AB 437 — Provides for the establishment of the Fair Access to Insurance Requirements Plan. (BDR 57-103)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 15) (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT A.B.

Sections 14 and 15 establish provisions governing the issuance of - *AB437**AB437_R1* – 2 – policies and collecting certain fees from Association members.

- *AB437**AB437_R1* – 3 – (a) Exercise its powers through the Board;

There is hereby created the Board of Directors of the Association, as the governing body of the Association and to administer the FAIR Plan, consisting of the following nine12 members appointed by the Governor:

and (f) Two members, one of whom resides in Northern Nevada and one of which resides in Southern Nevada, representing the interests of consumers and, to the extent practicable, representing consumer advocacy organizations.organizations;

2.and (g) Three members, one of whom is a fire chief in Eastern Nevada, one of whom is a fire chief in Northern Nevada and one of whom is a fire chief in Southern Nevada.

The- term*AB437_R1* of– each4 member– of2. the Board appointed pursuant to paragraphs (a) to (f), inclusive, of subsection 1 is 3 years.

AThe memberterm mayof beeach reappointedmember for up to three additional terms of 3the -Board *AB437*appointed –pursuant 4to –paragraphs years(a) into the(g), sameinclusive, mannerof assubsection the1 originalis appointment.3 years.

A member may be reappointed for up to three additional terms of 3 years in the same manner as the original appointment.

- *AB437_R1* – 5 – Sec.

On or before July 1, 2026, the Board shall establish and submit to the Commissioner a plan of operation for the FAIR Plan which satisfies the requirements of sections 2 to 18, - *AB437* – 5 – inclusive, of this act.

(e) The establishment of reasonable standards for underwriting to determine the eligibility of a risk, includingwhich requirementsmust forinclude mitigationthe andrequirement inspectionthat ofcoverage property.under the FAIR Plan is only available if:

(1) A fire risk assessment is conducted on the property to be covered and the property owner implements the findings and recommendations for mitigation set forth in the assessment.

(2) During the 2 years immediately preceding the date on which the coverage begins, not less than three authorized insurers have declined to issue a policy of property insurance or commercial property insurance, as applicable, which covers the property;

and (3) During each 2-year period in which the property is covered by the FAIR Plan, the owner of the property applies to not less than three authorized insurers for a policy of property insurance or commercial property insurance, as applicable, to cover the property and each authorized insurer to which the owner applies declines to issue such a policy.

- *AB437_R1* – 6 – (i) Administration of the FAIR Plan by the Board, including any servicing agreements into which the Board may enter to support the operations of the Association.

The Commissioner may revoke approval of all or part of an approved plan of operation for the FAIR Plan, in - *AB437* – 6 – compliance with the requirements of this section, if the Commissioner determines that the approved plan of operation is insufficient to satisfy the requirements of sections 2 to 18, inclusive, of this act.

A policy of the Association may only be issued through a producer of insurance, who shall, on behalf of a person or entity - *AB437_R1* – 7 – and as part of the submittal of an application for a policy, include evidence of not less than three declinations of coverage for the property at issue.

and - *AB437* – 7 – (b) Shall not increase premiums based on a fee which is assessed pursuant to this subsection.

If the Commissioner determines at any time that the Association is or may become unable to meet the financial obligations of the association,Association, the Commissioner shall direct the Board to assess and collect fees pursuant to subsection 2 in an amount which is sufficient to restore the ability of the Association to meet its obligations.

- *AB437_R1* – 8 – Sec.

For the members identified in paragraph (a) of subsection 1 of section 10 of this act, one member to an initial term of 13 yearyears;an and one member to an initial term of 31 years;year and 2.

2.

- *AB437* – 8 – 4.

For the members identified in paragraphs (d) and (e) of sub5.ctForsubsection the1 membersof identifiedsection in10 paragraphof (f)this act, to initial terms of subsection1 1;year;

and5. of section 10 of this act, one member to an initial term of 2 years and one member to an initial term of 3 years.

HFor -the *AB437*members identified in paragraph (f) of subsection 1 of section 10 of this act, one member to an initial term of 2 years and one member to an initial term of 3 years;

and 6.

For the members identified in paragraph (g) of subsection 1 of section 10 of this act, to an initial term of 3 years.

H - *AB437_R1*