Nevada 2021 Regular Session Status: Enacted

AB 4 — Revises provisions relating to the Nevada Insurance Guaranty Association. (BDR 57-314)

Last action — Approved by the Governor. Chapter 27.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced November 18, 2020. Enacted.

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Advancing 50% · moderate confidence

Where this bill stands today.

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High

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  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

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889 added · 948 removed

889 line(s) added, 948 removed.

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(Reprinted with amendments adopted on April 13, 2021) FIRST REPRINT A.B.
Assembly Bill No.
4 A SSEMBLY B ILLN O.
4–Committee on Commerce and Labor CHAPTER..........
4–COMMITTEE ON C OMMERCE AND LABOR (O N BEHALF OF THE D IVISION OFINSURANCE OF THE DEPARTMENT OF B USINESS AND INDUSTRY ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to the Nevada Insurance Guaranty Association.
(BDR 57-314) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
(NRS 687A.040, 687A.050) The beneficiaries of policies issued by an insurer who has become insolvent and is no longer able to meet its obligations.
(NRS 687A.040, 687A.050) The Association receives and addresses claims of insurance policyholders and longer able to meet its obligations.
This bill revises existing law governing the operation of the Association and claims relating to insolvent insurers - *AB4_R1* – 2 – to align with model language provided by the National Conference of Insurance Guaranty Funds.
This bill revises existing law governing the operation of the Association and claims relating to insolvent insurers to align with model language provided by the National Conference of Insurance Guaranty Funds.
Sections 3 and 4 of this bill define the terms “person” and “self-insurer” which are specific to the law governing the operation of the Association and claims relating to insolvent insurers.
Sections 3 and 4 of this bill define the terms “person” and “self-insurer” which relating to insolvent insurers.
Section 7 of this bill indicates the placement of the newSection 5 of this bill limits the claims which may be asserted against a person insured by a policy issued by an insolvent insurer.
Section 7 of this bill indicates the placement of the new definitions within existing law.
(NRS 687A.030) Section 5 of this bill limits the claims which may be asserted against a person insured by a policy issued by an insolvent insurer.
(NRS 687A.033, 687A.060) Section 6 of this bill revises the applicability of the law governing the operation of the Association and claims relating to insolvent insurers.
(NRS 687A.033, 687A.060) of the Association and claims relating to insolvent insurers.
(NRS 687A.020) forth requirements for actions involving the Association.
(NRS 687A.020)e operation Section 9 of this bill revises the duties and authority of the Association, and sets forth requirements for actions involving the Association.
(NRS 687A.060) Sectionsets 10 of this bill revises the requirements governing the plan of operation of the Association.
(NRS 687A.060) Section of this bill revises the requirements governing the plan of operation of the Association.
(NRS 687A.080) Section 12 of this bill revises the provisions governing subrogation and recovery by the Association.
(NRS 687A.080) Section 12 of this (NRS 687A.090)he provisions governing subrogation and recovery by the Association.
(NRS 687A.090) Section 13 of this bill changes which claims may be filed directly with the requirements for exhaustion of other coverage by a claimant seeking recovery fromthe the Association.
Section 13 of this bill changes which claims may be filed directly with the receiver of an insolvent insurer.
(NRS 687A.100) Section 15 of this bill revises the duties and authority of the Board of Directors of the Association.
(NRS 687A.095) Section 14 of this bill revises the requirements for exhaustion of other coverage by a claimant seeking recovery from the Association.
(NRS 687A.110) Section 16 of this bill revises the immunity from liability for the Board of Directors, the Association itself and the Commissioner, and for certain persons working for the Association or the insurers.
(NRS 687A.100) - 81st Session (2021) – 2 – Section 15 of this bill revises the duties and authority of the Board of Directors of the Association.
(NRS 687A.150)d to activities relating to the Association and insolvent Section 17 of this bill revises provisions governing court proceedings involving an insolvent insurer, and authorizes the Association and its representatives to access the records of an insolvent insurer.
