1. When proceeding pursuant to paragraph (b) of subsection 2 of NRS 686C.152, the Association shall:
(a) With respect to covered policies or contracts, ensure payment of benefits that would have been payable under the policies or contracts of the insolvent insurer, for claims incurred with respect to:
(1) A group policy or contract, not later than the earlier of the next renewal date under the policy or contract or 45 days, but in no event less than 30 days, after the date when the Association becomes obligated with respect to that policy or contract.
(2) A nongroup policy, contract or annuity, not later than the earlier of the next renewal date, if any, under the policy, contract or annuity or 1 year, but in no event less than 30 days, after the date when the Association becomes obligated with respect to that policy, contract or annuity.
(b) Make diligent efforts to provide all known insureds, policy or contract owners or enrollees with respect to group policies or contracts, or annuitants with respect to annuities, 30 days’ notice of termination of the benefits provided pursuant to paragraph (a).
(c) With respect to nongroup life insurance, health insurance or annuity policies or contracts, make available substitute coverage on an individual basis, in accordance with the provisions of subsection 2, to each known insured or annuitant, or owner if other than the insured, enrollee or annuitant, and to each natural person formerly insured, formerly an enrollee or formerly an annuitant, under a group policy or contract who is not eligible for replacement group coverage, if the insured, enrollee or annuitant had a right under law or the terminated policy, contract or annuity to convert coverage to individual coverage or to continue an individual policy, contract or annuity in force until a specified age or for a specified period, during which the member insurer had no right unilaterally to make changes in any provision of the policy, contract or annuity or had a right only to make changes in premium by class.
2. In providing the substitute coverage required under paragraph (c) of subsection 1, the Association may offer to reissue the terminated coverage or to issue an alternative policy or contract at actuarially justified rates without requiring evidence of insurability or a waiting period or exclusion that would not have applied under the terminated policy or contract and may reinsure any alternative or reinsured policy or contract.
(Added to NRS by 1991, 865; A 2001, 1036; 2019, 1090, effective January 1, 2020)