures in place to address consumer disputes regarding the accuracy of their credit information. These regulations aim to balance the legitimate use of credit information in insurance underwriting with the need to protect consumers from unfair or discriminatory practices.

Nevada has specific regulations governing the solicitation and sale of long-term care insurance to ensure that policies are suitable for the needs and financial circumstances of the applicants. These regulations are primarily found in NRS 688A.460 through 688A.560 and NAC 688A.500 et seq. Key requirements include: 1. **Suitability Assessment:** Insurers and producers must conduct a thorough assessment of the applicant’s financial situation, health status, and long-term care needs before recommending a policy. This assessment helps determine if the policy is appropriate. 2. **Disclosure Requirements:** Applicants must be provided with clear and understandable information about the policy’s benefits, limitations, exclusions, and premium costs. 3. **Training Requirements:** Producers selling long-term care insurance must complete specific training courses to ensure they understand the complexities of these policies and can properly advise consumers. Violating these suitability standards can result in significant consequences, including: 1. **Fines and Penalties:** The Commissioner of Insurance can impose fines and other penalties on insurers and producers who fail to comply with the regulations. 2. **License Suspension or Revocation:** Producers who engage in unsuitable sales practices may have their insurance licenses suspended or revoked. 3. **Policy Rescission:** In some cases, consumers may be able to rescind policies that were sold in violation of the suitability standards, entitling them to a refund of premiums paid.

The Nevada Commissioner of Insurance, under NRS 686A.180, can issue a cease and desist order if they have reason to believe that any person is engaged, has engaged, or is about to engage in any unfair method of competition or any unfair or deceptive act or practice as defined in NRS 686A.020 to 686A.170. This includes, but is not limited to, misrepresentation, false advertising, defamation, boycott, coercion, and intimidation. Before issuing the order, the Commissioner must provide the person with a statement of the charges and a notice of hearing to be held not less than 10 days after the notice is served. The affected party has the right to appear at the hearing, present evidence, and be represented by counsel. If, after the hearing, the Commissioner determines that the person has engaged in or is about to engage in an unfair method of competition or an unfair or deceptive act or practice, they shall issue a cease and desist order. The order must specify the acts or practices that the person must cease and desist from. Recourse for the affected party includes the right to judicial review of the Commissioner’s order, as outlined in NRS 679B.310 to 679B.370. The party can file a petition for review in the district court of the county in which the hearing was held within 30 days after the order is issued. The filing of the petition does not automatically stay the Commissioner’s order, but the court may grant a stay upon application and a showing of good cause.

NRS 683A.271 governs the sharing of commissions in Nevada. An insurance producer may share commissions with another licensed insurance producer holding the same line of authority. This is permissible as long as both producers are properly licensed and the sharing does not violate any other provisions of the Nevada Insurance Code. Specifically, NRS 683A.271 states that no person other than a licensed insurance producer may receive any commission, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in Nevada. However, a licensed insurance producer may pay or assign commissions, or direct that commissions be paid, to another licensed insurance producer. It is crucial to note that sharing commissions with an unlicensed individual or entity is strictly prohibited and can result in disciplinary action against the licensed producer, including suspension or revocation of their license, as well as potential fines. Furthermore, the commission sharing arrangement must not be used as a means to circumvent anti-rebating or other unfair trade practice laws.

The Nevada Division of Insurance is responsible for regulating insurance companies and handling complaints against them. The complaint process typically begins with a consumer filing a written complaint with the Division, outlining the specific issues and providing supporting documentation. The Division then reviews the complaint to determine if it falls within its jurisdiction and if there is sufficient evidence to warrant an investigation. If the Division proceeds with an investigation, it will notify the insurance company of the complaint and request a response. The insurer is required to provide a detailed explanation of the situation and any relevant documentation. The Division may conduct further investigation, including interviewing witnesses and reviewing company records. If the Division finds that the insurance company has violated Nevada insurance regulations, it may take disciplinary action, as outlined in NRS 679B.130. This can include issuing a cease and desist order, imposing fines, suspending or revoking the insurer’s license, or requiring the insurer to take corrective action to remedy the violation. The severity of the penalty depends on the nature and extent of the violation, as well as the insurer’s history of compliance. Consumers also have the right to pursue private legal action against the insurer.

