NAC686A.493. Engaging in corrupt practice or improper influence or inducement at any location.

An insurer or producer of insurance engages in a corrupt practice, or an improper influence or inducement, which constitutes an unfair or deceptive act or practice in violation of NRS 686A.020 if, at any location, the insurer or producer of insurance:

     1. Except as otherwise provided in this subsection, submits, processes or assists in the submission or processing of any allotment form or similar device used by the United States Armed Forces to direct the pay of an active duty service member to a third party for the purchase of a life insurance product. Violations of this subsection include, without limitation, using, or assisting in the use of, the myPay account of an active duty service member or other similar Internet or electronic medium for such purposes. An insurer or producer of insurance does not violate this subsection if the insurer or producer of insurance only provides to an active duty service member insurer or premium information which is necessary to complete an allotment form.

     2. Knowingly receives funds for the payment of a premium of an active duty service member from a depository institution with which the active duty service member has no formal banking relationship.

     3. Employs any device or method, or enters into any agreement, whereby funds for the payment of the insurance premium of an active duty service member, which are received by allotment from a depository institution with which the service member has no formal banking relationship, are identified on the Leave and Earnings Statement of an active duty service member, or an equivalent or successor form, as “savings” or “checking.”

     4. Enters into any agreement with a depository institution, for the purpose of receiving funds from an active duty service member, whereby the depository institution, with or without compensation, agrees to accept direct deposits from an active duty service member with whom it has no formal banking relationship.

     5. Uses Department of Defense personnel, directly or indirectly, as a representative or agent in any official or unofficial capacity, with or without compensation, with respect to the solicitation or sale of a life insurance product to an active duty service member who is junior in rank or grade, or to the family members of such an active duty service member.

     6. Offers or gives anything of value, directly or indirectly, to Department of Defense personnel to procure assistance in encouraging, assisting or facilitating the solicitation or sale of a life insurance product to an active duty service member.

     7. Knowingly offers or gives anything of value to an active duty service member for his or her attendance at any event where an application for a life insurance product is solicited.

     8. Advises an active duty service member to change his or her income tax withholding or state of legal residence for the sole purpose of increasing disposable income to purchase a life insurance product.

     9. For the purposes of this section, a formal banking relationship is established when the depository institution:

     (a) Provides the active duty service member a deposit agreement and periodic statements and makes the disclosures required by the Truth in Savings Act, 12 U.S.C. §§ 4301 et seq., and any regulations adopted pursuant thereto; and

     (b) Allows the active duty service member to make deposits and withdrawals unrelated to the payment or processing of insurance premiums.

     (Added to NAC by Comm’r of Insurance by R031-07, 8-31-2007, eff. 9-1-2007)