AB 244 — Revises provisions relating to certain insurance gratuities. (BDR 57-95)

(ReprintedAssembly withBill amendmentsNo. adopted on April 19, 2017) FIRST REPRINT A.B.

244244–Committee Aon SSEMBLYCommerce BILLand NLabor O.CHAPTER..........

244–COMMITTEE ON C OMMERCE AND L ABOR FEBRUARY 27, 2017 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to certain insurance gratuities.

(BDR 57-95) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegExistingLegislative lawCounsel’s prohibitsDigest: unfair discrimination and rebates from being used in a policy or contract of life insurance, life annuity or health insurance or by a property, casualty, surety or title insurer or underwritten title company or any employee or representative thereof, or by a broker, agent or solicitor.

(NRSExisting 686A.100,law 686A.110,prohibits 686A.130)unfair Sectiondiscrimination 1.5and ofrebates thisfrom billbeing authorizesused thein practicea of,policy inor thecontract case of alife policyinsurance, orlife policyholderannuity or prospectivehealth policyholderinsurance prizesor andby gifts,a goodsproperty, andcasualty, varioussurety otheror itemstitle notinsurer toor exceedunderwritten $100title incompany aggregateor valueany peremployee policyholder or prospectiverepresentative policyholderthereof, inor anyby 1a calendarbroker, year.agent or solicitor.

Section(NRS 2686Section 1.5 of this bill allowsauthorizes anythe property,practice casualtyof, orin suretythe insurercase orof anya employeepolicy or representativecontract thereof,of orlife anyinsurance, broker,life agentannuity or solicitorhealth toinsurance, provideproviding to ana insuredpolicyholder or prospective insuredpolicyholder prizes and gifts, goods and various other items not to year.dexceed $100 in aggregate value per insuredpolicyholder or prospective insuredpolicyholder in any 1 calendar THEyear. PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 2 of this bill allows any property, casualty or surety insurer or any insured or prospective insured prizes and gifts, goods and various other items not ton exceed $100 in aggregate value per insured or prospective insured in any 1 calendar year.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(Deleted by amendment.) - *AB244_R1* – 2 – Sec.

or - 79th Session (2017) – 2 – [2.] (b) Directly or indirectly give or sell or purchase or offer or agree to give, sell, purchase, or allow as an inducement to such insurance or annuity or in connection therewith, whether or not to be specified in the policy or contract, any agreement of any form or nature promising returns and profits, or any stocks, bonds or other securities, or interest present or contingent therein or as measured thereby, of any insurer or other corporation, association or partnership, or any dividends or profits accrued or to accrue thereon.

[No] Except as otherwise provided in subsection 2, no property, casualty, surety or title insurer or underwritten title company or any employee or representative thereof, and no broker, agent or solicitor may pay, allow or give, or offer to pay, allow or give, directly or indirectly, as an inducement to insurance, or after insurance has been effected, any rebate, discount, abatement, credit or reduction of the premium named in a policy of insurance, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified or provided for in the policy, except to the extent provided for in an applicable filing withwit2.theThe theprovisions Commissioner.of subsections 1 and 4 do not prohibit any property, casualty or surety insurer or any employee or representative thereof, or any broker, agent or solicitor from providing to an insured or prospective insured prizes and gifts, goods, wares, merchandise, gift certificates, donations made to charitable organizations, raffle entries, meals, event tickets and other items not to exceed $100 in aggregate value per insured or prospective insured in any 1 calendar year.

2.

The provisions of subsections 1 and 4 do not prohibit any property, casualty or surety insurer or any employee or - *AB244_R1* – 3 – representative thereof, or any broker, agent or solicitor from providing to an insured or prospective insured prizes and gifts, goods, wares, merchandise, gift certificates, donations made to charitable organizations, raffle entries, meals, event tickets and other items not to exceed $100 in aggregate value per insured or prospective insured in any 1 calendar year.

(a) Pay, directly or indirectly, to the insured or any person acting as agent, representative, attorney or employee of the owner, lessee, mortgagee, existing or prospective, of the real property or interest therein which is the subject matter of title insurance or as to which a service is to be performed, any commission, rebate or part of its fee - 79th Session (2017) – 3 – or charges or other consideration as inducement or compensation for the placing of any order for a title insurance policy or for performance of any escrow or other service by the insurer or underwritten title company with respect thereto;

Except as otherwise provided in subsection 2, no insured named in a policy or any employee of that insured may knowingly receive or accept, directly or indirectly, any such rebate, discount, abatement, credit or reduction of premium, or any such special favor or advantage or valuable consideration or inducement.

- *AB244_R1* – 4 – (d) With respect to title insurance, bulk rates or special rates for customers of prescribed classes if the bulk or special rates are provided for in the effective schedule of fees and charges of the title insurer or underwritten title company.

marine[7.] and8. transportation insurance.ection do not apply to wet Sec.

The provisions of this section do not apply to wet marine and transportation insurance.

Sec.

H17 ~~~~~ - *AB244_R1*79th Session (2017)