Exercise of reasonable diligence related to legitimacy and authority required before issuing policy of stop-loss insurance for group health plan.

1. An insurer intending to issue a policy of stop-loss insurance in this State to cover losses of a group health plan shall, before issuing the policy, exercise reasonable diligence to confirm that: (a) The underlying group health plan is legitimate; and (b) The entity offering the underlying group health plan is properly authorized to offer the group health plan. 2. If the underlying group health plan is a self-funded multiple employer welfare arrangement, the reasonable diligence required by subsection 1 includes, without limitation, ensuring that the self-funded multiple employer welfare arrangement is authorized to do business in this State pursuant to chapter 680A of NRS as a self-funded multiple employer welfare arrangement. (Added to NRS by 2021, 2970)