Nev. Admin. Code § 679B.036 - Interpretation of "group organized for purposes other than the procurement of insurance."

The Commissioner of Insurance will interpret the phrase "group organized for purposes other than the procurement of insurance," as used in NRS 680A.070 and 685B.030, to include the following:

1. A single employer providing life or health insurance benefits to his or her eligible employees, officers, directors or proprietors and their dependents.

2. A multiple employer group or trust holding a policy on behalf of multiple employers providing life or health insurance benefits to eligible employees, officers, directors or proprietors and their dependents if the policy is issued pursuant to a collective bargaining agreement.

3. A political subdivision or an agency of a political subdivision providing life or health insurance benefits to current or retired employees or officers.

4. An association of persons engaged in a business or profession subject to certification or licensure by the State of Nevada or the Federal Government so long as membership in the association is limited to such persons.

5. An association or trust which acts as the policyholder for one or more associations or groups of otherwise unaffiliated persons providing life or health insurance benefits if:

(a) The association or trust was formed without the involvement of any insurance company, administrator, agent, broker or representative thereof;

(b) Solicitation for membership or participation in the association or affiliated group is made by a person who is not in any way affiliated with or compensated by an insurance company, administrator, agent, broker or solicitor;

(c) The membership solicitation material refers only to the availability of participation in insurance programs;

(d) The association has a constitution and bylaws which require regular meetings at least annually to further the purposes of the members and provide members with the privileges of voting and actively participating in the activities of the association;

(e) The association conducts substantial educational, charitable, civic or advisory activities on behalf of its members; and

(f) No person employed by, representing, affiliated with, compensated by or otherwise related to an insurance company, administrator, agent or broker is any way involved in the management or membership solicitation activities of the association.

Notes

Nev. Admin. Code § 679B.036

Added to NAC by Comm'r of Insurance, 11-1-84, eff. 7-1-85; A 10-12-88

NRS 679B.130, 680A.070, 685B.030