Policies and certificates of insurance: Contents; delivery.
1. All credit insurance must be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance.
2. Each policy or certificate must, in addition to other requirements of law:
(a) Set forth the full name of the insurer and the address of its home office, the name of the debtor or, in the case of a certificate under a group policy, the identity of the debtor by name or otherwise;
(b) Set forth separately for each type of credit insurance the rate for the premium or the amount of payment, if any, by the debtor, and a description of the coverage, including the amount and term of the coverage, and any exceptions, limitations and restrictions; and
(c) State that the benefits are payable to the creditor to reduce or extinguish the unpaid indebtedness and, if the amount of insurance exceeds the unpaid indebtedness, that the excess is payable to a beneficiary, other than the creditor, named by the debtor or to his estate.
3. Except as otherwise provided in this section, the individual policy or group certificate of insurance must be delivered to the insured debtor at the time the indebtedness is incurred.
4. If a debtor makes a separate payment for credit life or credit health insurance and an individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for the insurance or a notice of proposed insurance must be delivered at that time to the debtor. The copy of the application for or notice of proposed insurance must:
(a) Be signed by the debtor;
(b) Set forth the identity by name or otherwise of the person insured;
(c) Set forth separately for each type of coverage the rate or amount of payment by the debtor, if any;
(d) Contain a statement that within 30 days after acceptance of the contract by the insurer, an individual policy or group certificate of insurance will be delivered to the debtor; and
(e) Refer exclusively to insurance coverage, and must be separate from the loan, sale or other credit statement of account, instrument or agreement, unless the information required by this subsection is prominently set forth in the application or notice.
Ê Upon acceptance of the insurance by the insurer and within 30 days after the indebtedness is incurred, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor. The application or notice of proposed insurance must state that upon acceptance by the insurer, the insurance becomes effective as provided in NRS 690A.060.
5. If the insurer named in the application or notice of proposed insurance does not accept the risk, but another insurer accepts the risk, the debtor must receive a policy or certificate of insurance from that insurer setting forth the full name of the substituted insurer, the address of its home office and the amount of the premium to be charged. If the rate or amount of premium is less than that set forth in the notice of proposed insurance, an appropriate refund must be made.
Last modified: February 27, 2006