(NRS 687A.110) Section 16 of this bill revises the immunity Commissioner, and for certain persons working for the Association or thee Commissioner, with regard to activities relating to the Association and insolvent insurers.
(NRS 687A.160) Sections 1 and 18 of this bill add and delete internal references in existing law to account for revisions made by sections 9 and 15.
(NRS 687A.150) Section 17 of this bill revises provisions governing court proceedings involving an insolvent insurer, and authorizes the Association and its representatives to access theSections 1 and 18 of this bill add and delete internal references in existing law to account for revisions made by sections 9 and 15.
(NRS 239.010, 686B.230) THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
(NRS 239.010, 686B.230) EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
(a) Assess participating insurers amounts necessary to pay the obligations of the Association, administration expenses, the cost of - *AB4_R1* – 3 – examinations [conducted pursuant to NRS 687A.110] and other expenses authorized by this chapter.
(a) Assess participating insurers amounts necessary to pay the obligations of the Association, administration expenses, the cost of examinations [conducted pursuant to NRS 687A.110] and other expenses authorized by this chapter.
(c) Sue or be sued, including taking any legal action necessary to recover any assessments for, on behalf of or against participating carriers.
- 81st Session (2021) – 3 – to recover any assessments for, on behalf of or against participating carriers.
(i) Issue and market, through agents, policies of insurance providing the coverage required by this section in its own name or on behalf of participating carriers.
providing the coverage required by this section in its own name or on behalf of participating carriers.
- *AB4_R1* – 4 – (n) Operate and administer any combination of plans, pools, reinsurance arrangements or other mechanisms as deemed appropriate to best accomplish the fair and equitable operation of the Association for the purposes of making available essential insurance coverage.
(n) Operate and administer any combination of plans, pools, reinsurance arrangements or other mechanisms as deemed appropriate to best accomplish the fair and equitable operation of insurance coverage.
3.
the purposes of making available essential 3.
An insured who pays the stabilization charge must not be required to pay any assessment to recoup a deficit of the Association incurred in any policy year for which the charge is paid.
An insured who pays the stabilization charge must not be required to pay any assessment to recoup a - 81st Session (2021) – 4 – deficit of the Association incurred in any policy year for which the charge is paid.
The Association’s plan of operation must provide for the return to the insured of so much of the insured’s payment as remains after all actual or potential liabilities under the policy have been discharged.
The Association’s plan of operation must provide for the return to the insured of so much of the insured’s payment as remains after all actual or potential liabilities under the policy have beeSec.
2.argChapter 687A of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 5 of this act.
2.
Chapter 687A of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 5 of this act.
Sec.
Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks;
Mortgage guaranty, financial guaranty or other forms of ins3.ancFidelity or surety bonds or any other bonding obligations;
3.
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Fidelity or surety bonds or any other bonding obligations;
Credit insurance as defined in NRS 690A.015 [;] , vendors’ single interest insurance, collateral protection insurance or any - *AB4_R1* – 5 – similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;
Credit insurance as defined in NRS 690A.015 [;] , vendors’ single interest insurance, collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;
or (d) Reimbursement for the liability incurred by the issuer of agreements or service contracts which provide any benefits described in this subsection;
or - 81st Session (2021) – 5 – (d) Reimbursement for the liability incurred by the issuer of agreements or service contracts which provide any benefits described in this subsection;
7.
Ocean marine insurance;
(b) The claimant or insured, if other than a natural person, maintains its principal place of business in this State at the time of the insured event.
(b) The claimant or insured, if other than a natural person, the insured event.cipal place of business in this State at the time of (c) The property from which the first party property damage claim arises is permanently located in this State.
(c) The property from which the first party property damage claim arises is permanently located in this State.
- *AB4_R1* – 6 – (a) An amount [that is directly or indirectly due a reinsurer, insurer, insurance pool or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.
