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) Section 9 of this bill requires the Commissioner to establish and administer the Regulatory Experimentation Program for Insurance Product Innovation, which is a 4-year program to enable an authorized insurer who offers at least one insurance product in this State outside of the Program to test a qualified insurance product in this State without obtaining any authorization or complying with any of the provisions of the Nevada Insurance Code or the regulations adopted pursuant thereto that would otherwise be required outside of the Program. Section 7 of this bill defines “qualified insurance product” to mean an insurance product that provides coverage for real property located in this State that is valued at $250,000 or more. Section 12 of this bill sets forth the process by which an authorized insurer may apply to participate in the Program. Section 13 of this bill requires the Commissioner to approve or deny an application within 90 days after the completed application is received. Section 14 of this bill requires the Commissioner to provide written notice of the approval or denial of an application and authorizes an applicant to appeal a denial of an application to the Director of the Department of Business and Industry. Under section 15 of this bill, if an application is approved, the qualified insurance product offered or provided through the Program, with certain exceptions, is exempt from the provisions of the Nevada Insurance Code and any regulations adopted pursuant thereto. Section 10 of this bill requires the Commissioner to adopt regulations establishing protections for consumers of qualified insurance products provided through the Program and authorizes the Commissioner to adopt any other regulations to carry out the Program. Section 11 of this bill requires certain disclosures to be provided before providing a consumer a qualified insurance product through the Program. Section 16 of this bill sets forth certain requirements relating to the retention of records and reporting by a participant in the Program. Sections 17 and 26 of this bill set forth certain requirements concerning the confidentiality and disclosure of records relating to the Program. Section 18 of this bill requires the Commissioner to submit a report to the Legislature concerning the Program on or before January 1, 2029. Sections 19 and 20 of this bill authorize the Commissioner to take certain actions against a participant in the Program who commits certain violations or engages in any act or omission that the Commissioner determines is inconsistent with the health, safety or welfare of consumers or the public generally. Sections 3-8 of this bill define certain words and terms relating to the Program. Under existing law, with certain exceptions, insurers and certain rate service organizations are required to file with the Commissioner all rates and proposed increases thereto, as well as the forms of policies to which the rates apply, supplementary rate information and any changes or amendments to the rates. Existing law requires that such a filing be filed not less than 30 days before the proposed effective date of the filing, with certain exceptions. (NRS 686B.070) Existing law sets forth procedures by which the Commissioner is required to approve or disapprove a proposed increase or decrease in a rate for any kind or line of insurance, other than certain health plans. (NRS 686B.110) Sections 21-25 of this bill revise those provisions to allow an insurer to implement a proposed increase or decrease in certain rates while the process for the approval or disapproval proceeds. Section 21 requires a filing for a proposed increase or decrease in a rate for any kind or line of insurance for which the filing of rates is required, other than certain health plans, to be filed on or before the proposed effective date included in the filing. Section 21 authorizes an insurer to implement such a proposed increase or decrease while the proposal is pending approval or disapproval by the Commissioner. Section 23 provides that if the Commissioner disapproves such a proposed increase or decrease and the insurer has implemented the proposed increase or decrease, the Commissioner is required to issue a written order that includes, among other things, the date on which the disapproved increased or decreased rate must no longer be used for the issuance of new policies or contracts or the renewal of existing policies or contracts. Under section 23, the order does not affect any policy or contract made before the effective date of the order, except that the Commissioner is authorized to require that the premiums be adjusted after the effective date of the order for those policies or contracts in effect on the effective date of the order. Under existing law, if a filing for a proposed increase in a rate is not accompanied by certain information, the Commissioner is authorized to inform the insurer and the filing is deemed to be made when the information is furnished. (NRS 686B.100) Section 22 deems a filing for a proposed increase in a rate for any kind or line of insurance, other than certain health plans, for the purpose of implementing the proposed increase pending the approval or disapproval of the Commissioner to be filed on the date on which it is filed with the Commissioner, regardless of whether the filing is accompanied by such information. Similarly, existing law provides that if the Commissioner determines that a proposal to increase or decrease a rate is incomplete, the Commissioner must notify the insurer or rate service organization of that determination and, if the insurer does not provide the necessary documents or other information within 30 days after the receipt of that notice, the Commissioner is authorized to disapprove the proposal. (NRS 686B.110) Section 23 provides that a determination that a proposal to increase or decrease a rate for any kind or line of insurance, other than certain health plans, is incomplete does not prohibit an insurer from implementing the proposed increase or decrease pending approval or disapproval. Sections 24 and 25 make conforming changes to refer to provisions that have been renumbered by section 21.

Statutes affected:
As Introduced: 686B.070, 686B.100, 686B.110, 686B.112, 686B.117, 239.010
BDR: 686B.070, 686B.100, 686B.110, 686B.112, 686B.117, 239.010