Nev. Rev. Stat. § 688A.010 Scope.
This chapter, with the exception of NRS 688A.390, applies only to contracts of life insurance, endowment and annuities, other than reinsurance, group life insurance and group annuities.
LIFE INSURANCE AND ANNUITY CONTRACTS
Nev. Rev. Stat. 688A
in effectNev. Rev. Stat. § 688A.020 Annuity defined.
1. For the purposes of this Code, an annuity is a contract under which obligations are assumed to make periodic payments for a specific term or terms or where the making or continuance of all or some such payments, or the amount of any such payment, is dependent upon continuance of human life, except payments made pursuant to optional modes of settlement under the authority of NRS 681A.040 .
2. The term includes an annuity contract which incorporates long-term care insurance if the annuity contract may incorporate the long-term care insurance pursuant to NRS 688A.440 .
Nev. Rev. Stat. § 688A.030 Industrial life insurance defined.
For the purposes of this Code, industrial life insurance is that form of life insurance written under policies of a face amount of $2,500 or less bearing the words industrial policy or weekly premium policy or words of similar import imprinted on the face thereof as part of the descriptive matter, and under which premiums are payable monthly or more often.
Nev. Rev. Stat. § 688A.040 Standard provisions required in certain policies.
1. No policy of life insurance other than pure endowments, with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this state unless it contains in substance all of the applicable provisions required by NRS 688A.050 to 688A.160 , inclusive. This section does not apply to annuity contracts or to any provision of a life insurance policy, or contract supplemental thereto, relating to disability benefits or to additional benefits in the event of death by accident or accidental means.
2. Any of such provisions or portions thereof not applicable to single premium or nonparticipating or term policies or insurance granted in exchange for lapsed or surrendered policies shall to that extent not be incorporated therein.
Nev. Rev. Stat. § 688A.050 Payment of premiums.
There shall be a provision relating to the time and place of payment of premiums.
Nev. Rev. Stat. § 688A.060 Grace period.
There shall be a provision that a grace period of 30 days or, at the option of the insurer, of 1 month of not less than 30 days or of 4 weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly shall be allowed within which the payment of any premium after the first may be made, during which period of grace the policy shall continue in full force. The insurer may impose an interest charge not in excess of 6 percent per annum for the number of days of grace elapsing before the payment of the premium, and, whether or not such interest charge is imposed, if a claim arises under the policy during such period of grace the amount of any premium due or overdue, together with interest and any deferred installment of the annual premium, may be deducted from the policy proceeds. Grace shall date from the premium due date specified in the policy.
Nev. Rev. Stat. § 688A.070 Entire contract.
There shall be a provision that except as otherwise expressly provided by law, the policy and the application therefor, if a copy of such application is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and that all statements contained in the application shall, in the absence of fraud, be deemed representations and not warranties.
Nev. Rev. Stat. § 688A.080 Incontestability.
There shall be a provision that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of not more than 2 years after its date of issue, except for nonpayment of premiums, and, at the insurers option, provisions relating to benefits in the event of total and permanent disability and provisions granting additional benefits specifically against death by accident or accidental means.
Nev. Rev. Stat. § 688A.090 Misstatement of age.
There shall be a provision that if the age of the insured or of any other person whose age is considered in determining the premium or benefit has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age or ages.
Nev. Rev. Stat. § 688A.100 Dividends.
1. There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other dividend date specified in the policy, provided the policy is in force and all premiums to that date are paid. Except as hereinafter provided, any dividend becoming payable shall at the option of the party entitled to elect such option be either:
(a) Payable in cash; or
(b) Applied to any one of such other dividend options as may be provided by the policy. If any such other dividend options are provided, the policy shall further state which option shall be automatically effective if such party has not elected some other option. If the policy specifies a period within which such other dividend option may be elected, such period shall be not less than 30 days following the date on which such dividend is due and payable. The annually apportioned dividend shall be deemed to be payable in cash within the meaning of paragraph (a), even though the policy provides that payment of such dividend is to be deferred for a specified period, provided such period does not exceed 6 years from the date of apportionment and that interest will be added to such dividend at a specified rate.
2. Renewable term policies of 10 years or less may provide that the surplus accrued to such policies shall be determined and apportioned each year after the second policy year, and accumulated during each renewal period, and that at the end of the renewal period, on renewal of the policy by the insured, the insurer shall apply the accumulated surplus as an annuity for the next succeeding renewal term in the reduction of premiums.
3. In participating industrial life insurance policies, in lieu of the provision required in subsection 1, there shall be a provision that, beginning not later than the end of the fifth policy year, the policy shall participate annually in the divisible surplus, if any, in the manner set forth in the policy.
4. This section does not apply to insurance issued under nonforfeiture provisions of lapsed or surrendered policies.
Nev. Rev. Stat. § 688A.110 Loan secured by policy.
1. There shall be a provision that after 3 full years premiums have been paid and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a fixed or variable rate of interest as may be approved by the Commissioner, an amount equal to or, at the option of the party entitled thereto, less than the loan value of the policy. The loan value of the policy shall be at least equal to the cash surrender value at the end of the then current policy year, and the insurer may deduct, either from such loan value or from the proceeds of the loan, any existing indebtedness not already deducted in determining such cash surrender value, including any interest then accrued but not due, any unpaid balance of the premium for the current policy year, and interest on the loan to the end of the current policy year. The policy may also provide that if interest on any indebtedness is not paid when due it shall then be added to the existing indebtedness and shall bear interest at the same rate, and that if and when the total indebtedness on the policy, including interest due or accrued, equals or exceeds the amount of the loan value thereof, then the policy shall terminate and become void, but not until at least 30 days notice has been mailed by the insurer to the last address of record with the insurer, of the insured or other policy owner and of any assignee of record at the insurers home office. The policy shall reserve to the insurer the right to defer the granting of a loan, other than for the payment of any premium to the insurer, for 6 months after application therefor. Such provision shall also contain a table showing in figures the loan values each year during the first 20 years of the policy, or during the term of the policy, whichever is shorter. The policy, at the insurers option, may provide for an automatic premium loan.
2. This section does not apply to term policies, or to term insurance benefits provided by rider or supplemental policy provisions or to industrial life insurance policies.
Nev. Rev. Stat. § 688A.120 Table of installments.
In case the policy provides that the proceeds may be payable in installments which are determinable at issue of the policy, there shall be a table showing the amounts of the guaranteed installments.
Nev. Rev. Stat. § 688A.130 Reinstatement.
There must be a provision that unless:
1. The policy has been surrendered for its cash surrender value;
2. Its cash surrender value has been exhausted; or
3. The paid-up term insurance, if any, has expired,
Ê the policy will be reinstated at any time within 3 years after the date of premium default upon written application therefor, the production of evidence of insurability satisfactory to the insurer, the payment of all premiums in arrears and any interest due thereon and the payment or reinstatement of any other indebtedness to the insurer upon the policy including any interest due thereon.
Nev. Rev. Stat. § 688A.140 Payment of claims.
There shall be a provision that when the benefits under the policy become payable by reason of the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurers option, surrender of the policy and proof of the interest of the claimant or surrender of proof. If an insurer specifies a particular period prior to the expiration of which settlement shall be made, such period shall not exceed 2 months from the receipt of such proofs.
Nev. Rev. Stat. § 688A.150 Beneficiary: Industrial policies.
1. An industrial life insurance policy shall have the name of the beneficiary designated thereon or in the application or other form if attached to the policy, with a reservation of the right to designate or change the beneficiary after the issuance of the policy, unless such beneficiary is irrevocably designated.
2. The policy may also provide that:
(a) No designation or change of beneficiary shall be binding on the insurer until endorsed on the policy by the insurer, and that the insurer may refuse to endorse the name of any proposed beneficiary who does not appear to the insurer to have an insurable interest in the life of the insured.
