NAC687B.630. Health policy, contract or plan that includes grace period for payment of premiums.

     1. If an insurer issues a health insurance policy or contract, health care plan, health benefit plan or plan for dental care, whether individual, group or blanket, that includes a grace period:

     (a) The insurer shall not require the payment of an additional premium for the grace period. If a premium is not paid by the end of the grace period, the contract of insurance terminates retroactively to the end of the day next preceding the grace period.

     (b) Except as otherwise provided in this paragraph, the insurer is not required to pay claims incurred during the grace period while a required premium remains unpaid and may seek reimbursement for any such claim erroneously paid during the grace period. The insurer is liable for any claims incurred during the grace period if the required premium payment is received during the grace period in accordance with the contract of insurance.

     2. The Commissioner will, pursuant to NRS 687B.130, disapprove or withdraw the approval of any form used by an insurer which provides that, in lieu of requiring during the grace period the payment of a premium due, the insurer may deduct the premium due from the payment of a claim.

     3. As used in this section:

     (a) “Grace period” means the time after the date that a premium is due during which the premium can be paid without penalty to keep the policy in force.

     (b) “Insurer” means any insurer that issues any health insurance policy or contract, health care plan, health benefit plan or plan for dental care, whether individual, group or blanket, and includes any:

          (1) Insurance company;

          (2) Carrier;

          (3) Nonprofit corporation for hospital, medical or dental service;

          (4) Health maintenance organization;

          (5) Organization for dental care; or

          (6) Prepaid limited health service organization.

     (Added to NAC by Comm’r of Insurance by R009-02, eff. 5-23-2002; A by R009-02, 7-11-2002)