TITLE INSURANCE

Nev. Rev. Stat. 692A
in effect

Nev. Rev. Stat. § 692A.011 Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 692A.015 to 692A.080, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 692A.015 “Abstract of title” defined.

“Abstract of title” means any written representation listing all recorded conveyances, instruments and documents which, under the laws of this State, impart constructive notice with respect to the chain of title of the real property described therein. The term does not include a binder, commitment to insure or preliminary report of title.

Nev. Rev. Stat. § 692A.021 “Applicant” defined.

“Applicant” means a person, whether or not a prospective insured, who applies to a title insurer or its agent for title insurance and who, at the time of the application, is not an agent for a title insurer.

Nev. Rev. Stat. § 692A.022 “Business of title insurance” and “title insurance business” defined.

“Business of title insurance” or “title insurance business” includes: 1. The issuance of or proposal to issue any policy of title insurance as an insurer, guarantor or indemnitor; 2. The solicitation, negotiation or execution of a policy of title insurance, or the performance of any related services arising out of the execution of a policy of title insurance, excluding reinsurance; 3. The performance by a title insurer, a title agent or an escrow agency owned, in whole or in part, by a title insurer or title agent, of any service in conjunction with the issuance or contemplated issuance of a policy of title insurance, including, but not limited to, the handling of any escrow, settlement or closing in connection therewith, or doing or proposing to do any business which is in substance the equivalent of the services described in this subsection; and 4. The act of a title insurer whereby the title insurer provides a closing protection letter pursuant to NRS 692A.225 .

Nev. Rev. Stat. § 692A.023 “Commitment to insure” and “preliminary report of title” defined.

“Commitment to insure” or “preliminary report of title” means a report furnished in connection with an application for title insurance which constitutes an offer to issue a policy of title insurance subject to the terms, conditions and exceptions stated in the report, but which does not constitute a representation as to the condition of the title to real property. The term does not include an abstract of title.

Nev. Rev. Stat. § 692A.024 “Escrow” defined.

“Escrow” means any transaction wherein one person, for the purpose of effecting the sale, transfer, encumbering or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by the third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee of any of them. The term includes the collection of payments and the performance of related services by a third person in connection with a loan secured by a lien on real property.

Nev. Rev. Stat. § 692A.028 “Escrow officer” defined.

“Escrow officer” means a person employed by a title insurer or title agent to handle escrows, settlements and closings.

Nev. Rev. Stat. § 692A.031 “Net retained liability” defined.

“Net retained liability” means the total liability retained by a title insurer for a single risk after the ceding of reinsurance.

Nev. Rev. Stat. § 692A.035 “Policy of title insurance” and “title policy” defined.

“Policy of title insurance” or “title policy” means a written instrument or contract by which title insurance liability is assumed. The term does not include an abstract of title, binder, commitment to insure or preliminary report of title.

Nev. Rev. Stat. § 692A.041 “Premium” defined.

1. “Premium” means charges for: (a) Assuming a risk; (b) Abstracting, searching and examining title to determine insurability; and (c) Any other activity associated with the assumption of risk. 2. “Premium” does not include charges for: (a) Escrow; (b) Settlement or closing; or (c) Other special services not associated with the assumption of risk, Ê whether or not they are called premiums.

Nev. Rev. Stat. § 692A.050 “Single risk” defined.

“Single risk” means the insured amount of any policy or contract of title insurance issued by a title insurer unless two or more policies or contracts are simultaneously issued on different estates in identical real property, in which event it means the sum of the insured amounts of all such policies or contracts. Any policy or contract which insures a mortgage interest that is excepted in a fee or leasehold policy or contract, and which does not exceed the insured amount of the fee or leasehold policy or contract, shall be excluded in computing the amount of a single insurance risk.

Nev. Rev. Stat. § 692A.060 “Title agent” defined.

“Title agent” is a person, firm or corporation appointed by a title insurer to solicit applications for insurance or to negotiate for title insurance contracts on its behalf, and if authorized to do so by the insurer, to prepare and countersign title insurance policies and contracts.

Nev. Rev. Stat. § 692A.070 “Title insurer” defined.

“Title insurer” means a company organized under the laws of this state for the purpose of transacting as insurer the business of title insurance and any foreign or alien company licensed to transact business as an insurer engaged in title insurance.

Nev. Rev. Stat. § 692A.080 “Title plant company” defined.

“Title plant company” means a person engaged in the business of preparing title searches, title examinations and certificates or abstracts of title which are the basis of the issuance of title policies by a title insurer.

Nev. Rev. Stat. § 692A.100 Title agents, title insurers and escrow officers: Licensing required; maintenance and examination of records; separation of money held in escrow; regulations.