(b) If the beneficiary designated in the policy does not make a claim under the policy or does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than 30 days after the death of the insured, or if the beneficiary is the estate of the insured, or is a minor, or dies before the insured, or is not legally competent to give a valid release, then the insurer may make any payment thereunder to the executor or administrator of the insured, or to any relative of the insured by blood or legal adoption or connection by marriage, or to any person appearing to the insurer to be equitably entitled thereto by reason of having been named beneficiary, or by reason of having incurred expense for the maintenance, medical attention or burial of the insured.
3. The policy may also include a similar provision applicable to any other payment due under the policy.
Nev. Rev. Stat. § 688A.160 Title.
There shall be a title on the policy, briefly describing the same.
Nev. Rev. Stat. § 688A.165 Surrender and request for cancellation of contract or policy.
1. No annuity contract, pure endowment contract or policy of life insurance, other than a replacement contract or policy, may be delivered or issued for delivery in this state unless it contains a provision, or a notice attached to the contract or policy, which, in substance, states that during a period of 10 days from the date the contract or policy is delivered to the contract or policy owner, it may be surrendered to the insurer together with a written request for cancellation of the contract or policy and in such event, the insurer will refund any premium paid therefor, including any contract or policy fees or other charges.
2. No annuity contract, pure endowment contract or policy of life insurance that is a replacement contract or policy may be delivered or issued for delivery in this State unless it contains a provision, or a notice attached to the contract or policy, which, in substance, states that during a period of 30 days after the date on which the contract or policy is delivered to the contract or policy owner, it may be surrendered to the insurer together with a written request for cancellation of the contract or policy and in such event, the insurer will refund any premium paid therefor, including any contract or policy fees or other charges.
3. This section does not apply to industrial life insurance policies.
Nev. Rev. Stat. § 688A.170 Excluded or restricted coverage.
A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such restrictions or exclusions are excepted in such clause.
Nev. Rev. Stat. § 688A.180 Standard provisions: Annuity and pure endowment contracts.
1. No annuity or pure endowment contract, other than reversionary annuities (also called survivorship annuities) or group annuities and except as stated in this section, shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions specified in NRS 688A.165 and 688A.190 to 688A.240 , inclusive. Any of such provisions not applicable to single-premium annuities or single-premium pure endowment contracts shall not, to that extent, be incorporated therein.
2. This section does not apply to contracts for deferred annuities included in, or upon the lives of beneficiaries under, life insurance policies.
Nev. Rev. Stat. § 688A.190 Annuities: Grace period.
In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a period of grace of 1 month, but not less than 30 days, within which any stipulated payment to the insurer falling due after the first may be made, subject at the option of the insurer to an interest charge thereon at a rate to be specified in the contract but not exceeding 6 percent per annum for the number of days of grace elapsing before such payment, during which period of grace the contract shall continue in full force; but in case a claim arises under the contract on account of death prior to expiration of the period of grace before the overdue payment to the insurer or the deferred payments of the current contract year, if any, are made, the amount of such payments, with interest on any overdue payments, may be deducted from any amount payable under the contract in settlement.
Nev. Rev. Stat. § 688A.200 Annuities: Incontestability.
If any statements, other than those relating to age, sex and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, and subject to NRS 688A.220, there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons as to whom such statements are required, for a period of 2 years from its date of issue, except for nonpayment of stipulated payments to the insurer; and at the option of the insurer such contract may also except any provisions relative to benefits in the event of disability and any provisions which grant insurance specifically against death by accident or accidental means.
Nev. Rev. Stat. § 688A.210 Annuities: Entire contract.
In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties or, if a copy of the application is endorsed upon or attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire contract between the parties.
Nev. Rev. Stat. § 688A.220 Annuities: Misstatement of age or sex.
In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that if the age or sex of the person or persons upon whose life or lives the contract is made, or of any of them, has been misstated, the amount payable or benefits accruing under the contract shall be such as the stipulated payment or payments to the insurer would have purchased according to the correct age or sex and that if the insurer makes or has made any overpayment or overpayments on account of any such misstatement, the amount thereof, with interest at the rate to be specified in the contract but not exceeding 6 percent per annum, may be charged against the current or next succeeding payment or payments to be made by the insurer under the contract.
Nev. Rev. Stat. § 688A.230 Annuities: Dividends.
If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, is participating, there shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract.
Nev. Rev. Stat. § 688A.240 Annuities: Reinstatement.
In an annuity or pure endowment contract, other than a reversionary or group annuity, there shall be a provision that the contract may be reinstated at any time within 1 year from the default in making stipulated payments to the insurer, unless the cash surrender value has been paid, but all overdue stipulated payments and any indebtedness to the insurer on the contract shall be paid or reinstated with interest thereon at a rate to be specified in the contract but not exceeding 6 percent per annum payable annually, and in cases where applicable the insurer may also include a requirement of evidence of insurability satisfactory to the insurer.
Nev. Rev. Stat. § 688A.250 Standard provisions: Reversionary annuities.
1. Except as stated in this section, no contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it contains in substance each of the following provisions:
(a) Any such reversionary annuity contract shall contain the provisions specified in NRS 688A.190 to 688A.230 , inclusive, except that under NRS 688A.190 the insurer may at its option provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue payment in lieu of providing for deduction of such payments from an amount payable upon settlement under the contract.
(b) In such reversionary annuity contracts there shall be a provision that the contract may be reinstated at any time within 3 years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract are paid, or, within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding 6 percent per annum compounded annually.
2. This section does not apply to group annuities or to annuities included in life insurance policies, and any of such provisions not applicable to single premium annuities shall not to that extent be incorporated therein.
Nev. Rev. Stat. § 688A.260 Provisions limiting liability.
1. No policy of life insurance shall be delivered or issued for delivery in this state if it contains any of the following provisions:
(a) A provision limiting the time within which an action at law or in equity may be commenced on such a policy to less than 3 years after the cause of action has accrued.
(b) A provision which excludes or restricts liability for death caused in a certain specified manner or occurring while the insured has a specified status, except that a policy may contain provisions excluding or restricting coverage as specified therein in the event of death under any one or more of the following circumstances:
(1) Death as a result, directly or indirectly, of war, declared or undeclared, or of action by military forces, or of any act or hazard of such war or action, or of service in the military, naval or air forces or in civilian forces auxiliary thereto, or from any cause while a member of such military, naval or air forces of any country at war, declared or undeclared, or of any country engaged in such military action;
(2) Death as a result of aviation or any air travel or flight;
(3) Death as a result of a specified hazardous occupation or occupations or avocation;
(4) Death while the insured is a resident outside the continental United States of America and Canada; or
(5) Death within 2 years from the date of issue of the policy as a result of suicide, while sane or insane.
2. A policy which contains any exclusion or restriction pursuant to paragraph (b) shall also provide that in the event of death under the circumstances to which any such exclusion or restriction is applicable, the insurer will pay an amount not less than a reserve determined according to the Commissioners Reserve Valuation Method upon the basis of the mortality table and interest rate specified in the policy for the calculation of nonforfeiture benefits (or if the policy provides for no such benefits, computed according to a mortality table and interest rate determined by the insurer and specified in the policy) with adjustment for indebtedness or dividend credit.
3. This section does not apply to group life insurance, health insurance, reinsurance or annuities, or to any provision in a life insurance policy or contract supplemental thereto relating to disability benefits or to additional benefits in the event of death by accident or accidental means.
4. Nothing contained in this section prohibits any provision which in the opinion of the Commissioner is more favorable to the policyholder than a provision permitted by this section.
