s of subsection 1, a policy shall also be deemed to be payable to a person other than the insured if and to the extent that a facility-of-payment clause or a similar clause in the policy permits the insurer to discharge its obligation after the death of the individual insured by paying the death benefits to a person as permitted by such a clause. 3. This section does not apply to insurance issued pursuant to this Code to a creditor covering his debtors to the extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued. (Added to NRS by 1971, 1722; A 1997, 1625) NRS 687B.270 Exemption of proceeds: Health insurance. 1. Except as otherwise expressly provided by the policy or contract, the proceeds and avails of all contracts of health insurance and of provisions providing benefits on account of the disability of the insured which are supplemental to life insurance or annuity contracts effected before, on or after January 1, 1972, are exempt from all liability for any debt of the insured, and from any debt of the beneficiary existing at the time the proceeds are made available for his use. 2. This section does not apply to insurance issued pursuant to this Code to a creditor covering his debtors to the extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued. (Added to NRS by 1971, 1722; A 1997, 1626) NRS 687B.280 Exemption of proceeds: Group insurance. 1. A policy of group life insurance or group health insurance or the proceeds thereof payable to the individual insured or to the beneficiary thereunder shall not be liable, either before or after payment, to be applied by any legal or equitable process to pay any debt or liability of such insured individual or his beneficiary or of any other person having a right under the policy. The proceeds thereof, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of his debts. 2. This section does not apply to group insurance issued pursuant to this Code to a creditor covering his debtors, to the extent that such proceeds are applied to payments of the obligation for the purpose of which the insurance was so issued. (Added to NRS by 1971, 1723) NRS 687B.290 Exemption of proceeds: Annuities; assignability of rights. 1. The benefits, rights, privileges and options which under any annuity contract issued prior to or after January 1, 1972, are due or prospectively due the annuitant shall not be subject to execution nor shall the annuitant be compelled to exercise any such rights, powers or options, nor shall creditors be allowed to interfere with or terminate the contract, except: (a) As to amounts paid for or as premium on any such annuity with intent to defraud creditors, with interest thereon, and of which the creditor has given the insurer written notice at its home office prior to the making of the payment to the annuitant out of which the creditor seeks to recover. Any such notice shall specify the amount claimed or such facts as will enable the insurer to ascertain such amount, and shall set forth such facts as will enable the insurer to ascertain the annuity contract, the annuitant and the payment sought to be avoided on the ground of fraud. (b) The total exemption of benefits presently due and payable to any annuitant periodically or at stated times under all annuity contracts under which he is an annuitant shall not at any time exceed $350 per month for the length of time represented by such installments, and such periodic payments in excess of $350 per month shall be subject to garnishee execution to the same extent as are wages and salaries. (c) If the total benefits presently due and payable to any annuitant under all annuity contracts under which he is an annuitant, at any time exceed payment at the rate of $350 per month, then the court may order such annuitant to pay to a judgment creditor or apply on the judgment, in installments, such portion of such excess benefits as to the court may appear just and proper, after due regard for the reasonable requirements of the judgment debtor and his family, if dependent upon him, as well as any payments required to be made by the annuitant to other creditors under prior court orders. 2. If the contract so provides, the benefits, rights, privileges or options accruing under such contract to a beneficiary or assignee shall not be transferable or subject to commutation, and if the benefits are payable periodically or at stated times, the same exemptions and exceptions contained in this section for the annuitant shall apply with respect to such beneficiary or assignee. (Added to NRS by 1971, 1723) NRS 687B.300 Retention of proceeds of policy by insurer. 1. Any life insurer shall have power to hold payment of proceeds, as has been agreed to in writing by the insurer and the insured or beneficiary. The insurer shall not be required to segregate funds so held but may hold them as a part of its general corporate assets. 2. The provisions of this section shall not impair or affect any rights of creditors under NRS 687B.260 or 687B.290. (Added to NRS by 1971, 1724) NRS 687B.310 Cancellations and nonrenewals; scope of application. 1. NRS 687B.310 to 687B.420, inclusive, apply to all binders and all contracts of insurance the general terms of which are required to be approved or are subject to disapproval by the Commissioner, except as otherwise provided by statute or by rule pursuant to subsection 3. 2. The contract may provide terms more favorable to policyholders than are required by NRS 687B.310 to 687B.420, inclusive. 3. The Commissioner may by rule exempt from NRS 687B.310 to 687B.420, inclusive, classes of insurance contracts where the policyholders do not need protection against arbitrary termination. 4. The rights provided by NRS 687B.310 to 687B.420, inclusive, are in addition to and do not prejudice any other rights the policyholder may have at common law or under other statutes. 5. NRS 687B.310 to 687B.420, inclusive, do not prevent the rescission or reformation of any life or health insurance contract not otherwise denied by the terms of the contract or by any other statute. 6. Any notice to an insured required pursuant to NRS 687B.320 to 687B.350, inclusive, must be personally delivered to the insured or mailed first class or certified to the insured at his address last known by the insurer. The notice must state the effective date of the cancellation or nonrenewal and be accompanied by a written explanation of the specific reasons for the cancellation or nonrenewal. (Added to NRS by 1971, 1724; A 1971, 1949; 1983, 1121; 1987, 985, 1063; 1993, 2399; 2003, 3313) NRS 687B.320 Midterm cancellation; exception. 1. Except as otherwise provided in subsection 3, no insurance policy that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer before the expiration of the agreed term or 1 year from the effective date of the policy or renewal, whichever occurs first, except on any one of the following grounds: (a) Failure to pay a premium when due; (b) Conviction of the insured of a crime arising out of acts increasing the hazard insured against; (c) Discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder; (d) Discovery of: (1) An act or omission; or (2) A violation of any condition of the policy, which occurred after the first effective date of the current policy and substantially and materially increases the hazard insured against; (e) A material change in the nature or extent of the risk, occurring after the first

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