2005 Nevada Revised Statutes - Chapter 690B — Casualty Insurance

CHAPTER 690B - CASUALTY INSURANCE

GENERAL PROVISIONS

NRS 690B.010 Otherapplicable provisions.

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

MOTOR VEHICLES

NRS 690B.015 Commissionerto conduct survey of operators of body shops; information to be compiled inreport.

NRS 690B.016 Prohibitionagainst knowing recommendation of unlicensed body shop or requiredpatronization of particular body shop.

NRS 690B.017 Provisionsfor arbitration not binding.

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

NRS 690B.023 Insurerto provide evidence of insurance; contents.

NRS 690B.025 Primaryand excess coverage; garageman required to post notice.

NRS 690B.028 Insurerprohibited from taking adverse action because juvenile violated speed limit incertain cases.

NRS 690B.029 Mandatoryprovision for reduction of premiums for certain persons 55 years of age orolder.

NRS 690B.031 Reductionin premium of certain policies of insurance required if motor vehicle isequipped with air bag and other safety device; calculation; approval ofCommissioner.

NRS 690B.035 Policycovering damage to one or more of operators vehicles.

NRS 690B.040 Policyproviding certain automobile coverage in Mexico.

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

PRODUCTS LIABILITY

NRS 690B.060 Reportsto Commissioner. [Repealed.]

INDUSTRIAL INSURANCE

NRS 690B.090 Issuanceauthorized.

INSURANCE FOR HOME PROTECTION

NRS 690B.100 Definitions.

NRS 690B.110 Applicabilityof other provisions.

NRS 690B.120 Exemptionsfrom licensing requirements.

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

NRS 690B.140 Investmentsin tangible personal property: Limitation.

NRS 690B.150 Annualstatement.

NRS 690B.155 Provisionrequiring 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 Prohibitedacts.

MEDICAL MALPRACTICE

NRS 690B.200 Definitions.

NRS 690B.210 Claims-madepolicy defined.

NRS 690B.220 Extendedreporting endorsement defined.

NRS 690B.230 Practitionerdefined.

NRS 690B.240 Professionalliability insurance defined.

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

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

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

NRS 690B.280 Disclosureof reasons for higher premium.

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

NRS 690B.300 Prohibitionagainst setting different premium rates based on number of babies delivered forcertain practitioners; exception.

NRS 690B.310 Prohibitionagainst confidentiality of certain information relating to settlement of claimfor breach of professional duty of certain practitioners.

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

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

NRS 690B.340 Reviewof settlement or judgment by Commissioner.

NRS 690B.350 Essentialmedical specialties: Determination, cancellation, termination or nonrenewal ofprofessional liability insurance.

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

NRS 690B.370 Annualreport on loss prevention and control programs.

_________

GENERAL PROVISIONS

NRS 690B.010 Otherapplicable provisions. All contracts ofcasualty insurance covering subjects resident, located or to be performed inthis 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 onunpaid claim.

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

2. If the insurer requires additional information ortime to determine whether to approve or deny a claim, it shall notify thepolicyholder of its request for the additional information or time within 20days after it receives the policyholders claim, and at least once every 30days thereafter, until the claim is approved or denied. The notice must setforth 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 additionalinformation; or

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

whichever islater.

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

(Added to NRS by 1991, 1329)

MOTOR VEHICLES

NRS 690B.015 Commissionerto conduct survey of operators of body shops; information to be compiled inreport.

1. The Commissioner shall annually conduct a survey oflicensed operators of body shops in this State to determine:

(a) The rates charged by such operators for paintingand other repairs; and

(b) The difference, if any, between the amount paid bythe operators for new and used parts acquired for repairs and the amountcharged to customers for those parts.

2. The information obtained by the survey must becompiled in a written report, which must set forth information relating to:

(a) Each county separately whose population is 50,000or more; and

(b) The remaining counties of the State.

The reportis a public record for the purposes of NRS239.010.

(Added to NRS by 1989, 2045; A 2001, 1998)

NRS 690B.016 Prohibitionagainst knowing recommendation of unlicensed body shop or requiredpatronization of particular body shop.

