686C.128 - Document describing general purposes and current limitations of chapter: Preparation; distribution and revision; disclaimer.
686C.128 Document describing general purposes and current limitations of chapter: Preparation; distribution and revision; disclaimer.
1. The Association shall prepare, and submit to the Commissioner for approval, a summary document describing the general purposes and current limitations of this chapter. After the expiration of 60 days after the approval of the summary document by the Commissioner, an insurer may not deliver a policy or contract to the owner of the policy or contract unless the summary document is delivered to the owner at the time of delivery of the policy or contract. The document must also be available upon request by the owner of a policy. The distribution, delivery, contents or interpretation of this document does not guarantee that the policy or the contract or its owner is covered in the event of the impairment or insolvency of a member insurer. The descriptive document must be revised by the Association as amendments to this chapter may require. Failure to receive this document does not give the owner of a policy or contract, or an insured, any greater rights than those stated in this chapter.
2. The document prepared pursuant to subsection 1 must contain a clear and conspicuous disclaimer on its face. The Commissioner shall establish the form and content of the disclaimer. The disclaimer must:
(a) State the name and address of the Association and of the Division;
(b) Prominently warn the owner of the policy or contract that the Association may not cover the policy or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in this State;
(c) State the types of policies for which guaranty funds will provide coverage;
(d) State that the insurer and its agents are prohibited by law from using the existence of the Association for the purpose of sales, solicitation or inducement to purchase any form of insurance;
(e) State that the owner of a policy or contract should not rely on coverage under the Association when selecting an insurer;
(f) Explain the rights and procedures for filing a complaint to allege a violation of any provision of this chapter; and
(g) Provide other information as directed by the Commissioner, including sources of information about the financial condition of insurers, if the information is not proprietary and is subject to disclosure under the law of the state in which the insurer is domiciled.
3. A member insurer shall retain evidence of compliance with subsection 1 while the policy or contract for which the notice is given remains in effect.
(Added to NRS by 1991, 868; A 2001, 1034)