(a) An amount [that is directly or indirectly due a reinsurer, insurer, insurance pool or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.
(c) An amount sought as a return of premium under any retrospective rating plan.
- 81st Session (2021) – 6 – retrospective rating plan.
(d) An amount due any reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer as subrogation recoveries, reinsurance recoveries, contribution, indemnification or otherwise.
a return of premium under any (d) An amount due any reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer as subrogation recoveries, reinsurance recoveries, contribution, indemnification or otherwise.
[(d)] (f) A claim filed with the Association for a loss that is incurred but is not reported to the Association before the expiration of the period specified in subparagraph (1) or (2) of paragraph [(c).] (e).
[(d)] (f) A claim filed with the Association for a loss that is expiration of the period specified in subparagraph (1) or (2) of paragraph [(c).] (e).
(h) A third-party claim relating to a policy of an insured whose net worth exceeds $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.
net worth exceeds $25,000,000 on December 31 of the yearsured whose immediately preceding the date the insurer becomes an insolvent insurer.
- *AB4_R1* – 7 – (i) A claim that would otherwise be a covered claim, but is an obligation to or on behalf of a person who has a net worth greater than that allowed by the insurance guaranty association law of the state of residence of the claimant at the time specified by such law, and which association has denied coverage to that claimant on that basis.
(i) A claim that would otherwise be a covered claim, but is an obligation to or on behalf of a person who has a net worth greater than that allowed by the insurance guaranty association law of the state of residence of the claimant at the time specified by such law, and which association has denied coverage to that claimant on that basis.
(j) A first-party claim by an insured which is an affiliate of the insolvent insurer.
- 81st Session (2021) – 7 – (j) A first-party claim by an insured which is an affiliate of the insolvent insurer.
(k) A fee or other amount relating to goods or services sought by or on behalf of any attorney or other provider of goods or services retained by the insolvent insurer or an insured before the date the insurer was determined to be insolvent.
(k) A fee or other amount relating to goods or services sought by or on behalf of any attorney or other provider of goods or date the insurer was determined to be insolvent.
(l) A fee or other amount sought by or on behalf of any attorney or other provider of goods or services retained by any insured or claimant in connection with the assertion or prosecution of any claim, covered or otherwise, against the Association.
insured before the (l) A fee or other amount sought by or on behalf of any attorney or other provider of goods or services retained by any insured or claimant in connection with the assertion or prosecution of any claim, covered or otherwise, against the Association.
The provisions of paragraph (h) of subsection 2 do not apply to third-party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee or liquidator for all or a substantial part of the insured’s assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating the insured bankrupt or insolvent or approving a petition seeking reorganization of the insured or of all or substantial part of its assets.
The provisions of paragraph (h) of subsection 2 do not apply to third-party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee or liquidator for all or a substantial part of the insured’s assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment or decree is entered by a court of competent jurisdiction, or insolvent or approving a petition seeking reorganization of thet insured or of all or substantial part of its assets.
- *AB4_R1* – 8 – (a) [Is] Except as otherwise provided in paragraph (b), is obligated to the extent of the covered claims existing before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or before the insured replaces the policy or on request cancels the policy if the insured does so within 30 days after the determination.
(a) [Is] Except as otherwise provided in paragraph (b), is obligated to the extent of the covered claims existing before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or - 81st Session (2021) – 8 – policy if the insured does so within 30 days after the determination.
(1) Payment, by settlement releasing the insured or on a judgment, of an amount equal to the lesser of the Association’s covered claim obligation limit or the applicable policy limit;
judgment, of an amount equal to the lesser of the Association’s covered claim obligation limit or the applicable policy limit;
The rights include, without limitation, the right to seek and obtain any recoverable salvage and to subrogate a covered claim, to the extent that the Association has paid its obligation under the claim.
The rights include, without limitation, the right to seek and obtain any recoverable salvage and to subrogate a covered the claim.