1. An insured or a claimant under a policy ofinsurance may have repairs to a motor vehicle made at the licensed body shop ofhis choice. An insurer of motor vehicles shall notify the insured or theclaimant of this right when the insurer is first contacted concerning a claimfor damage to a motor vehicle.

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

(a) Knowingly recommend to an insured or a claimant, ordirect an insured or a claimant to, a body shop in this State which is notlicensed pursuant to NRS 487.630;

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

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

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

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

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

(Added to NRS by 1979, 1517)

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

1. Except as otherwise provided in this section and NRS 690B.035, no policy insuring againstliability arising out of the ownership, maintenance or use of any motor vehiclemay be delivered or issued for delivery in this State unless coverage isprovided therein or supplemental thereto for the protection of persons insuredthereunder who are legally entitled to recover damages, from owners oroperators of uninsured or hit-and-run motor vehicles, for bodily injury,sickness or disease, including death, resulting from the ownership, maintenanceor use of the uninsured or hit-and-run motor vehicle. No such coverage isrequired in or supplemental to a policy issued to the State of Nevada or anypolitical subdivision thereof, or where rejected in writing, on a formfurnished by the insurer describing the coverage being rejected, by an insurednamed therein, or upon any renewal of such a policy unless the coverage is thenrequested in writing by the named insured. The coverage required in thissection may be referred to as uninsured vehicle coverage.

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

3. For the purposes of this section, the termuninsured motor vehicle means a motor vehicle:

(a) With respect to which there is not available at theDepartment of Motor Vehicles evidence of financial responsibility as requiredby chapter 485 of NRS;

(b) With respect to the ownership, maintenance or useof which there is no liability insurance for bodily injury or bond applicableat the time of the accident, or, to the extent of such deficiency, anyliability insurance for bodily injury or bond in force is less than the amountrequired by NRS 485.210;

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

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

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

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

(1) The bodily injury or death has resulted fromphysical contact of the automobile with the named insured or the personclaiming under him or with an automobile which the named insured or such aperson is occupying; and

(2) The named insured or someone on his behalfhas reported the accident within the time required by NRS 484.223, 484.225 or 484.227 to the police department of thecity where it occurred, or if it occurred in an unincorporated area, to thesheriff of the county or to the Nevada Highway Patrol.

4. For the purposes of this section, the termuninsured motor vehicle also includes, subject to the terms and conditions ofcoverage, an insured other motor vehicle where:

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

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

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

Nothingcontained in this subsection prevents any insurer from providing protectionfrom insolvency to its insureds under more favorable terms.

5. If payment is made to any person under uninsuredvehicle coverage, and subject to the terms of the coverage, to the extent ofsuch payment the insurer is entitled to the proceeds of any settlement orrecovery from any person legally responsible for the bodily injury as to whichpayment was made, and to amounts recoverable from the assets of the insolventinsurer of the other motor vehicle.

6. A vehicle involved in a collision which results inbodily injury or death shall be presumed to be an uninsured motor vehicle if noevidence of financial responsibility is supplied to the Department of MotorVehicles in the manner required by chapter 485of 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)

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

1. Provide evidence of insurance to the insured on aform 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) The year, make and complete identification numberof the insured vehicle or vehicles;

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

(1) Becomes effective; and

(2) Expires;

(e) The number of the policy;

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

(g) The statement This card must be carried in theinsured motor vehicle for production upon demand. The statement must be prominentlydisplayed.

2. Provide new evidence of insurance if:

(a) The information regarding the insured vehicle orvehicles required pursuant to paragraph (c) of subsection 1 no longer isaccurate;

(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 originalevidence of insurance has been lost.

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

 

NRS 690B.025 Primaryand excess coverage; garageman required to post notice.

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

(a) If the motor vehicle was being operated by a personengaged in the business of selling, repairing, servicing, delivering, testing,road testing, parking or storing motor vehicles, or by his agent or employeewhile in pursuit of that business, the policy issued to that business shall bedeemed to be primary and any other policy shall be deemed to provide excesscoverage.