Nev. Rev. Stat. § 688A.270 Prohibited provisions.
1. No life insurance policy, other than industrial life insurance, shall be delivered or issued for delivery in this state, if it contains any of the following provisions:
(a) A provision by which the policy purports to be issued or to take effect more than 1 year before the original application for the insurance was made.
(b) A provision for any mode of settlement at maturity of the policy of less value than the amount insured under the policy, plus dividend additions, if any, less any indebtedness to the insurer on or secured by the policy and less any premium that may by the terms of the policy be deducted.
(c) A provision to the effect that the agent soliciting the insurance is the agent of the person insured under the policy, or making the acts or representations of such agent binding upon the person so insured under the policy.
2. No policy of industrial life insurance shall contain any of the following provisions:
(a) A provision by which the insurer may deny liability under the policy for the reason that the insured has previously obtained other insurance from the same insurer.
(b) A provision giving the insurer the right to declare the policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has received institutional, hospital, medical or surgical treatment or attention, except a provision which gives the insurer the right to declare the policy void if the insured has, within 2 years prior to the issuance of the policy, received institutional, hospital, medical or surgical treatment or attention and if the insured or claimant under the policy fails to show that the condition occasioning such treatment or attention was not of a serious nature or was not material to the risk.
(c) A provision giving the insurer the right to declare the policy void because the insured has been rejected for insurance, unless such right is conditioned upon a showing by the insurer that knowledge of such rejection would have led to a refusal by the insurer to make such contract.
Nev. Rev. Stat. § 688A.280 Provisions required by law of other jurisdiction.
The policies of a foreign life insurer when issued in this state may contain any provision which the law of the state, territory, district or country under which the insurer is organized prescribes shall be in such policies, and the policies of a domestic life insurer may, when issued or delivered in any other state, territory, district or country, contain any provisions required by the law thereof, anything in this chapter to the contrary notwithstanding.
Nev. Rev. Stat. § 688A.281 Qualified charitable-gift annuity: Definitions.
As used in NRS 688A.281 to 688A.285, inclusive, unless the context otherwise requires:
1. Charitable-gift annuity means an annuity payable over one or two lives issued by a charitable organization in return for a transfer of money or property by the donor, if the actuarial value of the annuity is less than the value of the money or property transferred and a deduction as a charitable contribution is allowable for purposes of federal taxes.
2. Charitable organization means an artificial person described as such in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), or section 170(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c).
3. Qualified charitable-gift annuity means a charitable-gift annuity described in section 501(m)(5) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(m)(5), and section 514(c)(5) of the Internal Revenue Code of 1986, 26 U.S.C. § 514(c)(5), which is issued by a charitable organization that on the date of issuance:
(a) Owns at least $300,000 worth of money, cash equivalents or publicly traded securities, exclusive of the amount transferred to it in return for the annuity; and
(b) Has operated continuously for at least 3 years or is a successor or affiliate of a charitable organization that has operated continuously for at least 3 years.
Ê The term does not include an annuity for which any person is paid compensation that is contingent upon the issuance of the annuity or based upon the value of the annuity other than a payment for reinsurance to an insurer licensed to issue insurance in this state.
Nev. Rev. Stat. § 688A.282 Qualified charitable-gift annuity: Issuance does not constitute transacting insurance.
The issuance of a qualified charitable-gift annuity does not constitute transacting insurance in this state. A charitable-gift annuity issued before October 1, 1999, is a qualified charitable-gift annuity for the purposes of NRS 688A.281 to 688A.285, inclusive.
Nev. Rev. Stat. § 688A.283 Qualified charitable-gift annuity: Contents and form of required disclosure.
In an agreement to issue a qualified charitable-gift annuity, the charitable organization shall disclose in writing to the donor that the annuity is not insurance under the laws of this state, is not subject to regulation by the Commissioner and is not protected by an insurance guaranty association. The disclosure must be made in a separate paragraph and may not be in a size of type smaller than used generally in the agreement.
Nev. Rev. Stat. § 688A.284 Qualified charitable-gift annuity: Required notice to Commissioner; contents of notice; further information.
1. A charitable organization that issues qualified charitable-gift annuities shall notify the Commissioner in writing on or before December 30, 1999, or the expiration of 90 days after it first enters into an agreement to issue a qualified charitable-gift annuity, whichever is later. The notice must:
(a) Be signed by an officer or director of the organization;
(b) Identify the organization; and
(c) Certify that the organization is a charitable organization and that the annuities are qualified charitable-gift annuities.
2. Unless the Commissioner demands information to determine the amount of a penalty pursuant to NRS 688A.285 , the organization need submit no other information.
Nev. Rev. Stat. § 688A.285 Qualified charitable-gift annuity: Effect of noncompliance; penalties.
1. Failure of a charitable organization to comply with the requirements of NRS 688A.283 or 688A.284 for disclosure or notice, or both, does not disqualify an annuity that otherwise constitutes a qualified charitable-gift annuity.
2. The Commissioner may demand, by certified mail with return receipt requested, that the organization comply with those requirements, and may impose a fine of not more than $1,000 for each charitable-gift annuity issued before compliance is complete.
Nev. Rev. Stat. § 688A.290 Short title; applicability; required provisions.
1. NRS 688A.290 to 688A.360 , inclusive, shall be known as the Standard Nonforfeiture Law. Except as provided in NRS 688A.330 and 688A.340 , NRS 688A.290 to 688A.360 , inclusive, apply to policies of life insurance issued on and after January 1, 1962, unless the Commissioner deferred such application to a date not later than January 1, 1964, with respect to an insurer for good cause shown.
2. In the case of policies issued on or after the date NRS 688A.290 to 688A.360 , inclusive, became applicable as defined in subsection 1, no policy of life insurance, except as stated in NRS 688A.360 , may be issued for delivery or delivered in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Commissioner are at least as favorable to the defaulting or surrendering policyholder as those required by this section and NRS 688A.305 :
(a) In the event of default in any premium payment, the insurer will grant, upon proper request made not later than 60 days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of the amount specified in NRS 688A.290 to 688A.360 , inclusive. In lieu of the stipulated paid-up nonforfeiture benefit, the insurer may substitute, upon proper request not later than 60 days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit which provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits.
(b) Upon surrender of the policy within 60 days after the due date of any premium payment in default after premiums have been paid for at least 3 full years in the case of ordinary insurance or 5 full years in the case of industrial insurance, the insurer will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of the amount specified in NRS 688A.290 to 688A.360 , inclusive.
(c) A specified paid-up nonforfeiture benefit must become effective as specified in the policy unless the person entitled to make an election elects another available option not later than 60 days after the due date of the premium in default.
(d) If the policy has become paid up by completion of all premium payments or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance or the fifth policy anniversary in the case of industrial insurance, the insurer will pay, upon surrender of the policy within 30 days after any policy anniversary, a cash surrender value of the amount specified in NRS 688A.290 to 688A.360 , inclusive.
(e) In the case of policies which cause, on a basis guaranteed in the policy, unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. In the case of all other policies, a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy, together with a table showing the cash surrender value, if any, and paid-up nonforfeiture benefit, if any, available under the policy on each policy anniversary either during the first 20 policy years or during the term of the policy, whichever is shorter. Such values and benefits must be calculated upon the assumption that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the insurer on the policy.
(f) A statement that the cash surrender values and the paid-up nonforfeiture benefits available under the policy are not less than the minimum values and benefits required by or pursuant to the insurance law of the state in which the policy is delivered, and an explanation of the manner in which the cash surrender values and the paid-up nonforfeiture benefits are altered by the existence of any paid-up additions credited to the policy or any indebtedness to the insurer on the policy.