1. The Commissioner shall provide by regulation for the licensing of title agents, their branch offices, direct writing title insurers and escrow officers. 2. Each title agent shall maintain his or her books of account and record and his or her vouchers pertaining to title insurance business in a manner which permits the Commissioner or a representative of the Commissioner to ascertain readily whether the agent has complied with the provisions of this chapter. 3. A title agent or escrow officer may engage in the business of handling escrows, settlements and closings if the title agent or escrow officer maintains a separate record of all receipts and disbursements of money held in escrow and does not commingle that money with his or her own. 4. For the purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with law, the Commissioner or a representative of the Commissioner or the Commissioner of Financial Institutions of the Department of Business and Industry or a representative of the Commissioner of Financial Institutions of the Department of Business and Industry when requested by the Commissioner of Insurance shall each year examine or cause to be examined the affairs, transactions, agreements, assets, records and accounts, including the escrow accounts, of a title agent, title insurer or escrow officer. 5. A title agent or insurer may engage a certified public accountant to perform such an examination in lieu of the Commissioner. In such a case, the examination must be equivalent to the type of examination made by the Commissioner and the expense must be borne by the title agent or insurer being examined. 6. The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is equivalent to an examination conducted by the Commissioner. The Commissioner may examine any area of the operation of a title agent or insurer if the Commissioner determines that the examination of that area is not equivalent to an examination conducted by the Commissioner. 7. A person shall not become licensed to circumvent the provisions of this chapter or any other law of this state.

Nev. Rev. Stat. § 692A.103 License as escrow officer: Application; qualifications; fees; issuance; period of validity; renewal; expiration; contents; availability for public inspection; notice of change of address; regulations. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. A person who wishes to obtain a license as an escrow officer must: (a) File a written application in the Office of the Commissioner; (b) Except as otherwise provided in subsection 3, demonstrate competency in matters relating to escrows by: (1) Having at least 1 year of recent experience with respect to escrows of a sufficient nature to allow the person to fulfill the responsibilities of an escrow officer; or (2) Passing a written examination concerning escrows as prescribed by the Commissioner; (c) Submit the name and business address of the title agent who will supervise the escrow officer; (d) Submit the statement required pursuant to NRS 692A.1033 ; and (e) Pay the fees required by NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 2. The Commissioner shall issue a license as an escrow officer to any person who satisfies the requirements of subsection 1. 3. The Commissioner may waive the requirements of paragraph (b) of subsection 1 if the applicant submits with his or her application satisfactory proof that the applicant, in good standing, currently holds a license, or held a license within 1 year before the date the applicant submits the application, which was issued pursuant to the provisions of NRS 645A.020 . 4. A license issued or renewed pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed upon submission of the statement required pursuant to NRS 692A.1033 and payment of all applicable fees for renewal to the Commissioner on or before the renewal date for the license. 5. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by the statement required pursuant to NRS 692A.1033 and a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 . 6. Except as otherwise provided in subsection 8, a license as an escrow officer expires if the Commissioner does not receive from the escrow officer an application for renewal pursuant to subsection 4 or 5 on or before the date which is 30 days after the renewal date. 7. The fees specified in subsections 4 and 5 are not refundable. 8. An escrow officer who is unable to renew his or her license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew. 9. A license must state the licensee’s name, address and personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request. 10. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change. 11. The Commissioner shall adopt regulations to carry out the provisions of this section. 12. As used in this section, “renewal date” means: (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license. (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

Nev. Rev. Stat. § 692A.105 Disciplinary action against title agent or escrow officer or refusal to license.

1. The Commissioner may refuse to license any title agent or escrow officer or may suspend or revoke any license or impose a fine of not more than $500 for each violation by entering an order to that effect, with the Commissioner’s findings in respect thereto, if, upon a hearing, it is determined that the applicant or licensee: (a) In the case of a title agent, is insolvent or in such a financial condition that the title agent cannot continue in business with safety to his or her customers; (b) Has violated any provision of this chapter or any regulation adopted pursuant thereto or has aided and abetted another to do so; (c) Has committed fraud in connection with any transaction governed by this chapter; (d) Has intentionally or knowingly made any misrepresentation or false statement to, or concealed any essential or material fact known to the applicant or licensee from, any principal or designated agent of the principal in the course of the escrow business; (e) Has intentionally or knowingly made or caused to be made to the Commissioner any false representation of a material fact or has suppressed or withheld from the Commissioner any information which the applicant or licensee possesses; (f) Has failed without reasonable cause to furnish to the parties of an escrow their respective statements of the settlement within a reasonable time after the close of escrow; (g) Has failed without reasonable cause to deliver, within a reasonable time after the close of escrow, to the respective parties of an escrow transaction any money, documents or other properties held in escrow in violation of the provisions of the escrow instructions; (h) Has refused to permit an examination by the Commissioner of his or her books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to the provisions of this chapter; (i) Has been convicted of a felony relating to the practice of title agents or any misdemeanor of which an essential element is fraud; (j) In the case of a title agent, has failed to maintain complete and accurate records of all transactions within the last 7 years; (k) Has commingled the money of other persons with his or her own or converted the money of other persons to his or her own use; (l) Has failed, before the close of escrow, to obtain written instructions concerning any essential or material fact or intentionally failed to follow the written instructions which have been agreed upon by the parties and accepted by the holder of the escrow; (m) Has failed to disclose in writing that the applicant or licensee is acting in the dual capacity of escrow agent or agency and undisclosed principal in any transaction; (n) In the case of an escrow officer, has been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, any crime involving moral turpitude; or (o) Has failed to obtain and maintain a copy of the executed agreement or contract that establishes the conditions for the sale of real property. 2. It is sufficient cause for the imposition of a fine or the refusal, suspension or revocation of the license of a partnership, corporation or any other association if any member of the partnership or any officer or director of the corporation or association has been guilty of any act or omission directly arising from the business activities of a title agent which would be cause for such action had the applicant or licensee been a natural person. 3. The Commissioner may suspend or revoke the license of a title agent, or impose a fine, if the Commissioner finds that the title agent: (a) Failed to maintain adequate supervision of an escrow officer or title agent he or she has appointed or employed. (b) Instructed an escrow officer to commit an act which would be cause for the revocation of the escrow officer’s license and the escrow officer committed the act. An escrow officer is not subject to disciplinary action for committing such an act under instruction by the title agent. 4. The Commissioner may refuse to issue a license to any person who, within 10 years before the date of applying for a current license, has had suspended or revoked a license issued pursuant to this chapter or a comparable license issued by any other state, district or territory of the United States or any foreign country.

