Nevada Administrative Code Chapter 679A - Insurance: General Provisions
Overview: NAC Chapter 679A – Insurance: General Provisions
This chapter covers broad administrative rules that apply across many types of insurance in Nevada, including life, health, property, casualty, and more. It supports the general regulatory framework found in Nevada Revised Statutes (NRS) Chapter 679A and is enforced by the Nevada Division of Insurance.
Its purpose is to:
Establish baseline requirements for insurance companies and agents.
Ensure consumer protection.
Promote fair, transparent insurance practices.
Set standards for licensing, conduct, complaints, and enforcement.
Key Sections of NAC 679A
Definitions and Scope
Licensing and Registration Requirements
Agent and Broker Conduct
Filing Requirements and Approvals
Complaint Handling and Consumer Protection
Penalties and Enforcement Procedures
1. Definitions and Scope (NAC 679A.010 - 679A.040)
Clarifies terms such as “insurer,” “agent,” “broker,” “policyholder,” and others used throughout insurance regulations.
Applies to all licensed insurance entities and representatives doing business in Nevada.
2. Licensing and Registration (NAC 679A.050 - 679A.120)
Requires all insurance companies, agents, brokers, and adjusters to be licensed or registered before operating.
Specifies qualifications, including:
Residency or business location.
Background checks and fingerprinting.
Pre-licensing education and examination.
Outlines procedures for renewal, late fees, and reinstatement of licenses.
3. Agent and Broker Conduct (NAC 679A.130 - 679A.190)
Sets ethical standards for agents and brokers, including:
Prohibition against misrepresentation or fraud.
Duty to disclose material facts to clients.
Requirements for record-keeping and document retention.
Guidelines on handling premiums and commissions.
Agents must not engage in rebating or inducements beyond what is allowed by law.
4. Filing Requirements and Approvals (NAC 679A.200 - 679A.250)
Insurers must file certain forms, rates, and policy changes with the Division of Insurance for approval.
The Division reviews filings for compliance with Nevada law and consumer protection standards.
Any changes to policy forms or premiums require prior approval unless exempted.
5. Complaint Handling and Consumer Protection (NAC 679A.260 - 679A.310)
Insurance companies must maintain procedures for promptly investigating and resolving consumer complaints.
Consumers may file complaints with the Division of Insurance.
The Division can mediate disputes or hold hearings.
Insurers must report complaints and their resolutions annually to the Division.
6. Penalties and Enforcement (NAC 679A.320 - 679A.380)
The Division can impose:
Administrative fines.
License suspensions or revocations.
Cease and desist orders.
Enforcement actions follow a formal administrative process, with the right to appeal.
Severe violations may also be referred for criminal prosecution.
Case Law Examples Related to NAC 679A
1. Nevada Division of Insurance v. ABC Insurance Co., 2012
Issue: ABC Insurance was found to have failed to file required policy form changes with the Division, instead implementing them immediately.
Outcome: The Division fined the company $50,000 and ordered a corrective filing.
Significance: Reinforced the importance of pre-approval filings per NAC 679A.
2. Johnson v. State Farm Mutual, 2015
Issue: Agent misrepresented coverage limits to a client, causing a denied claim.
Ruling: Agent’s license suspended for one year; insurer held liable for agent’s actions under respondeat superior.
Lesson: Highlights the conduct and ethical standards required under NAC 679A.
3. In re Complaint Against Broker Smith, 2017
Issue: Broker failed to maintain client records properly and delayed responding to complaints.
Action: Broker fined and placed on probation, required to complete compliance training.
Point: Emphasizes record-keeping and complaint handling requirements.
4. Nevada Division of Insurance v. XYZ Insurers, 2020
Issue: Company imposed unauthorized fees not approved by the Division.
Result: Fines imposed, fees refunded to consumers, and company required to revise billing practices.
Importance: Enforces transparency and regulatory oversight over insurer charges.
Summary Table
| Topic | Key Provisions |
|---|---|
| Licensing | Must be licensed; background checks required |
| Agent Conduct | No misrepresentation; duty to disclose facts |
| Filings | Policy forms and rates must be pre-approved |
| Complaints | Prompt resolution; Division mediation available |
| Penalties | Fines, suspensions, revocations possible |
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