In carrying out its duties in connection with guaranteeing, assuming, reissuing or reinsuring a policy or contract under NRS 686C.150 and 686C.152, the Association may issue substitute coverage for a policy or contract that provides an interest rate, crediting rate or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value by issuing an alternative policy or contract if:

1. 1. In lieu of the index or other external reference stated in the original policy or contract, the alternative policy or contract provides for a fixed interest rate, payment of dividends guaranteed as to minimum amount, or a different method of calculating interest or changes in value;
2. 2. There is no requirement for evidence of insurability, waiting period or other exclusion that would not have applied under the replaced policy or contract; and
3. 3. The alternative policy or contract is substantially similar to the replaced policy or contract in all other material terms.

(Added to NRS by 2001, 1029; A 2019, 1091)