NAC679B.818. “Customer relationship” defined.

     1. “Customer relationship” means a continuing relationship between a consumer and a licensee in which the licensee provides one or more insurance products or services to the consumer that are to be used primarily for personal, family or household purposes.

     2. For the purposes of this section:

     (a) A consumer has a “continuing relationship” with a licensee if:

          (1) A consumer is a current policyholder of an insurance product issued by or through the licensee; or

          (2) A consumer obtains financial, investment or economic advisory services relating to an insurance product or service from the licensee for a fee.

     (b) A consumer does not have a “continuing relationship” with a licensee if:

          (1) A consumer applies for insurance, but does not purchase the insurance;

          (2) A licensee sells the consumer airline travel insurance in an isolated transaction;

          (3) A natural person is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee;

          (4) The consumer is a claimant pursuant to a policy and has submitted a claim for a settlement option involving an ongoing relationship with the licensee pursuant to the policy;

          (5) The consumer is a claimant pursuant to a policy and has submitted a claim for a lump-sum settlement option pursuant to the policy;

          (6) The policy of a consumer is lapsed, expired or otherwise inactive or dormant pursuant to the business practices of the licensee, and, other than annual privacy notices, material required by law or regulation, communication at the direction of a state or federal authority, or promotional materials, the licensee has not communicated with the customer about the relationship for a period of 12 consecutive months;

          (7) The natural person is an insured or an annuitant pursuant to an insurance policy or annuity, respectively, but is not the policyholder or owner of the insurance policy or annuity; or

          (8) The last known address of a natural person according to the records of a licensee is deemed invalid.

     (c) A licensee establishes a “customer relationship” when the consumer:

          (1) Becomes a policyholder of a licensee that is an insurer when the insurer delivers an insurance policy or contract to the consumer;

          (2) In the case of a licensee that is an insurance producer or surplus line broker, obtains insurance through that licensee; or

          (3) Agrees to obtain financial, economic or investment advisory services relating to insurance products or services for a fee from the licensee.

     (d) An address of record is deemed “invalid” if:

          (1) Mail sent to the address of record by the licensee has been returned as undeliverable; and

          (2) Subsequent attempts by the licensee to obtain a current valid address for the natural person have been unsuccessful.

     (Added to NAC by Comm’r of Insurance by R130-01, eff. 12-17-2002)