Existing law requires the Commissioner of Insurance to regulate insurance in this State and enforce the provisions of the Nevada Insurance Code. (NRS 679B.120) Existing law sets forth various requirements relating to examinations of insurers, which are conducted by the Commissioner. (NRS 679B.230-679B.300) Section 354 of this bill repeals those provisions of existing law relating to examinations of insurers. Sections 1-41 of this bill reenact, reorganize and revise those provisions into a new chapter of the Nevada Revised Statutes governing examinations of insurers and other persons subject to regulation under the Nevada Insurance Code. Sections 3-12 and 27-41 additionally enact provisions that are modeled, in general, after the Market Conduct Surveillance Model Law adopted by the National Association of Insurance Commissioners and which: (1) require the Commissioner to collect and analyze information concerning the market practices of insurers; and (2) authorize the Commissioner to take certain actions, including, without limitation, the conducting of certain examinations, based on the results of that analysis. Sections 43, 54, 65, 111, 113, 114, 124-127, 197, 203, 210, 213, 216-218, 221, 223, 229, 251, 253, 269, 289-291, 293, 294, 297, 318, 319, 336, 340 and 342 of this bill make conforming changes to replace references in existing law to the sections which were repealed and reenacted in sections 2-41. Section 42 of this bill authorizes the Commissioner, during a state of emergency or declaration of disaster, to issue a temporary order to address certain matters relating to policies issued in this State. Section 42 requires each such order to be approved by the Governor and meet certain other requirements. Section 333 of this bill exempts any order issued by the Commissioner pursuant to section 42 from the requirements of the Nevada Administrative Procedure Act. (NRS 233B.039) Section 44 of this bill expands the applicability of a provision of existing law requiring the Secretary of State to nullify the charter or certificate of certain insurers who are prohibited from transacting insurance in this State to include any person who is prohibited from transacting insurance in this State. Section 45 of this bill revises requirements imposed on the Commissioner concerning the publication of a guide to rates for policies of insurance for motor vehicles. Section 46 of this bill revises provisions governing oversight by the Commissioner of certain usual and customary fees or reimbursement methodologies. Section 47 of this bill authorizes an attorney employed by the Division of Insurance of the Department of Business and Industry to act as legal counsel to the Division and the Commissioner in certain matters, instead of the Attorney General. Section 48 of this bill: (1) authorizes the Commissioner to enter into contracts with the National Association of Insurance Commissioners for goods and services related to the regulation of insurance; and (2) exempts such a contract from the provisions of existing law governing purchasing for the State. Section 116 of this bill makes a conforming change to update an internal reference changed by section 48. Section 51 of this bill authorizes the Commissioner to limit, in addition to suspending, the certificate of authority of an insurer under certain circumstances. Existing law provides for the registration and regulation of administrators by the Commissioner. (NRS 683A.0805-683A.0893) Section 55 of this bill requires an administrator to report to the Commissioner certain information concerning administrative actions and criminal prosecutions against the administrator. Section 57 of this bill applies certain definitions in existing law relating to administrators to section 55. Sections 58-60 of this bill revise provisions relating to certain: (1) documents which are required as part of an application for registration as an administrator; (2) bonds which are required to be filed by an administrator; and (3) recordkeeping requirements for administrators. Section 61 of this bill authorizes an administrator to use accounts in a financial institution not located in this State to hold certain money in a fiduciary capacity. Section 62 of this bill authorizes the Commissioner to revoke the registration of an administrator without further notice if the registration has already been suspended and the administrator becomes nonresponsive. Existing law provides for the registration and regulation of providers of service contracts by the Commissioner. (Chapter 690C of NRS) Sections 52 and 205 of this bill: (1) reduce from 2 years to 1 year the length of time that a certificate of registration for a service contract provider is valid; and (2) proportionally reduce the fees for registration and renewal to reflect annual instead of biennial registration. Sections 202, 207 and 209 of this bill revise provisions relating to certain duties and requirements for the registration of a service contract provider. Section 206 of this bill revises provisions relating to the financial security which is required of a service contract provider. Section 208 of this bill requires a service contract to include the name of the holder of the service contract. Sections 56, 199, 201 and 204 of this bill: (1) require a person who administers a service contract to obtain a certificate of registration as an administrator issued by the Commissioner; (2) subject such an administrator to the provisions of existing law governing administrators; and (3) set forth certain requirements for the operation of such an administrator. Sections 200 and 211 of this bill authorize the Commissioner to: (1) issue a cease and desist order under certain circumstances; and (2) suspend, without advance notice or a hearing, the registration of a service contract provider if the provider violates a cease and desist order from the Commissioner. Section 212 of this bill