[Rev. 11/21/2013 1:15:07 PM--2013]

CHAPTER 690B - CASUALTY INSURANCE

GENERAL PROVISIONS

NRS 690B.010        Other applicable provisions.

NRS 690B.012        Claims: Approval or denial; request for additional information; payment; interest on unpaid claim.

MOTOR VEHICLES

NRS 690B.016        Prohibition against knowing recommendation of unlicensed body shop or required patronization of particular body shop.

NRS 690B.017        Provisions for arbitration not binding.

NRS 690B.020        Uninsured or hit-and-run vehicles; insolvency of insurer.

NRS 690B.023        Insurer to provide evidence of insurance; contents.

NRS 690B.025        Primary and excess coverage; garage operator required to post notice.

NRS 690B.028        Insurer prohibited from taking adverse action because of violation of speed limit in certain cases.

NRS 690B.029        Mandatory provision for reduction of premiums for certain persons 55 years of age or older.

NRS 690B.031        Reduction in premium of certain policies of insurance required if motor vehicle is equipped with air bag and other safety device; calculation; approval of Commissioner.

NRS 690B.035        Policy covering damage to one or more of operator’s vehicles.

NRS 690B.037        Owner or authorized agent may give consent for towing and storage of damaged motor vehicle.

NRS 690B.040        Policy providing certain automobile coverage in Mexico.

NRS 690B.042        Claimant for damages for personal injury to provide medical reports, records and bills or authorization to receive reports, records and bills to opposing party upon request; insurer to disclose pertinent facts or provisions of policy relating to coverage at issue to insured or claimant upon request.

INDUSTRIAL INSURANCE

NRS 690B.090        Issuance authorized.

INSURANCE FOR HOME PROTECTION

NRS 690B.100        Definitions.

NRS 690B.110        Applicability of other provisions.

NRS 690B.120        Exemptions from licensing requirements.

NRS 690B.130        Deposit of securities or surety bond; maintenance of capital stock or surplus, premium reserves and losses and loss expense reserves.

NRS 690B.140        Investments in tangible personal property: Limitation.

NRS 690B.150        Annual statement.

NRS 690B.155        Provision requiring binding arbitration authorized; procedures for arbitration.

NRS 690B.160        Contracts: Specifications; cancellation; renewal.

NRS 690B.170        Contracts: Regulations on content.

NRS 690B.175        Regulations.

NRS 690B.180        Prohibited acts.

MEDICAL MALPRACTICE

NRS 690B.200        Definitions.

NRS 690B.210        “Claims-made policy” defined.

NRS 690B.220        “Extended reporting endorsement” defined.

NRS 690B.230        “Practitioner” defined.

NRS 690B.240        “Professional liability insurance” defined.

NRS 690B.250        Practitioners of the healing arts: Reports to licensing boards.

NRS 690B.260        Physicians and osteopathic physicians: Reports to Commissioner and licensing boards.

NRS 690B.270        Disclosure of reasons for failure to issue professional liability insurance.

NRS 690B.280        Disclosure of reasons for higher premium.

NRS 690B.290        Insurer required to offer extended reporting endorsement to certain practitioners; disclosure of formula used to determine premium.

NRS 690B.300        Prohibition against setting different premium rates based on number of babies delivered for certain practitioners; exception.

NRS 690B.310        Prohibition against confidentiality of certain information relating to settlement of claim for breach of professional duty of certain practitioners.

NRS 690B.320        Insurer required to offer extended reporting endorsement; required disclosures.

NRS 690B.330        Required reduction in premium for implementation of qualified risk management system.

NRS 690B.340        Review of settlement or judgment by Commissioner.

NRS 690B.350        Essential medical specialties: Determination, cancellation, termination or nonrenewal of professional liability insurance.

NRS 690B.360        Information pertinent to monitoring compliance with applicable standards for rates: Commissioner to collect; analysis; annual report.

NRS 690B.370        Annual report on loss prevention and control programs.

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GENERAL PROVISIONS

      NRS 690B.010  Other applicable provisions.  All contracts of casualty insurance covering subjects resident, located or to be performed in this State are subject to the applicable provisions of chapter 687B of NRS (the insurance contract), and to other applicable provisions of this Code.

      (Added to NRS by 1971, 1777)

      NRS 690B.012  Claims: Approval or denial; request for additional information; payment; interest on unpaid claim.

      1.  Except as otherwise provided in subsections 2, 3 and 4, an insurer shall approve or deny a claim of its insured relating to a contract of casualty insurance within 30 days after the insurer receives the claim. If the claim is approved, the insurer shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the insurer shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040. The interest must be calculated from the date the payment is due until the claim is paid.

      2.  If the insurer requires additional information or time to determine whether to approve or deny a claim, it shall notify the policyholder of its request for the additional information or time within 20 days after it receives the policyholder’s claim, and at least once every 30 days thereafter, until the claim is approved or denied. The notice must set forth the reason why the additional information or time is required.

      3.  The insurer shall approve or deny the claim within:

      (a) Thirty days after it receives the additional information; or

      (b) Thirty-one days after the last timely notice was provided pursuant to subsection 2,

Ê whichever is later.

      4.  If the claim is approved, the insurer shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the insurer shall pay interest on the claim in the manner prescribed in subsection 1.

      (Added to NRS by 1991, 1329)

MOTOR VEHICLES

      NRS 690B.016  Prohibition against knowing recommendation of unlicensed body shop or required patronization of particular body shop.

