1. If the Commissioner has reason to believe that an insurer has committed or engaged in, is committing or engaging in, or is about to commit or engage in any practice, transaction or act prohibited by NRS 685B.030, the Commissioner may:
(a) Apply to the district court for injunctive relief pursuant to NRS 685B.040 and for an order imposing an administrative fine pursuant to NRS 685B.080;
(b) Issue a statement of charges and a notice of an administrative hearing to be held before the Commissioner on those charges and serve the statement and notice upon the person so charged; or
(c) Issue a cease and desist order if the Commissioner deems, in his or her discretion, that the insurer’s conduct is injurious to the rights and interests of the public or policyholders in this State and that emergency action is imperatively required. If the Commissioner issues a cease and desist order pursuant to this paragraph, the Commissioner shall hold a hearing within 30 days after a request by the insurer in accordance with the provisions of NRS 679B.310.
2. Any statement of charges and notice of an administrative hearing pursuant to this section must be:
(a) Issued as provided in NRS 679B.320; and
(b) Served personally or by certified or registered mail.
3. After the Commissioner conducts a hearing pursuant to this section, the Commissioner shall issue an order pursuant to NRS 679B.360. If the Commissioner determines that the person being charged has engaged in a practice prohibited by this title, the Commissioner:
(a) Shall order the person to cease and desist from that practice;
(b) May order the person to pay an administrative fine pursuant to NRS 685B.080; and
(c) Shall order the person to pay premium taxes at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If the person fails to pay premium taxes on or before March 1 of the year in which the taxes are due, the person is liable for the penalties set forth in NRS 685A.190.
4. The Commissioner may modify or set aside, in whole or in part, any order issued by the Commissioner pursuant to this section, but any such action must be made before the expiration of the time for taking an appeal or before the official record of the proceeding has been filed with the court.
5. An order issued pursuant to this section:
(a) May be reviewed pursuant to NRS 679B.370.
(b) Becomes final:
(1) Upon the expiration of the time for taking an appeal, if no petition for judicial review has been filed; or
(2) Upon the final decision of the court.
6. If a person violates an order issued pursuant to this section, the Commissioner may, after notice and a hearing, impose an administrative fine of not more than $5,000 for each violation.
7. The Commissioner shall not, sooner than 1 year after the date on which an order pursuant to this section has been issued, grant an authorization as a surplus lines insurer or issue any license pursuant to this title to the violator.
8. Except as otherwise provided by specific statute, the Commissioner shall commence a proceeding pursuant to this section against a person for committing an act of unauthorized insurance not later than 5 years after the date on which the act occurred.
(Added to NRS by 1993, 2391; A 1995, 1620; 1997, 3030)