increases the maximum fines the Commissioner may assess for certain violations of existing law relating to service contracts. Section 64 of this bill: (1) removes a provision requiring certain hearings to be held within 30 days of a written application under certain circumstances, thus making existing law applicable which provides a 60-day timeline for such hearings under those circumstances; and (2) authorizes the Commissioner, after notice and the opportunity for a hearing, to take certain actions against the license of a business organization. (NRS 679B.310) Existing law provides for the licensure and regulation of independent adjusters, public adjusters, company adjusters and staff adjusters by the Commissioner. (Chapter 684A of NRS) Section 67 of this bill eliminates the staff adjuster and company adjuster license types and instead consolidates those license types into the independent adjuster license type. Sections 66, 68-70, 73-76, 343 and 344 of this bill make conforming changes to reflect that consolidation. Existing law generally exempts a person who is licensed as an adjuster in another state from the requirement to take and pass an examination to obtain a nonresident license as an adjuster under certain circumstances. Sections 71 and 72 of this bill require a person to take and pass such an examination if the home state of the person requires a nonresident applicant for a license as an adjuster to take and pass an examination for licensure. Section 77 of this bill revises requirements for licensing as a surplus lines broker. Section 78 of this bill revises provisions relating to the Commissioner accepting service of process on behalf of unauthorized insurers in certain circumstances. Existing law governs trade practices and frauds relating to the insurance business and gives the Commissioner exclusive jurisdiction to regulate trade practices in the insurance business. (Chapter 686A of NRS) Sections 80-83, 97, 99, 101, 102 and 110 of this bill revise and add to the provisions of existing law governing trade practices and frauds for the purpose of conforming more closely to the Unfair Trade Practices Act adopted by the National Association of Insurance Commissioners. Section 80 prohibits an insurer from taking certain discriminatory actions. Section 81 imposes certain requirements on an insurer relating to recordkeeping. Section 82 prohibits a person from making certain false or fraudulent statements or representations. Section 83 requires a property and casualty insurer to provide to a primary insured certain loss information upon request. Section 97 prohibits an insurer from providing certain inducements to purchase insurance. Section 99 sets forth certain restrictions upon a person, bank or affiliate relating to insurance. Section 101 sets forth certain actions relating to value-added products or services that do not constitute prohibited discrimination or rebates. Section 102 sets forth certain actions that constitute prohibited unfair discrimination. Section 110 sets forth certain recordkeeping requirements for a person who generates leads for an insurer or producer of insurance relating to health insurance products and services. Existing law prohibits certain health insurers from denying a claim, refusing to issue or cancelling a policy of health insurance solely because the claim involves an act of domestic violence or the person applying for or covered by the policy was the victim of such an act of domestic violence. (NRS 689A.413, 689B.068, 689C.196, 695A.195, 695B.316, 695C.203, 695D.217) Section 354 repeals those provisions. Sections 84-93 of this bill instead set forth restrictions concerning discrimination based on domestic violence which are modeled, in general, after several model acts adopted by the National Association of Insurance Commissioners relating to unfair discrimination against subjects of abuse. Sections 83-92 prohibit insurers, insurance professionals and other persons from engaging in various discriminatory actions relating to domestic violence, including, among other actions: (1) denying, refusing to issue or renew, cancelling or otherwise terminating a policy of insurance on the basis of the domestic violence status of a person; and (2) with certain exceptions, denying benefits on a policy of insurance on the basis of domestic violence status, including, without limitation, denying a claim under a policy of health insurance solely because the claim involves an act that constitutes domestic violence. Section 93 requires an insurer or insurance professional to explain to an applicant or insured, and demonstrate to the Commissioner, certain matters relating to certain actions involving medical conditions relating to domestic violence. Section 109 of this bill sets forth certain unfair trade practices relating to the handling of claims that are modeled, in general, after provisions set forth in the Unfair Claims Settlement Practices Act adopted by the National Association of Insurance Commissioners. Section 115 of this bill limits deductions for depreciation in the settlement of certain property insurance claims to the cost of physical goods being repaired or replaced. Section 117 of this bill reduces the time within which an insurer is required to respond to a request for prior authorization, from within 20 days after the insurer received the request to: (1) within 2 business days after the date of submission of the request, if the request involves urgent health care services; and (2) within 5 business days after the date of submission of the request, if the request does not involve urgent health care services. Existing law prohibits an insurer from taking certain adverse actions against a policy of motor vehicle insurance as a result of the filing of certain claims or the making of certain inquiries. (NRS 687B.385) Section 118 of this bill expands that prohibition to prohibit an insurer from taking