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

(c) If, while his own vehicle was being repaired orserviced in the bailment of a garageman engaged in the business of repairing orservicing motor vehicles, the customer is lent by the garageman a motor vehiclefor use during the time required to complete the repairs or service, the policyissued to the customer shall be deemed to be primary and all other policiesshall be deemed to provide excess coverage. A garageman engaged in the businessof repairing or servicing motor vehicles who loans his customer a vehicle foruse during the time required to complete the repairs or service shall provideexpress notice to the customer that the customers policy of insurance willprovide primary coverage while the customer is operating that vehicle.

2. The provisions in subsection 1 may be modified butonly by a written agreement signed by all the insurers who have issued policiesapplicable to a claim described in subsection 1 and by all the insureds underthose policies.

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

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

NRS 690B.028 Insurerprohibited from taking adverse action because juvenile violated speed limit incertain cases. An insurer shall not impose onan insured or group of insured an increase in rates for motor vehicle insurancebecause of a conviction or a finding by a juvenile court of a violation of thespeed limit under the circumstances described in subsection 1 of NRS 484.3685, nor shall an insurer cancelor refuse to renew a policy of insurance for that reason.

(Added to NRS by 1997, 2525)

NRS 690B.029 Mandatoryprovision for reduction of premiums for certain persons 55 years of age orolder.

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

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

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

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

(2) Maintains a driving record free ofviolations; and

(3) Has not been convicted of or entered a pleaof guilty or nolo contendere to a moving traffic violation or an offenseinvolving:

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

(II) Any other conduct prohibited by NRS 484.379, 484.3795 or 484.37955 or a law of any otherjurisdiction that prohibits the same or similar conduct.

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

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

4. The organization that offers a course of trafficsafety approved by the Department of Motor Vehicles shall issue a certificateto each person who successfully completes the course. A person must use thecertificate to qualify for the reduction in the premiums pursuant to thissection.

5. The Commissioner shall review and approve ordisapprove a policy of insurance that offers a reduction in the premiumspursuant to subsection 1. An insurer must receive written approval from theCommissioner before delivering or issuing a policy with a provision containingsuch a reduction.

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

NRS 690B.031 Reductionin premium of certain policies of insurance required if motor vehicle isequipped with air bag and other safety device; calculation; approval ofCommissioner.

1. A policy of insurance providing coverage arisingout of the ownership, maintenance or use of a motor vehicle which is deliveredor issued for delivery in this State and includes coverage for the payment ofreasonable and necessary medical expenses or uninsured and underinsuredmotorists coverage, or both, must contain a provision for the reduction in thepremium for such coverage if the motor vehicle:

(a) Is equipped with an air bag on the drivers side ofthe front seat or air bags on the drivers side and passengers side of thefront seat; and

(b) Contains any other safety device, other than safetybelts, which substantially enhances the safety of the occupants of the motorvehicle.

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

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

(Added to NRS by 1993, 2495)

 

NRS 690B.035 Policycovering damage to one or more of operators vehicles.An insurer may issue to a holder of an operators policy of liabilityinsurance a policy covering damage to one or more of the operators vehicles.The policy is not required to provide liability insurance or uninsured vehiclecoverage.

(Added to NRS by 1987, 1098)

NRS 690B.040 Policyproviding certain automobile coverage in Mexico. Anauthorized casualty insurer may issue through its licensed agents an automobileinsurance policy in which coverage for liability resulting from bodily injuryand property damage occurring in Mexico is provided by an insurer authorized totransact and transacting such insurance in Mexico under the laws of Mexico, ina portion of such policy or endorsement thereon or rider attached theretoexecuted by or on behalf of such other insurer, and whether or not such otherinsurer is authorized to transact insurance in this State.

(Added to NRS by 1971, 1778)

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

1. Except as otherwise provided in subsection 2, anyparty against whom a claim is asserted for compensation or damages for personalinjury under a policy of motor vehicle insurance covering a private passengercar may require any attorney representing the claimant to provide to the partyand his insurer or attorney, not more than once every 90 days, all medicalreports, records and bills concerning the claim.