      1.  An insured or a claimant under a policy of insurance may have repairs to a motor vehicle made at the licensed body shop of the insured’s or claimant’s choice. An insurer of motor vehicles shall notify the insured or the claimant of this right when the insurer is first contacted concerning a claim for damage to a motor vehicle.

      2.  An insurer of motor vehicles or a representative of the insurer shall not:

      (a) Knowingly recommend to an insured or a claimant, or direct an insured or a claimant to, a body shop in this State which is not licensed pursuant to NRS 487.630;

      (b) Require an insured or a claimant to patronize any licensed body shop in this State in preference to another such business.

      3.  The provisions of this section do not require an insurer to pay more than the reasonable rate required pursuant to a policy of insurance for repairs to a motor vehicle.

      4.  For the purposes of this section, an insurer is entitled to rely upon the validity of the license number included by the body shop on its estimates and invoices for repairs.

      (Added to NRS by 1989, 1002; A 1989, 2045; 2003, 516; 2005, 927)

      NRS 690B.017  Provisions for arbitration not binding.  No provision for arbitration contained in an automobile liability or motor vehicle liability insurance policy delivered, issued for delivery or renewed in this State is binding upon the named insured or any other person who makes a claim under the policy.

      (Added to NRS by 1979, 1517)

      NRS 690B.020  Uninsured or hit-and-run vehicles; insolvency of insurer.

      1.  Except as otherwise provided in this section and NRS 690B.035, no policy insuring against liability arising out of the ownership, maintenance or use of any motor vehicle may be delivered or issued for delivery in this State unless coverage is provided therein or supplemental thereto for the protection of persons insured thereunder who are legally entitled to recover damages, from owners or operators of uninsured or hit-and-run motor vehicles, for bodily injury, sickness or disease, including death, resulting from the ownership, maintenance or use of the uninsured or hit-and-run motor vehicle. No such coverage is required in or supplemental to a policy issued to the State of Nevada or any political subdivision thereof, or where rejected in writing, on a form furnished by the insurer describing the coverage being rejected, by an insured named therein, or upon any renewal of such a policy unless the coverage is then requested in writing by the named insured. The coverage required in this section may be referred to as “uninsured vehicle coverage.”

      2.  The amount of coverage to be provided must be not less than the minimum limits for liability insurance for bodily injury provided for under chapter 485 of NRS, but may be in an amount not to exceed the coverage for bodily injury purchased by the policyholder.

      3.  For the purposes of this section, the term “uninsured motor vehicle” means a motor vehicle:

      (a) With respect to which there is not available at the Department of Motor Vehicles evidence of financial responsibility as required by chapter 485 of NRS;

      (b) With respect to the ownership, maintenance or use of which there is no liability insurance for bodily injury or bond applicable at the time of the accident or, to the extent of such deficiency, any liability insurance for bodily injury or bond in force is less than the amount required by NRS 485.210;

      (c) With respect to the ownership, maintenance or use of which the company writing any applicable liability insurance for bodily injury or bond denies coverage or is insolvent;

      (d) Used without the permission of its owner if there is no liability insurance for bodily injury or bond applicable to the operator;

      (e) Used with the permission of its owner who has insurance which does not provide coverage for the operation of the motor vehicle by any person other than the owner if there is no liability insurance for bodily injury or bond applicable to the operator; or

      (f) The owner or operator of which is unknown or after reasonable diligence cannot be found if:

             (1) The bodily injury or death has resulted from physical contact of the automobile with the named insured or the person claiming under the named insured or with an automobile which the named insured or such a person is occupying; and

             (2) The named insured or someone on behalf of the named insured has reported the accident within the time required by NRS 484E.030, 484E.040 or 484E.050 to the police department of the city where it occurred or, if it occurred in an unincorporated area, to the sheriff of the county or to the Nevada Highway Patrol.

      4.  For the purposes of this section, the term “uninsured motor vehicle” also includes, subject to the terms and conditions of coverage, an insured other motor vehicle where:

      (a) The liability insurer of the other motor vehicle is unable because of its insolvency to make payment with respect to the legal liability of its insured within the limits specified in its policy;

      (b) The occurrence out of which legal liability arose took place while the uninsured vehicle coverage required under paragraph (a) was in effect; and

      (c) The insolvency of the liability insurer of the other motor vehicle existed at the time of, or within 2 years after, the occurrence.

Ê Nothing contained in this subsection prevents any insurer from providing protection from insolvency to its insureds under more favorable terms.

      5.  If payment is made to any person under uninsured vehicle coverage, and subject to the terms of the coverage, to the extent of such payment the insurer is entitled to the proceeds of any settlement or recovery from any person legally responsible for the bodily injury as to which payment was made, and to amounts recoverable from the assets of the insolvent insurer of the other motor vehicle.

      6.  A vehicle involved in a collision which results in bodily injury or death shall be presumed to be an uninsured motor vehicle if no evidence of financial responsibility is supplied to the Department of Motor Vehicles in the manner required by chapter 485 of NRS within 60 days after the collision occurs.

