Nevada Life Insurance
- Nevada life insurance regulations may vary from laws in other states. See what consumer rights and resources are available to policyholders and beneficiaries.
State regulation of life insurance is an essential part of creating a fair marketplace for consumers, but navigating each state's specific laws can be challenging for policyholders and individuals shopping for coverage. Nevada life insurance providers must extend several standard consumer protections to state policyholders and beneficiaries, and it can be helpful for shoppers to understand their rights and responsibilities before buying a policy.
Nevada Life Insurance Rules and Specifics
Nevada life insurance entities must adhere to the rules outlined in the Nevada Revised Statues, Title 57. The Nevada Division of Insurance serves as the regulatory agency, ensuring compliance with these statutes, and providing education and advocacy to consumers. Under the state's laws, consumers are assured certain rights, including:
- A free look period: After signing a contract, policyholders legally have up to 10 days to cancel their coverage without penalty, no questions asked. Once the free look period ends, premiums are typically nonrefundable.
- A late premium grace period: In Nevada, insurance providers can't cancel a policy for nonpayment of premiums until at least 30 days have passed. During this time, the policy remains in force.
- Timely claims payment: Once a beneficiary files a claim, including proof of the insured's death, the insurer must pay out the contractual benefit within two months. However, claims that are paid after 30 days begin to accrue interest.
- Guaranteed coverage after bankruptcy: If a state-licensed life insurance company becomes insolvent, coverage up to a predefined legal limit must be provided through the Nevada Life & Health Insurance Guaranty Association.
Life Insurance Resources in Nevada
Your life insurance provider or agent can answer many policy- or coverage-related questions, but consumers who need additional information or assistance, or who wish to file a complaint against an insurer, may seek help through the following resources:
- The Nevada Division of Insurance: As the agency that regulates insurance transactions in Nevada, the DOI is tasked with safeguarding consumer rights. Through the division's website, state residents may access educational materials, a license verification service and an online complaint form. The DOI also provides a link to NAIC's policy locator service, which can help individuals find policy information for a deceased loved one.
- The Nevada Life & Health Insurance Guaranty Association: Nevada's guaranty association is comprised of every state-licensed insurance provider. If one of these member companies fails, the association provides continuing coverage, either directly or by transferring the policy to another insurer. Policyholders who may have been affected by an issuer's insolvency should contact the guaranty association directly.
Nevada residents who haven't yet purchased a policy yet may also want to visit AM Best's ratings and information services. As a financial industry credit rating agency, AM Best provides valuable information about companies' creditworthiness so consumers can make informed decisions when choosing an insurer.