certain adverse actions against a policy of property or casualty insurance as a result of the filing of certain claims or the making of certain inquiries. Section 119 of this bill revises the dates on which the Commissioner is required to request and an insurer is required to provide certain annual information relating to compliance with certain federal laws. Sections 128-134, 153-159, 175-181, 197, 232-237, 252, 270, 298-302, 304 and 305 of this bill reorganize and revise, for consistency throughout various provisions of the Nevada Insurance Code, certain definitions in existing law of the terms “medical management technique,” “network plan,” “provider network contract,” “provider of health care” and “therapeutic equivalent” as those terms relate to: (1) individual health insurance; (2) group and blanket health insurance; (3) health insurance for small employers; (4) fraternal benefit societies; (5) nonprofit corporations for hospital, medical and dental service; (6) health maintenance organizations; and (7) managed care organizations. Sections 63, 120-123, 136-149, 151, 152, 160-174, 183-194, 238-250, 255-268, 274-287, 296, 303, 306-317, 328, 337, 338 and 349 of this bill make conforming changes to eliminate duplicative references in provisions of existing law to which those reorganized definitions apply. Section 135 of this bill removes certain obsolete references to a program for reinsurance. Section 150 of this bill exempts certain health benefit plans from a requirement to include certain provisions relating to reinstatement. Sections 214 and 215 of this bill transfer certain duties of the Commissioner of Financial Institutions to the Commissioner of Mortgage Lending. Sections 219, 321, 322 and 345 of this bill revise the conditions under which certain insurers are considered impaired or insolvent for the purpose of conforming more closely to the Insurer Receivership Model Act adopted by the National Association of Insurance Commissioners. Sections 220 and 334 of this bill provide for the confidentiality of certain information relating to captive insurers. Section 222 of this bill authorizes the Commissioner to exempt a pure captive insurer that only insures risks of its parent and affiliated companies or controlled unaffiliated businesses from certain provisions of existing law applicable to captive insurers generally. For a captive insurer who is not currently transacting the business of insurance and has been issued a certificate of dormancy by the Commissioner, section 224 of this bill: (1) revises the amount of capital and surplus required of a dormant captive insurer; and (2) requires a dormant captive insurer to comply with any applicable responsibilities of the insurer which accrued before the date on which the certificate of dormancy was issued. Section 230 of this bill specifies the minimum amount of the annual premium tax that is required to be paid by a captive insurer in any year in which the captive insurer was not a dormant captive insurer and wrote no direct premiums or assumed no reinsurance premiums. Section 225 of this bill eliminates a requirement for the Commissioner to adopt administrative regulations relating to the competence of an attorney with whom a captive insurer enters into a contract. Section 226 of this bill authorizes the calculation of what constitutes an extraordinary dividend or extraordinary distribution based on the fiscal year of a captive insurer rather than a calendar year. Sections 227 and 228 of this bill revise provisions relating to certain reporting requirements applicable to certain captive insurers for consistency in existing law among different types of captive insurers. Sections 230 and 231 of this bill: (1) eliminate the Account for the Regulation and Supervision of Captive Insurers; and (2) redirect all fees, assessments, taxes and other sources of funds which are credited to the Account into the Fund for Insurance Administration and Enforcement. Section 254 of this bill revises provisions relating to certain deductibles and coinsurance payments which are applicable to group contracts for hospital, medical or dental services. Section 271 of this bill clarifies the applicability to health maintenance organizations of certain existing laws relating to network plans. Sections 272 and 273 of this bill revise certain terminology relating to the capital and surplus of a health maintenance organization. Sections 323-327 of this bill authorize the Commissioner to appoint a person who is not an employee of the Division of Insurance to serve as the administrative supervisor of an insurer which has been placed under administrative supervision by the Commissioner. Section 335 of this bill designates investigators and administrators of the Division who perform certain duties relating to insurance fraud as category II peace officers, thus requiring them to meet certain training and educational requirements applicable to those officers. Sections 339 and 341 of this bill authorize the Commissioner to adopt administrative regulations relating to cemeteries and crematories for pets. Sections 347 and 348 of this bill: (1) require an association of self-insured public or private employers to file a corrective action plan with the Commissioner relating to certain deficiencies; and (2) authorize the Commissioner to withdraw the certificate of an association if the association fails to notify the Commissioner of such a deficiency. Section 354 repeals provisions of existing law relating to insurance for home protection. (NRS 645.645, 690B.100-690B.180) Section 354 also repeals a provision applicable to health insurance for small employers which is duplicative of existing law applicable to all group and blanket health insurance. (NRS 689C.320) Sections 53, 182, 195 and 330-332 of this bill make conforming changes by removing and replacing references in existing law to provisions repealed by section 354.