Nev. Rev. Stat. § 692A.107 Disciplinary action against title insurer or refusal to license.

1. In addition to the grounds provided in NRS 680A.200 for insurers generally, the Commissioner may refuse to license any title insurer or may suspend any license or impose a fine of not more than $500 for each violation by entering an order to that effect, with findings in respect thereto, if upon a hearing, it is determined that the applicant or licensee: (a) Has committed fraud in connection with any transaction governed by this chapter; (b) Has failed without reasonable cause to furnish to the parties of an escrow their respective statements of the settlement within a reasonable time after the close of escrow; (c) Has failed without reasonable cause to deliver, within a reasonable time after the close of escrow, to the respective parties of an escrow transaction any money, documents or other properties held in escrow in violation of the provisions of the escrow instructions; (d) Has commingled the money of others with his or her own or converted the money of others to his or her own use; (e) Has failed, before the close of escrow, to obtain written instructions concerning any essential or material fact or intentionally failed to follow the written instructions which have been agreed upon by the parties and accepted by the holder of the escrow; (f) Has failed to disclose in writing that the applicant or licensee is acting in the dual capacity of escrow agent or agency and undisclosed principal in any escrow transaction; or (g) Has failed to maintain adequate supervision of an escrow officer or title agent whom the applicant or licensee has certified pursuant to subsection 3 of NRS 692A.110 . 2. The Commissioner may refuse to issue a license to any person who, within 10 years before the date of applying for a current license, has had suspended or revoked a license issued pursuant to this chapter or a comparable license issued by any other state, district or territory of the United States or any foreign country.

Nev. Rev. Stat. § 692A.108 Powers of Commissioner when assets or capital of title agent impaired or title agent’s affairs are in unsafe condition.

1. If the Commissioner ascertains that the assets or capital of any title agent are impaired or that a title agent’s affairs are in an unsafe condition, the Commissioner may immediately take possession of all the property, business and assets of the title agent which are located in this state and retain possession of them pending further proceedings provided for in this chapter. 2. If the board of directors or any officer or person in charge of the offices of such a title agent refuses to permit the Commissioner to take possession of the property, the Commissioner shall communicate that fact to the Attorney General. Thereupon the Attorney General shall immediately institute such proceedings as may be necessary to place the Commissioner in immediate possession of the property of the title agent. The Commissioner thereupon shall make or cause to be made an inventory of the assets and known liabilities of the title agent. 3. The Commissioner shall file one copy of the inventory in his or her office and one copy in the office of the clerk of the district court of the county in which the principal office of the title agent is located and shall mail one copy to each stockholder, partner, officer or associate of the agent at his or her last known address. 4. The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.

Nev. Rev. Stat. § 692A.109 Period to remedy deficit or unsafe condition; receivership.

1. The officers, directors, partners, associates or stockholders of the title agent may, within 60 days after the date the Commissioner takes possession of the property, business and assets, make good any deficit which may exist or remedy the unsafe condition of its affairs. 2. At the expiration of such time, if the deficiency in assets or capital has not been made good or the unsafe condition remedied, the Commissioner may apply to the court to be appointed receiver and proceed to liquidate the assets of the title agent which are located in this state in the same manner as now provided by law for liquidation of a private corporation in receivership. 3. No other person may be appointed receiver by any court without first giving the Commissioner reasonable notice of his or her application. 4. The inventory made by the Commissioner and all claims filed by creditors are open at all reasonable times for inspection and any action taken by the receiver upon any of the claims is subject to the approval of the court before which the cause is pending. 5. The expenses of the receiver and compensation of counsel, as well as all expenditures required in the liquidation proceedings, must be fixed by the Commissioner subject to the approval of the court, and, upon certification of the Commissioner, must be paid out of the money that he or she possesses as receiver.

Nev. Rev. Stat. § 692A.110 Title insurers: Authorized activities; prohibited activity; certification and supervision of title agents and escrow officers.

1. Each title insurer may: (a) Engage in title insurance business if licensed to do so by the Commissioner. (b) Take action incidental to the making of a contract or policy of title insurance, directly or through a title agent or escrow officer employed by the title insurer, including the conducting or holding of money in escrow, making settlements and closing transactions. (c) Provide any other service related or incidental to the sale and transfer of property if it has filed notice with the Commissioner of its intention to provide the service, and the Commissioner has not disapproved the service within 30 days after the Commissioner’s receipt of the notice. (d) Invest in title plants. 2. No title insurer may engage in the business of guaranteeing the obligations of other persons. 3. Each title insurer shall, no later than February 1 of each calendar year, certify to the Commissioner the title agents and escrow officers it employs or appoints, including title agents and escrow officers employed by a title agent whom it has appointed. Each title insurer is responsible for and shall supervise the acts of each person that is required to be certified pursuant to this section.

Nev. Rev. Stat. § 692A.113 Notification of change of name or location of business; reissuance of license to escrow officer who transfers association; penalties.

