AB 512 — Revises provisions relating to casualty insurance. (BDR 57-1089)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

512512–Committee Aon SSEMBLYCommerce Band ILLNLabor O.CHAPTER..........

512–COMMITTEE ON C OMMERCE AND LABOR M ARCH 24, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to casualty insurance.

(BDR 57-1089) 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.

Existinginsurance lawthat prohibitscontains an insurer from issuing or renewing a policyprovision ofthat: liability the policy by the costs of defense, legal costs and fees and other expenses forated in claims;

(1) reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims;

(1) provides insurance against legal liability arising from the ownership or fromoperation the ownership of housinga occupiedmotor byvehicle; the owner of the housing;

(3)(2) isprovides ainsurance against legal liability arising policyfrom the ownership of commercialhousing generaloccupied liabilityby insurance;the owner of the housing;

(4)(3) is a policy of commercial automobilegeneral liability insurance;

or(4) (5)is providesa insurancepolicy coveringof thecommercial professional liability of certain providers of health care.

Existing regulations also exempt from thetheility applicability of the prohibitions:

(Sections 2 of this bill codifies those provisions of existing regulations into statute.1 Existing law provides for the regulation of insurance and insurers3 in this State by the Commissioner of Insurance.Adopted Reg.

(Title 57 of NRS)Comm’r Existing law establishes various kinds of insuranceInsurance, andLCB prohibitsFile theNo. Commissioner from authorizing an insurer to transact in this State any kind of insurance other than the kinds of - *AB512_R1* – 2 – insurance established under existing law.

(NRSR029-23) 680A.080,Section 681A.010-681A.080)1 Among the various kinds of insurancethis establishedbill undercodifies existingthose lawprovisions isof casualty insurance, which existing lawregulations definesinto tostatute. include vehicle insurance, liability other particular types of casualty insurance.

Existing law provides for the regulation of insurance and insurers in this State by the Commissioner of Insurance.

(Title 57 of NRS) Existing law establishes various kinds of insurance and prohibits the Commissioner from authorizing an insurer to transact in this State any kind of insurance other than the kinds of Among the various kinds of insurance established under existing law is casualty insurance, which existing law defines to include vehicle insurance, liability insurance, workers’ compensation and employer’s liability insurance and various other particular types of casualty insurance.

Section 2 expensesexcludes certain arrangements for prepaid legal services from the definition of legal among the various types of insurance that a casualty insurer may be authorized tod transact and subject to any applicable provision of existing law governing casualty insurance.

As- such,83rd underSession section(2025) 2,– legal2 expenses– insuranceEXPLANATION is– includedgalMatter amongin thebolded variousitalics typesis ofnew; insurance that a casualty insurer may be authorized to transact and subject to any applicable provision of existing law governing casualty insurance.

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

2.

The provisions of this section do not apply to:

- *AB512_R1* – 3 – (a) Vehicle insurance.

Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft or animal, together with insurance against accidental injury to natural persons, irrespective of legal liability of the insured, including the named insured, while in, entering, alighting from, adjusting, repairing,- cranking,83rd orSession caused(2025) by– being3 struck– by a vehicle, aircraft or draft or riding animal, if such insurance is issued as an incidental part of insurance on the vehicle, aircraft or draft or riding animal.

Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing,foregoing,sposal including supplemental coverage for medical, hospital, surgical and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery or theft by another, and, also, insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents, resulting from any cause.

Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery and apparatus of any kind,kind,f whether or not insured.

- *AB512_R1* – 4 – (h) Leakage and fire extinguishing equipment.

(i)- Credit83rd Session (2025) – 4 – damage resulting from failure of debtors to pay their obligations to the insured, and insurance of real property mortgage guaranty.lenders against loss by reason of nonpayment of the mortgage indebtedness.

Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured, and insurance of real property mortgage lenders against loss by reason of nonpayment of the mortgage indebtedness.

Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event or exhibition against loss from interruption, postponement or cancellation thereof due to death, accidental injury or sickness of performers, participants, directorsdir(n) orLegal otherexpenses. principals.

(n) Legal expenses.

and (3) The organization pays the attorneys with whom the organization has contracted fixed, prearranged payments and the attorneys receive no additional payment or reimbursement for thethe(o) specificMiscellaneous. legal services.

(o)Insurance Miscellaneous.against any other kind of loss, damage or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the Commissioner as being contrary to law or public policy, including insurance for home protection issued pursuant to NRS 690B.100 to 690B.180, inclusive.

Insurance against any other kind of loss, damage or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the Commissioner as being contrary - *AB512_R1* – 5 – to law or public policy, including insurance for home protection issued pursuant to NRS 690B.100 to 690B.180, inclusive.

Provision of medical, hospital, surgical and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under paragraphs (a) (vehicle), - 83rd Session (2025) – 5 – (b) (liability), (d) (burglary), (g) (boiler and machinery) and (j) (elevator) of subsection 1 shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and is not subject to provisions of this Code applicable to life and health insurances.