The Association shall not be deemed to be the insolvent insurer for any purpose relating to the issue of whether the Association is amenable to the personal jurisdiction of the courts of any state.
The Association shall not be deemed to be the insolventunder insurer for any purpose relating to the issue of whether the Association is amenable to the personal jurisdiction of the courts of any state.
[(c)] (d) Shall assess member insurers amounts necessary to pay the obligations of the Association pursuant to paragraph (a) after an - *AB4_R1* – 9 – insolvency, the expenses of handling covered claims subsequent to an insolvency [, the cost of examinations pursuant to NRS 687A.110] and other expenses authorized by this chapter.
[(c)] (d) Shall assess member insurers amounts necessary to pay the obligations of the Association pursuant to paragraph (a) after an insolvency, the expenses of handling covered claims subsequent to an insolvency [, the cost of examinations pursuant to NRS 687A.110] and other expenses authorized by this chapter.
The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year.
The - 81st Session (2021) – 9 – the net direct written premiums of the member insurer for thehat calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year.
The Association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the financial statement of the member insurer to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.
The Association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the financial statement of the member insurer to reflect required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.
or (2) For assessments made on or after January 1, 1993,] at the rate of 20 percent per year for 5 successive years beginning with the calendar year following the calendar year in which the assessments are paid.
or (2) For assessments made on or after January 1, 1993,] at the rate of 20 percent per year for 5 successive years beginning with the are paid.year following the calendar year in which the assessments [(d)] (e) Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the obligation of the Association and deny any other claims.
[(d)] (e) Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the obligation of the Association and deny any other claims.
- *AB4_R1* – 10 – [(e)] (f) Is not bound by a release, compromise, waiver, unfunded settlement or judgment executed or entered within 12 months before an order of liquidation and has the right to assert all defenses available to the Association, including, without limitation, defenses applicable to determining and enforcing its statutory rights and obligations to an applicable claim.
[(e)] (f) Is not bound by a release, compromise, waiver, unfunded settlement or judgment executed or entered within 12 - 81st Session (2021) – 10 – all defenses available to the Association, including, withoutsert limitation, defenses applicable to determining and enforcing its statutory rights and obligations to an applicable claim.
(g) Shall notify such persons as the Commissioner directs pursuant to paragraph (a) of subsection 2 of NRS 687A.080.
(g) Shall notify such persons as the Commissioner directs pur[(f)] (h) Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities.
[(f)] (h) Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities.
(c) Borrow money necessary to carry out the purposes of this chapter in accordance with the plan of operation.
(c) Borrow money necessary to carry out the purposes of this cha(d) Sue or be sued.
(d) Sue or be sued.
(f) Establish procedures for requesting financial information from insureds and claimants on a confidential basis for the purposes of applying sections concerning the net worth of first- party and third-party claimants, subject to such information being - *AB4_R1* – 11 – shared with any other association similar to the Association and the liquidator for the insolvent insurer on the same confidential basis.
(f) Establish procedures for requesting financial information from insureds and claimants on a confidential basis for the purposes of applying sections concerning the net worth of first- party and third-party claimants, subject to such information being - 81st Session (2021) – 11 – the liquidator for the insolvent insurer on the same confidential basis.
In such an action, the Association has the absolute right through emergency equitable relief to obtain custody and control of all such files, records and electronic data in the custody or control of such third-party administrator, agent, attorney or other representative of the insolvent insurer, regardless of where such files, records and electronic data may be physically located.
In such an action, the Association has the absolute right through emergency equitable relief to obtain custody and control of all such files, records and electronic data in the custody or control of such third-party administrator, agent, attorney or other representative of the electronic data may be physically located.
The provisions of this paragraph have no effect on the rights and remedies the custodian of such files, records and electronic data may have against the insolvent insurer, so long as such rights and remedies do not conflict with the rights of the Association to custody and control of the files, records and electronic data.
