1.  No agreement may contain a provision allowing a company recourse against the agent who submitted the agreement based upon the insured’s default in payments.

Terms Used In Nevada Revised Statutes 686A.490

  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC

2.  A company, broker or an agent of a company shall not offer to any person as an inducement to enter an agreement any gift, rebate or other consideration unless the consideration is an article of less than $2 in value which includes an advertisement of the company. This subsection does not prohibit a company from providing to a broker or an agent who submits the agreement to the company any supplies or equipment necessary to submit the agreement to the company. Any such supplies or equipment which is not disposable remains the property of the company.

3.  A company or an agent or broker submitting an agreement shall not:

(a) Induce or attempt to induce an insured to become obligated under more than one agreement to obtain more than one initial charge for entering the agreement.

(b) Write any insurance in connection with the agreement, including life or health insurance limited to the amount advanced on behalf of the insured.

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