AB 334 — Revises provisions relating to insurance for motor vehicles. (BDR 57-949)

(ReprintedAssembly withBill amendmentsNo. adopted on April 20, 2023) FIRST REPRINT A.B.

334334–Assemblywoman ABrown-May SSEMBLYCHAPTER.......... B ILLN O.

334–A SSEMBLYWOMAN B ROWN -MAY M ARCH 17, 2023 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to insurance for motor vehicles.

(BDR 57-949) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

aExisting claimlaw ofrequires: its insured relating to a contract of casualty of insurance within 30 days after receiving the claim;

and(1) (2)with certain exceptions, an insurer to notifyapprove or deny a policyholderclaim of its insured relating to a contract of casualty of insurance within 2030 days after receiving the claim if the insurer requires additional information or time totoys determine whether to approve or deny the claim.

(NRS 690B.012) Section 1 of this bill provides that if an insurer requires the inspection for repair of a motor vehicle relating to a claim by the insured or a claimant, the insurer requestshall, thatwithin the8 insuredbusiness ordays claimant,after asreceiving applicable, make the motorclaim vehicleand availableaccepting forliability: inspection;

and(1) (2)request withthat certainthe exceptions,insured, inspectthe claimant or a representative of the selected repair shop, as applicable, make the motor vehicle.vehicle available for inspection;

Theand insurer(2) iswith requiredcertain todays furnishafter athe copyinspection, ofto transmit the completed estimate which includes,includes,ness without limitation, an indication of the extent of known damages related to the claim and manner of repair at the time of the inspection.

Section 1 further provides that if, in response to a request for a supplemental estimate, the insurer determines that a motor vehicle requires further inspection, the insurer shall, within 8 business days after making such determination:

(1) request that the insuredinsured, the claimant or claimant,a representative of the selected repair shop, as applicable, make the motor vehicle availableThe forinsurer inspection;is required, within 2 business days after the inspection, to transmit the completed estimate which includes, without limitation, an indication of the extent of known damages related to the claim and manner of repair at the time of the inspection.

andIf (2)the withinsurer certainfails exceptions,to inspect or further inspect the motorvehicle vehicle.during the time in which it is required to do so or fails to provide the required completed estimate, the insurer waives its right to inspect or further inspect the vehicle and, cost of labor and price of parts.

TheFinally, insurersection is1 requiredauthorizes tothe furnishDivision aofhe copyInsurance of the estimateDepartment whichof includes,Business withoutand limitation,Industry to impose an indicationadministrative fine of thenot extentmore ofthan knownthe actual damages andor manner$1,200, ofwhichever repairis atless, thefor timeeach violation of thesection inspection.1.

If- the82nd insurerSession fails(2023) to inspect or provide the required estimate, the insurer waives its right to inspect or furtherails to - *AB334_R1* – 2 – inspectEXPLANATION the– vehicleMatter and,in withbolded certainitalics exceptions,is negotiationsnew; for payment of the claim are limited to the cost of labor and price of parts.

Finally,matter sectionbetween 1brackets authorizes[omitted administrativematerial] fineis ofmaterial notto morebe thanomitted. $1,200 for each violation of section 1.se an THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(a) Request that the insuredinsured, the claimant or claimant,a representative of the selected repair shop, as applicable, make the motor vehicle available for inspection;

 TheWithin insurer2 shallbusiness furnishdays aafter copyan ofinspection, the estimateinsurer atshall thetransmit time of the inspectioncompleted estimate which includes, without limitation, an indication of the extent of known damages related to the claim and manner of repair.

If, in response to a request for a supplemental estimate, the insurer determines that a motor vehicle requires further inspection, the insurer shall, within 8 business days after making such determination:

(a) Request that the insuredinsured, the claimant or claimant,a representative of the selected repair shop, as applicable, make the motor vehicle available for further inspection;

 TheWithin insurer2 shallbusiness furnishdays aafter copyan ofinspection, the estimateinsurer atshall thetransmit time of the inspectioncompleted estimate which includes, without limitation, an indication of the extent of known damages related to the claim and manner of repair.

If an insurer fails to inspect the motor vehicle during the period required pursuant to subsection 1, 2 or 3, as applicable, or fails to furnishtransmit a copy of the completed estimate required pursuant to subsection 1 or 2, as applicable, the insurer waives its right to inspect or further inspect the motor vehicle before any repairs are - 82nd Session (2023) – 3 – made to the vehicle.

Unless the repair facility or, as applicable, the insured or claimant allows an inspection or further inspection of -the *AB334_R1*vehicle –after 3the –period required pursuant to subsection 1, 2 or 3, negotiations for payment of the claim are limited to the cost ofrof labor and the price of parts unless the insurer provides objective evidenceof torepair.o dispute the existence of damage or the chosen manner of5. repair.

5.The insured or claimant, as applicable, may file a complaint against the insurer with the Division if the insurer waives its right to inspect or further inspect the vehicle and does not limit negotiations for payment of the claim to the cost of labor and the price of parts or provide objective evidence to dispute the existence of the damage or the chosen manner of repair.

The insured or claimant, as applicable, or a repair facility may file a complaint against the insurer with the Division if the insurer waives its right to inspect or further inspect the vehicle and does not limit negotiations for payment of the claim to the cost of labor and the price of parts or provide objective evidence to dispute the existence of the damage or the chosen manner of repair.

The Division may impose against an insurer an administrative fine of not more than $1,200the actual damages or $1,200, whichever is less, for a violation of the provisions of this section.

H7. - *AB334_R1*

As used in this section, “inspection” means:

(a) A physical inspection;

or (b) A digital inspection which includes, without limitation, the provision of digital photographs, videos or any other digital evidence through an electronic processing system authorized by an insurer that conducts the inspection of a motor vehicle.

~~~~~ 23 - 82nd Session (2023)