The agreement may provide for a service charge of not more than $25, and that the charge is not refundable. 4. An insured may prepay in full at any time the unpaid balance of the principal. The insured is entitled to a refund of the unearned portion of the prepaid interest. The refund must be at least as great a proportion of the prepaid interest as the sum of the periodic balances for each period beginning one period after the prepayment is made bears to the sum of all the periodic balances under the schedule of payments in the agreement. If the amount of the refund is less than $1, no refund need be made. 5. Any provision which purports to limit the insured’s right of prepayment pursuant to this section is void. (Added to NRS by 1985, 1156) NRS 686A.450 Permissible charges: Late payment; returned check; collection costs or attorney’s fees. 1. A company shall not impose or collect a fee or charge which is not authorized by this section. 2. An agreement may provide for a charge for any late payment of an installment of not less than $1 and not more than 5 percent of the installment. 3. A company may collect a fee of not more than $15 for each check returned to the company because the insured had insufficient money or credit with the drawee to pay the check or because the insured stopped payment on the check. 4. An agreement may provide for payment of collection costs or attorney’s fees, equal to 20 percent of the outstanding indebtedness if the agreement is referred for collection to a collection agency or attorney who is not an employee of the company. (Added to NRS by 1985, 1156; A 1993, 2395) NRS 686A.460 Cancellation of insurance policy by company. 1. When an agreement contains a power of attorney enabling the company, in the name of the insured, to cancel any insurance policy listed in the agreement, the insurance policy must not be cancelled by the company unless it is cancelled in accordance with this section. 2. A company shall mail written notice of its intent to cancel an insurance policy because of a default in payment under an agreement to the insured at his last known address as indicated in the records of the company and to the agent who submitted the agreement at least 10 days before the cancellation. If the default is cured within this 10-day period, the company shall not cancel the insurance policy. 3. If the default is not cured within the 10-day period, the company may cancel the policy if it mails to the insured at his last known address as indicated in the records of the company and to the insurer a notice of cancellation which must include the effective date of cancellation. The policy must be cancelled as if the notice of cancellation had been submitted by the insured, but without requiring the return of the policy. 4. No insurance policy may be cancelled for nonpayment of a charge for a late payment. 5. This section does not authorize the cancellation of an insurance policy without giving any other notice required by law or satisfying other conditions for cancellation. 6. A company shall not impose or collect a fee for the cancellation of a policy or agreement. (Added to NRS by 1985, 1157; A 1993, 2396) NRS 686A.470 Return of unearned premium. 1. When an insurance policy is cancelled pursuant to NRS 686A.460, the insurer shall return the unearned premium to the company for credit to the account of the insured. The premium must be mailed to the company: (a) Within 45 days after receipt of the notice of cancellation; or (b) Immediately following an audit performed to determine the amount of the premium. If such an audit is performed, it must be completed within 60 days after receipt of the notice of cancellation. 2. If the returned portion of the premium exceeds the insured’s obligation to the company, the company shall pay the excess to the insured within 30 days after receipt, except that no refund is required if the excess is less than $1. 3. If the returned portion of the premium is less than the insured’s obligation to the company, the company shall notify the insured within 15 days making a demand for payment, except that the company shall not make a demand for payment if the obligation is less than $1. 4. The company shall notify the agent who submitted the agreement of any refund paid directly to the insured pursuant to subsection 2 at the time the refund is paid. Within 15 days after receipt of this notice, the agent shall refund to the insured any unearned commissions which are owed to the insured as a result of the cancellation. 5. The company shall notify the agent who submitted the agreement of any deficiency. Within 30 days after receipt of the notice, the agent shall refund to the insured any unearned commissions which are owed to the insured as a result of the cancellation. (Added to NRS by 1985, 1157; A 1993, 2396) NRS 686A.480 Prohibited payments: Membership in motor club; policy of insurance covering death or dismemberment. An agreement must not include any payment for: 1. Membership in a motor club, as that term is defined in NRS 696A.050; or 2. A policy of insurance covering accidental death or dismemberment, whether or not the policy is sold in combination with another policy. (Added to NRS by 1985, 1157) NRS 686A.490 No recourse against agent; limitation on inducements; prohibited acts by company, agent or broker. 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. 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. (Added to NRS by 1985, 1158; A 1993, 2397) NRS 686A.500 Disclosure of financial interest required; agent or broker who submits or performs services in connection with agreement prohibited from receiving compensation. 1. Any licensed resident or nonresident agent or broker who has any financial interest in a company, other than in submitting agreements through the company, shall disclose to the insured, in the manner prescribed by the Commissioner, his interest in the company. 2. A licensed resident or nonresident agent or broker who submits any agreement shall not accept any compensation for arranging, directing or performing services in connection with the agreement. A company shall not pay or offer to pay any compensation to a licensed resident or nonresident agent or broker who submits an agreement to the company. (Added to NRS by 1985, 1158; A 1993, 2397) NRS 686A.510 Penalties. 1. A person who violates the provisions of NRS 686A.340 shall be punished by a fine of not more than $200 per day or $500 per agreement per day for every day the violation continues, whichever is greater. 2. A person who violates any other provision of NRS 686A.330 to 686A.520, inclusive, shall be punished by a fine of not more than $1,000. 3. A person who fails or refuses to comply with an ord

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