Credit Insurance
NevadaAgency guidance
Ask Donna
How this section applies to your facts.
Nevada Division of Insurance Bulletins › Credit Insurance
Text
Bulletin 01-004 April 30, 2001
CREDIT INSURANCE
NRS 690A.015 defines credit insurance as credit life insurance, credit disability
insurance, credit involuntary unemployment insurance and any other similar form of
insurance. NRS 690A.030(2) establishes the authorized lines of credit insurance as credit
life insurance, credit disability insurance and credit involuntary unemployment insurance.
Other types of credit insurance are not authorized under NRS 690A. Credit property
insurance is not credit insurance within the meaning of NRS 690A.
Credit property insurance is defined in NAC 683A.089 as “insurance which
provides for payment of: (1) The outstanding balance of a loan if the property given as
security for the loan is destroyed; or (2) The cost of repairing the property given as
security for the loan up to the amount of the outstanding balance of the loan.” Insurance
that insures property up to its purchase price instead of according to the outstanding
balance of a loan is not credit property insurance within the meaning of NAC 683A.089
and, therefore, may not be issued as credit insurance or credit property insurance in the
state of Nevada.
The Division of Insurance will initiate disciplinary action against any insurer that
markets or issues “credit property insurance” that does not conform to the definition
established in NAC 683A.089.
____________________________________
ALICE A. MOLASKY-ARMAN
Commissioner of Insurance
H:\dept\bulletin\01-004creditpropertyins
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.