Nevada Revised Statutes 689A.240 – Relation of earnings to insurance
1. There may be a provision as follows:
Terms Used In Nevada Revised Statutes 689A.240
- insured: as used in this chapter , shall not be construed as preventing a person other than the insured with a proper insurable interest from making application for and owning a policy covering the insured or from being entitled under such a policy to any indemnities, benefits and rights provided therein. See Nevada Revised Statutes 689A.310
- Statute: A law passed by a legislature.
2. If the policy provision stated in subsection 1 is included in a policy which also contains the policy provision stated in NRS 689A.230, there shall be added to the caption of the provision stated in subsection 1 the phrase ‘loss-of-time benefits.’
3. The foregoing provision may be included only in a policy which provides a loss-of-time benefit which may be payable for at least 52 weeks, which is issued on the basis of selective underwriting of each individual application, and for which the application includes a question designed to elicit information necessary either to determine the ratio of the total loss-of-time benefits of the insured to the insured’s earned income or to determine that such ratio does not exceed the percentage of earnings, not less than 60 percent selected by the insurer and inserted in lieu of the blank factor above. The insurer may require, as part of the proof of claim, the information necessary to administer this provision. If the application indicates that other loss-of-time coverage is to be discontinued, the amount of such other coverage shall be excluded in computing the alternative percentage in the first sentence of the overinsurance provision. The policy shall include a definition of ‘valid loss-of-time coverage,’ approved as to form by the Commissioner, which definition shall not include group insurance, benefits provided by union welfare plans, employer or employee benefit plans, workers’ compensation or employer’s liability statute or third-party liability. The insurer shall not include a subrogation clause in the policy.
4. If by application of any of the foregoing provisions the insurer effects a material reduction of benefits otherwise payable under the policy, the insurer shall refund to the insured any premium unearned on the policy by reason of such reduction of coverage during the policy year current and that next preceding at the time the loss commenced, subject to the insurer’s right to provide in the policy that no such reduction of benefits or refund will be made unless the unearned premium to be so refunded amounts to $5 or such larger sum as the insurer may so specify.