Nevada Administrative Code Chapter 691C - Credit Personal Property Insurance
Nevada Administrative Code (NAC) Chapter 691C – Credit Personal Property Insurance
This chapter provides regulatory guidance for credit personal property insurance in Nevada and implements provisions of NRS Chapter 691C.
🔹 Overview of NAC 691C – Key Provisions
Credit Personal Property Insurance refers to insurance offered in connection with a credit transaction that insures personal property used as collateral. NAC 691C outlines standards for its issuance, marketing, and administration.
📘 Key Sections and Topics in NAC 691C
Definitions
Clarifies important terms such as policyholder, creditor, debtor, and credit personal property insurance.
Form Filing Requirements
Insurers must submit all policy forms, certificates, and endorsements to the Nevada Division of Insurance for approval.
Policies must be written in clear and understandable language.
Disclosure Requirements
Clear and prominent disclosures must be provided to debtors, including:
That the insurance is not required to obtain credit.
That the purchase is optional.
The cost of coverage if purchased.
Refunds and Cancellations
Details procedures for unearned premium refunds if coverage is canceled early.
Prohibits unfair cancellation practices and requires refunds to be made promptly.
Rate Standards
Rates must be actuarially justified and filed with the Commissioner.
Prevents excessive, inadequate, or unfairly discriminatory rates.
Claims Practices
Insurers must investigate and settle claims promptly.
Must comply with NAC 686A (Unfair Claims Settlement Practices).
Recordkeeping
Insurers and creditors must maintain records related to:
Policy issuance
Claims
Refunds
Premiums
Advertising and Marketing Restrictions
Prevents misleading or deceptive sales practices.
Any promotional material must clearly state the voluntary nature of the insurance.
Enforcement and Penalties
Provides for administrative action if insurers or creditors fail to comply with regulations.
Includes potential fines, suspension, or revocation of authority.
✅ Purpose of NAC 691C
To protect consumers from deceptive or coercive practices in the sale of credit personal property insurance, and ensure policies are fair, transparent, and reasonably priced.
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