Nevada P&C Study Guide

Two branches supply most of the Nevada questions on a property and casualty paper: what gets paid when a carrier fails, and what the Division can do to a producer. Both punish summarising. The guaranty caps are three subparagraphs in three different units, one of which is not a cap at all; and the conduct statute binds “a person” doing “any practice,” with no frequency threshold in it.

Three subparagraphs, three units, and one uncapped

The fund is the Nevada Insurance Guaranty Association of NRS chapter 687A — the statutory noun is Insurance, not “property and casualty.” NRS 687A.020 puts life, annuity, health, surety and title outside its reach.

Every figure sits in NRS 687A.060(1)(a). Subparagraph (1) pays “the entire amount of the claim” for workers’ compensation — no ceiling. (2) pays “not more than $10,000 for each policy” of unearned premium, per policy. (3) covers everything else at “the limit specified in a policy or $300,000, whichever is less, for each occurrence” — per occurrence, and a lesser-of. It states maxima only: no deductible, no minimum-claim floor.

The net-worth tests, and the two sentences that unmake them

Nevada does exclude large insureds, at two levels. NRS 687A.033(g) drops a first-party claim by an insured whose net worth exceeds $10,000,000 on 31 December of the year before the insolvency; (h) drops a third-party claim relating to such an insured above $25,000,000. Net worth is deemed to include “the aggregate net worth of the insured and all of the insured’s subsidiaries and affiliates as calculated on a consolidated basis,” and (g) and (h) “do not apply to a claim for workers’ compensation.” Comp escapes the caps and the exclusions both.

The deadline is an operator, not a number: NRS 687A.033(e)(1)-(2) bars a claim filed more than 25 months after the order of liquidation or after the court’s final claims bar date, whichever is earlier, carving back a comp claim reopened under NRS 616C.390 or NRS 616C.392. Paragraphs (a) to (d) and (m) refuse punitive damages, fines and “a claim for interest” outright.

A Commissioner appointed outside the insurance code

NRS 679B.020 names the office; the appointment is a title away. NRS 232.820 makes the Commissioner “appointed by and responsible to, and serves at the pleasure of, the Director of the Department of Business and Industry” — neither elected nor the Governor’s choice, and chapter 232 sits in Title 18.

One act is enough, and a producer is already inside the Act

NRS 686A.020 prohibits “a person” from engaging “in any practice which is defined in NRS 686A.010 to 686A.310, inclusive” as unfair or deceptive. Read it for what is missing: no general business practice, no frequency language. NRS 686A.310(1) opens the claims list identically — “Engaging in any of the following activities is considered to be an unfair practice.” One act violates, and because it binds “a person” rather than “an insurer,” a producer sits inside the Act without a definitional bridge.

The list runs to sixteen lettered practices, (a) through (p), and its tail is what gets dropped: failing to explain a denial, advising a claimant not to seek counsel, misleading them about a limitation period. NRS 686A.310(2) adds a private remedy with a named beneficiary — “an insurer is liable to its insured”.

Ceilings differ by actor by an order of magnitude. NRS 686A.183(1)(a) reads “not more than $5,000” per act for a knowing violator, then adds that “as to licensed agents, brokers, solicitors and adjusters” the fine “must not exceed $500.” NRS 683A.461(3) is a third shape, “not less than $25 nor more than $500.” The disciplinary grounds are fourteen and numbered: the pin cite is NRS 683A.451(4), never 683A.451(1)(d).

The duties running underneath a licence

The insurer files the appointment, “within 15 days after the contract is executed or the first application for insurance is submitted” — the earlier event, so submitted business can start the clock before a contract exists (NRS 683A.321(1)-(4)). The same section defines the trade by who pays: under NRS 683A.321(7)(a)-(b) an agent is compensated by the insurer, and a broker is not.

NRS 686A.110(1)(a) bars giving, offering “or knowingly accepting” a rebate — the taker is inside it — and NRS 686A.110(2) allows $100 in aggregate value, per calendar year, reaching prospective policyholders.

NRS 683A.400(1) holds money of others “in a fiduciary capacity” and makes diverting it “embezzlement”; (2) offers a choice — remit within 15 days or keep a separate account — and unlimited commingling needs the principal’s waiver “in writing in advance.” Records may be destroyed “3 years after expiration of the policy or contract” under NRS 683A.351(3). And NRS chapter 683A carries no controlled-business restriction at all.