The provisions of this paragraph have no effect on the rights and remedies the custodian of such files, records and electronic data may have against the insolvent insurer, so long as such rights and remedies do not conflict with records and electronic data.n to custody and control of the files, (h) Perform other acts necessary or proper to effectuate the purposes of this chapter.
(h) Perform other acts necessary or proper to effectuate the purposes of this chapter.
[(h)] (j) If, at the end of any calendar year, the Board of Directors of the Association finds that the assets of the Association exceed its liabilities as estimated by the Board of Directors for the coming year, refund to the member insurers in proportion to the - *AB4_R1* – 12 – contribution of each that amount by which the assets of the Association exceed the liabilities.
[(h)] (j) If, at the end of any calendar year, the Board of Directors of the Association finds that the assets of the Association - 81st Session (2021) – 12 – exceed its liabilities as estimated by the Board of Directors for the coming year, refund to the member insurers in proportion to the contribution of each that amount by which the assets of the Association exceed the liabilities.
[(i)] (k) Subject to approval by the Commissioner, provide claims handling services to any run-off insurer if the Association’s expenses related thereto are fully reimbursed.
claims handling services to any run-off insurer if theprovide Association’s expenses related thereto are fully reimbursed.
(l) Assess each member insurer equally not more than [$100] $1,000 per year for administrative expenses not related to the insolvency of any insurer.
(l) Assess each member insurer equally not more than [$100] insolvency of any insurer.strative expenses not related to the 3.
3.
(c) In any action contesting the applicability of paragraph (g) or (h) of subsection 2 of NRS 687A.033 in which the insured or claimant has declined to provide financial information under the procedure provided in the plan of operation submitted pursuant to NRS 687A.070, the insured or claimant bears the burden of proof concerning its net worth at the relevant time.
(c) In any action contesting the applicability of paragraph (g) or (h) of subsection 2 of NRS 687A.033 in which the insured or claimant has declined to provide financial information under the - 81st Session (2021) – 13 – procedure provided in the plan of operation submitted pursuant to NRS 687A.070, the insured or claimant bears the burden of proof concerning its net worth at the relevant time.
If the insured or claimant fails to prove that its net worth at the relevant time was - *AB4_R1* – 13 – less than the applicable amount, the court shall award the Association its full costs, expenses and reasonable attorney’s fees in contesting the claim.
If the insured or claimant fails to prove that its net worth at the relevant time was Association its full costs, expenses and reasonable attorney’s fees in contesting the claim.
(b) Establish procedures for managing assets of the Association.
(c) [Establish]rocMandatefor thatginthesseAssociationssoestablish procedures to designate the amount and method of reimbursing members of the Board of Directors under NRS 687A.050.
(c) [Establish] Mandate that the Association establish procedures to designate the amount and method of reimbursing members of the Board of Directors under NRS 687A.050.
(g) Provide that any member insurer aggrieved by any final action or decision of the Association may appeal to the Commissioner within 30 days after the action or decision.
- 81st Session (2021) – 14 – action or decision of the Association may appeal to the final Commissioner within 30 days after the action or decision.
- *AB4_R1* – 14 – (i) Contain additional provisions necessary or proper for the execution of the duties and powers of the Association.
(i) Contain additional provisions necessary or proper for the execution of the duties and powers of the Association.
A delegation under this subsection takes effect only with the approval of both the Board of Directors and the Commissioner, and may be made only to a person who extends protection not substantially less favorable and effective than that provided by this chapter.
A delegation under this subsection takes effect only with the approval of both the Board of Directors and the Commissioner, and may be made only to a person who extends protection not substantially less favSec.
Sec.
(a) Require that the Association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter.
insolvent insurer and any other interested parties of thef the determination of insolvency and of their rights under this chapter.
(b) Suspend or revoke, after notice and opportunity for hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.
(b) Suspend or revoke, after notice and opportunity for hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails - 81st Session (2021) – 15 – Commissioner may levy a fine on any member insurer which fails to pay an assessment when due.