(g) If a detailed statement of the method of computation of the values and benefits shown in the policy is not stated therein, a statement that the method of computation has been filed with the insurance supervisory officer of the state in which the policy is delivered.
(h) A statement of the method to be used in calculating the cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy.
3. Any of the provisions required by subsection 2 which are not applicable by reason of the plan of insurance may, to the extent inapplicable, be omitted from the policy.
4. Each insurer shall reserve the right to defer the payment of any cash surrender value for a period of 6 months after demand therefor with surrender of the policy.
Nev. Rev. Stat. § 688A.300 Cash surrender value: Basic calculations.
1. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary, whether or not required by NRS 688A.290 , must be an amount not less than the excess, if any, of the present value, on that anniversary, of the future guaranteed benefits which would have been provided for by the policy, including any existing paid-up additions, if there had been no default, over the sum of:
(a) The then present value of the adjusted premiums, as defined in NRS 688A.320 to 688A.340 , inclusive, corresponding to premiums which would have fallen due on and after such anniversary; and
(b) The amount of any indebtedness to the insurer on the policy.
2. For any policy issued on or after the operative date of NRS 688A.325 which provides supplemental life insurance or annuity benefits at the option of the insured and for an identifiable additional premium by rider or supplemental policy provision, the cash surrender value referred to in subsection 1 of this section must be an amount not less than the sum of the cash surrender value for an otherwise similar policy issued at the same age without a rider or supplemental policy provision and the cash surrender value for a policy which provides only the benefits otherwise provided by a rider or supplemental policy provision.
3. For any family policy issued on or after the operative date of NRS 688A.325 which defines a primary insured and provides term insurance on the life of the spouse of the primary insured expiring before the spouse reaches age 71, the cash surrender value referred to in subsection 1 must be an amount not less than the sum of the cash surrender value for an otherwise similar policy issued at the same age without term insurance on the life of the spouse and the cash surrender value for a policy which provides only the benefits otherwise provided by term insurance on the life of the spouse.
4. Any cash surrender value available within 30 days after any policy anniversary under any policy paid up by completion of all premium payments or any policy continued under any paid-up nonforfeiture benefit, whether or not required by NRS 688A.290 , must be an amount not less than the present value, on that anniversary, of the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by any indebtedness to the insurer on the policy.
Nev. Rev. Stat. § 688A.305 Cash surrender value: Limitations on policies issued on or after January 1, 1987.
1. This section applies to all policies issued on or after January 1, 1987. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary must be in an amount which does not differ by more than two-tenths of 1 percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years, from the sum of:
(a) The greater of zero and the basic cash value specified in this section; and
(b) The present value of any existing paid-up additions less the amount of any indebtedness to the company under the policy.
2. The basic cash value must be equal to the present value, on the anniversary, of the future guaranteed benefits which would have been provided by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the company, if there had been no default, less the present value of the nonforfeiture factors, as defined in NRS 688A.290 to 688A.360 , inclusive. The effects on the basic cash value of supplemental life insurance or annuity benefits or of family coverage, as described in this section or NRS 688A.300 or 688A.320 , whichever is applicable, must be the same as the effects specified in this section or NRS 688A.300 or 688A.320 , on the cash surrender values defined in the applicable section.
3. The nonforfeiture factor for each policy year must be an amount equal to a percentage of the adjusted premium for the policy year, as defined in NRS 688A.320 or 688A.325 , whichever is applicable. Except as is required in this subsection, the percentage must be:
(a) The same for each policy year between the second policy anniversary and the later of:
(1) The fifth policy anniversary; and
(2) The first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up additions and before deducting any indebtedness, of at least two-tenths of 1 percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years; and
(b) Such that no percentage after the later of the two policy anniversaries specified in paragraph (a) may apply to fewer than 5 consecutive policy years.
Ê No basic cash value may be less than the value which would be obtained if the adjusted premiums for the policy, as defined in NRS 688A.320 or 688A.325 , whichever is applicable, were substituted for the nonforfeiture factors in the calculation of the basic cash value.
4. All adjusted premiums and present values referred to in this section for a particular policy must be calculated on the same mortality and interest bases as are used in demonstrating the policys compliance with NRS 688A.290 to 688A.360 , inclusive. The cash surrender values referred to in this section must include any endowment benefits provided for by the policy.
5. Any cash surrender value available other than in the event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment must be determined by methods consistent with those specified for determining the analogous minimum amounts in NRS 688A.290 , 688A.300 , 688A.310 , 688A.325 and 688A.350 . The amounts of any cash surrender values and of any paid-up nonforfeiture benefits granted in connection with additional benefits such as those listed in paragraphs (a) to (f), inclusive, of subsection 4 of NRS 688A.350 , must conform with the principles of this section.
Nev. Rev. Stat. § 688A.310 Paid-up nonforfeiture benefit.
Any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment due on any policy anniversary must be such that its present value as of the anniversary is at least equal to the cash surrender value then provided for by the policy or, if none is provided for, that cash surrender value which would have been required by NRS 688A.290 to 688A.360, inclusive, in the absence of the condition that premiums must have been paid for at least a specified period.
Nev. Rev. Stat. § 688A.315 Review of benefits and premiums for life insurance with future premium determination.
In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the insurer based on estimates of future experience, or in the case of any plan of life insurance which is of such a nature that minimum values cannot be determined by the methods described in NRS 688A.290 to 688A.340, inclusive:
1. The Commissioner must be satisfied that the benefits provided under the plan are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by NRS 688A.290 to 688A.340 , inclusive;
2. The Commissioner must be satisfied that the benefits and the pattern of premiums of that plan are not such as to mislead prospective policyholders or insureds; and
3. The cash surrender values and paid-up nonforfeiture benefits provided by the plan must not be less than the minimum values and benefits required for the plan computed by a method consistent with the principles of the Standard Nonforfeiture Law for Life Insurance, as determined by regulations adopted by the Commissioner.
Nev. Rev. Stat. § 688A.320 Calculation of adjusted premiums for policies issued before operative date of NRS 688A.325 .
1. Except as provided in subsections 4 and 6, the adjusted premiums for any policy must be calculated on an annual basis and be such a uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, that the present value, at the date of issue of the policy, of all such adjusted premiums is equal to the sum of:
(a) The then present value of the future guaranteed benefits provided for by the policy;
(b) Two percent of the amount of insurance, if the insurance is uniform in amount, or of the equivalent uniform amount, as defined in this section, if the amount of insurance varies with duration of the policy;
(c) Forty percent of the adjusted premium for the first policy year; and
(d) Twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less.
2. In applying the percentages specified in paragraphs (c) and (d) of subsection 1, no adjusted premium shall be deemed to exceed 4 percent of the amount of insurance or uniform amount equivalent thereto. The date of issue of a policy for the purpose of this section must be the date as of which the rated age of the insured is determined.
3. In the case of a policy providing an amount of insurance varying with duration of the policy, the equivalent uniform amount thereof for the purpose of this section shall be deemed to be the uniform amount of insurance provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the date of issue as the benefits under the policy, except that, in the case of a policy providing a varying amount of insurance issued on the life of a child under 10 years of age, the equivalent uniform amount may be computed as though the amount of insurance provided by the policy before the attainment of age 10 were the amount provided by the policy at age 10.
4. The adjusted premiums for any policy providing term insurance benefits by rider or supplemental policy provision must be equal to (A) the adjusted premiums for an otherwise similar policy issued at the same age without term insurance benefits, increased, during the period for which premiums for term insurance benefits are payable, by (B) the adjusted premiums for such term insurance, the foregoing items (A) and (B) being calculated separately and as specified in subsections 1 and 2, except that, for the purposes of paragraphs (b), (c) and (d) of subsection 1, the amount of insurance or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in (B) must be equal to the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in (A).
