USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 690B - CASUALTY INSURANCE
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)
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
1. The Commissioner shall annually conduct a survey of licensed
operators of body shops in this State to determine:
(a) The rates charged by such operators for painting and other
repairs; and
(b) The difference, if any, between the amount paid by the
operators for new and used parts acquired for repairs and the amount
charged to customers for those parts.
2. The information obtained by the survey must be compiled in a
written report, which must set forth information relating to:
(a) Each county separately whose population is 50,000 or more; and
(b) The remaining counties of the State.
Ê The report is a public record for the purposes of NRS 239.010 .
(Added to NRS by 1989, 2045; A 2001, 1998 )
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 his 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 )
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)
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 him or with an automobile which the named insured or such a person
is occupying; and
(2) The named insured or someone on his behalf has reported
the accident within the time required by NRS 484.223 , 484.225 or
484.227 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 )
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) The year, make and complete identification number of the
insured vehicle or vehicles;
(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)
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 his agent or employee
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 his own vehicle was being repaired or serviced in the
bailment of a garageman engaged in the business of repairing or servicing
motor vehicles, the customer is lent by the garageman 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 garageman engaged
in the business of repairing or servicing motor vehicles who loans his
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)
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 484.3685 , nor
shall an insurer cancel or refuse to renew a policy of insurance for that
reason.
(Added to NRS by 1997, 2525)
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 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 484.379
, 484.3795 or 484.37955 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 )
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)
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)
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)
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 private passenger
car may require any attorney representing the claimant to provide to the
party and his insurer or attorney, 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, his insurer or his attorney a written
authorization to receive the reports, records and bills from the provider
of health care. At the written request of the claimant or his attorney,
copies of all reports, records and bills obtained pursuant to the
authorization must be provided to the claimant or his attorney within 30
days after the date they are received. 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 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.
(Added to NRS by 1995, 1747; A 1999, 2815 )
PRODUCTS LIABILITY
Repealed. (See chapter 456,
Statutes of Nevada 2005, at page 2160 .)
INDUSTRIAL INSURANCE
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
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 )
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)
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 him to be licensed as an
agent, broker or solicitor if:
1. His sales activity is conducted pursuant to a written contract
with the insurer which regulates his activity.
2. He holds a valid broker’s, broker-salesman’s or salesman’s
license issued pursuant to chapter 645 of NRS.
(Added to NRS by 1981, 1323)
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 he furnishes evidence satisfactory to the
Commissioner of maintaining a deposit of not less than that amount which
complies with the requirements of his state of domicile 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)
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 he deems
it appropriate, waives this limitation by regulation.
(Added to NRS by 1981, 1322; A 1999, 1448 )
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)
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)
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 his 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 )
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)
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)
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
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 )
“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 )
“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 )
“Practitioner” means a
practitioner who provides health care.
(Added to NRS by 2003, 922 , 3479 )
“Professional liability insurance” means a policy of insurance covering
the liability of a practitioner for a breach of his professional duty
toward a patient.
(Added to NRS by 2003, 922 , 3479 )
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 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
professional duty toward a patient shall report to the board which issued
his 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 his 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)
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
professional duty toward a patient shall, within 45 days after a claim is
closed under the policy, submit a report to the Commissioner concerning
the claim. The report must include, without limitation:
(a) The name and address of the claimant and the insured under the
policy;
(b) A statement setting forth the circumstances of the case;
(c) Information indicating whether any payment was made on 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 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 )—(Substituted in revision for NRS
690B.050)
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 )
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 )
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 )
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 )
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 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 )
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 )
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 )
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 )
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 )
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 his 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 )
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
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 )
