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 Nevada Administrative Code (Last Updated: January 6, 2015)
 Chapter690A Credit Insurance

  NAC690A.030. Disclosures to debtors: Notice concerning benefits payable under truncated consumer credit insurance coverage; application of adjustment factors to rates.  

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  •      1. In addition to any disclosure required pursuant to NAC 690A.020 or 690A.025, each policy of truncated consumer credit insurance coverage or certificate of coverage for that policy must include a notice in substantially the following form set forth in not less than 10-point bold type on the face of the policy or certificate:

    NOTICE

         (a) The benefits payable under this policy of insurance may not completely pay off your loan. If the term of your loan is longer than the term of this policy of insurance, the benefit is payable only if death, disability or unemployment, as applicable, occurs during the term of this policy of insurance.

         (b) The benefits under a policy of credit accident and health insurance are not payable for any period of disability continuing after the date of termination for the policy specified in the schedule.

         (c) The benefits under a policy of credit unemployment insurance are not payable for any period of unemployment continuing after the date of termination for the policy specified in the schedule.

         2. Each insurer wishing to provide critical period consumer credit insurance coverage or truncated consumer credit insurance coverage shall apply adjustment factors to the prima facie rates. The adjustment factors must be approved by the Commissioner before being applied pursuant to this subsection.

         3. As used in this section:

         (a) “Critical period consumer credit insurance coverage” means a policy of credit life insurance, credit accident and health insurance or credit unemployment insurance under which, regardless of the term of the coverage, a limited number of monthly benefits are payable as a result of any single occurrence of disability or involuntary unemployment.

         (b) “Truncated consumer credit insurance coverage” means a policy of credit life insurance, credit accident and health insurance or credit unemployment insurance for which the scheduled term of the insurance is less than the scheduled term of the loan for which the policy is issued.

     (Added to NAC by Comm’r of Insurance by R145-08, eff. 9-18-2008)