What are Nevada's prohibited practices in life insurance sales?

Nevada law prohibits specific unfair trade practices and sales tactics in life insurance, protecting consumers from deceptive or coercive behavior. NRS Chapter 686A governs unfair trade practices in Nevada insurance.

Prohibited practices include: misrepresentation of policy terms, benefits, dividends, or financial condition of the carrier; making false statements or using deceptive sales materials; twisting (encouraging policy replacement for the agent's financial benefit rather than the policyholder's); rebating (offering premium discounts or gifts not in the policy as inducements to purchase); coercion and intimidation; unfair discrimination in pricing or coverage; and making false comparisons to damage competitors' reputations.

Agents are also prohibited from making unsuitable recommendations—recommending products inappropriate for a consumer's needs, financial situation, or objectives. Nevada has adopted senior suitability standards that impose heightened protections for consumers over age 65.

For annuity sales to seniors specifically, Nevada requires a Best Interest standard ensuring recommendations are in the senior's best interest, not just suitable.

If you experience any of these prohibited practices, file a complaint with the Nevada Division of Insurance. Agents who engage in prohibited practices face license suspension or revocation, financial penalties, and potential civil liability.

All agents in our network are required to operate within Nevada's consumer protection framework. If you ever feel a recommendation doesn't align with your interests, you have the right to seek a second opinion from another licensed professional.