      (Added to NRS by 1971, 1777; A 1971, 1954; 1973, 839; 1977, 438; 1979, 1518; 1985, 1999; 1987, 1098; 2001, 2635; 2011, 114)

      NRS 690B.023  Insurer to provide evidence of insurance; contents.  If insurance for the operation of a motor vehicle required pursuant to NRS 485.185 is provided by a contract of insurance, the insurer shall:

      1.  Provide evidence of insurance to the insured on a form approved by the Commissioner. The evidence of insurance must include:

      (a) The name and address of the policyholder;

      (b) The name and address of the insurer;

      (c) Vehicle information, consisting of:

             (1) The year, make and complete identification number of the insured vehicle or vehicles; or

             (2) The word “Fleet” and the name of the registered owner if the vehicle is covered under a fleet policy written on an any auto basis or blanket policy basis;

      (d) The term of the insurance, including the day, month and year on which the policy:

             (1) Becomes effective; and

             (2) Expires;

      (e) The number of the policy;

      (f) A statement that the coverage meets the requirements set forth in NRS 485.185; and

      (g) The statement “This card must be carried in the insured motor vehicle for production upon demand.” The statement must be prominently displayed.

      2.  Provide new evidence of insurance if:

      (a) The information regarding the insured vehicle or vehicles required pursuant to paragraph (c) of subsection 1 no longer is accurate;

      (b) An additional motor vehicle is added to the policy;

      (c) A new number is assigned to the policy; or

      (d) The insured notifies the insurer that the original evidence of insurance has been lost.

      (Added to NRS by 1981, 1695; A 1985, 1560; 1987, 1100, 1498, 1499; 1991, 1632; 1993, 2490; 1995, 2743; 2011, 3385; 2013, 1890)

      NRS 690B.025  Primary and excess coverage; garage operator required to post notice.

      1.  If two or more policies of liability insurance covering the same motor vehicle are in effect when the motor vehicle is involved in an incident which results in a claim against the policies:

      (a) If the motor vehicle was being operated by a person engaged in the business of selling, repairing, servicing, delivering, testing, road testing, parking or storing motor vehicles, or by an agent or employee of the person while in pursuit of that business, the policy issued to that business shall be deemed to be primary and any other policy shall be deemed to provide excess coverage.

      (b) If the motor vehicle was being operated by a person described in paragraph (a) in any pursuit other than of that business, or by some other person, the policy issued to the operator of the vehicle shall be deemed to be primary and any policy issued to the business shall be deemed to provide excess coverage.

      (c) If, while the vehicle of the customer was being repaired or serviced in the bailment of a garage operator engaged in the business of repairing or servicing motor vehicles, the customer is lent by the garage operator a motor vehicle for use during the time required to complete the repairs or service, the policy issued to the customer shall be deemed to be primary and all other policies shall be deemed to provide excess coverage. A garage operator engaged in the business of repairing or servicing motor vehicles who loans a customer a vehicle for use during the time required to complete the repairs or service shall provide express notice to the customer that the customer’s policy of insurance will provide primary coverage while the customer is operating that vehicle.

      2.  The provisions in subsection 1 may be modified but only by a written agreement signed by all the insurers who have issued policies applicable to a claim described in subsection 1 and by all the insureds under those policies.

      3.  This section applies only to policies of liability insurance issued or renewed on or after July 1, 1981.

      (Added to NRS by 1981, 180; A 1987, 451)

      NRS 690B.028  Insurer prohibited from taking adverse action because of violation of speed limit in certain cases.  An insurer shall not impose on an insured or group of insured an increase in rates for motor vehicle insurance because of a conviction or a finding by a juvenile court of a violation of the speed limit under the circumstances described in subsection 1 of NRS 484B.617, nor shall an insurer cancel or refuse to renew a policy of insurance for that reason.

      (Added to NRS by 1997, 2525)

      NRS 690B.029  Mandatory provision for reduction of premiums for certain persons 55 years of age or older.

      1.  A policy of insurance against liability arising out of the ownership, maintenance or use of a motor vehicle delivered or issued for delivery in this State to a person who is 55 years of age or older must contain a provision for the reduction in the premiums for 3-year periods if the insured:

      (a) Successfully completes, after attaining 55 years of age and every 3 years thereafter, a course of traffic safety approved by the Department of Motor Vehicles; and

      (b) For the 3-year period before completing the course of traffic safety and each 3-year period thereafter:

             (1) Is not involved in an accident involving a motor vehicle for which the insured is at fault;

             (2) Maintains a driving record free of violations; and

             (3) Has not been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, a moving traffic violation or an offense involving:

                   (I) The operation of a motor vehicle while under the influence of intoxicating liquor or a controlled substance; or

                   (II) Any other conduct prohibited by NRS 484C.110, 484C.120, 484C.130 or 484C.430 or a law of any other jurisdiction that prohibits the same or similar conduct.

      2.  The reduction in the premiums provided for in subsection 1 must be based on the actuarial and loss experience data available to each insurer and must be approved by the Commissioner. Each reduction must be calculated based on the amount of the premium before any reduction in that premium is made pursuant to this section, and not on the amount of the premium once it has been reduced.

      3.  A course of traffic safety that an insured is required to complete as the result of moving traffic violations must not be used as the basis for a reduction in premiums pursuant to this section.

      4.  The organization that offers a course of traffic safety approved by the Department of Motor Vehicles shall issue a certificate to each person who successfully completes the course. A person must use the certificate to qualify for the reduction in the premiums pursuant to this section.

      5.  The Commissioner shall review and approve or disapprove a policy of insurance that offers a reduction in the premiums pursuant to subsection 1. An insurer must receive written approval from the Commissioner before delivering or issuing a policy with a provision containing such a reduction.

