Nevada Administrative Code Chapter 692A - Title Insurance
1. Licensing of Title Insurance Agents and Agencies
What it covers
NAC 692A outlines the requirements for individuals and companies to legally sell or act as title insurance agents in Nevada.
Requirements
Applicants must submit a licensing application to the Nevada Division of Insurance (DOI).
Background checks, fingerprints, and disclosure of prior criminal or regulatory actions are required.
Continuing education may be required to maintain licensure.
Director/Regulator Role
The Division ensures only qualified, ethical agents operate in the state.
The DOI can deny, suspend, or revoke licenses for violations of NAC 692A.
Why it matters
Protects consumers from fraud or unqualified agents.
Ensures all title insurance transactions are conducted legally.
Example
If an agent with prior fraud convictions tries to obtain a license without disclosure, the DOI can deny the application under NAC 692A rules.
2. Rates and Premiums for Title Insurance
What it covers
Chapter 692A sets rules for title insurance premiums and rates, ensuring they are regulated and transparent.
Key points
Rates must conform to published schedules.
Discounts or exceptions require DOI approval.
Agencies cannot charge more than the regulated rate.
Why it matters
Prevents price gouging.
Ensures fair and uniform premiums across Nevada.
Example
If a title insurance agency charges above the approved rate to maximize profit, the DOI can enforce penalties or require refunds.
3. Title Insurance Policies – Forms and Content
What it covers
The NAC specifies what must appear in title insurance policies, including:
Insured parties
Property description
Exclusions and exceptions
Conditions and stipulations
Regulatory role
DOI reviews forms to ensure compliance.
Any change to standard policy forms must be approved.
Why it matters
Protects consumers from hidden exclusions.
Ensures clarity about coverage and liability.
Example
If a policy leaves out standard exceptions that affect coverage (like easements or liens), it may be rejected by the DOI until corrected.
4. Escrow and Trust Accounts Management
What it covers
Title insurance agents often hold escrow funds during real estate transactions. NAC 692A governs:
How escrow accounts are maintained
Proper accounting and reconciliation
Requirements for separation from personal/business funds
Regulator’s role
Conduct audits or require reports.
Ensure funds are not misused or misappropriated.
Why it matters
Protects buyers, sellers, and lenders from financial loss.
Prevents fraud or misuse of client money.
Example
If an agent accidentally mixes escrow funds with operating funds, the DOI can order restitution and penalties.
5. Examination and Recordkeeping Requirements
What it covers
The NAC requires title insurance agencies to maintain detailed records and allow examination by regulators.
Details
Retain records of policies issued, premiums, claims, and escrow accounts.
Submit records for audits as requested.
Maintain records for a minimum number of years (usually 3–5).
Why it matters
Promotes transparency.
Ensures compliance with state laws.
Helps resolve disputes or audits efficiently.
Example
During an audit, if an agency cannot produce proper escrow documentation, the DOI may issue fines or corrective action orders.
6. Agent and Agency Conduct
What it covers
Chapter 692A regulates ethical conduct and practices:
No misrepresentation in policy sales
Proper disclosure of coverage limits and exclusions
Compliance with anti-fraud provisions
Regulator’s role
Investigate complaints from consumers or lenders.
Take disciplinary action, including fines or license suspension.
Why it matters
Maintains consumer confidence in the real estate and title insurance market.
Reduces fraud and unethical behavior.
Example
If an agent pressures clients to buy unnecessary endorsements, the DOI can impose sanctions under NAC 692A.
7. Claims Handling and Settlement
What it covers
Title insurers must follow NAC rules for handling claims:
Timely investigation of claims
Documentation and reporting
Fair settlement practices
Regulator’s role
Ensure compliance with statutory timelines
Monitor for unfair claims practices
Why it matters
Ensures that legitimate claims are paid promptly
Protects property buyers and lenders from unnecessary delays
Example
If a title insurer denies a valid claim without proper investigation, the DOI can order the insurer to pay and may impose penalties.
8. Exceptions and Exemptions
What it covers
Certain transactions or entities may be exempt from parts of NAC 692A, such as:
Federal agencies
Certain nonprofit organizations
Specific types of title-related services
Regulatory role
Determine eligibility for exemptions
Ensure exemptions are not abused
Why it matters
Prevents regulatory gaps
Maintains fairness among participants in the title insurance market
Example
A nonprofit providing title clearing services for low-income housing may qualify for certain exemptions, but still must follow basic ethical and escrow rules.
Summary Table
| Case Area | Director/Regulator Role | Why It Matters |
|---|---|---|
| Licensing | Approve or deny licenses | Protects consumers from unqualified agents |
| Rates/Premiums | Enforce approved rates | Prevents overcharging |
| Policy Forms | Approve and review policies | Ensures clear coverage |
| Escrow Management | Audit funds | Prevents misappropriation |
| Recordkeeping | Require retention & inspection | Promotes transparency |
| Conduct/Ethics | Investigate fraud or misrepresentation | Maintains market integrity |
| Claims Handling | Ensure fair, timely settlement | Protects insured parties |
| Exceptions | Review exemption eligibility | Prevents abuse of exemptions |
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