1. Alternative policies or contracts adopted by the Association are subject to the approval of the Commissioner. The Association may adopt alternative policies or contracts of various types for future issuance without regard to any particular impairment or insolvency.
2. An alternative policy or contract must contain at least the minimum statutory provisions required in this state and provide benefits that are not unreasonable in relation to the premium charged. The Association shall set the premium in accordance with a table of rates which it shall adopt. The premium must reflect the amount of insurance to be provided and the age and class of risk of each insured or enrollee, but must not reflect any changes in the health of the insured or enrollee after the original policy or contract was last underwritten.
3. An alternative policy or contract issued by the Association must provide coverage of a type similar to that of the policy or contract issued by the impaired or insolvent insurer, as determined by the Association.
4. If the Association elects to reissue terminated coverage at a rate of premium different from that charged under the terminated policy or contract, the premium must be set by the Association at an actuarially justified amount in accordance with the amount of insurance provided and the age and class of risk, subject to approval by the Commissioner pursuant to subsection 1.
(Added to NRS by 1991, 866; A 2001, 1037; 2019, 1091, effective January 1, 2020)