1. A title agent or title insurer shall notify the Division in writing within 10 days after any change in the name or the location of the business of the agent or insurer or any change of association by the holder of a license as an escrow officer. Upon the surrender of the existing license and payment of the required fee, the Division shall issue a new license to the agent or insurer for the unexpired term of the license. 2. An escrow officer who transfers his or her association must apply to the Division for the reissuance of his or her license. The Division shall reissue the license for the unexpired term upon application and payment of the required fee if: (a) The transfer is into an association with a licensed title agent or title insurer; and (b) The agent or insurer certifies that the escrow officer is employed or will be employed by the agent or insurer. 3. Failure to give notice as required by this section constitutes cause for the imposition of a fine not to exceed $500 against the licensee or the suspension or revocation of his or her license.

Nev. Rev. Stat. § 692A.117 Confidential records.

1. The Commissioner shall classify as confidential the financial statements of a title agent, escrow officer and title insurer and those records and information obtained by the Division which: (a) Are obtained from a governmental agency upon the express condition that they remain confidential. (b) Consist of information compiled by the Division in the investigation of possible violations of this chapter. This paragraph does not limit examination by the Legislative Auditor or any other person pursuant to a court order. 2. Except as otherwise provided in NRS 239.0115 , the contents of the file for an escrow are confidential and, subject to the rights to discover the contents by subpoena or other lawful process, must not be disclosed without the express written consent of one party of the escrow other than the holder of the escrow.

Nev. Rev. Stat. § 692A.120 Rate schedules, schedules of charges and forms: Filing; approval by Commissioner; exceptions; prohibited acts.

1. Each title insurer shall file with the Commissioner all rate schedules, schedules of charges and all forms, including: (a) Preliminary reports of title. (b) Binders for insurance and commitments to insure. (c) Letters of indemnity. (d) Policies of insurance or guaranty. (e) Terms and conditions of insurance coverage or guarantee which relate to title to any interest in property. 2. A title insurer need not file: (a) Reinsurance contracts and agreements. (b) Closing protection letters. (c) Specific defects in title which may be ascertained from an examination of the risk and excepted in reports, binders, commitments or policies, or any affirmative assurances of the title insurer with respect to those defects, whether given by endorsement or otherwise. (d) Specific exceptions from coverage by reason of limitations upon the examination of the risk imposed by the applicant for insurance or through failure of the applicant to provide data requisite to a judgment of insurability. 3. Unless the Commissioner disapproves a form or schedule within 30 days after it is filed in the Office of the Commissioner, the form or schedule is approved. 4. No form or schedule may be used until it is approved by the Commissioner. 5. No title insurer or title agent may make or impose any charge for premium, escrow, settlement or closing services when performed in connection with the issue of a title insurance policy except in accordance with the schedule of charges filed with the Commissioner as required by this section. 6. A title insurer or title agent shall not charge a fee for any statement or tax return regarding payments of interest which federal law requires the insurer or agent to furnish and file. 7. As used in this section, “closing protection letter” means a letter issued as described in NRS 692A.225 .

Nev. Rev. Stat. § 692A.130 Publication, contents and filing of schedule of fees and charges; using services of rating organizations; engaging in joint underwriting and reinsurance.

1. Every title insurer and every title agent shall print and make available to the public the schedule of fees and charges filed with the Commissioner. 2. The schedule: (a) Shall show to the public the total premium, for each type of policy regularly issued by the insurer, either by a statement of the particular charge for each type of policy in given amounts of coverage or by a statement of the charge per unit of the amount of coverage, or a combination of the two. (b) May include a statement that additional charges are made when unusual conditions of title are encountered or when special or unusual risks are insured against and that additional charges are made for special services rendered in connection with the issuance of a policy, the handling of an escrow or the performance of other service. (c) May provide different fees or changes for policies covering property in different counties, and for other services rendered in different counties, or separate schedules may be adopted for policies covering property in different counties, and for other services rendered in different counties. 3. Every title insurer and title agent shall file with the Commissioner the schedule of fees and charges and every modification thereof which it proposes to use. The filing shall state the effective date thereof which shall be not less than 30 days after the date of the filing. The Commissioner may by order suspend or modify the requirement of filing as to a specific service, the charges for which cannot practically be determined before the service is performed. 4. A title insurer may be a member or subscriber and use the services of a title insurance rating organization, and engage in joint underwriting and joint reinsurance of title insurance risks, in the same manner, with the same effect, and subject to the same applicable terms and conditions as provided with respect to property and casualty insurance under chapter 686B of NRS (rates and rating organizations).

Nev. Rev. Stat. § 692A.140 Schedule of fees and charges: Printing; display; copies; changes and amendments; retention; inspection.

1. The schedules provided for in NRS 692A.130 shall: (a) Be printed in type not smaller than 10-point; (b) Be dated to show the date they became effective; and (c) So long as they are effective, be kept at all times readily available to the public and prominently displayed in a public place in each of the offices of the title insurer or title agent in this state, and in each of the offices of any person authorized to issue the policy of title insurance of the insurer, or to perform the service of an insurer or title agent in the particular county to which they relate. 2. On request, copies of the schedules shall be furnished to the public. 3. All or any part of any schedule may be changed or amended at any time or from time to time. Each change or amendment shall be printed and dated to show the effective date of the change or amendment. No change or amendment shall become effective until at least 30 days after it has been filed with the Commissioner and been displayed in the offices mentioned in subsection 1 in the same manner as provided for the display of schedules, and no change or amendment increasing fees or charges applies to policies or services ordered prior to the effective date of the change or amendment. 4. Each title insurer and each title agent shall keep a complete file of its schedules and of all changes and amendments thereto until at least 5 years after they have ceased to be in effect, and the file shall be available for inspection by the Commissioner at any appropriate time.