2. In lieu of providing medical reports, records andbills pursuant to subsection 1, the claimant or any attorney representing theclaimant may provide to the party, his insurer or his attorney a writtenauthorization to receive the reports, records and bills from the provider ofhealth care. At the written request of the claimant or his attorney, copies ofall reports, records and bills obtained pursuant to the authorization must beprovided to the claimant or his attorney within 30 days after the date they arereceived. If the claimant or his attorney makes a written request for the reports,records and bills, the claimant or his attorney shall pay for the reasonablecosts 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, theinsurer who issued the policy specified in subsection 1 shall, upon request,immediately disclose to the insured or the claimant all pertinent facts orprovisions of the policy relating to any coverage at issue.

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

PRODUCTS LIABILITY

NRS 690B.060 Reportsto Commissioner. Repealed. (See chapter 456, Statutes of Nevada 2005,at page 2160.)

 

INDUSTRIAL INSURANCE

NRS 690B.090 Issuanceauthorized.

1. Any casualty insurer may provide industrialinsurance pursuant to the general provisions of chapters616A to 617, inclusive, of NRS concerningthe respective rights and obligations of employees and their employers, if theinsurer:

(a) Has a certificate of authority issued by theCommissioner pursuant to chapter 680A ofNRS; and

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

2. The insurance may be purchased by qualifiedemployers to secure the payment of compensation for employees injured in thecourse of employment.

3. The employer shall bear the costs for privateinsurance.

(Added to NRS by 1995, 2059)

INSURANCE FOR HOME PROTECTION

NRS 690B.100 Definitions. As used in NRS690B.100 to 690B.180, inclusive,unless the context otherwise requires:

1. Home means a structure used primarily forresidential 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 anyappurtenance to the common elements.

2. Insurance for home protection means a contract ofinsurance, which affords coverage over a specified term for a predeterminedfee, under which a person, other than the manufacturer, builder, seller orlessor of the home, agrees to repair, replace or indemnify from the cost ofrepair 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 consequentiallosses caused by the defects or failures.

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

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

NRS 690B.110 Applicabilityof other provisions.

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

2. The provisions of chapters687A and 692C of NRS do not apply toinsurance for home protection.

(Added to NRS by 1981, 1323)

NRS 690B.120 Exemptionsfrom licensing requirements. A person whosells insurance for home protection on behalf of an insurer who issues policiesof casualty insurance or insurance for home protection is exempted from theprovisions of chapter 683A of NRS whichrequire him to be licensed as an agent, broker or solicitor if:

1. His sales activity is conducted pursuant to awritten contract with the insurer which regulates his activity.

2. He holds a valid brokers, broker-salesmans orsalesmans license issued pursuant to chapter 645of NRS.

(Added to NRS by 1981, 1323)

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

1. Except as otherwise provided in subsection 2, aninsurer who issues policies of insurance for home protection, other thancasualty insurance, shall deposit, in accordance with chapter 682B of NRS, securities having a marketvalue of not less than $50,000, unless he furnishes evidence satisfactory tothe Commissioner of maintaining a deposit of not less than that amount whichcomplies with the requirements of his state of domicile and is held for theprotection of all holders of insurance contracts.

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

3. The insurer shall maintain:

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

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

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

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

 

NRS 690B.140 Investmentsin tangible personal property: Limitation. Aninsurer who issues policies of insurance for home protection, other thancasualty insurance, may make investments in tangible personal property for usein fulfilling its obligations to repair or replace components, systems orappliances of the home under its contracts of insurance for home protection, inan amount not to exceed 35 percent of its assets, as determined pursuant to NRS 681B.010, unless the Commissioner,whenever he deems it appropriate, waives this limitation by regulation.

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

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

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

NRS 690B.155 Provisionrequiring binding arbitration authorized; procedures for arbitration.

1. Subject to the approval of the Commissioner, acontract of insurance for home protection may include a provision whichrequires the parties to the contract to submit for binding arbitration anydispute between the parties concerning any matter directly or indirectlyrelated to, or associated with, the contract.

2. Except as otherwise provided in subsection 3, thearbitration must be conducted pursuant to the rules for commercial arbitrationestablished by the American Arbitration Association. The insurer is responsiblefor any administrative fees and expenses relating to the arbitration, exceptthat the insurer is not responsible for attorneys fees and fees for expertwitnesses unless those fees are awarded by the arbitrator.

3. If a provision described in subsection 1 isincluded in a contract of insurance for home protection, the provision shallnot be deemed unenforceable as an unreasonable contract of adhesion if theprovision 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 mustspecify:

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

(b) Any exclusions from and limitations on coverage.

