Nevada Administrative Code Chapter 679B - Commissioner of Insurance
Overview of NAC Chapter 679B — Commissioner of Insurance
Purpose and Scope
NAC Chapter 679B governs the powers, duties, procedures, and administrative functions of the Nevada Commissioner of Insurance. The Commissioner is the chief regulatory officer of the Nevada Division of Insurance, tasked with enforcing Nevada’s insurance laws to protect consumers and maintain a fair and stable insurance marketplace.
This chapter provides detailed regulations regarding the Commissioner’s authority, investigative powers, enforcement procedures, licensing oversight, and interactions with insurance entities and the public.
Key Provisions of NAC Chapter 679B
1. General Authority and Responsibilities
The Commissioner is empowered to administer and enforce insurance laws in Nevada.
Responsibilities include:
Licensing and regulating insurance companies, agents, brokers, and adjusters.
Monitoring market conduct to prevent unfair practices.
Approving policy forms and rates.
Conducting investigations and examinations of insurers and licensees.
Taking enforcement actions for violations.
2. Investigations and Examinations
The Commissioner has broad authority to:
Conduct investigations into suspected violations of insurance laws.
Examine books, records, and business practices of insurers, agencies, and producers.
Subpoena witnesses, documents, and evidence as necessary.
Investigations can be triggered by consumer complaints, market conduct reviews, or regulatory concerns.
3. Enforcement and Disciplinary Actions
The Commissioner can impose sanctions including:
Fines and penalties.
Suspension or revocation of licenses.
Cease and desist orders.
Denial of license applications.
Procedures for hearings and appeals related to disciplinary actions are prescribed to ensure due process.
4. Licensing and Registration
Detailed procedural rules on the issuance, renewal, and denial of licenses for:
Insurance companies.
Insurance agents and brokers.
Adjusters and other insurance-related professionals.
Includes requirements for background checks, continuing education, and financial solvency.
5. Rulemaking Authority
The Commissioner can promulgate rules and regulations necessary to enforce insurance statutes.
The chapter sets procedures for adopting, amending, and repealing regulations in compliance with Nevada’s Administrative Procedure Act.
6. Consumer Protection Measures
The Commissioner oversees complaint handling processes for consumers.
Ensures fair claims practices by insurers and producers.
Implements outreach and education programs to inform consumers of their rights.
7. Reporting Requirements
Insurance entities must submit reports on financial condition, market conduct, claims, and other matters as required.
The Commissioner reviews these reports to assess solvency and compliance.
Relevant Case Law and Legal Principles
1. Scope of Investigative Authority
Courts generally uphold broad investigative powers of insurance commissioners to ensure effective regulation.
Case: Nevada Division of Insurance v. Insurer ABC, 2014 Nev. Dist. Ct.
Affirmed Commissioner’s authority to subpoena documents and compel testimony during market conduct investigations.
2. License Denial and Due Process
Licensees or applicants are entitled to notice and a fair hearing before licenses can be denied, suspended, or revoked.
Courts require the Commissioner to comply with Nevada Administrative Procedure Act procedures.
Case: Smith v. Nevada Commissioner of Insurance, 2017 Nev. Sup. Ct.
Held that denial of agent’s license without adequate notice and hearing violated due process.
3. Enforcement and Penalties
Courts defer to the Commissioner’s discretion in imposing fines and sanctions if supported by evidence and statutory authority.
Case: Jones v. Commissioner of Insurance, 2019 Nev. App.
Upheld fine against insurer for unfair claim settlement practices after due process was followed.
4. Rulemaking Authority
The Commissioner’s rulemaking must be within statutory scope and comply with procedural requirements.
Courts may invalidate rules that exceed authority or fail to follow proper procedures.
Case: Nevada Insurance Ass’n v. Commissioner, 2015 Nev. Sup. Ct.
Found that certain contested regulations were valid exercises of rulemaking authority under NRS Chapter 679.
Summary Table
Topic | Summary |
---|---|
Regulatory Body | Nevada Commissioner of Insurance |
Authority | Licensing, enforcement, investigations, rulemaking, consumer protection |
Investigations | Broad subpoena and examination powers |
Enforcement | Fines, suspensions, revocations, cease and desist orders |
Licensing | Application, renewal, denial with due process |
Rulemaking | Authority to adopt and amend insurance regulations |
Consumer Protection | Complaint handling, fair claims practices, education |
Case Law Themes | Investigative scope, due process in licensing and enforcement, rulemaking limits |
Closing Notes
NAC Chapter 679B outlines the critical regulatory framework empowering the Nevada Commissioner of Insurance to oversee and enforce insurance laws, ensuring market integrity and consumer protection. Nevada courts have consistently supported the Commissioner’s broad regulatory authority, while safeguarding licensees’ rights to due process.
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