Nev. Rev. Stat. § 692A.150 Reserve against unpaid losses and loss expenses.

1. Each domestic title insurer shall establish and at all times maintain a reserve against: (a) Unpaid losses; and (b) Loss expenses, Ê and shall calculate the reserves by making a careful estimate in each case of the loss and loss expense likely to be incurred by reason of each claim presented upon receiving notice from or on behalf of the insured of a title defect in or lien or adverse claim against the title of the insured which may result in a loss or cause expense to be incurred for the proper disposition of the claim. 2. Reserves required by this section may be revised from time to time and shall be redetermined at least once each year. 3. Amounts set aside in reserves in any year shall be deducted in determining the net profit of the year of the insurer.

Nev. Rev. Stat. § 692A.160 Unearned premium reserve.

1. Each domestic title insurer shall establish and maintain an unearned premium reserve composed of the unearned portions of premiums due or received, which shall be charged as a reserve liability of the insurer in determining its financial condition. 2. The unearned premium reserve shall be retained and held by the title insurer for the protection of holders of policies which have not expired. Except as provided in this section, assets equal in value to the unearned premium reserve are not subject to distribution among depositors or other creditors or stockholders of the insurer until all claims of policyholders or holders of other title insurance contracts have been paid in full, and all liability on the policies or other title insurance has been paid in full and discharged or lawfully reinsured. 3. Income from the unearned premium reserve need not be added to that reserve. 4. Each title insurer shall place in its unearned premium reserve: (a) The amount held in unearned premium reserve on July 1, 1977; and (b) A sum equal to 5 percent of title insurance premiums collected in each calendar year. 5. A title insurer shall release from the unearned premium reserve and restore to net profits a sum equal to 5 percent of the amount added to the reserve during a calendar year on July 1 of the year following the year in which the sum was added, and an additional 5 percent shall be released from the reserve on each succeeding July 1 until the entire amount for that year has been restored to net profits.

Nev. Rev. Stat. § 692A.170 Foreign or alien title insurers required to maintain same reserves required of domestic insurers.

Each foreign or alien title insurer licensed to transact title insurance business in this state shall maintain the same reserves as are required of domestic insurers, unless the laws of the jurisdiction of domicile of the insurer requires a higher amount.

Nev. Rev. Stat. § 692A.180 Limitation on net retained liability for single risk; waiver of limitation by Commissioner.

1. The net retained liability of any title insurer for a single risk, whether assumed directly or as reinsurance, may not exceed 50 percent of the sum of the capital, surplus, unearned premium reserve and voluntary reserves less the value assigned to its title plants, all as shown in the most recent report of the insurer which is on file in the Office of the Commissioner. 2. The Commissioner may waive the limitation of this section for a particular risk upon application of the insurer and for good cause shown.

Nev. Rev. Stat. § 692A.190 Circumstances in which premiums and charges from personal and controlled insurance constitute unlawful rebates.

1. If the premiums and charges received from any one source through personal or controlled insurance exceed 25 percent of the total premiums and charges received by a title insurer during a calendar year, or if the premiums and charges received from all personal and controlled insurance exceed 50 percent of the total premiums and charges received by the title insurer during the calendar year, the excess of those percentages is an unlawful rebate under NRS 686A.130 . 2. “Personal or controlled insurance” means a policy of title insurance under which one of the following is an insured, or the loss is payable to one of the following: (a) The title insurer who issued the policy or any of the following: (1) Any person who owns or controls a majority of the voting stock or a controlling interest, directly or indirectly, in the title insurer; (2) A corporation which is directly or indirectly controlled by a person who also controls the title insurer; or (3) A corporation which makes consolidated returns for federal income tax purposes with a title insurer or with a corporation which is listed in subparagraph (1) or (2) of this paragraph. (b) A title insurance agent who is a natural person, a spouse of the title insurance agent, any person related to the title insurance agent within the second degree by blood or marriage, and: (1) If the employer of the title insurance agent is a natural person, the employer, the employer’s spouse and any person related to the employer within the second degree by blood or marriage; (2) If the employer of the title insurance agent is a corporation, any person who owns or controls a majority of the voting stock or a controlling interest in the corporation, either directly or indirectly; or (3) If the employer of the title insurance agent is a partnership or association, any person owning an interest in the partnership or association. (c) A title insurance agent which is a corporation, and: (1) Any person who owns or controls, directly or indirectly, a majority of the voting stock or controlling interest in the corporation; (2) Any corporation which is directly or indirectly controlled by a person who also controls the title insurance agent; or (3) Any corporation which makes consolidated returns for federal income tax purposes with any corporation described in subparagraph (1) or (2) of this paragraph. 3. Interest which is held by an entity in a fiduciary capacity for the true or beneficial owner of the property need not be included in determinations of which insurance is personal or controlled.

Nev. Rev. Stat. § 692A.200 Division of rates and charges.