      (Added to NRS by 1989, 1679; A 1995, 2481; 1999, 3436; 2001, 2636; 2003, 1505; 2005, 172; 2007, 1484; 2009, 1890)

      NRS 690B.031  Reduction in premium of certain policies of insurance required if motor vehicle is equipped with air bag and other safety device; calculation; approval of Commissioner.

      1.  A policy of insurance providing coverage arising out of the ownership, maintenance or use of a motor vehicle which is delivered or issued for delivery in this State and includes coverage for the payment of reasonable and necessary medical expenses or uninsured and underinsured motorists coverage, or both, must contain a provision for the reduction in the premium for such coverage if the motor vehicle:

      (a) Is equipped with an air bag on the driver’s side of the front seat or air bags on the driver’s side and passenger’s side of the front seat; and

      (b) Contains any other safety device, other than safety belts, which substantially enhances the safety of the occupants of the motor vehicle.

      2.  The reduction in premiums required by subsection 1 must be based upon the actuarial and loss experience data available to each insurer and must be approved by the Commissioner. The insurer may offer additional reductions in premiums pursuant to the requirements set forth in subsection 1 if they are approved by the Commissioner. Each reduction must be calculated based on the amount of the premium before any reduction in that premium is made pursuant to this section, and not on the amount of the premium once it has been reduced.

      3.  The Commissioner shall review and approve or disapprove each policy of insurance that offers a reduction in the premiums provided for in this section. An insurer must receive the written approval of the Commissioner before delivering or issuing for delivery a policy that provides for such a reduction.

      (Added to NRS by 1993, 2495)

      NRS 690B.035  Policy covering damage to one or more of operator’s vehicles.  An insurer may issue to a holder of an operator’s policy of liability insurance a policy covering damage to one or more of the operator’s vehicles. The policy is not required to provide liability insurance or uninsured vehicle coverage.

      (Added to NRS by 1987, 1098)

      NRS 690B.037  Owner or authorized agent may give consent for towing and storage of damaged motor vehicle.  The owner of a motor vehicle or the authorized agent of the owner who makes a claim under a policy of insurance for damages to the motor vehicle may give his or her consent for:

      1.  If the insurer provides notice to the owner or the authorized agent of the owner that the motor vehicle is a total loss vehicle as that term is defined in NRS 487.790, the motor vehicle to be towed and placed in storage at the direction and expense of the insurer; or

      2.  If the insurer provides notice to the owner or the authorized agent of the owner that the motor vehicle is a repairable vehicle, the motor vehicle to be towed to a repair shop designated by the owner or the authorized agent of the owner.

      (Added to NRS by 2011, 1404)

      NRS 690B.040  Policy providing certain automobile coverage in Mexico.  An authorized casualty insurer may issue through its licensed agents an automobile insurance policy in which coverage for liability resulting from bodily injury and property damage occurring in Mexico is provided by an insurer authorized to transact and transacting such insurance in Mexico under the laws of Mexico, in a portion of such policy or endorsement thereon or rider attached thereto executed by or on behalf of such other insurer, and whether or not such other insurer is authorized to transact insurance in this State.

      (Added to NRS by 1971, 1778)

      NRS 690B.042  Claimant for damages for personal injury to provide medical reports, records and bills or authorization to receive reports, records and bills to opposing party upon request; insurer to disclose pertinent facts or provisions of policy relating to coverage at issue to insured or claimant upon request.

      1.  Except as otherwise provided in subsection 2, any party against whom a claim is asserted for compensation or damages for personal injury under a policy of motor vehicle insurance covering a passenger car may require any attorney representing the claimant to provide to the party and the insurer or attorney of the party, not more than once every 90 days, all medical reports, records and bills concerning the claim.

      2.  In lieu of providing medical reports, records and bills pursuant to subsection 1, the claimant or any attorney representing the claimant may provide to the party or the insurer or attorney of the party a written authorization to receive the reports, records and bills from the provider of health care. At the written request of the claimant or the attorney of the claimant, copies of all reports, records and bills obtained pursuant to the authorization must be provided to the claimant or the attorney of the claimant within 30 days after the date they are received. If the claimant or the attorney of the claimant makes a written request for the reports, records and bills, the claimant or the attorney of the claimant shall pay for the reasonable costs of copying the reports, records and bills.

      3.  Upon receipt of any photocopies of medical reports, records and bills, or a written authorization pursuant to subsection 2, the insurer who issued the policy specified in subsection 1 shall, upon request, immediately disclose to the insured or the claimant all pertinent facts or provisions of the policy relating to any coverage at issue.

      4.  As used in this section, “passenger car” has the meaning ascribed to it in NRS 482.087.

      (Added to NRS by 1995, 1747; A 1999, 2815; 2013, 489)

INDUSTRIAL INSURANCE

      NRS 690B.090  Issuance authorized.

      1.  Any casualty insurer may provide industrial insurance pursuant to the general provisions of chapters 616A to 617, inclusive, of NRS concerning the respective rights and obligations of employees and their employers, if the insurer:

      (a) Has a certificate of authority issued by the Commissioner pursuant to chapter 680A of NRS; and

      (b) Is specifically qualified pursuant to paragraph (c) of subsection 1 of NRS 681A.020.

      2.  The insurance may be purchased by qualified employers to secure the payment of compensation for employees injured in the course of employment.

