under common ownership constitute a single insurer. An advisory organization does not include: (a) A joint underwriting association; (b) An actuarial or legal consultant; or (c) An employee or manager of an insurer. 2. “Market segment” means any line or kind of insurance or, if it is described in general terms, any subdivision thereof or any class of risks or combination of classes. 3. “Rate service organization” means any person, other than an employee of an insurer, who assists insurers in rate making or filing by: (a) Collecting, compiling and furnishing loss or expense statistics; (b) Recommending, making or filing rates or supplementary rate information; or (c) Advising about rate questions, except as an attorney giving legal advice. 4. “Supplementary rate information” includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rule of underwriting relating to rates and any other information prescribed by regulation of the Commissioner. (Added to NRS by 1971, 1698; A 1985, 1067; 1991, 2117; 1995, 2055; 2003, 3351) NRS 686B.030 Applicability. 1. Except as otherwise provided in subsection 2, NRS 686B.010 to 686B.1799, inclusive, apply to all kinds and lines of direct insurance written on risks or operations in this State by any insurer authorized to do business in this State, except: (a) Ocean marine insurance; (b) Contracts issued by fraternal benefit societies; (c) Life insurance and credit life insurance; (d) Variable and fixed annuities; (e) Group and blanket health insurance and credit health insurance; (f) Property insurance for business and commercial risks; (g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS; and (h) Surety insurance. 2. The exclusions set forth in paragraphs (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates. (Added to NRS by 1971, 1699; A 1971, 1943; 1985, 1067; 1993, 2397; 1995, 2056; 2003, 3304) NRS 686B.040 Exemptions. 1. Except as otherwise provided in subsection 2, the Commissioner may by rule exempt any person or class of persons or any market segment from any or all of the provisions of NRS 686B.010 to 686B.1799, inclusive, if and to the extent that he finds their application unnecessary to achieve the purposes of those sections. 2. The Commissioner may not, by rule or otherwise, exempt an insurer from the provisions of NRS 686B.010 to 686B.1799, inclusive, with regard to insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of his professional duty toward a patient. (Added to NRS by 1971, 1699; A 1985, 1068; 2003, 919, 3352) NRS 686B.050 Standards. 1. Rates must not be excessive, inadequate or unfairly discriminatory, nor may an insurer charge any rate which if continued will have or tend to have the effect of destroying competition or creating a monopoly. 2. The Commissioner may disapprove rates if there is not a reasonable degree of price competition at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the Commissioner shall consider all relevant tests, including: (a) The number of insurers actively engaged in the class of business and their shares of the market; (b) The existence of differentials in rates in that class of business; (c) Whether long-run profitability for insurers generally of the class of business is unreasonably high in relation to its riskiness; (d) Consumers’ knowledge in regard to the market in question; and (e) Whether price competition is a result of the market or is artificial. If competition does not exist, rates are excessive if they are likely to produce a long-run profit that is unreasonably high in relation to the riskiness of the class of business, or if expenses are unreasonably high in relation to the services rendered. 3. Rates are inadequate if they are clearly insufficient, together with the income from investments attributable to them, to sustain projected losses and expenses in the class of business to which they apply. 4. One rate is unfairly discriminatory in relation to another in the same class if it clearly fails to reflect equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with similar exposure to loss but different expense factors, or similar expense factors but different exposure to loss, so long as the rates reflect the differences with reasonable accuracy. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, franchise or blanket policy. (Added to NRS by 1971, 1699; A 1987, 1533) NRS 686B.060 Determination of whether rates comply with standards. In determining whether rates comply with the standards under NRS 686B.050, the following criteria shall be applied: 1. Due consideration shall be given to past and prospective loss and expense experience within and outside of this state, to catastrophe hazards and contingencies, to trends within and outside of this state, to loadings for leveling premium rates over time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers, and to all other relevant factors, including the judgment of technical personnel. 2. Risks may be classified in any reasonable way for the establishment of rates and minimum premiums, except that classifications may not be based on race, color, creed or national origin. Rates thus produced may be modified for individual risks in accordance with rating plans or schedules which establish reasonable standards for measuring probable variations in hazards, expenses, or both. 3. The expense provisions included in the rates to be used by an insurer may reflect the operating methods of the insurer and, so far as it is credible, its own expense experience. 4. The rates may contain an allowance permitting a profit that is not unreasonable in relation to the riskiness of the class of business. (Added to NRS by 1971, 1700) NRS 686B.070 Filing of rates and supplementary information with Commissioner. 1. Every authorized insurer and every rate service organization licensed under NRS 686B.140 which has been designated by any insurer for the filing of rates under subsection 2 of NRS 686B.090 shall file with the Commissioner all: (a) Rates and proposed increases thereto; (b) Forms of policies to which the rates apply; (c) Supplementary rate information; and (d) Changes and amendments thereof, made by it for use in this state. 2. If an insurer makes a filing for a proposed increase in a rate for insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of his professional duty toward a patient, the insurer shall not include in the filing any component that is directly or indirectly related to the following: (a) Capital losses, diminished cash flow from any dividends, interest or other investment returns, or any other financial loss that is materially outside of the claims experience of the professional liability insurance industry, as determined by the Commissioner. (b) Losses that are the result of any criminal or fraudulent activities of a director, officer or employee of the insurer. If the Commissioner determines that a filing includes any such component, the Commissioner shall, pursuant to NRS 686B.110, disapprove the proposed inc

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