5. Except as provided in NRS 688A.330 and 688A.340 , all adjusted premiums and present values referred to in NRS 688A.290 to 688A.360 , inclusive, must for all policies of ordinary insurance be calculated on the basis of the Commissioners 1941 Standard Ordinary Mortality Table, but for any category of ordinary insurance on female risks, adjusted premiums and present values may be calculated according to an age not more than 3 years younger than the actual age of the insured, and such calculations for all policies of industrial insurance must be made on the basis of the 1941 Standard Industrial Mortality Table. All calculations must be made on the basis of the rate of interest, not exceeding 3.5 percent per annum, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, but in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than 130 percent of the rates of mortality according to the applicable table. The calculation of any adjusted premiums and present values for insurance issued on a substandard basis may be based on such other table of mortality as may be specified by the insurer and approved by the Commissioner.
6. This section does not apply to policies issued on or after the operative date of NRS 688A.325 .
Nev. Rev. Stat. § 688A.325 Calculation of adjusted premiums; operative date of section.
1. This section applies to all policies issued by an insurer on or after the operative date of this section as it relates to that insurer. Except as otherwise provided in subsection 7, the adjusted premiums for any policy must be calculated on an annual basis and be the uniform percentage of the respective premium specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments or special hazards and any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits. The present value, at the date of issue of the policy, of all adjusted premiums must be equal to the sum of:
(a) The value of the future guaranteed benefits provided for by the policy;
(b) One percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years; and
(c) One hundred twenty-five percent of the nonforfeiture net level premium. In applying the percentage specified in paragraph (c), no nonforfeiture net level premium may be deemed to exceed 4 percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years. The date of issue of a policy for the purpose of this section must be the date as of which the rated age of the insured is determined.
2. The nonforfeiture net level premium must be equal to the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one per annum payable on the date of issue of the policy and on each anniversary of the policy on which a premium falls due.
3. In the case of policies which cause unscheduled changes in benefits or premiums on a basis guaranteed in the policy, or which provide an option for changes in benefits or premiums other than a change to a new policy, the adjusted premiums and present values must initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At the time of any change in the benefits or premiums, the future adjusted premiums, nonforfeiture net level premiums and present values must be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.
4. Except as otherwise provided in subsection 7, the recalculated future adjusted premiums for any such policy must be a uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards and any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, which results in the present value, at the time of change to the newly defined benefits or premiums, of all future adjusted premiums being equal to the excess of the sum of the present value of the future guaranteed benefits provided for by the policy and the additional expense allowance, if any, over the cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.
5. The additional expense allowance, at the time of the change to the newly defined benefits or premiums, must be the sum of:
(a) One percent of the excess, if positive, of the average amount of insurance at the beginning of each of the first 10 policy years after the change, over the average amount of insurance before the change at the beginning of each of the first 10 policy years after the most recent previous change, or, if there has been no previous change, the date of issue of the policy; and
(b) One hundred twenty-five percent of the increase, if positive, in the nonforfeiture net level premium.
6. The recalculated nonforfeiture net level premium must be equal to the result obtained by dividing amount A by amount B where:
(a) A equals the sum of:
(1) The nonforfeiture net level premium applicable before the change, multiplied by the present value of an annuity of one per annum payable on each anniversary of the policy on or after the date of the change on which a premium would have fallen due if the change had not occurred; and
(2) The present value of the increase in future guaranteed benefits provided for by the policy.
(b) B equals the present value of an annuity of one per annum payable on each anniversary of the policy on or after the date of change on which a premium falls due.
7. In the case of a policy issued on a substandard basis which provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis which provides higher uniform amounts of insurance, adjusted premiums and present values for the substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance on the standard basis.
8. All adjusted premiums and present values referred to in NRS 688A.290 to 688A.360 , inclusive, must be calculated for all policies of ordinary insurance on the basis of the Commissioners 1980 Standard Ordinary Mortality Table or, at the election of the insurer for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; all policies of industrial insurance must be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table; and all policies issued in a particular calendar year must be calculated on the basis of a rate of interest not exceeding the nonforfeiture interest rate established in this section for policies issued in that calendar year, except as follows:
(a) At the option of the insurer, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, established in this section, for policies issued in the immediately preceding calendar year.
(b) Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by NRS 688A.290 , must be calculated on the basis of the mortality table and rate of interest used in determining the amount of the paid-up nonforfeiture benefit and paid-up dividend additions, if any.
(c) An insurer may calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up additions under the policy on the basis of an interest rate which is not lower than that specified in the policy for calculating cash surrender values.
(d) In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1980 Extended Term Insurance Table for policies of ordinary insurance and not more than the Commissioners 1961 Industrial Extended Term Insurance Table for policies of industrial insurance.
(e) For insurance issued on a substandard basis or a special underwriting basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the tables specified in this subsection.
(f) For policies issued:
(1) Before the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , any Commissioners Standard ordinary mortality tables which are adopted after 1980 by the National Association of Insurance Commissioners and are approved by a regulation adopted by the Commissioner for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table.
(2) On or after the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , the Valuation Manual must set forth the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. If the Commissioner approves by regulation any Commissioners Standard ordinary mortality table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the Valuation Manual , then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard specified in the Valuation Manual .
(g) For policies issued:
(1) Before the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , any Commissioners Standard industrial mortality tables which are adopted after 1980 by the National Association of Insurance Commissioners and are approved by a regulation adopted by the Commissioner for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table.
(2) On or after the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , the Valuation Manual must set forth the Commissioners Standard industrial mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If the Commissioner approves by regulation any Commissioners Standard industrial mortality table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the Valuation Manual , then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard specified in the Valuation Manual .
9. For the purposes of this section:
(a) For policies issued before the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , the nonforfeiture interest rate for any policy issued in a particular calendar year must be equal to the greater of:
(1) One hundred twenty-five percent of the calendar year statutory valuation interest rate for the policy as defined in the Standard Valuation Law, rounded to the nearer one-fourth of 1 percent; or
(2) Four percent.
(b) For policies issued on or after the operative date of the Valuation Manual , as determined pursuant to NRS 681B.300 , the nonforfeiture interest rate per annum for any policy issued in a particular calendar year must be as specified in the Valuation Manual .
10. Any refiling of nonforfeiture values or their methods of computation for any previously approved policy form which involves only a change in the interest rate or mortality table used to compute nonforfeiture values does not require refiling of any other provisions of that policy form.
11. After July 1, 1983, any insurer may file with the Commissioner a written notice of its election to comply with the provision of this section after a specified date before January 1, 1989. A date so specified is the operative date of this section for that insurer. If an insurer makes no election, the operative date of this section for that insurer is January 1, 1989.
12. As used in this section, Valuation Manual has the meaning ascribed to it in NRS 681B.0071 .
Nev. Rev. Stat. § 688A.330 Basis for calculating adjusted premiums on industrial insurance; applicability of section.
1. In the case of industrial policies issued on or after the operative date of this section, as provided in subsection 2, all adjusted premiums and present values referred to in NRS 688A.290 to 688A.360 , inclusive, must be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table and the rate of interest specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, but that rate of interest must not exceed 3.5 percent per annum, or 4 percent per annum for policies issued on or after July 1, 1973, and before July 1, 1977, and a rate of interest not exceeding 5.5 percent per annum may be used for policies issued on or after July 1, 1977, other than single premium whole life or endowment insurance policies, and for the latter policies a rate of interest not exceeding 6.5 percent per annum may be used, except that:
(a) In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1961 Industrial Extended Term Insurance Table.
(b) For insurance issued on a substandard basis or a special underwriting basis, the calculations of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the insurer and approved by the Commissioner.