Nothing in this chapter prohibits the division of rates and charges between or among: 1. A title insurer and its agent; 2. Two or more title insurers; 3. One or more title insurers and one or more title agents; or 4. Two or more title agents, Ê if the division of rates and charges does not constitute an unlawful rebate under the laws of this State.

Nev. Rev. Stat. § 692A.210 Waiver of right to purchase owner’s title insurance upon issuance of policy to mortgagee; form of notice and waiver.

1. A title insurer or title agent who issues a policy of mortgagee’s title insurance upon a loan which is made simultaneously with the purchase of all or part of the real property which secures the loan, where no owner’s title insurance has been ordered shall, before the disbursement of loan proceeds or the issuance of the mortgagee’s title policy, inform the owner in writing that the title policy is to be issued, that the policy does not protect the owner, and that the owner may obtain title insurance for protection. If the owner elects not to purchase title insurance, the title insurer or title agent shall obtain from the owner a statement in writing that the notice has been received and that the owner waives the right to purchase title insurance. The statement, together with the waiver, if any, shall be retained by the title insurer or title agent for not less than 5 years after its receipt. 2. The form of the written notice and waiver shall be substantially as follows: NOTICE AND WAIVER RE:............................................................................................................................. (Address or Brief Property Description) Notice is hereby given, as required in NRS 692A.210 , that a mortgagee’s title insurance policy is to be issued to your mortgage lender. The policy does not afford title insurance protection to you in the event of a defect or claim of defect in title to the real estate which you are acquiring. An owner’s title insurance policy affording title insurance protection to you in the amount of your purchase price, or for the amount of your purchase price plus the cost of any improvements which you anticipate making, may be purchased by you. NRS 692A.210 requires that you sign the statement printed below if you do not wish to purchase an owner’s title insurance policy. ....................................................................... Name of Insurer Issuing Policy We have received the foregoing notice, and waive our right to purchase an owner’s title insurance policy for our protection. ....................................................................... Mortgagors

Nev. Rev. Stat. § 692A.220 Search and examination and determination of insurability of title required; retention of records.

1. No policy or contract of title insurance may be completed or executed until the title insurer has or has caused to be: (a) Conducted a reasonable search and examination of the title; and (b) Determined the insurability of the title in accordance with its established underwriting practices. 2. Each title insurer shall maintain records and evidence of its search and examination and of its determination of insurability for a period of not less than 5 years after the date of the policy or contract.

Nev. Rev. Stat. § 692A.225 Closing protection letter: Title insurer authorized to provide; indemnification against certain losses; fee; providing indemnification against certain losses by other means prohibited.

1. A title insurer may provide a closing protection letter to any person or entity who is a party to a real estate transaction in which a policy of title insurance has been or will be issued by or on behalf of the insurer. 2. A closing protection letter provided by a title insurer pursuant to this section may indemnify a person or entity to whom the letter is provided, under the terms and conditions of the letter as provided by the title insurer, against a loss that is in connection with the transaction for which the letter was provided and which is due to any of the following acts or omissions by a closing or settlement service provider: (a) Theft or misappropriation of any closing or settlement funds, to the extent that the theft or misappropriation affects the: (1) Status of the title to the interest in land that is the subject of the transaction; or (2) Validity, enforceability and priority of the lien of the mortgage on the interest in land that is the subject of the transaction. (b) Failure to comply with any written closing or settlement instructions, to the extent that the failure affects the: (1) Status of the title to the interest in land that is the subject of the transaction; or (2) Validity, enforceability and priority of the lien of the mortgage on the interest in land that is the subject of the transaction. 3. A title insurer shall charge a fee of not less than $25 to each person or entity to which the insurer provides a closing protection letter pursuant to this section. 4. The fee charged pursuant to this section for a closing protection letter: (a) Must not be included in any agreement requiring a division of fees or premiums collected by or on behalf of the title insurer who provided the letter; and (b) Shall be deemed earned upon the closing of the transaction for which the letter was provided. 5. A title insurer may not provide or purport to provide indemnification to a person or entity against a loss in connection with acts or omissions by a closing or settlement service provider pursuant to subsection 2 by or through any other product or method than a closing protection letter provided pursuant to this section. 6. As used in this section, “closing or settlement service provider” means a person employed or approved by a title insurer to perform the closing or settlement of a real estate transaction in which a policy of title insurance has been issued by or on behalf of the insurer and may include, without limitation, a title agent or an escrow officer.

Nev. Rev. Stat. § 692A.240 License as title insurer, title agent, escrow officer, escrow agent or escrow agency required to engage in business of administering escrows.

It is unlawful for any person to engage in or carry on, or hold himself or herself out as engaging in or carrying on, the business of administering escrows without first obtaining a license as a title insurer, title agent or escrow officer issued pursuant to this title or as an escrow agent or escrow agency issued pursuant to chapter 645A of NRS.

Nev. Rev. Stat. § 692A.250 Money deposited in escrow: Exemption from execution; designation; permissible depository; regulations defining “commingling” and prescribing business practices.