      3.  The employer shall bear the costs for private insurance.

      (Added to NRS by 1995, 2059)

INSURANCE FOR HOME PROTECTION

      NRS 690B.100  Definitions.  As used in NRS 690B.100 to 690B.180, inclusive, unless the context otherwise requires:

      1.  “Home” means a structure used primarily for residential purposes and includes, without limitation:

      (a) A single-family dwelling;

      (b) A unit in a multiple-family structure;

      (c) A mobile home; and

      (d) The common elements of a common-interest community, as defined in NRS 116.017, and any appurtenance to the common elements.

      2.  “Insurance for home protection” means a contract of insurance, which affords coverage over a specified term for a predetermined fee, under which a person, other than the manufacturer, builder, seller or lessor of the home, agrees to repair, replace or indemnify from the cost of repair or replacement based upon the failure of any structure, component, system or appliance of the home. The term does not include:

      (a) A contract which insures against any consequential losses caused by the defects or failures.

      (b) An annual home service agreement on household appliances, systems and components if the agreement principally provides for service, repair or replacement due to normal wear and tear or inherent defect. Such agreements may include provisions for incidental indemnity or for service or repair of roof leaks.

      (Added to NRS by 1981, 1321; A 1995, 1630, 2558; 1997, 650; 1999, 1447; 2003, 3317)

      NRS 690B.110  Applicability of other provisions.

      1.  Except as provided in subsection 2 and NRS 690B.100 to 690B.180, inclusive, insurance for home protection is subject to all applicable provisions of this Code.

      2.  The provisions of chapters 687A and 692C of NRS do not apply to insurance for home protection.

      (Added to NRS by 1981, 1323)

      NRS 690B.120  Exemptions from licensing requirements.  A person who sells insurance for home protection on behalf of an insurer who issues policies of casualty insurance or insurance for home protection is exempted from the provisions of chapter 683A of NRS which require the person to be licensed as an agent, broker or solicitor if:

      1.  The person’s sales activity is conducted pursuant to a written contract with the insurer which regulates his or her activity.

      2.  The person holds a valid broker’s, broker-salesperson’s or salesperson’s license issued pursuant to chapter 645 of NRS.

      (Added to NRS by 1981, 1323)

      NRS 690B.130  Deposit of securities or surety bond; maintenance of capital stock or surplus, premium reserves and losses and loss expense reserves.

      1.  Except as otherwise provided in subsection 2, an insurer who issues policies of insurance for home protection, other than casualty insurance, shall deposit, in accordance with chapter 682B of NRS, securities having a market value of not less than $50,000, unless the insurer furnishes evidence satisfactory to the Commissioner of maintaining a deposit of not less than that amount which complies with the requirements of the state of domicile of the insurer and is held for the protection of all holders of insurance contracts.

      2.  In lieu of the deposit of securities, the insurer may post with the Commissioner a surety bond of not less than $50,000 executed by an insurer who has a valid certificate of authority issued by the Commissioner.

      3.  The insurer shall maintain:

      (a) Unimpaired paid-in capital stock or unimpaired basic surplus, or a combination thereof, in an amount not less than 10 percent of the amount charged as premiums for insurance currently in effect, but not less than $50,000, nor more than is required by NRS 680A.120 for a certificate of authority.

      (b) Unearned premium reserves as required by NRS 681B.060.

      (c) Losses and loss expense reserves as required by subsection 1 of NRS 681B.050.

      (Added to NRS by 1981, 1321; A 1991, 2034; 1995, 1630)

      NRS 690B.140  Investments in tangible personal property: Limitation.  An insurer who issues policies of insurance for home protection, other than casualty insurance, may make investments in tangible personal property for use in fulfilling its obligations to repair or replace components, systems or appliances of the home under its contracts of insurance for home protection, in an amount not to exceed 35 percent of its assets, as determined pursuant to NRS 681B.010, unless the Commissioner, whenever the Commissioner deems it appropriate, waives this limitation by regulation.

      (Added to NRS by 1981, 1322; A 1999, 1448)

      NRS 690B.150  Annual statement.  An insurer who issues policies of insurance for home protection, other than casualty insurance, shall file the annual statement required by NRS 680A.270 in the form prescribed by the commissioner on or before March 1 of each year to cover the preceding calendar year.

      (Added to NRS by 1981, 1322; A 1991, 2034)

      NRS 690B.155  Provision requiring binding arbitration authorized; procedures for arbitration.

      1.  Subject to the approval of the Commissioner, a contract of insurance for home protection may include a provision which requires the parties to the contract to submit for binding arbitration any dispute between the parties concerning any matter directly or indirectly related to, or associated with, the contract.

      2.  Except as otherwise provided in subsection 3, the arbitration must be conducted pursuant to the rules for commercial arbitration established by the American Arbitration Association. The insurer is responsible for any administrative fees and expenses relating to the arbitration, except that the insurer is not responsible for attorney’s fees and fees for expert witnesses unless those fees are awarded by the arbitrator.

      3.  If a provision described in subsection 1 is included in a contract of insurance for home protection, the provision shall not be deemed unenforceable as an unreasonable contract of adhesion if the provision is included in compliance with the provisions of subsection 1.

      (Added to NRS by 1995, 2557)

      NRS 690B.160  Contracts: Specifications; cancellation; renewal.

      1.  A contract of insurance for home protection must specify:

      (a) The structures, components, systems and appliances covered by the provisions of the contract.