As an alternative, the Commissioner may levy a fine on any member insurer which fails to pay an assessment when due.
- *AB4_R1* – 15 – (d) Request the Association to perform any acts specified in paragraph [(g)] (i) of subsection 2 of NRS 687A.060.
(d) Request the Association to perform any acts specified in paragraph [(g)] (i) of subsection 2 of NRS 687A.060.
(a) As otherwise provided in subsection 2 [,] ;
(b) For a cause of action which the insolvent insurer would have had if such sums had been paid by the insolvent insurer, the Association does not have a cause of action against the insured of the insolvent insurer for any sums it has paid out.
and (b) For a cause of action which the insolvent insurer would have had if such sums had been paid by the insolvent insurer,  the Association does not have a cause of action against the insured of the insolvent insurer for any sums it has paid out.
The Association and any association similar to the Association in another state must be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on obligations relating to covered claims as determined under this chapter or similar laws in other states and must receive dividends and any other distributions at the priority set forth in the final order of liquidation.
The Association and any association similar to the the liquidation of an insolvent insurer for any amounts paid by them on obligations relating to covered claims as determined under this chapter or similar laws in other states and must receive dividends and any other distributions at the priority set forth in the final order of liquidation.
The court having jurisdiction shall grant those claims priority equal to that to which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer.
The court having jurisdiction shall - 81st Session (2021) – 16 – grant those claims priority equal to that to which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer.
The expenses of the Association or similar organization in handling claims must be accorded the same priority as the liquidator’s expenses.
The expenses of the Association or similar organization in handling claims must be accorded the same priority as 4.
4.
The Association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the Association and estimates of anticipated claims on the Association, which statements shall preserve the rights of the Association against the assets of the insolvent insurer.
The Association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the Association and estimates of anticipated claims on the - *AB4_R1* – 16 – Association, which statements shall preserve the rights of the Association against the assets of the insolvent insurer.
Any person having a claim [against his or her insurer, including, but not limited to, a claim for damages caused by an uninsured motorist, under any provision in the person’s insurance policy, which is also a covered claim shall first exhaust his or her right under the policy.
Any person having a claim [against his or her an uninsured motorist, under any provision in the person’s insurancey policy, which is also a covered claim shall first exhaust his or her right under the policy.
Any amount payable on a covered claim under this chapter must be reduced by the full applicable limits stated in such other insurance policy and the Association must receive a full credit for such stated limits, or, where there are no applicable stated limits, the claim must be reduced by the total recovery.
Any amount payable on a covered claim under this chapter must be reduced by the full applicable limits stated in such other insurance policy and the Association - 81st Session (2021) – 17 – must receive a full credit for such stated limits, or, where there are no applicable stated limits, the claim must be reduced by the total recovery.
2.
insurance policy:urposes of subsection 1, a claim under an (a) Which provides liability coverage to a person who may be jointly and severally liable with or a joint tortfeasor with the person covered under the policy of the insolvent insurer that gives rise to the covered claim shall be deemed to be a claim arising from the same facts, injury or loss that gave rise to the covered claim against the Association.
For the purposes of subsection 1, a claim under an insurance policy:
(a) Which provides liability coverage to a person who may be jointly and severally liable with or a joint tortfeasor with the person covered under the policy of the insolvent insurer that gives rise to the covered claim shall be deemed to be a claim arising - *AB4_R1* – 17 – from the same facts, injury or loss that gave rise to the covered claim against the Association.
If the claim is a workers’ compensation claim, recovery must first be sought from the association of the residence of the claimant.
If the claim is a the association of the residence of the claimant.
Within 30 days of the receipt of such request, the Commissioner shall begin such examination.
Within 30 days of the receipt of such request, the Commissioner shall begin - 81st Session (2021) – 18 – such examination.
The cost of such examination shall be paid by the Association and the examination report shall be treated as are other examination reports.
