Nevada Administrative Code Chapter 695A - Fraternal Benefit Societies
Nevada Administrative Code (NAC) Chapter 695A — Fraternal Benefit Societies provides regulatory guidance for the operation, structure, and oversight of fraternal benefit societies authorized to conduct insurance business in Nevada. It supplements NRS Chapter 695A, which establishes the statutory framework.
🔍 Overview of NAC Chapter 695A – Fraternal Benefit Societies
Fraternal benefit societies are nonprofit membership-based organizations that offer insurance benefits (life, health, annuities) to their members and are typically organized around a common bond, such as religion, ethnicity, or occupation.
📘 Key Provisions Typically Addressed in NAC 695A
Licensing and Authority
Requirements for a fraternal society to obtain and maintain a certificate of authority to operate in Nevada.
Conditions under which a society may lose its license (e.g., insolvency, failure to meet membership criteria).
Organizational Structure
Rules governing how societies must be organized (e.g., lodges, representative government, ritualistic practices).
Governance requirements, including election of officers and holding of meetings.
Insurance Contracts
Standards for insurance policies issued by fraternal benefit societies, including:
Minimum benefit provisions
Disclosure requirements
Provisions for reinstatement, grace periods, and beneficiaries
Reserves and Solvency
Rules for maintaining adequate reserves to meet future liabilities.
Reporting and actuarial standards for reserve valuations.
Membership Requirements
Conditions for admission and continuation of membership.
Impact of loss of membership on insurance coverage.
Exemptions and Limitations
Certain regulatory exemptions may apply (e.g., tax treatment, filing requirements), reflecting the nonprofit, mutual-aid nature of these organizations.
Compliance and Reporting
Annual filings, actuarial certifications, and financial reporting duties.
Requirements for notifying the Nevada Division of Insurance about changes in governance or operations.
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