NAC690A.145. Credit accident and health insurance: Rates for policy that excludes coverage for preexisting condition.

     1. The rates for a policy of credit accident and health insurance set forth in NAC 690A.125 may be used only if the policy issued using those rates excludes coverage for a preexisting condition that:

     (a) Required medical diagnosis or treatment within the 6 months immediately preceding the effective date of coverage; and

     (b) Causes disability that begins within 6 months after the effective date of coverage.

     2. If the policy issued using the rates set forth in NAC 690A.125 does not exclude coverage for a preexisting condition as specified in paragraphs (a) and (b) of subsection 1, an insurer may file for approval for higher rates in the manner prescribed in NAC 690A.165.

     3. If a policy of credit accident and health insurance includes a provision authorizing an increase in the amount of coverage, including, without limitation, coverage for an outstanding monthly balance, after the initial effective date of the policy or group certificate for the policy, any exclusion in the policy or certificate for a preexisting condition may be applied separately for each increase beginning on the date of the increase. The provisions of this subsection do not authorize the application of a new exclusion for a preexisting condition to coverage that is effective immediately before any such increase.

     (Added to NAC by Comm’r of Insurance by R014-06, 3-23-2007, eff. 4-1-2007; A by R145-08, 9-18-2008)