Nevada Revised Statutes 686C.210 – Limitations on obligations
1. The benefits that the Association may become obligated to cover may not exceed the lesser of:
Terms Used In Nevada Revised Statutes 686C.210
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(a) The contractual obligations for which the member insurer is liable or would have been liable if it were not an impaired or insolvent insurer;
(b) With respect to one life, regardless of the number of policies or contracts:
(1) Three hundred thousand dollars in death benefits from life insurance, but not more than $100,000 in net cash for surrender and withdrawal for life insurance; or
(2) Two hundred fifty thousand dollars in the present value of benefits from annuities, including net cash for surrender and withdrawal;
(c) With respect to health insurance for any one life:
(1) One hundred thousand dollars for coverages other than disability income insurance, health benefit plans or long-term care insurance, including any net cash for surrender or withdrawal;
(2) Three hundred thousand dollars for disability income insurance or long-term care insurance; or
(3) Five hundred thousand dollars for health benefit plans;
(d) With respect to each payee of a structured settlement annuity, or beneficiary or beneficiaries of the payee if deceased, $250,000 in present value of benefits from the annuity in the aggregate, including any net cash for surrender or withdrawal; or
(e) With respect to each participant in a governmental retirement plan covered by an unallocated annuity contract which is owned by a governmental retirement plan established under section 401, 403(b) or 457 of the Internal Revenue Code, 26 U.S.C. § 401, 403(b) and 457, respectively, or the trustees of such a plan, and which is approved by the Commissioner, an aggregate of $250,000 in present-value annuity benefits, including the value of net cash for surrender and net cash for withdrawal, regardless of the number of contracts.
2. In no event is the Association obligated to cover more than:
(a) With respect to any one life or person under paragraphs (b) to (e), inclusive, of subsection 1:
(1) An aggregate of $300,000 in benefits, excluding benefits for health benefit plans; or
(2) An aggregate of $500,000 in benefits, including benefits for health benefit plans.
(b) With respect to one owner of several nongroup policies of life insurance, whether the owner is a natural person or an organization and whether the persons insured are officers, managers, employees or other persons, more than $5,000,000 in benefits, regardless of the number of policies and contracts held by the owner.
3. The limitations set forth in this section are limitations on the benefits for which the Association is obligated before taking into account its rights to subrogation or assignment or the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer attributable to covered policies or contracts. The cost of the Association’s obligations under this chapter may be met by the use of assets attributable to covered policies or contracts, or reimbursed to the Association pursuant to its rights to subrogation or assignment.
4. In performing its obligation to provide coverage under NRS 686C.150 and 686C.152, the Association need not guarantee, assume, reinsure, reissue or perform, or cause to be guaranteed, assumed, reinsured, reissued or performed, the contractual obligations of the impaired or insolvent insurer under a covered policy or contract which do not materially affect the economic value or economic benefits of the covered policy or contract.
5. As used in this section, ‘health benefit plan’ has the meaning ascribed to it in NRS 687B.470.