# NV Bulletin 01-006: Life Insurance Policies with No Benefit for the First Two Years

> Nevada · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/NV_INS_B_01_006

## Section

- **Citation:** NV Bulletin 01-006
- **Heading:** Life Insurance Policies with No Benefit for the First Two Years
- **Jurisdiction:** Nevada
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Nevada Division of Insurance Bulletins / Life Insurance Policies with No Benefit for the First Two Years

## Text

Bulletin 01-006 April 30, 2001

LIFE INSURANCE POLICIES WITH NO BENEFIT
FOR THE FIRST TWO YEARS

The marketing of life insurance policies that are described as “level term life” and do not
provide a life insurance benefit during the first two years, violate the Nevada statutes prescribing
Unfair Trade Practices. This type of policy does not meet the definition of level term life
insurance and is misleading and deceptive as defined by Chapter 686A of NRS. Thus, the
marketing and/or sale of these policies is prohibited in Nevada.

The benefit for a level term life insurance policy must remain uniform while the policy is
in force. A policy which had no benefit for the first two years, would not be uniform while the
policy is in force. NRS 686A.030 provides that:

686A.030 A person shall not make, issue, circulate or cause to be made, issued
or circulated, any estimate, illustration, circular, statement, sales presentation or
comparison which:
5. Uses any name or title of any policy or class of insurance policies
misrepresenting the true nature thereof;

The use of life insurance policies described as “level term life” insurance that does not
provide a life insurance benefit during the first two years is misleading and violates Subsection 5
of NRS 686A.030. The Division of Insurance will initiate disciplinary action against any insurer
that issues “level term life” policies that violate this provision.

____________________________________

ALICE A. MOLASKY-ARMAN

Commissioner of Insurance

H:\dept\bulletin\01-006

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/NV_INS_B_01_006. Check the current official text before relying on it. Not legal advice.