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

(d) The services to be performed by the insurer and theterms and conditions of his performance.

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

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

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

(h) That, except in an emergency, including, withoutlimitation, the loss of heating, cooling, plumbing or electrical service by theinsured, services will be initiated by or under the direction of the insurerwithin 48 hours after the conclusion of an investigation for a claim. Work mustcommence on an emergency not later than 24 hours after the report of the claim.The Commissioner may adopt regulations to define emergency for the purposesof this paragraph.

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

2. Insurance for home protection may not be cancelledduring 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 tothe issuance or renewal of the contract.

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

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

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

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

1. Obtain fairness in the exclusions from the coverageprovided; or

2. Avoid illusory coverage caused by the nature orextent 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 whoissue policies of insurance for home protection, and setting limitations on theamounts of such expenses as a percentage of total premiums; and

2. Defining accounting standards to be used for suchinsurers.

(Added to NRS by 1995, 1630)

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

1. Engage in any other business of insurance or realestate 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 NRS690B.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 meaningsascribed to them in those sections.

(Added to NRS by 2003, 921, 3479)

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

(Added to NRS by 2003, 921, 3479)

NRS 690B.220 Extendedreporting endorsement defined. Extendedreporting endorsement means an endorsement to a claims-made policy which requiresthe payment of a separate premium and which provides coverage for claims thatarise from incidents or events which occur while the claims-made policy is inforce but which are reported to the insurer after the claims-made policy isterminated.

(Added to NRS by 2003, 921, 3479)

NRS 690B.230 Practitionerdefined. Practitioner means a practitionerwho provides health care.

(Added to NRS by 2003, 922, 3479)

NRS 690B.240 Professionalliability insurance defined. Professionalliability insurance means a policy of insurance covering the liability of apractitioner for a breach of his professional duty toward a patient.

(Added to NRS by 2003, 922, 3479)

NRS 690B.250 Practitionersof the healing arts: Reports to licensing boards. Exceptas more is required in NRS 630.3067 and633.526:

1. Each insurer which issues a policy of insurancecovering the liability of a practitioner licensed pursuant to chapters 630 to 640,inclusive, of NRS for a breach of his professional duty toward a patient shallreport to the board which licensed the practitioner within 45 days eachsettlement or award made or judgment rendered by reason of a claim, if thesettlement, award or judgment is for more than $5,000, giving the name andaddress 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 breachof his professional duty toward a patient shall report to the board whichissued his license within 45 days of each settlement or award made or judgmentrendered by reason of a claim, if the settlement, award or judgment is for morethan $5,000, giving his name and address, the name and address of the claimantand the circumstances of the case.

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

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

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

1. Each insurer which issues a policy of insurancecovering the liability of a physician licensed under chapter 630 of NRS or an osteopathic physicianlicensed under chapter 633 of NRS for a breachof his professional duty toward a patient shall, within 45 days after a claimis closed under the policy, submit a report to the Commissioner concerning theclaim. The report must include, without limitation:

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

(b) A statement setting forth the circumstances of thecase;

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

(d) The information specified in subsection 2 of NRS 679B.144.

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

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

(Added to NRS by 1977, 621; A 1987, 735; 2002 Special Session,24; 2003, 3317,3481)(Substitutedin revision for NRS 690B.050)

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

(Added to NRS by 2003, 3361)

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

(Added to NRS by 2003, 3361)

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

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

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

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

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

(Added to NRS by 2003, 922)

NRS 690B.300 Prohibitionagainst setting different premium rates based on number of babies delivered forcertain practitioners; exception.

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

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

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

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

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

(Added to NRS by 2003, 922)

NRS 690B.310 Prohibitionagainst confidentiality of certain information relating to settlement of claimfor breach of professional duty of certain practitioners.

1. If an agreement settles a claim or action against apractitioner licensed pursuant to chapter 630,631, 632 or 633 of NRS for a breach of his professional dutytoward 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 tothe claim or action;

(c) The nature of the claim or action as set forth inthe 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 oraction that conflicts with this section is void.

