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

TopicSummary
Regulatory BodyNevada Commissioner of Insurance
AuthorityLicensing, enforcement, investigations, rulemaking, consumer protection
InvestigationsBroad subpoena and examination powers
EnforcementFines, suspensions, revocations, cease and desist orders
LicensingApplication, renewal, denial with due process
RulemakingAuthority to adopt and amend insurance regulations
Consumer ProtectionComplaint handling, fair claims practices, education
Case Law ThemesInvestigative 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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