      (b) Any exclusions from and limitations on coverage.

      (c) The period during which the contract will be in effect, and the renewal terms, if any.

      (d) The services to be performed by the insurer and the terms and conditions of the insurer’s performance.

      (e) The copayment, service fee or deductible charge, if any, to be charged to the insured.

      (f) All limitations regarding the performance of services, including any restrictions as to the time during or geographical area within which services may be requested or will be performed.

      (g) That the insurer will commence an investigation of a claim upon a request from the insured by telephone, without any requirement that claim forms or applications be filed before the commencement of the investigation.

      (h) That, except in an emergency, including, without limitation, the loss of heating, cooling, plumbing or electrical service by the insured, services will be initiated by or under the direction of the insurer within 48 hours after the conclusion of an investigation for a claim. Work must commence on an emergency not later than 24 hours after the report of the claim. The Commissioner may adopt regulations to define “emergency” for the purposes of this paragraph.

      (i) Other conditions and provisions pertaining to the coverage as required by the insurance laws of this State or regulations adopted by the Commissioner.

      2.  Insurance for home protection may not be cancelled during the term for which it is issued, except:

      (a) For nonpayment of the fee for the contract.

      (b) For fraud or misrepresentation of facts material to the issuance or renewal of the contract.

      (c) Insurance which provides coverage before the home is sold if the sale is not made. The cancellation must be made in accordance with the contract provisions.

      3.  Insurance for home protection is not renewable unless its terms provide otherwise.

      (Added to NRS by 1981, 1322; A 1999, 1448)

      NRS 690B.170  Contracts: Regulations on content.  The Commissioner may adopt reasonable regulations regarding the content of contracts of insurance for home protection to protect the interests of persons affected by the provisions of those contracts. The regulations may not extend to specifying the structures, components, systems or appliances which must be covered by insurance for home protection, except to the extent necessary to:

      1.  Obtain fairness in the exclusions from the coverage provided; or

      2.  Avoid illusory coverage caused by the nature or extent of the coverage exclusions.

      (Added to NRS by 1981, 1323)

      NRS 690B.175  Regulations.  The Commissioner may adopt regulations:

      1.  Defining administrative expenses for insurers who issue policies of insurance for home protection, and setting limitations on the amounts of such expenses as a percentage of total premiums; and

      2.  Defining accounting standards to be used for such insurers.

      (Added to NRS by 1995, 1630)

      NRS 690B.180  Prohibited acts.  An insurer who issues policies of insurance for home protection, other than casualty insurance, shall not:

      1.  Engage in any other business of insurance or real estate pursuant to chapters 645 to 645E, inclusive, of NRS.

      2.  Assume reinsurance from any other insurer.

      (Added to NRS by 1981, 1322; A 1999, 1449)

MEDICAL MALPRACTICE

      NRS 690B.200  Definitions.  As used in NRS 690B.200 to 690B.370, inclusive, unless the context otherwise requires, the words and terms defined in NRS 690B.210 to 690B.240, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2003, 921, 3479)

      NRS 690B.210  “Claims-made policy” defined.  “Claims-made policy” means a policy of professional liability insurance that provides coverage only for claims that arise from incidents or events which occur while the policy is in force and which are reported to the insurer while the policy is in force.

      (Added to NRS by 2003, 921, 3479)

      NRS 690B.220  “Extended reporting endorsement” defined.  “Extended reporting endorsement” means an endorsement to a claims-made policy which requires the payment of a separate premium and which provides coverage for claims that arise from incidents or events which occur while the claims-made policy is in force but which are reported to the insurer after the claims-made policy is terminated.

      (Added to NRS by 2003, 921, 3479)

      NRS 690B.230  “Practitioner” defined.  “Practitioner” means a practitioner who provides health care.

      (Added to NRS by 2003, 922, 3479)

      NRS 690B.240  “Professional liability insurance” defined.  “Professional liability insurance” means a policy of insurance covering the liability of a practitioner for a breach of his or her professional duty toward a patient.

      (Added to NRS by 2003, 922, 3479)

      NRS 690B.250  Practitioners of the healing arts: Reports to licensing boards.  Except as more is required in NRS 630.3067 and 633.526:

      1.  Each insurer which issues a policy of insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS for a breach of his or her professional duty toward a patient shall report to the board which licensed the practitioner within 45 days each settlement or award made or judgment rendered by reason of a claim, if the settlement, award or judgment is for more than $5,000, giving the name and address of the claimant and the practitioner and the circumstances of the case.

      2.  A practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS who does not have insurance covering liability for a breach of his or her professional duty toward a patient shall report to the board which issued the practitioner’s license within 45 days of each settlement or award made or judgment rendered by reason of a claim, if the settlement, award or judgment is for more than $5,000, giving the practitioner’s name and address, the name and address of the claimant and the circumstances of the case.

      3.  These reports are public records and must be made available for public inspection within a reasonable time after they are received by the licensing board.

      (Added to NRS by 1981, 589; A 1985, 2246; 2002 Special Session, 24; 2003, 3480)—(Substituted in revision for NRS 690B.045)

      NRS 690B.260  Physicians and osteopathic physicians: Reports to Commissioner and licensing boards.

