AB 18 — Revises provisions relating to contracts of insurance and casualty insurance. (BDR 57-315)

(ReprintedAssembly withBill amendmentsNo. adopted on April 13, 2021) FIRST REPRINT A.B.

1818–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

18–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 contracts of insurance and casualty insurance.

(BDR 57-315) 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.

Existing law provides that, with certain exceptions, no policy of motor vehicle liability insurance may be delivered or issued for delivery in this State unless it provides uninsured vehicle coverage to the persons insured under the policy in an amount that is not less than the minimum limits of coverage for bodily injuryinjuryn an required under Nevada’s Motor Vehicle Insurance and Financial Responsibility Act, which are currently $25,000 for bodily injury to or death of one person in any one crash and $50,000 for bodily injury to or death of two or more persons in any one crash, and not greater than the coverage for bodily injury that is provided by the policy.

(NRS 485.185, 690B.020) Section 3 of this bill eliminates the limitation on the maximum amount of uninsured vehicle coverage that may be provided by a poliExisting law prohibits an insurer from renewing a policy on different terms unless the insurer notifies the insured in writing of motorthe vehicledifferent liabilityterms insurance.at least 30 days before the expiration of the policy.

ExistingIf lawthe prohibitsinsurer anfails insurerto fromprovide renewingadequate aand policytimely onnotice, differentexisting termslaw unlessrequires the insurer notifiesto therenew insured in writing of the differentpolicy terms at least 30 days before the expirationexpiring ofterms. the policy.

If(NRS 687B.350) Section 2 of this bill provides that the insurernotification failsprovisions do not apply to providea adequaterenewal andof terms.a policy in which the change in policy or coverage provisions consists only of:

(NRS(1) 687B.350)a Sectiondecrease 2in ofthe thisamount billof provides that the notificationtotal expiringeffective provisionsdate doand notexpiration applydate to a renewal of athe policy inif which the changeduration inof policythe orrenewed coveragepolicy provisionsremains consistsunchanged; only of:

(1)or (3) a decreasechange in one or more conditions of the amountpolicy that are intended to make an aspect of the totalcoverage premiumprovided chargedby the policy more favorable to the insured forand is not accompanied by a change in one or more conditions of the renewalpolicy that are intended to make an aspect of the policy;coverage provided by the policy less favorable to the insured.

(2)EXPLANATION a– changeMatter in thebolded -italics *AB18_R1*is –new; 2 – effective date and expiration date of the policy if the duration of the renewed policy remains unchanged;

ormatter (3)between abrackets change[omitted inmaterial] one or more conditions of the policy that are to the insured and is notmaterial accompanied by a change in one or more conditions of the policy that are intended to makebe anomitted. aspect of the coverage provided by the policy less favorable to the insured.

Except as otherwise provided in [subsection 2,] subsections 2 and 3, an insurer shall not renew a policy [on different terms,] if the renewal includes a change in policy or coverage provisions, including [different] a change in rates [,] or premiums charged to the insured, unless the insurer notifies the insured- in81st writingSession of(2021) the– [different2 terms– or rates] change in policy or coverage provisions at least 30 days before the expiration of thethey policy.

The provisions of this section do not apply to a renewal of aconsists policyonly inof whicha:he the change in policy or coverage provisions consists(a) onlyDecrease in the amount of a:the total premium charged to the insured for the renewal of the policy;

(a) Decrease in the amount of the total premium charged to the insured for the renewal of the policy;

or (c) Change in one or more conditions of the policy that are intended to make an aspect of the coverage provided by the policy more favorable to the insured and is not accompanied by a change in one or more conditions of the policy that are intended to make - *AB18_R1* – 3 – an aspect of the coverage provided by the policy less favorable to the insured.

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- form81st furnishedSession by(2021) the– insurer3 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.

(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 crash 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;

or - *AB18_R1* – 4 – (f) The owner or operator of which is unknown or after reasonable diligence cannot be found if:

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

- 81st Session (2021) – 4 – 4.

(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;

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