2. After July 1, 1963, any insurer may file with the Commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1968. After the filing of a notice, upon the specified date, this section is operative with respect to the industrial policies thereafter issued by the insurer. If an insurer makes no such election, the operative date of this section for the insurer is January 1, 1968.
3. This section does not apply to policies issued on or after the operative date of NRS 688A.325 .
Nev. Rev. Stat. § 688A.340 Basis for calculating adjusted premiums and present values on ordinary policies issued after operative date of this section; election to come under this section; operative date of this section as to insurer failing to make election.
1. In the case of ordinary policies issued on or after the operative date of this section, all adjusted premiums and present values referred to in NRS 688A.290 to 688A.360 , inclusive, must be calculated on the basis of the Commissioners 1958 Standard Ordinary Mortality Table and the rate of interest specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, but the rate of interest must not exceed 3.5 percent per annum, or 4 percent per annum for policies issued on or after July 1, 1973, and before July 1, 1977, and a rate of interest not exceeding 5.5 percent per annum may be used for policies issued on or after July 1, 1977, other than single premium whole life or endowment insurance policies, and for the latter policies a rate of interest not exceeding 6.5 percent per annum may be used, except that:
(a) For any category of ordinary insurance issued on female risks, adjusted premiums and present values may be calculated according to an age not more than 6 years younger than the actual age of the insured.
(b) In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1958 Extended Term Insurance Table.
(c) The calculation of adjusted premiums and present values for insurance issued on a substandard basis may be based on such other table of mortality as may be specified by the insurer and approved by the Commissioner.
2. Any insurer may file with the Commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1966. After the filing of the notice, this section becomes operative upon the specified date with respect to the ordinary policies thereafter issued by the insurer.
3. If an insurer makes no such election, the operative date of this section for the insurer is January 1, 1966.
4. This section does not apply to ordinary policies issued on or after the operative date of NRS 688A.325 .
Nev. Rev. Stat. § 688A.350 Calculation of cash surrender value and paid-up nonforfeiture benefit.
1. Any cash surrender value and any paid-up nonforfeiture benefit, available under the policy in the event of default in a premium payment due at any time other than on the policy anniversary, must be calculated with allowance for the lapse of time and the payment of fractional premiums beyond the last preceding policy anniversary.
2. All values referred to in NRS 688A.300 to 688A.340 , inclusive, may be calculated upon the assumption that any death benefit is payable at the end of the policy year of death.
3. The net value of any paid-up additions, other than paid-up term additions, must not be less than the amounts used to provide the additions.
4. Notwithstanding the provisions of NRS 688A.300 , additional benefits payable:
(a) In the event of death or dismemberment by accident or accidental means;
(b) In the event of total and permanent disability;
(c) As reversionary annuity or deferred reversionary annuity benefits;
(d) As term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy, NRS 688A.290 to 688A.360 , inclusive, would not apply;
(e) As term insurance on the life of a child or on the lives of children provided in a policy on the life of a parent of the child, if the term insurance expires before the childs age is 26, is uniform in amount after the childs age is 1, and has not become paid up by reason of the death of a parent of the child;
(f) As other policy benefits additional to life insurance and endowment benefits; and
(g) Premiums for all such additional benefits,
Ê must be disregarded in ascertaining cash surrender values and nonforfeiture benefits required by NRS 688A.290 to 688A.360 , inclusive, and no such additional benefits may be required to be included in any paid-up nonforfeiture benefits.
Nev. Rev. Stat. § 688A.360 Insurance to which NRS 688A.290 to 688A.360 , inclusive, not applicable.
NRS 688A.290 to 688A.360, inclusive, do not apply to any:
1. Reinsurance, group insurance, pure endowment, annuity or reversionary annuity contract.
2. Term policy of uniform amount which provides no guaranteed nonforfeiture or endowment benefits, or the renewal thereof, of 20 years or less expiring before age 71, for which uniform premiums are payable during the entire term of the policy.
3. Term policy of decreasing amount which provides no guaranteed nonforfeiture or endowment benefits on which each adjusted premium, calculated as specified in NRS 688A.320 to 688A.340 , inclusive, is less than the adjusted premium, calculated in the same manner, on a term policy of uniform amount, or a renewal thereof, which provides no guaranteed nonforfeiture or endowment benefits, issued at the same age and for the same initial amount of insurance and for a term of 20 years or less, expiring before age 71, for which uniform premiums are payable during the entire term of the policy.
4. Policy which provides no guaranteed nonforfeiture or endowment benefits, for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, calculated as specified in NRS 688A.300 to 688A.340 , inclusive, exceeds 2.5 percent of the amount of insurance at the beginning of the same policy year.
5. Policy which is delivered outside this state by an agent or other representative of the company issuing the policy.
Ê For purposes of determining whether NRS 688A.290 to 688A.360 , inclusive, apply, the age at expiration for a joint term policy of life insurance is the age of the oldest person at the time of expiration.
Nev. Rev. Stat. § 688A.361 Nonforfeiture provisions required in annuity contracts.
No contract of annuity may be delivered or issued for delivery in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Commissioner are at least as favorable to the contract holder:
1. A statement that upon cessation of payment of considerations under a contract, or upon receipt of a written request submitted by an owner of a contract, the company will grant a paid-up annuity benefit on a plan stipulated in the contract of such value as is specified in NRS 688A.3631 to 688A.3637 , inclusive, and 688A.366 ;
2. If a contract provides for a lump-sum settlement at maturity or any other time, a statement that upon surrender of the contract at or before the commencement of any annuity payments, the company will pay in lieu of any paid-up annuity benefit a cash surrender benefit of an amount specified in NRS 688A.3631 , 688A.3633 , 688A.3637 and 688A.366 , and that the company may reserve the right to defer the payment of such cash surrender benefit for a period of not more than 6 months after demand therefor with surrender of the contract if the company submits a written request to and receives written approval for the deferral from the Commissioner. The request must address the necessity and equitability to all policyholders of the deferral;
3. A statement of the mortality table, if any, and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits which are guaranteed under the contract, together with sufficient information to determine the amounts of those benefits; and
4. A statement that any paid-up annuity, cash surrender or death benefits which may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of the manner in which such benefits are altered by the existence of any additional amounts credited by the company to the contract, any indebtedness to the company on the contract or any prior withdrawals from or partial surrenders of the contract,
Ê except that any deferred annuity contract may provide that if no considerations have been received under a contract for a period of 2 full years, and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid before that period would be less than $20 monthly, the company may terminate the contract by payment in cash of the then present value of such portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit, and by such payment shall be relieved of any further obligation under the contract.
Nev. Rev. Stat. § 688A.363 Minimum nonforfeiture amounts.
1. The minimum values, specified in NRS 688A.3631 to 688A.3637 , inclusive, and 688A.366 , of any paid-up annuity, cash surrender or death benefits available under an annuity contract must be based upon minimum nonforfeiture amounts as defined in this section.
2. The minimum nonforfeiture amount for any time at or before the commencement of any annuity payments is equal to an accumulation of 87.5 percent of the gross considerations up to such time at a rate of interest calculated pursuant to subsection 3, which must be decreased by the sum of:
(a) Any prior withdrawals from or partial surrenders of the contract, accumulated at a rate of interest calculated pursuant to subsection 3;
(b) An annual charge in the amount of $50, accumulated at rates of interest calculated pursuant to subsection 3;
(c) Any premium tax paid by the company for the contract, accumulated at rates of interest calculated pursuant to subsection 3; and
(d) The amount of any indebtedness to the company on the contract, including interest due and accrued.
3. For the purpose of this section, the rate of interest used to determine the minimum nonforfeiture amounts must be an annual rate of interest determined as the lesser of 3 percent per annum or a rate specified in the contract if the rate is calculated in accordance with regulations adopted by the Commissioner, except that at no time may the resulting rate be less than 0.15 percent per annum.