      1.  Each insurer which issues a policy of insurance covering the liability of a physician licensed under chapter 630 of NRS or an osteopathic physician licensed under chapter 633 of NRS for a breach of his or her professional duty toward a patient shall, within 45 days after the end of a calendar quarter, submit a report to the Commissioner concerning each claim that was closed during that calendar quarter under such a policy of insurance issued by the insurer and any change during that calendar quarter to any claim under such a policy of insurance issued by the insurer that was closed during a previous calendar quarter. The report must include, without limitation:

      (a) The name and address of the claimant and the insured under each policy;

      (b) A statement setting forth the circumstances of that case;

      (c) Information indicating whether any payment was made on a claim and the amount of the payment, if any; and

      (d) The information specified in subsection 1 of NRS 679B.144 for each claim.

      2.  An insurer who fails to comply with the provisions of subsection 1 is subject to the imposition of an administrative fine pursuant to NRS 679B.460.

      3.  The Commissioner shall, within 30 days after receiving a report from an insurer pursuant to this section, submit a report to the Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, setting forth the information provided to the Commissioner by the insurer pursuant to this section.

      (Added to NRS by 1977, 621; A 1987, 735; 2002 Special Session, 24; 2003, 3317, 3481; 2007, 3327)

      NRS 690B.270  Disclosure of reasons for failure to issue professional liability insurance.  If an insurer declines to issue to a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS a policy of professional liability insurance, the insurer shall, upon the request of the practitioner, disclose to the practitioner the reasons the insurer declined to issue the policy.

      (Added to NRS by 2003, 3361)

      NRS 690B.280  Disclosure of reasons for higher premium.  If an insurer, for a policy of professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS, sets the premium for the policy for the practitioner at a rate that is higher than the standard rate of the insurer for the applicable type of policy and specialty of the practitioner, the insurer shall, upon the request of the practitioner, disclose the reasons the insurer set the premium for the policy at the higher rate.

      (Added to NRS by 2003, 3361)

      NRS 690B.290  Insurer required to offer extended reporting endorsement to certain practitioners; disclosure of formula used to determine premium.  If an insurer offers to issue a claims-made policy to a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS, the insurer shall:

      1.  Offer to issue an extended reporting endorsement to the practitioner; and

      2.  Disclose to the practitioner the cost formula that the insurer uses to determine the premium for the extended reporting endorsement. The cost formula must be based on:

      (a) An amount that is not more than twice the amount of the premium for the claims-made policy at the time of the termination of that policy; and

      (b) The rates filed by the insurer and approved by the Commissioner.

      (Added to NRS by 2003, 922)

      NRS 690B.300  Prohibition against setting different premium rates based on number of babies delivered for certain practitioners; exception.

      1.  Except as otherwise provided in this section, if an insurer issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year, the insurer shall not set the premium for the policy at a rate that is different from the rate set for such a policy issued by the insurer to any other practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year if the difference in rates is based in whole or in part upon the number of babies delivered per year by the practitioner.

      2.  If an insurer issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year, the insurer may set the premium for the policy at a rate that is different, based in whole or in part upon the number of babies delivered per year by the practitioner, from the rate set for such a policy issued by the insurer to any other practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year if the insurer:

      (a) Bases the difference upon actuarial and loss experience data available to the insurer; and

      (b) Obtains the approval of the Commissioner for the difference in rates.

      3.  The provisions of this section do not prohibit an insurer from setting the premium for a policy of professional liability insurance issued to a practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year at a rate that is different from the rate set for such a policy issued by the insurer to any other practitioner licensed pursuant to chapter 630, 632 or 633 of NRS who delivers one or more babies per year if the difference in rates is based solely upon factors other than the number of babies delivered per year by the practitioner.

      (Added to NRS by 2003, 922)

      NRS 690B.310  Prohibition against confidentiality of certain information relating to settlement of claim for breach of professional duty of certain practitioners.

      1.  If an agreement settles a claim or action against a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of his or her professional duty toward a patient, the following terms of the agreement must not be made confidential:

      (a) The names of the parties;

      (b) The date of the incidents or events giving rise to the claim or action;

      (c) The nature of the claim or action as set forth in the complaint and the answer that is filed with the district court; and

      (d) The effective date of the agreement.

      2.  Any provision of an agreement to settle a claim or action that conflicts with this section is void.

      (Added to NRS by 2003, 924)

      NRS 690B.320  Insurer required to offer extended reporting endorsement; required disclosures.

      1.  If an insurer offers to issue a claims-made policy to a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS, the insurer shall:

      (a) Offer to issue to the practitioner an extended reporting endorsement without a time limitation for reporting a claim.

      (b) Disclose to the practitioner the premium for the extended reporting endorsement and the cost formula that the insurer uses to determine the premium for the extended reporting endorsement.

      (c) Disclose to the practitioner the portion of the premium attributable to funding the extended reporting endorsement offered at no additional cost to the practitioner in the event of the practitioner’s death, disability or retirement, if such a benefit is offered.

      (d) Disclose to the practitioner the vesting requirements for the extended reporting endorsement offered at no additional cost to the practitioner in the event of the practitioner’s death or retirement, if such a benefit is offered. If such a benefit is not offered, the absence of such a benefit must be disclosed.

      (e) Include, as part of the insurance contract, language which must be approved by the Commissioner and which must be substantially similar to the following:

 

If we adopt any revision that would broaden the coverage under this policy without any additional premium either within the policy period or within 60 days before the policy period, the broadened coverage will immediately apply to this policy.