(Added to NRS by 2003, 924)

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

1. If an insurer offers to issue a claims-made policyto a practitioner licensed pursuant to chapters630 to 640, inclusive, of NRS, the insurershall:

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

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

(c) Disclose to the practitioner the portion of thepremium attributable to funding the extended reporting endorsement offered atno additional cost to the practitioner in the event of the practitionersdeath, disability or retirement, if such a benefit is offered.

(d) Disclose to the practitioner the vestingrequirements for the extended reporting endorsement offered at no additionalcost to the practitioner in the event of the practitioners death orretirement, if such a benefit is offered. If such a benefit is not offered, theabsence of such a benefit must be disclosed.

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

 

If we adopt any revision that wouldbroaden the coverage under this policy without any additional premium eitherwithin the policy period or within 60 days before the policy period, thebroadened coverage will immediately apply to this policy.

 

2. The disclosures required by subsection 1 must bemade as part of the offer and acceptance at the inception of the policy andagain at each renewal in the form of an endorsement attached to the insurancecontract and approved by the Commissioner.

3. The requirements set forth in this section are inaddition to the requirements set forth in NRS690B.290.

(Added to NRS by 2003, 3479)

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

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

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

3. The Commissioner shall adopt regulations to:

(a) Establish the requirements for a qualified riskmanagement system; and

(b) Carry out the provisions of this section.

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

(Added to NRS by 2003, 3480)

NRS 690B.340 Reviewof settlement or judgment by Commissioner. Ifa settlement or judgment exceeds the limits of the coverage provided by apolicy of professional liability insurance for a practitioner licensed pursuantto chapter 630, 631,632 or 633 ofNRS, the Commissioner shall review the settlement or judgment. If theCommissioner finds, after notice and a hearing, or upon waiver of hearing bythe insurer, that the insurer who issued the policy violated any provision ofthis Code with regard to the settlement or judgment, any combination of suchsettlements or judgments, or any proceedings related thereto, the Commissionermay suspend, limit or revoke the insurers certificate of authority.

(Added to NRS by 2003, 3360)

NRS 690B.350 Essentialmedical specialties: Determination, cancellation, termination or nonrenewal ofprofessional liability insurance.

1. Except as otherwise provided in this section, if aninsurer intends to cancel, terminate or otherwise not renew all policies ofprofessional liability insurance that it has issued to any class, type orspecialty of practitioner licensed pursuant to chapter630, 631 or 633of NRS, the insurer must provide 120 days notice of its intended action to theCommissioner and the practitioners before its intended action becomeseffective.

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

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

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

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

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

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

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

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

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

5. The Commissioner may adopt any regulations that arenecessary 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, thefollowing medical specialties shall be deemed to be essential medical specialtiesfor 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 Informationpertinent to monitoring compliance with applicable standards for rates:Commissioner to collect; analysis; annual report.

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

(a) The amount of gross premiums collected with regardto 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 pursuantto subsection 1, the Commissioner may request any additional information froman insurer:

(a) Whose rates and credit utilization are materiallydifferent from other insurers in the market for professional liabilityinsurance for a practitioner licensed pursuant to chapter630, 631, 632or 633 of NRS in this State;

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

(c) Whose information collected pursuant to subsection1 indicates a potentially adverse trend.

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

(a) Determine whether the additional information offersa 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 necessaryand appropriate to assure the ongoing stability of the market for professionalliability insurance for a practitioner licensed pursuant to chapter 630, 631,632 or 633 ofNRS in this State.

4. On an ongoing basis, the Commissioner shall:

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

(b) Prepare and submit a report of his findings andrecommendations to the Director of the Legislative Counsel Bureau fortransmittal to members of the Legislature on or before November 15 of eachyear.

(Added to NRS by 2003, 923)

NRS 690B.370 Annualreport 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 insuranceto a practitioner licensed pursuant to chapter 630or 633 of NRS to submit to the Commissioner anannual report on its loss prevention and control programs.

2. Not later than 90 days after the Commissionerreceives the annual reports from those insurers, the Commissioner shall submithis report on the loss prevention and control programs of those insurers, alongwith any recommendations, to the Director of the Legislative Counsel Bureau fortransmittal to members of the Legislature.

(Added to NRS by 2003, 3480)

 

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