IBAO believes the ministry should merely harmonize regulations enacted by the federal government in March 2012 that clarify that online retailing of unauthorized insurance
products is prohibited as was originally intended in bank branches.
companies commit fraud by illegally collecting premiums and disappearing before paying claims.
Jayne McLaughlin, the department's chief of staff, said the company had been fined, quoting the maximum fine for unauthorized insurance
activity is $10,000 an occurrence.
The unlicensed reinsurance regulations also state that the carrier cannot use unearned premiums and claims reserves for unauthorized insurance
in its financial stability calculations unless the reinsurer supports 100 percent of such amounts with appropriate letters of credit.
In an effort to bring this essential fact to the attention of businesses, the Nevada Division of Insurance is presenting a statewide campaign beginning April 21st, to more fully educate the Nevada consumer of the pitfalls of unauthorized insurance