1. Money deposited in escrow is not subject to execution or attachment on any claim against the title insurer, title agent or escrow officer. 2. A title insurer, title agent or escrow officer shall not knowingly keep or cause to be kept any money in any bank, credit union or other financial institution under any name designating the money as belonging to the clients of the title insurer, title agent or escrow officer or those of another such person unless the money was actually entrusted to the title insurer, title agent or escrow officer for deposit in escrow. 3. All money deposited in escrow to be delivered upon the close of the escrow or upon any other contingency must be kept separate from money belonging to the title insurer, title agent or escrow officer and must be deposited in a financial institution that is federally insured or insured by a private insurer approved pursuant to NRS 672.755 unless another financial institution has been designated in writing in the instructions for the escrow. The money when deposited must be designated as “trust funds” or “escrow accounts” or under some other appropriate name indicating that the money is not the money of the title insurer, title agent or escrow officer. 4. The Commissioner shall adopt regulations defining the term “commingling” for the purposes of this chapter and prescribing acceptable business practices for title agents and escrow officers for handling money deposited in escrow.

Nev. Rev. Stat. § 692A.255 Money deposited in escrow: Requirements for disbursement; disbursement on same business day allowed for certain forms of deposit; compliance with federal laws and regulations.

1. A title insurer, title agent or escrow officer shall not disburse money from an escrow account unless deposits which are at least equal in value to the proposed disbursements and which relate directly to the transaction for which the money is to be disbursed have been received. 2. A title insurer, title agent or escrow officer shall not disburse money from an escrow account on the same business day as the money is deposited unless the deposit is made in one of the following forms: (a) Cash; (b) Interbank electronic transfer such that the money deposited is available for immediate withdrawal without condition and payable in United States currency; (c) Negotiable order of withdrawal, money order, cashier’s check or certified check which is drawn from a financial institution authorized to do business in this State; (d) Any depository check, including any cashier’s check or teller’s check, that is governed by the Expedited Funds Availability Act, 12 U.S.C. §§ 4001 et seq.; or (e) Any other form that permits conversion of the deposit to cash on the same day as the deposit is made. 3. A title insurer, title agent or escrow officer who disburses money from an escrow account pursuant to this section on the next business day after the day on which the money is deposited shall comply with all applicable federal laws or regulations with respect to the disbursement of money accorded next-day availability that is deposited in an escrow account.

Nev. Rev. Stat. § 692A.260 Records of escrow transactions and financial condition; making and filing of statement of business.

Each title insurer and title agent shall keep at all times in his or her principal place of business or branch office complete and suitable records of all escrow transactions made by him or her, together with books, papers and data clearly reflecting the financial condition of his or her business. Each title insurer and title agent shall, at the times required by the Commissioner, make and file with the Division a correct statement of his or her business in the form and containing the data the Commissioner may require.

Nev. Rev. Stat. § 692A.270 Applicability of other provisions to title insurers, title agents and escrow officers.

The provisions of NRS 683A.321, 683A.331, 683A.341, 683A.400, 683A.451 to 683A.490, inclusive, and 683A.520 apply to title insurers, title agents and escrow officers.

Nev. Rev. Stat. § 692A.1033 Payment of child support: Statement by applicant for license as title agent or escrow officer; grounds for denial of license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. An applicant for the issuance or renewal of a license as a title agent or escrow officer shall submit to the Commissioner the statement prescribed by the Division of Social Services of the Department of Human Services pursuant to NRS 425.520 . The statement must be completed and signed by the applicant. 2. The Commissioner shall include the statement required pursuant to subsection 1 in: (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or (b) A separate form prescribed by the Commissioner. 3. A license as a title agent or escrow officer may not be issued or renewed by the Commissioner if the applicant: (a) Fails to submit the statement required pursuant to subsection 1; or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order. 4. If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

Nev. Rev. Stat. § 692A.1035 Suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a title agent or escrow officer, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 . 2. The Commissioner shall reinstate a license as a title agent or escrow officer that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 .

Nev. Rev. Stat. § 692A.1037 Application for issuance of license as title agent or escrow officer must include social security number. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

An application for the issuance of a license as a title agent or escrow officer must include the social security number of the applicant.

Nev. Rev. Stat. § 692A.1039 License: Required; application; fee; issuance; period of validity; renewal; suspension or revocation; exception.

1. No person may engage in business as a title plant company unless the person has been granted a license to do so by the Commissioner. 2. An applicant for a license to conduct business as a title plant company shall submit as part of his or her application: (a) A copy of the proposed articles of incorporation or association and bylaws, or the partnership agreement, which will govern the operation of the business. (b) A list of the owners or participants and the nature and degree of their interest. (c) A list of the persons who will operate the business, and their addresses and qualifications, including experience. (d) The conditions under which ownership or participation in the business may be sold or acquired. (e) A statement of whether or not title information will be compiled for persons other than owners or participants in the business. (f) A pro forma balance sheet and other financial information to indicate the sufficiency of financing of the business. (g) Other information which the Commissioner requires. (h) The fee specified in NRS 680B.010 . 3. If the Commissioner finds that: (a) The business of the applicant will be sufficiently financed; (b) The persons who will be operating the business are qualified; (c) The rules of operation expressed in the articles of incorporation or association and the bylaws, or in the partnership agreement, will promote the efficiency of the operation of the owners or participants; and (d) The operation of the business will not unduly restrict competition, Ê the Commissioner may issue a license to the applicant and permit organization of the business. 4. A license issued under this section is valid for a period of 1 year, and may be renewed by the submission of any information which the Commissioner requires and the fee specified in NRS 680B.010 . 5. A license issued under this section may be suspended or revoked by the Commissioner if: (a) The licensee ceases to operate in a manner set forth in its approved application. (b) In the opinion of the Commissioner, the operation of the business has become a restraint on competition or is not in the best interests of the public. (c) The licensee has not informed the Commissioner promptly of each change in conditions set forth in its application. 6. The Commissioner shall give written notice to any licensee whose license the Commissioner intends to suspend or revoke, and the licensee shall be granted a hearing if the licensee requests it in writing within 15 days after the receipt of the notice from the Commissioner. A decision of the Commissioner after hearing is final administrative action. 7. This section does not apply to any person licensed under the provisions of this chapter engaged in the business of a title plant company when the operation is not in concert with others.

