Section 686A.526 - "Replacement" defined"Replacement" means a transaction in which a new policy is to be purchased and the agent or insurer who proposes the replacement knows or should know, by reason of the transaction, that an existing policy has been or will be:
2. Converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other values in the policy;3. Amended to reduce benefits or to reduce the term for which coverage would otherwise remain in force;4. Reissued with any reduction in the cash value of the policy; or5. Pledged as collateral or subjected to borrowing for an aggregate amount that exceeds 25 percent of the loan value set forth in the policy.Nev. Admin. Code § 686A.526
Comm'r of Insurance, LH-3 § 10, eff. 1-4-80-NAC A 10-26-84