Statutes affected:
As Introduced: 679B.139, 679B.142, 679B.145, 679B.152, 679B.180, 679B.220, 679B.630, 680A.120, 680A.200, 680B.010, 681A.020, 681B.400, 683A.025, 683A.0805, 683A.08522, 683A.0857, 683A.0873, 683A.0877, 683A.0892, 683A.179, 683A.461, 683C.018, 684A.027, 684A.030, 684A.040, 684A.050, 684A.090, 684A.100, 684A.115, 684A.120, 684A.130, 684A.150, 684A.180, 685A.120, 685B.050, 686A.010, 686A.015, 686A.020, 686A.030, 686A.040, 686A.085, 686A.095, 686A.120, 686A.130, 686A.150, 686A.160, 686A.170, 686A.180, 686A.183, 686A.270, 686A.310, 686A.400, 686A.410, 686A.520, 686B.125, 686B.1784, 687B.120, 687B.225, 687B.385, 687B.404, 687B.409, 687B.490, 687B.615, 687B.660, 688C.175, 688C.180, 689.160, 689.595, 689A.020, 689A.04048, 689A.04049, 689A.0405, 689A.0412, 689A.0415, 689A.0417, 689A.0418, 689A.0419, 689A.0428, 689A.0432, 689A.0437, 689A.044, 689A.0446, 689A.0459, 689A.080, 689A.135, 689A.635, 689B.0312, 689B.0313, 689B.0314, 689B.0315, 689B.0319, 689B.0334, 689B.0358, 689B.0361, 689B.0374, 689B.0376, 689B.03765, 689B.0377, 689B.0378, 689B.03785, 689B.570, 689C.015, 689C.077, 689C.1565, 689C.1652, 689C.1665, 689C.1671, 689C.1672, 689C.1673, 689C.1674, 689C.1675, 689C.1676, 689C.1678, 689C.1682, 689C.1687, 689C.1688, 689C.325, 689C.425, 690A.260, 690C.020, 690C.070, 690C.120, 690C.150, 690C.160, 690C.170, 690C.200, 690C.260, 690C.310, 690C.320, 690C.325, 690C.330, 691C.380, 692A.100, 692A.1045, 692C.290, 692C.3503, 692C.410, 693A.260, 694C.160, 694C.180, 694C.220, 694C.259, 694C.310, 694C.330, 694C.388, 694C.400, 694C.410, 694C.450, 694C.460, 695A.001, 695A.1843, 695A.1845, 695A.1853, 695A.1855, 695A.1856, 695A.1859, 695A.1865, 695A.1867, 695A.1873, 695A.1874, 695A.1875, 695A.256, 695A.500, 695B.030, 695B.160, 695B.185, 695B.19046, 695B.19087, 695B.1911, 695B.1912, 695B.1913, 695B.1915, 695B.1916, 695B.1918, 695B.1919, 695B.19195, 695B.19197, 695B.1924, 695B.1925, 695B.1929, 695B.320, 695C.030, 695C.055, 695C.070, 695C.090, 695C.16932, 695C.16934, 695C.1694, 695C.16947, 695C.1695, 695C.1696, 695C.1698, 695C.1699, 695C.1728, 695C.17347, 695C.1735, 695C.1737, 695