 

      2.  The disclosures required by subsection 1 must be made as part of the offer and acceptance at the inception of the policy and again at each renewal in the form of an endorsement attached to the insurance contract and approved by the Commissioner.

      3.  The requirements set forth in this section are in addition to the requirements set forth in NRS 690B.290.

      (Added to NRS by 2003, 3479)

      NRS 690B.330  Required reduction in premium for implementation of qualified risk management system.

      1.  In each rating plan of an insurer that issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630 or 633 of NRS, the insurer shall provide for a reduction in the premium for the policy if the practitioner implements a qualified risk management system. The amount of the reduction in the premium must be determined by the Commissioner in accordance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive.

      2.  A qualified risk management system must comply with all requirements established by the Commissioner.

      3.  The Commissioner shall adopt regulations to:

      (a) Establish the requirements for a qualified risk management system; and

      (b) Carry out the provisions of this section.

      4.  The provisions of this section apply to all rating plans which an insurer that issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630 or 633 of NRS files with the Commissioner on and after the effective date of the regulations adopted by the Commissioner pursuant to this section.

      (Added to NRS by 2003, 3480)

      NRS 690B.340  Review of settlement or judgment by Commissioner.  If a settlement or judgment exceeds the limits of the coverage provided by a policy of professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS, the Commissioner shall review the settlement or judgment. If the Commissioner finds, after notice and a hearing, or upon waiver of hearing by the insurer, that the insurer who issued the policy violated any provision of this Code with regard to the settlement or judgment, any combination of such settlements or judgments, or any proceedings related thereto, the Commissioner may suspend, limit or revoke the insurer’s certificate of authority.

      (Added to NRS by 2003, 3360)

      NRS 690B.350  Essential medical specialties: Determination, cancellation, termination or nonrenewal of professional liability insurance.

      1.  Except as otherwise provided in this section, if an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS, the insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective.

      2.  If an insurer intends to cancel, terminate or otherwise not renew a specific policy of professional liability insurance that it has issued to a practitioner who is practicing in one or more of the essential medical specialties designated by the Commissioner:

      (a) The insurer must provide 120 days’ notice to the practitioner before its intended action becomes effective; and

      (b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that a replacement policy is not readily available to the practitioner.

      3.  If an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to practitioners who are practicing in one or more of the essential medical specialties designated by the Commissioner:

      (a) The insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective; and

      (b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that replacement policies are not readily available to the practitioners.

      4.  On or before April 1 of each year, the Commissioner shall:

      (a) Determine whether there are any medical specialties in this State which are essential as a matter of public policy and which must be protected pursuant to this section from certain adverse actions relating to professional liability insurance that may impair the availability of those essential medical specialties to the residents of this State; and

      (b) Make a list containing the essential medical specialties designated by the Commissioner and provide the list to each insurer that issues policies of professional liability insurance to practitioners who are practicing in one or more of the essential medical specialties.

      5.  The Commissioner may adopt any regulations that are necessary to carry out the provisions of this section.

      6.  Until the Commissioner determines which, if any, medical specialties are to be designated as essential medical specialties, the following medical specialties shall be deemed to be essential medical specialties for the purposes of this section:

      (a) Emergency medicine.

      (b) Neurosurgery.

      (c) Obstetrics and gynecology.

      (d) Orthopedic surgery.

      (e) Pediatrics.

      (f) Trauma surgery.

      (Added to NRS by 2003, 922; A 2003, 3361)

      NRS 690B.360  Information pertinent to monitoring compliance with applicable standards for rates: Commissioner to collect; analysis; annual report.

      1.  The Commissioner shall collect all information which is pertinent to monitoring whether an insurer that issues professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS is complying with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive. Such information must include, without limitation:

      (a) The amount of gross premiums collected with regard to each medical specialty;

      (b) Information relating to loss ratios;

      (c) Information reported pursuant to NRS 690B.250; and

      (d) Information reported pursuant to NRS 679B.430 and 679B.440.

      2.  In addition to the information collected pursuant to subsection 1, the Commissioner may request any additional information from an insurer:

      (a) Whose rates and credit utilization are materially different from other insurers in the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State;

      (b) Whose credit utilization shows a substantial change from the previous year; or

      (c) Whose information collected pursuant to subsection 1 indicates a potentially adverse trend.

      3.  If the Commissioner requests additional information from an insurer pursuant to subsection 2, the Commissioner shall:

      (a) Determine whether the additional information offers a reasonable explanation for the results described in paragraphs (a), (b) or (c) of subsection 2; and

      (b) Take any steps permitted by law that are necessary and appropriate to assure the ongoing stability of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.

      4.  On an ongoing basis, the Commissioner shall:

      (a) Analyze and evaluate the information collected pursuant to this section to determine trends in and measure the health of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State; and

      (b) Prepare and submit a report of the Commissioner’s findings and recommendations to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature on or before November 15 of each year.

      (Added to NRS by 2003, 923)

      NRS 690B.370  Annual report on loss prevention and control programs.

      1.  On an annual basis, the Commissioner shall, pursuant to subsection 1 of NRS 680A.290, request each insurer that issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630 or 633 of NRS to submit to the Commissioner an annual report on its loss prevention and control programs.

      2.  Not later than 90 days after the Commissioner receives the annual reports from those insurers, the Commissioner shall submit his or her report on the loss prevention and control programs of those insurers, along with any recommendations, to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature.

      (Added to NRS by 2003, 3480)