Nevada insurance producers are required to complete continuing education (CE) to maintain their licenses, as outlined in NRS 683A.351. The specific requirements are detailed in NAC 683A.400 et seq. Generally, producers must complete a certain number of CE hours every license renewal period, which is typically every three years. The number of CE hours required varies depending on the lines of authority held by the producer. A portion of these hours must be in ethics. Acceptable CE courses must be approved by the Nevada Division of Insurance and cover topics related to insurance laws, regulations, products, and practices. Producers are responsible for tracking their CE credits and ensuring that they meet the requirements before their license renewal date. Failure to comply with the CE requirements can result in disciplinary action, including fines, suspension of the license, or revocation of the license. NRS 683A.351 outlines the penalties for non-compliance. Producers who fail to complete their CE requirements may be given a grace period to make up the deficiency, but they may be subject to additional fees or penalties.

“Controlled business,” as defined in Nevada insurance regulations, refers to insurance written on the lives, property, or interests of the licensee or those of their immediate family, employer, or business associates. Nevada law places restrictions on the amount of controlled business an insurance producer can write to prevent unfair practices and ensure that producers are primarily engaged in serving the general public. NRS 683A.281 addresses controlled business. It generally prohibits the issuance or continuation of a license if the Commissioner finds that the primary purpose of the applicant or licensee is to write controlled business. The specific percentage of premium volume that constitutes “controlled business” is further defined in regulations. If a producer’s premium volume from controlled business exceeds the allowable percentage, their license may be subject to suspension or revocation. The intent is to prevent individuals from obtaining a license solely to insure themselves, their family, or their business, rather than serving the broader insurance market. The regulations ensure a fair balance between allowing producers to insure their own interests and preventing abuse of the licensing system.

Insurance fraud in Nevada is a serious offense with significant penalties. NRS 686A.291 defines insurance fraud and outlines the various acts that constitute fraud, such as knowingly presenting false information in support of a claim, concealing information to obtain insurance coverage, or soliciting or conspiring to commit fraudulent acts. The penalties for insurance fraud vary depending on the amount of the fraudulent claim and the severity of the offense. NRS 686A.291 outlines the specific penalties, which can include fines, imprisonment, and restitution. In addition to criminal penalties, individuals who commit insurance fraud may also face civil lawsuits from insurers seeking to recover damages. Insurers have a responsibility to prevent and report suspected insurance fraud. NRS 686A.281 requires insurers to establish anti-fraud plans and units to detect, investigate, and report suspected fraudulent activities. Insurers are also required to cooperate with law enforcement agencies in the investigation and prosecution of insurance fraud cases. Failure to comply with these requirements can result in penalties for the insurer.

Obtaining a surplus lines broker license in Nevada involves a specific process and qualifications, as outlined in NRS 685A.010 et seq. A surplus lines broker is authorized to place insurance coverage with non-admitted insurers (insurers not licensed in Nevada) when coverage is not available from admitted insurers. To qualify for a surplus lines broker license, an applicant must generally hold a resident insurance producer license with property and casualty lines of authority. They must also pass a surplus lines examination administered by the Nevada Division of Insurance or a designated testing provider. The examination tests the applicant’s knowledge of surplus lines insurance laws, regulations, and practices. In addition to passing the examination, applicants must meet certain financial responsibility requirements, such as posting a bond or establishing a trust account, as specified in NRS 685A.140. This ensures that the broker can fulfill their obligations to policyholders and insurers. Once licensed, surplus lines brokers are subject to ongoing requirements, including continuing education and the filing of annual reports with the Division of Insurance. They must also comply with specific regulations regarding the placement of surplus lines insurance, such as diligent effort requirements to determine that coverage is not available from admitted insurers and disclosure requirements to inform policyholders that they are purchasing coverage from a non-admitted insurer. Failure to comply with these requirements can result in disciplinary action, including suspension or revocation of the license.