Bill > AB512

This bill revises Nevada's insurance regulations by codifying existing regulations into statute and expanding the definition of casualty insurance. Specifically, the bill prohibits insurers from issuing liability insurance policies that reduce coverage limits by defense costs or limit the availability of defense expenses. The legislation clarifies that these restrictions apply to specific types of insurance, including motor vehicle liability, homeowner liability, commercial general liability, commercial automobile insurance, and professional healthcare liability insurance. The bill also explicitly exempts certain types of insurance from these restrictions, such as risk retention groups, captive insurance without third-party liability, and nonadmitted insurers. Additionally, the bill expands the definition of casualty insurance to include legal expenses insurance, which covers the costs of specific legal services and expenses. However, the definition excludes prepaid legal service arrangements where an organization contracts directly with attorneys and pays them fixed, prearranged payments. By making these changes, the bill aims to provide more clarity and consumer protections in insurance coverage and legal expense regulations.

Business and Industry

Commerce and Labor (A)

https://www.leg.state.nv.us/App/NELIS/REL/83rd2025/Bill/12803/Overview