The cost of such examination shall be paid by the Association and the Except as permitted by paragraph (c) of subsection 1 of NRSn reports.
Except as permitted by paragraph (c) of subsection 1 of NRS 687A.115, the Commissioner shall not release an examination report to the Board of Directors prior to its release to the public.
687A.115, the Commissioner shall not release an examination report to the Board of Directors prior to its release to the public.
The request for an examination shall be kept on file by the Commissioner, but it shall not be open to public - *AB4_R1* – 18 – inspection prior to the release of the examination report to the public.
The request for an examination shall be kept on file by the Commissioner, but it shall not be open to public inspection prior to the release of the examination report to the public.
The Board of Directors [shall,] may, at the conclusion of any [insurer] insolvency of a domestic insurer in which the Association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the Association, and submit such report to the Commissioner.
The Board of Directors [shall,] may, at the conclusion of any [insurer] insolvency of a domestic insurer in which the Association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the Association, and submit such report to theSec.
Sec.
[Upon the application of the Association or insured and upon cause shown,] Subject to waiver by the Association in specific cases involving covered claims, all proceedings in which the insolvent insurer is a party, or is obligated to defend a party, in any court in this State must be stayed [for 3 months and any] until the last day fixed by the court for the filing of claims and for such additional time thereafter [ordered] as may be determined by the court [after] from the date the insolvency is determined or an ancillary proceeding is instituted in this State, whichever is later, to permit proper defense by the Association of all pending causes of action.
[Upon the application of the Association or insured and upon cause shown,] Subject to waiver by the Association in specific cases involving covered claims, all proceedings in which the insolvent insurer is a party, or is obligated to defend a party, in any court in this State must be stayed [for 3 months and any] until the last day fixed by the court for the filing of claims and for such additional time thereafter [ordered] as may - 81st Session (2021) – 19 – be determined by the court [after] from the date the insolvency is determined or an ancillary proceeding is instituted in this State, whichever is later, to permit proper defense by the Association of all pending causes of action.
[Cause may be established by affidavit showing the unavailability of the insolvent insurer’s files or records which are reasonably necessary for the Association to confirm coverage and adjust the claim.] 2.
[Cause may be established by affidavit which are reasonably necessary for the Association to confirmr records coverage and adjust the claim.] 2.
[If an insolvent insurer has failed to defend an insured in any action, the Association may apply on its own behalf or on behalf of the insured to have any judgment or order in the action set aside and the Association may defend against the action on its merits.] The liquidator, receiver or statutory successor of an insolvent insurer governed by this chapter shall permit access by the Association or - *AB4_R1* – 19 – its authorized representative to the insolvent insurer’s records which are necessary for the Association in carrying out its functions under this chapter with regard to covered claims.
[If an insolvent insurer has failed to defend an insured in any action, the Association may apply on its own behalf or on behalf of the insured to have any judgment or order in the action set aside and the Association may defend against the action on its merits.] The liquidator, receiver or statutory successor of an insolvent insurer governed by this chapter shall permit access by the Association or its authorized representative to the insolvent insurer’s records which are necessary for the Association in carrying out its functions under this chapter with regard to covered claims.
Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.071, 49.095, 49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 130.712, 136.050, 159.044, 159A.044, 172.075, 172.245, 176.01249, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 226.300, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239.014, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 239C.420, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 247.540, 247.550, 247.560, 250.087, 250.130, 250.140, 250.150, 268.095, 268.0978, 268.490, 268.910, 269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 293.906, 293.908, 293.910, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 391.925, 392.029, 392.147, - *AB4_R1* – 20 – 392.264, 392.271, 392.315, 392.317, 392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 396.9685, 398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.028, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 437.145, 437.207, 439.4941, 439.840, 439.914, 439B.420, 439B.754, 439B.760, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 442.774, 445A.665, 445B.570, 445B.7773, 447.345, 449.209, 449.245, 449.4315, 449A.112, 450.140, 450B.188, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 481.091, 481.093, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484A.469, 484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.2673, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.3415, 632.405, 633.283, 633.301, 633.4715, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641.221, 641.325, 641A.191, 641A.262, 641A.289, 641B.170, 641B.282, 641B.460, 641C.760, 641C.800, 642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 653.900, 654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.450, 673.480, 675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, [687A.110,] 687A.060, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada - *AB4_R1* – 21 – 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records.
Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.071, 49.095, 49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 118B.026,9.2119.260,30,119.265, 11119.267,16A119.280,6B.119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 130.712, 136.050, 159.044, 159A.044, 172.075, 172.245, 176.01249, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 226.300, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239.014, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 239C.420, 240.007, 241.020, 241.030, - 81st Session (2021) – 20 – 241.039, 242.105, 244.264, 244.335, 247.540, 247.550, 247.560, 250.087, 250.130, 250.140, 250.150, 268.095, 268.0978, 268.490, 268.910, 269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 293.906, 293.908, 293.910, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 396.9685, 398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.028, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 437.145, 437.207, 439.4941, 439.840, 439.914, 439B.420, 439B.754, 439B.760, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 442.774, 445A.665, 445B.570, 445B.7773, 447.345, 449.209, 449.245, 449.4315, 449A.112, 450.140, 450B.188, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993,59.050, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 481.091, 481.093, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484A.469, 484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.2673, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.3415, 632.405, 633.283, 633.301, 633.4715, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, - 81st Session (2021) – 21 – 640C.760, 640D.190, 640E.340, 641.090, 641.221, 641.325, 641A.191, 641A.262, 641A.289, 641B.170, 641B.282, 641B.460, 641C.760, 641C.800, 642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 653.900, 654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.450, 673.480, 675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, [687A.110,] 687A.060, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records.
This section does not supersede or in any manner affect the federal laws governing copyrights or enlarge, diminish or affect in any other manner the rights of a person in any written book or record which is copyrighted pursuant to federal law.
This section does not supersede or in any manner affect the any other manner the rights of a person in any written book orct in record which is copyrighted pursuant to federal law.
If requested, a governmental entity shall provide a copy of a public record in an electronic format by means of an electronic medium.
If requested, a governmental entity shall provide a copy of a public record in an electronic format by means of an electronic - 81st Session (2021) – 22 – medium.
(1) Was not created or prepared in an electronic format;
(2) Is not available in an electronic format;
and (2) Is not available in an electronic format;
or format;
or (b) Providing the public record in an electronic format or by means of an electronic medium would:
and (b) Providing the public record in an electronic format or by means of an electronic medium would:
- *AB4_R1* – 22 – request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.
(b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.
H - *AB4_R1*
~~~~~ 21 - 81st Session (2021)
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Amendments

1 amendment

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Action History

  1. Approved by the Governor. Chapter 27.

  2. Enrolled and delivered to Governor.

  3. In Assembly. To enrollment.

  4. Read third time. Passed. Title approved. (Yeas: 21, Nays: None.) To Assembly.

  5. Read second time.

  6. From committee: Do pass.

  7. In Senate. Read first time. Referred to Committee on Commerce and Labor. To committee.

  8. From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved. (Yeas: 42, Nays: None.) To Senate.

  9. Read second time. Amended. (Amend. No. 10.) To printer.

  10. From committee: Amend, and do pass as amended.

  11. To committee.

  12. Read first time.

  13. From printer.

  14. Prefiled. Referred to Committee on Commerce and Labor. To printer.

Sponsors

  • Assembly Committee on Commerce and Labor · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Assembly Committee on Commerce and Labor

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance health-insurance
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AB 4 is sponsored by Assembly Committee on Commerce and Labor.
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This bill has been enacted into law. Introduced November 18, 2020. Enacted.
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