4. The Commissioner may provide by regulation for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit or for other contracts that the Commissioner determines require adjustment. An adjustment to the calculation of the interest rate used to determine the minimum nonforfeiture amounts authorized under this subsection may not result in an interest rate of less than 0.15 percent per annum.
Nev. Rev. Stat. § 688A.364 Statement that policy does not provide cash surrender benefits or death benefits equal to nonforfeiture amount.
Any contract which does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount before the commencement of any annuity payments shall include a statement in a prominent place in the contract that such benefits are not provided.
Nev. Rev. Stat. § 688A.366 Calculation of benefits available at time other than contract anniversary.
Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.
Nev. Rev. Stat. § 688A.367 Minimum nonforfeiture benefits for contracts providing both annuity and life insurance benefits.
For any contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits which are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Any additional benefits payable:
1. In the event of total and permanent disability;
2. As reversionary annuity or deferred reversionary annuity benefits; or
3. As other policy benefits additional to life insurance, endowment and annuity benefits,
Ê and considerations for all such additional benefits shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits which may be required by NRS 688A.361 to 688A.369 , inclusive. The inclusion of such additional benefits shall not be required in any paid-up benefits, unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits.
Nev. Rev. Stat. § 688A.369 Insurance to which NRS 688A.361 to 688A.369 , inclusive, not applicable.
NRS 688A.361 to 688A.369, inclusive, do not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship), by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, as amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, deferred annuity contract after annuity payments have commenced, contingent deferred annuity, reversionary annuity or to any contract which will be delivered outside this state through an agent or other representative of the company issuing the contract.
Nev. Rev. Stat. § 688A.370 Reinstatement; benefits for disability or accidental death.
1. A reinstated policy of life insurance or an annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement and with the same conditions and exceptions as the policy provides with respect to contestability after original issuance.
2. When any life insurance policy or annuity contract is reinstated such reinstated policy or contract may exclude or restrict liability to the same extent that such liability could have been or was excluded or restricted when the policy or contract was originally issued, and such exclusion or restriction shall be effective from the date of reinstatement.
3. After 3 years from the date of issue of a life insurance policy or of a supplemental contract thereto providing total and permanent disability benefits or additional benefits in the event of death by accident or accidental means, no misstatements, except fraudulent misstatements, made by the applicant in the application for the policy shall be used to deny a claim for such total and permanent disability commencing, or for such additional benefits in the event of death by accident or accidental means occurring, after the expiration of such 3-year period. This subsection shall not be so construed as to preclude the assertion at any time of defenses based upon provisions with respect to such benefits which exclude or restrict coverage.
Nev. Rev. Stat. § 688A.380 Participating and nonparticipating policies: Accounting; allocations; dividends.
1. A life insurer issuing both participating and nonparticipating policies shall maintain such accounting records as are necessary for it to determine dividends to participating policyholders on an equitable basis.
2. For the purposes of such accounting records the insurer shall make a reasonable allocation between participating and nonparticipating policies of the expenses of such general operations or functions as are jointly shared. Any allocation of expense between the respective categories shall be made upon a reasonable basis, to the end that each category shall bear a just portion of joint expense involved in the administration of the business of such category.
3. No policy after January 1, 1972, shall provide for, and no life insurer or representative shall, after January 1, 1972, knowingly offer or promise payment, credit or distribution of participating dividends, earnings, profits or savings, by whatever name called, to participating policies out of such profits, earnings or savings on nonparticipating policies. This subsection does not restrict the generality of NRS 686A.110 (rebates).
Nev. Rev. Stat. § 688A.390 Separate accounts.
1. A domestic life insurer may establish one or more separate accounts, and may allocate thereto amounts (including without limitation proceeds applied under optional modes of settlement or under dividend options) to provide for life insurance or annuities (and benefits incidental thereto), payable in fixed or variable amounts or both, subject to the following:
(a) The income, gains and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains or losses of the company.
(b) Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in paragraph (c):
(1) Amounts allocated to any separate account and accumulations thereon may be invested and reinvested without regard to any requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies; and
(2) The investments in such separate account or accounts shall not be taken into account in applying the investment limitations otherwise applicable to the investments of the company.
(c) Except with the approval of the Commissioner and under such conditions as to investments and other matters as the Commissioner may prescribe, which shall recognize the guaranteed nature of the benefits provided, reserves for:
(1) Benefits guaranteed as to dollar amount and duration; and
(2) Funds guaranteed as to principal amount or stated rate of interest,
Ê shall not be maintained in a separate account.
(d) Unless otherwise approved by the Commissioner, assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract or the rules or other written agreement applicable to such separate account; but unless otherwise approved by the Commissioner, the portion if any of the assets of such separate account equal to the companys reserve liability with regard to the guaranteed benefits and funds referred to in paragraph (c) shall be valued in accordance with the rules otherwise applicable to the companys assets.
(e) Amounts allocated to a separate account in the exercise of the power granted by this section shall be owned by the company, and the company shall not be, nor hold itself out to be, a trustee with respect to such amounts. If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the company may conduct.
(f) No sale, exchange or other transfer of assets may be made by a company between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, such transfer is made solely to establish the account pursuant to subsection 6 or to support the operation of the contracts with respect to the separate account to which the transfer is made, and unless such transfer, whether into or from a separate account, is made:
(1) By a transfer of cash; or
(2) By a transfer of securities having a readily determinable market value, provided that such transfer of securities is approved by the Commissioner.
Ê The Commissioner may approve other transfers among such accounts if, in the opinion of the Commissioner, such transfers would not be inequitable.
(g) To the extent such company deems it necessary to comply with any applicable federal or state laws, such company, with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of such account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants and the selection of a committee, the members of which need not be otherwise affiliated with such company, to manage the business of such account.
2. Any contract providing benefits payable in variable amounts delivered or issued for delivery in this state, including a group contract and any certificate issued thereunder, shall contain a statement of the essential features of the procedures to be followed by the insurance company in determining the dollar amount of such variable benefits. Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis.
3. No company shall deliver or issue for delivery within this state variable contracts unless it is licensed or organized to do a life insurance or annuity business in this state, and the Commissioner is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the Commissioner shall consider among other things:
(a) The history and financial condition of the company;
(b) The character, responsibility and fitness of the officers and directors of the company; and
(c) The law and regulations under which the company is authorized in the state of domicile to issue variable contracts.
Ê If the company is a subsidiary of an admitted life insurance company, or affiliated with such company through common management or ownership, it may be deemed by the Commissioner to have met the provisions of this subsection if either it or the parent or the affiliated company meets the requirements hereof.
4. Notwithstanding any other provision of law, the Commissioner has sole authority to regulate the issuance and sale of variable contracts, and to issue such reasonable rules and regulations as may be appropriate to carry out the purposes and provisions of this section.
5. Except for NRS 688A.190 , 688A.240 and 688A.250 in the case of a variable annuity contract and NRS 688A.060 , 688A.110 , 688A.120 , 688A.130 , 688A.290 to 688A.360 , inclusive, and 688B.050 in the case of a variable life insurance policy and except as otherwise provided in this Code, all pertinent provisions of this Code shall apply to separate accounts and contracts relating thereto. Any individual variable life insurance contract, delivered or issued for delivery in this state, shall contain grace, reinstatement and nonforfeiture provisions appropriate to such a contract. Any individual variable annuity contract, delivered or issued for delivery in this state, shall contain grace and reinstatement provisions appropriate to such a contract. The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.