Nev. Rev. Stat. § 692A.1041 Title agent and insurer required to deposit surety bond or substitute form of security with Commissioner; requirements for bond or other security.

1. In addition to all other requirements set forth in this title and except as otherwise provided in subsections 2, 3 and 4 and NRS 692A.1042 , as a condition to doing business in this State, each title agent and title insurer shall deposit with the Commissioner and keep in full force and effect a corporate surety bond which complies with NRS 679B.175 and is in an amount as determined by the Commissioner. The bond must name as principals the title agency or title insurer and all escrow officers employed by or associated with the title agent or title insurer. 2. Each title agent and title insurer may, in lieu of a corporate surety bond that complies with the provisions of subsection 1, deposit a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount as determined by the Commissioner. The Commissioner shall determine the appropriate amount of the substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250 . After the initial deposit, the Commissioner shall, on an annual basis, determine the appropriate amount of the substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250 . 3. A title agent or title insurer may offset or reduce the amount of the substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection 2 by the amount of any of the following: (a) Cash or securities deposited with the Commissioner in this State pursuant to NRS 680A.140 or 682B.015 . (b) Reserves against unpaid losses and loss expenses maintained pursuant to NRS 692A.150 or 692A.170 . (c) Unearned premium reserves maintained pursuant to NRS 692A.160 or 692A.170 . (d) Fidelity bonds maintained by the title agent or title insurer. (e) Other bonds or policies of insurance maintained by the title agent or title insurer covering liability for economic losses to customers caused by the title agent or title insurer. 4. A natural person licensed as a title agent is not obligated to deposit a corporate surety bond or substitute security, as defined in NRS 692A.1042 , if that natural person is employed by a title insurer, or by a firm or corporation licensed as a title agent.

Nev. Rev. Stat. § 692A.1042 Additional requirements regarding substitute form of security; interest or dividends accrue to depositor.

1. As a substitute for the surety bond required by NRS 692A.1041 , a title agent or title insurer may, in accordance with the provisions of this section, deposit with any bank or trust company authorized to do business in this state, in a form approved by the Commissioner: (a) An obligation of a bank, savings and loan association, savings bank, thrift company or credit union licensed to do business in this state; (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or (c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state, or guaranteed by this state. 2. The obligations of a bank, savings and loan association, savings bank, thrift company or credit union must be held to secure the same obligation as would the surety bond. With the approval of the Commissioner, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the Commissioner. 3. Any interest or dividends earned on the deposit accrue to the account of the depositor. 4. The deposit must be in an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the Commissioner. The value of any item deposited pursuant to this section must be based upon principal amount or market value, whichever is lower.

Nev. Rev. Stat. § 692A.1044 Action on bond: Procedure; limitation on time; duties of Commissioner; preliminary payment by surety; action for interpleader; payment.

1. Any person claiming against a bond may bring an action in a court of competent jurisdiction on the bond for damages to the extent covered by the bond. A person who brings an action on a bond shall notify the Commissioner in writing upon filing the action. An action may not be commenced after the expiration of 3 years following the commission of the act on which the action is based. 2. Upon receiving a request from a person for whose benefit a bond is required, the Commissioner shall notify the person: (a) That a bond is in effect and the amount of the bond; and (b) If there is an action against the bond, the title, court and case number of the action and the amount sought by the plaintiff. 3. If a surety wishes to make payment without awaiting action by a court, the amount of the bond must be reduced to the extent of any payment made by the surety in good faith under the bond. Any payment must be based on written claims received by the surety before any action is taken by a court. 4. The surety may bring an action for interpleader against all claimants upon the bond. If it does so, it shall publish notice of the action at least once each week for 2 weeks in every issue of a newspaper of general circulation in the county where the title agent or title insurer has its principal place of business. The surety may deduct its costs of the action, including attorney’s fees and publication, from its liability under the bond. 5. Claims against a bond have equal priority, and if the bond is insufficient to pay all claims in full, they must be paid on a pro rata basis. Partial payment of claims is not full payment, and any claimant may bring an action against the title agent or title insurer for the unpaid balance.

Nev. Rev. Stat. § 692A.1045 Title insurers and title agents: Fees for supervision and examination by Commissioner; standards for determining adequate supervision of title agents and escrow officers; regulations.

1. The Commissioner shall establish by regulation the fees to be paid by title agents and title insurers for their supervision and examination by the Commissioner or a representative of the Commissioner. 2. In establishing the fees pursuant to subsection 1, the Commissioner shall consider: (a) The complexity of the various examinations to which the fees apply; (b) The skill required to conduct such examinations; (c) The expenses associated with conducting such examinations and preparing reports; and (d) Any other factors the Commissioner deems relevant. 3. The Commissioner shall, with the approval of the Commissioner of Financial Institutions, adopt regulations prescribing the standards for determining whether a title insurer or title agent has maintained adequate supervision of a title agent or escrow officer pursuant to the provisions of this chapter.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-692A.htmlFetched: 10/4/2026