AB 130 — Revises provisions governing insurance. (BDR 57-780)

(ReprintedAssembly withBill amendmentsNo. adopted on April 14, 2021) FIRST REPRINT A.B.

130130–Assemblymen AFlores; SSEMBLY B ILL N O.

130–AAnderson, SSEMBLYMENBrown- FLORESMay, ;Considine, Duran, González, Martinez, Summers- Armstrong, Thomas and Torres Joint Sponsor:

ASenator NDERSONDonate ,CHAPTER.......... B ROWN -M AY , CONSIDINE, DURAN , GONZÁLEZ , MARTINEZ , SUMMERS -A RMSTRONG , THOMAS AND TORRES FEBRUARY 15, 2021 ____________ JOINT SPONSOR :

SENATOR DONATE ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing insurance.

(BDR 57-780) 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 687B.145) Section 1 of this bill requires such uninsured and underinsured vehicle coverage to also apply to policies that covExistingcoveExisting law requires such insurance companies to offer to insured persons the option of purchasing coverage in an amount of at least $1,000 for the payment of reasonable and necessary medical expenses resulting from a crash.

Under existing - *AB130_R1* – 2 – law, this option only applies to policies that cover passenger cars.

coverageExisting oflaw medicalrequires expensesa orpolicy uninsuredof andmotor underinsuredvehicle motoristsinsurance coverage,which orincludes both, to contain a provision for the reduction in the premium paid for such coverage if the motor vehicle is equipped with or contains certain safety devices.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Any policy of insurance or endorsement providing coverage under the provisions of NRS 690B.020 or other policy- of81st casualtySession insurance(2021) may– provide2 that– if the insured has coverage available to the insured under more than one policy orors provision of coverage, any recovery or benefits may equal but not exceed the higher of the applicable limits of the respective coverages, and the recovery or benefits must be prorated between the applicable coverages in the proportion that their respective limits bear to the aggregate of their limits.

Except as otherwise provided in subsection 5, insurance companies transacting motor vehicle insurance in this State must offer, on a form approved by the Commissioner, uninsured and underinsured vehicle coverage in an amount equal to the limits of coverage for bodily injury sold to an insured under a policy of insuranceinsurer coveringis not required to reoffer the usecoverage ofto athe passengerinsured carin [.]any replacement, reinstatement, substitute or motorcycle.amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer.

The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer.

If an insured suffers actual damages subject to the limitation of liability provided - *AB130_R1* – 3 – pursuant to NRS 41.035, underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of the insured’s own coverage any amount of damages for bodily injury from the insured’s insurer for the actual damages suffered by the insured that exceed that limitation of liability.

The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured- may81st purchaseSession the(2021) coverage– by3 requesting– it in writing from the insurer.

An insurer who makes a payment to an injured person on account of underinsured vehicle coverage as described in subsection 2 is not entitled to subrogation against the underinsured motorist who is liable for damages to the injured payee.

An insurer need not offer, provide or make available uninsured or underinsured vehicle coverage in connection with a general commercial liability policy, an excess policy, an umbrella policy or other policy that does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, operation or use of a specifically insured motor vehicle.vehicle.aintenance, 6.

6.

- *AB130_R1* – 4 – Sec.

A policy of insurance providing coverage arising out of the ownership, maintenance or use of a motor vehicle , other than a motorcycle, which is delivered or issued for delivery in this State and includes coverage for the payment of reasonable and in 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:

and - 81st Session (2021) – 4 – (b) Contains any other safety device, other than safety belts, which substantially enhances the safety of the occupants of thes,the motor vehicle.

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 insurerinsurero each may offer additional reductions in premiums pursuant to the requirements set forth in subsection 1 if they are approved by the Commissioner.

H~~~~~ 21 - *AB130_R1*81st Session (2021)