6. A domestic life insurer which establishes one or more separate accounts pursuant to this section may participate therein by allocating and contributing to such separate account funds which otherwise might be invested pursuant to NRS 682A.410 and 682A.514 . The insurer shall have a proportionate interest in any such account, along with all other participating contract holders, to the extent of its participation therein. The aggregate amount so allocated or contributed by such an insurer to one or more separate accounts shall not, without the consent of the Commissioner, exceed the greater of:
(a) One hundred thousand dollars;
(b) One percent of its admitted assets as of December 31 next preceding; or
(c) Five percent of its surplus as to policyholders as of December 31 next preceding.
Ê All funds allocated or contributed by the insurer to a separate account for the purpose of participation therein shall be included in applying the limitations upon investments otherwise specified in this Code. The insurer shall be entitled to withdraw at any time in whole or in part its participation in any separate account to which funds have been allocated or contributed and to receive upon withdrawal its proportional share of the value of the assets of the separate account at the time of withdrawal.
Nev. Rev. Stat. § 688A.400 Prohibited policy plans.
1. No life insurer shall, after January 1, 1972, deliver or issue for delivery in this state:
(a) As part of or in combination with any life insurance, endowment or annuity contract, any agreement or plan, additional to the rights, dividends and benefits arising out of any such contract, which provides for the accumulation of profits over a period of years and for payment of all or any part of such accumulated profits only to members or policyholders of a designated group or class who continue as members or policyholders until the end of a specified or ascertainable period of years.
(b) Any registered policy; that is, any policy (other than one registered as a security under applicable state or federal law) purporting to be registered or otherwise specially recorded, with any agency of the State of Nevada, or of any other state, or with any bank, trust company, escrow company or other institution other than the insurer, or purporting that any reserves, assets or deposits are held, or will be so held, for the special benefit or protection of the holder of such policy, by or through any such agency or institution.
(c) Any policy or contract under which any part of the premium or of funds or values arising from the policy or contract or from investment of reserves, or from mortality savings, lapses or surrenders, in excess of the normal reserves or amounts required to pay death, endowment and nonforfeiture benefits in respective amounts as specified in or pursuant to the policy or contract, are on a basis not involving insurance or life contingency features:
(1) To be placed in special funds or segregated accounts or specially designated places; or
(2) To be invested in specially designated investments or types thereof,
Ê and the funds or earnings thereon to be divided among the holders of such policies or contracts, or their beneficiaries or assignees. This paragraph does not apply to any contract authorized under NRS 688A.390 .
(d) Any policy providing for the segregation of policyholders into mathematical groups and providing benefits for a surviving policyholder arising out of the death of another policyholder of such group, or under any other similar plan.
(e) Any policy providing benefits or values for surviving or continuing policyholders contingent upon the lapse or termination of the policies of other policyholders, whether by death or otherwise.
(f) Any policy providing that on the death of anyone not specifically named therein, the owner or beneficiary of the policy shall receive the payment or granting of anything of value. This provision shall not be deemed to prohibit family policies insuring unspecified members of a family, nor be deemed to prohibit payment to unspecified beneficiaries of a class which has been expressly designated as such by the insured or policy owner.
(g) Any policy containing or referring to one or more of the following provisions or statements:
(1) Investment returns or profit sharing, other than as a participation in the divisible surplus of the insurer under a regular participation provision as provided for in NRS 688A.100 .
(2) Special treatment in the determination of any dividend that may be paid as to such policy.
(3) Reference to premiums as deposits.
(4) Relating policyholder interest or returns to those of stockholders.
(5) That the policyholder as a member of a select group will be entitled to extra benefits or extra dividends not available to policyholders generally.
2. This section does not prohibit the provision, payment, allowance or apportionment of regular dividends or savings under regular participating forms of policies or contracts.
Nev. Rev. Stat. § 688A.410 Payment of life insurance proceeds; interest.
An insurer shall pay the proceeds of any benefits under a policy of life insurance not more than 30 days after the death of the insured. If the proceeds are not paid within this period, the insurer shall pay interest on the proceeds, at a rate which is not less than the current rate of interest on death proceeds on deposit with the insurer, from the date of death of the insured to the date when the proceeds are paid.
Nev. Rev. Stat. § 688A.430 Delivery of group annuity to group formed to purchase annuity prohibited.
No group annuity may be delivered or issued for delivery in this state to a group which was principally formed for the purpose of purchasing one or more group annuities.
Nev. Rev. Stat. § 688A.440 Incorporation of long-term care insurance into annuity or policy of life insurance.
1. An annuity or policy of life insurance may incorporate long-term care insurance if:
(a) The long-term care insurance incorporated into the annuity or policy of life insurance complies with regulations adopted by the Commissioner.
(b) The Commissioner approves the incorporation of long-term care insurance into the annuity or policy of life insurance.
2. The Commissioner shall adopt regulations that define long-term care insurance for the purposes of this section.
Nev. Rev. Stat. § 688A.3631 Value of paid-up annuity benefits when benefit payments to commence.
Any paid-up annuity benefit available under a contract shall be such that its present value on the date when the annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. Such present value shall be computed by using the mortality table, if any, and the interest rate specified in the contract for determining the minimum paid-up annuity benefits guaranteed in the contract.
Nev. Rev. Stat. § 688A.3633 Value of cash surrender and death benefits before maturity.
1. For contracts which provide cash surrender benefits, such benefits available before maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit which would be provided under the contract at maturity arising from considerations paid before the time of cash surrender, reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate of not more than 1 percent higher than the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. Any cash surrender benefit shall not be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit.
2. For annuity contracts issued on or after January 1, 2012, that provide cash surrender benefits:
(a) The cash surrender value on or past the maturity date must be equal to the amount used to determine the annuity benefits;
(b) A surrender charge may not be imposed on or past the maturity date of the annuity contract; and
(c) For annuity contracts with one or more renewable guaranteed periods, a new surrender charge schedule may be imposed for each new guaranteed period if:
(1) The surrender charge is zero at the end of each guaranteed period and remains zero for at least 30 days;
(2) The contract provides for continuation of the contract without surrender charges unless the contract holder specifically elects a new guaranteed period with a new surrender charge schedule; and
(3) The renewal period does not exceed 10 years and the maturity date complies with NRS 688A.3637 .
3. An annuity contract that provides for flexible considerations may have separate surrender charge schedules associated with each consideration.
Nev. Rev. Stat. § 688A.3635 Value of paid-up annuity benefits before maturity for contracts not providing cash surrender or death benefits.
For contracts which do not provide cash surrender benefits, the present value of any paid-up annuity benefit available as a nonforfeiture option at any time before maturity shall not be less than the present value of that portion of the maturity value of the paid-up annuity benefit provided under the contract arising from considerations paid before the time when the contract is surrendered in exchange for or changed to a deferred paid-up annuity, such present value being calculated for the period before the maturity date on the basis of the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, and increased by any existing additional amounts credited by the company to the contract. For contracts which do not provide any death benefits before the commencement of any annuity payments, the present values shall be calculated on the basis of such interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit. The present value of a paid-up annuity benefit shall not be less than the minimum nonforfeiture amount at that time.
Nev. Rev. Stat. § 688A.3637 Maturity date.
1. For the purpose of determining the benefits calculated under NRS 688A.3633 and 688A.3635 :
(a) In the case of annuity contracts issued before January 1, 2012, under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed to be the latest date for which election is permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitants 70th birthday or the 10th anniversary of the contract, whichever is later.
(b) In the case of annuity contracts issued on or after January 1, 2012, the maturity date shall be deemed to be the latest date permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitants 70th birthday or the 10th anniversary of the contract, whichever is later.
2. For the purpose of determining the maturity date under this section for an annuity contract that provides for flexible considerations, the 10th anniversary of the contract is determined separately for each consideration.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-688A.htmlFetched: 10/4/2026