1. Engaging in any of the following activities is considered to be an unfair practice: (a) Misrepresenting to insureds or claimants pertinent facts or insurance policy provisions relating to any coverage at issue. (b) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies. (c) Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies. (d) Failing to affirm or deny coverage of claims within a reasonable time after proof of loss requirements have been completed and submitted by the insured. (e) Failing to effectuate prompt, fair and equitable settlements of claims in which liability of the insurer has become reasonably clear. (f) Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds, when the insureds have made claims for amounts reasonably similar to the amounts ultimately recovered. (g) Attempting to settle a claim by an insured for less than the amount to which a reasonable person would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application. (h) Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured, his representative, agent or broker. (i) Failing, upon payment of a claim, to inform insureds or beneficiaries of the coverage under which payment is made. (j) Making known to insureds or claimants a practice of the insurer of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration. (k) Delaying the investigation or payment of claims by requiring an insured or a claimant, or the physician of either, to submit a preliminary claim report, and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information. (l) Failing to settle claims promptly, where liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage. (m) Failing to comply with the provisions of NRS 687B.310 to 687B.390, inclusive, or 687B.410. (n) Failing to provide promptly to an insured a reasonable explanation of the basis in the insurance policy, with respect to the facts of the insured’s claim and the applicable law, for the denial of his claim or for an offer to settle or compromise his claim. (o) Advising an insured or claimant not to seek legal counsel. (p) Misleading an insured or claimant concerning any applicable statute of limitations. 2. In addition to any rights or remedies available to the Commissioner, an insurer is liable to its insured for any damages sustained by the insured as a result of the commission of any act set forth in subsection 1 as an unfair practice. (Added to NRS by 1975, 1285; A 1987, 1067; 1991, 2202) NRS 686A.315 Notice required with certain billing and claim forms submitted to insurers. 1. If a hospital submits to an insurer the form commonly referred to as the “UB-82,” the form must contain or be accompanied by a statement in substantially the following form: Any person who misrepresents or falsifies essential information requested on this form may, upon conviction, be subject to a fine and imprisonment under state or federal law, or both. 2. If a person who is licensed to practice one of the health professions regulated by title 54 of NRS submits to an insurer the form commonly referred to as the “HCFA-1500” for a patient who is not covered by any governmental program which offers insurance coverage for health care, the form must be accompanied by a statement in substantially the following form: Any person who knowingly files a statement of claim containing any misrepresentation or any false, incomplete or misleading information may be guilty of a criminal act punishable under state or federal law, or both, and may be subject to civil penalties. 3. The failure to provide any of the statements required by this section is not a defense in a prosecution for insurance fraud pursuant to NRS 686A.291. (Added to NRS by 1991, 1042; A 1991, 1978; 2001, 1099) NRS 686A.325 Settlement of third-party liability claims; written notice of payment; failure to serve notice. 1. In any third-party liability claim, an insurer shall not issue a check or draft or otherwise make payment of $5,000 or more in settlement of the claim to a representative of the claimant, including, without limitation, the lawyer for the claimant, unless the insurer, at the time of making the payment or as soon as practicable thereafter, mails written notice of the payment to the claimant at his last known address. 2. The failure of an insurer to serve notice as required by subsection 1 or defective service of the notice does not: (a) Create, and must not be construed to create, a cause of action for any natural person or entity other than the Commissioner. (b) Establish, and must not be construed to establish, a defense for any party to any cause of action. 3. As used in this section, “third-party liability claim” means a claim brought under a liability insurance policy by a person other than the insured, where the claimant is a natural person. (Added to NRS by 2005, 1001) FINANCING OF PREMIUMS NRS 686A.330 Definitions. As used in NRS 686A.330 to 686A.520, inclusive, unless the context otherwise requires: 1. “Agreement” means a contract between a person and an insured or prospective insured under which the person agrees to pay a premium in advance on behalf of the insured or prospective insured in exchange for repayment of the amount advanced with interest or for some other consideration. 2. “Company” means a person engaged in the business of entering into agreements or purchasing agreements. The term does not include a person who finances a premium in connection with the sale of a motor vehicle upon which he holds a lien. (Added to NRS by 1985, 1153; A 1993, 2394; 1995, 1622) NRS 686A.335 Applicability of chapter 696B of NRS. 1. A company is subject to the provisions of chapter 696B of NRS. 2. For the purposes of chapter 696B of NRS, a company shall be deemed to be an insurer. (Added to NRS by 1995, 1621) NRS 686A.340 Engaging in business of company without license prohibited. Except as provided in NRS 686A.350, a person shall not engage in the business of a company or hold himself out as a company without first having received a license from the Commissioner to engage in the business of a company. (Added to NRS by 1985, 1154) NRS 686A.350 Exemptions from requirement of licensing. 1. A license to engage in the business of a company is not required of any: (a) State or federally chartered building association or savings and loan association. (b) State or federally chartered bank. (c) State or federally chartered credit union. (d) Thrift company licensed pursuant to chapter 677 of NRS. (e) Insurance agent financing his own accounts. (f) Insurer authorized to do business in this state financing its own policies or those of an affiliated company. (g) Business, in addition to those included in paragraphs (a) to (d), inclusive, which is licensed and regulated by the Division of Financial Institutions of the Department of Business and Industry. 2. The provisions of NRS 686A.330 to 686A.520, inclusive, other than those which con

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