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NRS 688A.380 - Participating and nonparticipating policies: Accounting; allocations; dividends.

NV Rev Stat § 688A.380 (2019) (N/A)
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1. A life insurer issuing both participating and nonparticipating policies shall maintain such accounting records as are necessary for it to determine dividends to participating policyholders on an equitable basis.

2. For the purposes of such accounting records the insurer shall make a reasonable allocation between participating and nonparticipating policies of the expenses of such general operations or functions as are jointly shared. Any allocation of expense between the respective categories shall be made upon a reasonable basis, to the end that each category shall bear a just portion of joint expense involved in the administration of the business of such category.

3. No policy after January 1, 1972, shall provide for, and no life insurer or representative shall, after January 1, 1972, knowingly offer or promise payment, credit or distribution of participating “dividends,” “earnings,” “profits” or “savings,” by whatever name called, to participating policies out of such profits, earnings or savings on nonparticipating policies. This subsection does not restrict the generality of NRS 686A.110 (rebates).

(Added to NRS by 1971, 1741)

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