Nev. Rev. Stat. § 692C.258

Current through 82nd (2023) Legislative Session Chapter 535 and 34th (2023) Special Session Chapter 1 and 35th (2023) Special Session Chapter 1

Section 692C.258 - Order of Commissioner relating to acquisition: Hearing; written decision; effective date; plan to remedy conditions that caused order to be issued; applicability; penalty

1. Except as otherwise provided in this section, if the Commissioner determines that an acquisition may substantially lessen competition in any line of insurance in this state, tends to create a monopoly or is not in the interest of members of the public who purchase insurance, the Commissioner may issue an order:

(a) Requiring an involved insurer to cease and desist from doing business in this state relating to that line of insurance; or

(b) Denying the application of an acquired or acquiring insurer for a license or authority to do business in this state.

2. The Commissioner shall not issue an order pursuant to subsection 1 unless:

(a) The Commissioner conducts a hearing concerning the acquisition in accordance with NRS 679B.310 to 679B.370, inclusive;

(b) A notice of the hearing is issued before the expiration of the waiting period for the acquisition specified in NRS 692C.254, but not less than 15 days before the hearing; and

(c) The hearing is conducted and the order is issued not later than 60 days after the expiration of the waiting period.

3. Each order issued pursuant to subsection 1 must include a written decision of the Commissioner setting forth findings of fact and conclusions of law relating to the acquisition.

4. An order issued pursuant to this section does not become final until 30 days after it is issued, during which time the involved insurer may submit to the Commissioner a plan to remedy, within a reasonable period, the anticompetitive effect of the acquisition or the failure to protect the interest of members of the public who purchase insurance. As soon as practicable after receiving the plan, the Commissioner shall, based upon the plan and any information included in the plan, issue a written determination setting forth:

(a) The conditions or actions, if any, required to:

(1) Eliminate the anticompetitive effect of the acquisition or protect the interest of members of the public who purchase insurance; and

(2) Vacate or modify the order; and

(b) The period in which the conditions or actions specified in paragraph (a) must be performed.

5. An order issued pursuant to subsection 1 does not apply to an acquisition that is not consummated.

6. A person who violates a cease and desist order issued pursuant to this section during any period in which the order is in effect is subject, at the discretion of the Commissioner, to:

(a) The imposition of a civil penalty of not more than $10,000 per day for each day the violation continues;

(b) The suspension or revocation of the person's license or certificate of authority; or

(c) Both the imposition of a civil penalty pursuant to paragraph (a) and the suspension or revocation of the person's license or certificate of authority pursuant to paragraph (b).

7. In addition to any fine imposed pursuant to NRS 692C.480, any insurer or other person who fails to make any filing required by NRS 692C.252 to 692C.258, inclusive, and who fails to make a good faith effort to comply with any such requirement is subject to a fine of not more than $50,000.

8. The provisions of NRS 692C.430, 692C.440 and 692C.460 do not apply to an acquisition to which the provisions of NRS 692C.252 apply.

NRS 692C.258

Added to NRS by 2003, 3320; A 2009, 1496